Law No 4714/2020 brought important changes favoring donations made by Greek residents who used to reside abroad, as well as parental or monetary donations made by parents, Greek or foreign nationals, to their child for the purpose of buying a property that will be used by the child as their main residence. Those new favorable provisions reflect the numerous efforts made over the years by the Greek government to create a favorable environment for investments and main residence purchases as well as drive the Greek Real Estate market forward. This is all part of a greater effort to increase the country’s economic growth.
Το be more precise:
- Donations regarding movable assets located abroad, made by Greek nationals who used to reside abroad for more than ten consecutive years, are exempted from taxation. In that case, the donor has to provide specific proof regarding the amount of time they resided abroad, the amount of time that has passed since their relocation to Greece as well as the time and place those assets were acquired.
- Parental donations as well as monetary donations made from parents to children for the sole purpose of being used by the child to purchase real estate that will be used as their main residence will be exempted from taxation as well. This kind of tax exemption is only valid up to a certain sum. In the event the donation exceeds this sum tax will be imposed according to the amount of money donated.
In order for this tax exemption to be applied it is an essential prerequisite for the parents to prove their donation will be used by the child to purchase property that will be used as the child’s main residence.
It should be noted that the aforementioned provisions do not apply retroactively but take effect after the date the aforementioned law was published in the Government Gazette (FEK).
For more information regarding the supporting documents and written evidence required by the applicants, the monetary sums on which tax exemption is applied as well as the specific dates the aforementioned provisions take effect, please do not hesitate to contact us.
