The inheritance/parental gift tax is calculated, among other things, based on the objective value of the transferred property, ranges from 0% to 5% (see table below), and under certain conditions, it is possible to exempt a first residence from the parental gift tax.
The taxation of parental gifts is governed by the Code of Inheritance, Donations, Parental Gifts, Dowries, and Gambling Winnings, ratified by Article 1 of Law 2961/2001 (A’ 266), and by the Tax Procedure Code, Law 4174/2013 (A’ 170), as currently in force. According to these laws, a gift tax is imposed when any type of asset located in Greece is transferred by parental gift to an individual, including movable property abroad owned by a Greek citizen or a foreigner residing in Greece. The related tax declaration must be submitted before the notarization of the relevant contract to the donor’s competent tax office.
Current Tax Scales for Parental Gifts
| Value (EUR) | Rate (%) | Tax Amount (EUR) |
| 0 – 150,000 | – | – |
| 150,000 – 300,000 | 5% | 15,000 |
| 300,000 – 600,000 | 10% | 16,500 + excess |
Parental Gift of Money: Acquisition of money by parental gift is subject to a tax of 10%, calculated separately.
EXEMPTION FROM PARENTAL GIFT TAX
Under certain conditions, the first residence may be exempt from parental gift tax, specifically:
- Eligibility of the child:
- The child requesting the exemption, as well as their spouse and minor children, must not have full ownership, usufruct, or right of habitation of another residence, or an ideal share in a residence or buildable plot that satisfies the family’s housing needs, located in a municipality or community with over 3,000 residents.
- Housing needs are considered met if the total area of all these properties is 70 m², plus 20 m² for each of the first two children and 25 m² for the third and subsequent children of the beneficiary.
- Nationality/Residency: The child must be a Greek citizen or citizen of an EU/EEA country, and a permanent resident of Greece for at least one year.
- Property ownership: The property must be acquired in full ownership and entirely.
- Retention period: The residence or plot must remain under the child’s ownership for at least five years.
- Timely submission: The exemption request must be submitted with the timely declaration.
- Previous transfers: The donor must not have, in the previous five years, transferred by sale or gift:
- Usufruct, right of habitation, or ideal share of a residence or plot, or
- Bare ownership of a plot or ideal share that fulfilled the housing needs of the beneficiary.
The first residence exemption can only be used once. The child is not exempt if they, their spouse, or their minor children have previously benefited from an exemption for transfer, parental gift, or inheritance tax.
Exemption Limits
- Residence: Up to €200,000 for each minor or unmarried child, up to €250,000 for married children, plus €25,000 for each of the first two children and €30,000 for the third and subsequent minor children under the care of the beneficiary.
- The exemption includes a parking space and a storage area of up to 20 m² each, if part of the same property and acquired simultaneously.
- Plot: Up to €50,000 for each minor or unmarried child, up to €100,000 for married children, increased by €10,000 for the first two children and €15,000 for the third and subsequent children.
Previous parental gifts or dowries from the same donor to the same recipient after 31-12-2003 are taken into account when calculating the exemption.
The Minister of Finance defines, by decision, the procedures for verifying the exemption conditions, the required documentation, and any additional details necessary for implementation.
Finally, it should be emphasized that acquiring a property, even by parental gift, incurs costs. These include not only the applicable taxes but also notarial fees and registration fees at the relevant land registries or cadastre offices, which vary depending on the value of the transferred property.
