Owning Property via a Company in Greece

Owning Property Through a Company in Greece: Real Tax Numbers, When It Works, and When It Backfires

Owning property in Greece through a company is often marketed as a tax-smart or flexible structure. In reality, it is a decision that fundamentally changes how the property is taxed, how income is treated, and how easily the asset can be sold later. In many small or medium-size investments, company ownership increases total cost rather than reducing it.

This guide explains company ownership using actual Greek tax figures, not assumptions, and shows where this structure makes sense and where it quietly destroys returns.

Buying Property Through a Company: What Changes Immediately

When a company buys property in Greece, the purchase tax is the same as for an individual.

Property transfer tax:

3.09% of the taxable value

So at acquisition, there is no tax advantage to using a company.

The difference begins after the purchase.

Ongoing Taxes: Companies Are Taxed Even When Owners Aren’t

If the property generates income, the company pays:

Corporate income tax:

22% on net rental profit

If profits are then distributed to shareholders, an additional tax applies:

Dividend withholding tax:

This means rental income can be taxed twice.

Example (simplified):

Net rental profit: 20,000 €
Corporate tax (22%): 4,400 €
Remaining profit: 15,600 €
Dividend tax (5%): 780 €
Net to shareholder: 14,820 €

Effective tax burden: ~26%, before accounting costs.

Accounting and Compliance Costs (Even With No Income)

A company owning property must:

keep accounting books
file tax returns
maintain corporate compliance

Typical annual cost:

1,200 – 3,000 € per year, even if the property is empty

An individual owner does not face this fixed cost.

For low-income or lifestyle properties, this alone can eliminate returns.

ENFIA Still Applies (Many People Miss This)

Owning property through a company does not eliminate ENFIA.

The annual property tax applies regardless of ownership structure.

So company ownership adds cost — it does not replace personal property tax.

Personal Use of Company-Owned Property (Hidden Tax Risk)

If a shareholder uses a company-owned property personally:

authorities may treat it as a taxable benefit
or as hidden profit distribution

This is frequently challenged in audits and can create retroactive tax exposure.

Personal use is not neutral under a company structure.

Short-Term Rentals Through a Company

When a company operates short-term rentals:

the activity is clearly classified as business income
compliance requirements increase
tax scrutiny is higher

Depending on activity level and services provided:

VAT obligations may arise
additional reporting may be required

This is very different from casual individual short-term rentals.

Exit Reality: Where Company Ownership Hurts Most

Selling a company-owned property creates problems most buyers don’t anticipate.

Options:

sell the property → corporate tax applies
sell company shares → many buyers refuse
liquidate company → costly and slow

Many end buyers prefer personal ownership, not share deals.

This reduces liquidity and negotiating power.

When Company Ownership Actually Makes Sense

Company ownership can make sense when:

the investment is large-scale
multiple properties are involved
rental activity is substantial
profits are reinvested, not distributed
long-term corporate holding is planned

In these cases, the structure supports scale.

When It Is Usually a Mistake

It is usually a mistake when:

the property is a vacation home
rental income is modest
personal use is important
exit flexibility matters
tax planning is done informally

In Greece, simplicity often outperforms structure.