The ‘freezing’ of VAT in newly built real estate For another year – and specifically by the end of 2026 – the prime minister is going to be announced Kyriakos Mitsotakis by the step of her TIF in Thessaloniki.

According to ERTin the context of the interventions and initiatives undertaken by the government to recover private building activity, to strengthen the growth of the economy and ultimately the resolution of the housing problem, the VAT rate will not apply to 2026, the VAT rate of 24%.

The “freezing” of VAT relates to all the manufacturer’s unmistakable properties, from all building permits issued (from 2006 onwards) and relate either its own properties or real estate that it erected by the consideration system, until the request for suspension.

With the preservation of today’s regime and in 2026, transactions for newly built real estate will continue to be taxed exclusively with 3%transfer tax.

Until December 31, 2026, the imposition of the Property Guard Tax, which is 15% and is imposed on the profits from the sale of property, calculated as the difference between the sale and acquisition price, has also been suspended.

The government’s plans are the “freeze” of real estate’s objective values ​​next year. Any changes will be limited to integrating new areas into the system without other adjustments.

VAT on the newly built real estate was first entered on January 1, 2006, with the exception of the first home. Until then, real estate sales were charged only with transfer tax. In the first year of implementation of the measure, the VAT rate was 19% to reach 24% in the Memorandum years. VAT on new buildings has remained for 13 years causing problems for the otherwise vulnerable market due to the economic crisis.

In 2019 it was decided to suspend the tax, specifically from 1 January 2020 until December 31, 2022 with the aim of stimulating the construction industry in general. Since then, continuous extensions have been announced with the latter exhaling at the end of 2025, and as it all shows there will be at least one more.

The benefit for the buyer from the “freeze” of VAT is important, as for every 100,000 value of the property saves 24,000 euros. For example, for an apartment worth 250,000 euros, VAT would reach 60,000 euros, while the transfer tax is only 7,500 euros.

The benefit reaches EUR 52,500, a large size that is largely considered the total outcome of the transaction. For a residence worth 300,000 euros, the cost of buying 24% VAT is 372,000 euros. With the suspension of VAT, the price of the same property drops to 309,000 euros, with only 3%transfer tax, so the buyer pays 63,000 euros less.