Law 5313/2026: Key changes in real estate tax and investments

Main tax provisions of the law

1. Tax framework for Alternative Investment Funds

New provisions are introduced to enhance Greece’s competitiveness as a favorable jurisdiction for the establishment and management of investment funds while simultaneously modernizing the tax framework governing carried interest remuneration paid to employees of Greek established entities providing services to EU AIF managers or supervised third‑country AIF managers.

A. Tax treatment of Alternative Investment Funds (AIFs)

• The favorable tax regime for AIFs now applies also to AIFs established both in the European Union and in third countries provided that their registered office is not located in a non‑cooperative jurisdiction and are supervised by a competent authority of their country of establishment accredited to the International Organization of Securities Commissions (IOSCO).
• The management, delegation of management or portfolio management of EU AIFs or supervised third country AIFs is not regarded as effective management being exercised in Greece. The same applies to foreign legal persons and entities in which such AIFs hold, directly or indirectly, at least 95% participation and which operate exclusively for asset holding or investment purposes as well as to the unitholders of those AIFs.
• The provision of management services, delegation of management and portfolio management by Greek companies does not create a permanent establishment for EU and third‑country AIFs nor for foreign legal persons with 95% participation and the unitholders of those AIFs.
• Portfolio management or advisory services provided by Greek companies to EU AIFs or supervised AIFs of third countries do not create a permanent establishment in Greece for the AIFs, managers or unitholders.

B. Tax treatment of carried‑interest income as capital gains income at a rate of 15% for employees of Greek established entities providing services to AIF managers

Effective from 1.1.2026, carried interest income arising from a contractual right and paid to employees of legal entities established in Greece that provide services to:

(a) affiliated managers of alternative investment funds established in an EU Member State and subject to Directive 2011/61/, or
(b) managers of investment funds established in third countries, provided that their registered office is not located in a non‑cooperative jurisdiction within the meaning of Article 65 and they are supervised by a competent authority accredited to IOSCO, is taxed as capital gains income.

Prior to this amendment, the capital gains tax treatment applied exclusively to income received by natural persons participating, as members of the Manager’s team, in the carried interest of Venture Capital Mutual Funds (AKES).

C. Preferential tax treatment of carried‑interest income as capital‑gains income at a rate of 5% for employees of Greek established entities providing services to AIF managers who transfer their tax residence to Greece

Effective from 1.1.2026, the income is taxed as capital gains income at a reduced tax rate of 5%, provided that:

(a) the individual enters into an employment relationship with the Greek legal entity,
(b) the individual transfers their tax residence to Greece under Article 5C, and
(c) the legal entity incurs annual expenses in Greece of at least €3,000,000.

The reduced 5% rate is effective from the tax year in which the application under Article 5C para. 3 of thte ITC is filed and applies for 7 tax years with no extension permitted. 

Where the expenditure obligation covers a period shorter than twelve months within the tax year, the minimum annual expenditure amount is determined proportionally.

D. Deductibility of business expense

Effective from 1.1.2026, carried interest remuneration paid to employees of Greek established entities providing services to AIF managers based on a contractual entitlement qualifies as a deductible expense subject to the requirement that an equal amount is recognized as business income by the individuals receiving it.

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Other tax and regulatory provisions

2. Permanent establishment for regulatory‑compliance and supervisory purposes

The scope of exceptions from the definition of permanent establishment is expanded to include cases where an enterprise uses facilities in Greece exclusively for regulatory compliance and supervisory purposes by competent authorities. Under this provision such facilities do not constitute a permanent establishment for income‑tax purposes provided they are not used for business activity.

3. Changes to the alternative taxation regime for foreign source income of individuals and foreign pensioners who transfer their tax residence to Greece

The new law introduces significant amendments to the special tax regime for individuals who transfer their tax residence to Greece under art. 5A and 5B ITC. Specifically:

• The statutory deadline of 31 March for submitting the application, as well as the corresponding deadlines for its review, is abolished.
• The €100,000 lump‑sum tax (art. 5A) and the 7% flat tax (art. 5B) must now be paid in a single installment by the last working day of December, rather than July.
• The timing for submitting the application and the relevant procedural framework may now be set by decision of the Governor of the Independent Authority for Public Revenue (AADE).

4. Committee for Out‑of‑Court Settlement of Tax Disputes

Deadlines for submission, review and issuance of settlement decisions are extended as follows:

• Application deadline extended to 30 June 2027,
• Review deadline extended to 31 December 2027,
• Issuance of settlement decisions extended to 31 March 2028.

5. New rules for real estate reporting and ENFIA assessments

Substantial revisions are introduced regarding the determination of a property’s actual condition.

Specifically:

• In cases where a building has received an Electronic Building Identity and its actual surface area is smaller than that recorded in the cadastral entry, acquisition title, or building permit ENFIA is determined using the actual surface area evidenced in the Electronic Building Identity.
• A special procedure is introduced for updating the Real Estate Ownership and Management Registry (MIDA).
• New fines are introduced for failure to submit informational declarations to update MIDA regarding the use of a property in cases of lease or free concession.
• Existing real‑estate declarations and ENFIA assessments issued before the entry into force of the new provisions are not considered inaccurate if the difference relates to a building whose actual surface area (as evidenced by the Electronic Building Identity) is smaller than the area shown in existing records. No penalties apply and ENFIA certificates issued based on those declarations remain valid.

6. Tax incentives for participation in the “Build to Rent” program

A new program is established to increase housing supply through tax incentives granted to legal entities engaged in construction or real‑estate management.

Specifically, income arising from the leasing of properties included in the program is exempt from income tax provided the properties are offered exclusively for long‑term leases of at least ten years at a predetermined rent. The rent amount will be set by joint ministerial decision.

7. Special VAT regime for payment upon receipt of consideration

It is clarified that taxable persons with annual turnover not exceeding €2.000.000 may opt for the special VAT regime under which VAT becomes payable upon receipt of payment.

8. Registration tax for hybrid electric vehicles

Hybrid electric passenger vehicles benefit from a 50% reduction in registration tax, regardless of CO₂ emissions. 

Full electric vehicles and hydrogen fuel‑cell zero‑emission vehicles continue to enjoy a complete exemption from registration tax.

A 75% exemption applies to hybrid electric vehicles imported between 1 November 2025 and 31 May 2026 with CO₂ emissions not exceeding 75 g/km.

9. Out‑of‑Court Debt Settlement Mechanism

The minimum debt threshold for accessing the mechanism, including debts to financial institutions, the State and Social Security Funds, is now set at €5,000.

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