Key takeaways
- Reduced VAT rates extended: Greece has prolonged the 13% and 6% VAT rate reductions on various goods and services until December 31, 2023.
- Support for essential items: Personal hygiene products like masks, soap, and antiseptics will continue to benefit from the 6% reduced VAT rate.
- Property VAT suspension: The 24% VAT on new buildings remains suspended until 2024 to boost real estate investment.
In an effort to reduce the impact of inflation and the economic difficulties arising from the COVID pandemic and energy crisis, Greece has made a number of changes to VAT rates for 2023. Here are the main updates to Greek VAT.
Extension of 13% and 6% Greece VAT rate reduction
The Greek government has extended the 13% VAT rate reduction applied to non-alcoholic drinks, supplies and imports of works of art, dance schools and gyms, passenger transport, and zoo tickets until December 31, 2023.
Also being extended to December 31, 2023, is the reduction to 6% of the Greece VAT rate on personal hygiene and protection products, including face masks, gloves, soap, antiseptics, and ethyl alcohol. Some services, such as cinema tickets, and theatre and concert tickets, will also remain at 6% until the end of 2023.
No Greek VAT on new buildings until 2024
To encourage investment, the 24% Greece VAT rate normally applied to the purchase of new properties has been suspended until 2024. This means that anyone buying a new build property in Greece (whether foreign or a citizen) will not have to pay the VAT on property until 2024.
Frequently asked questions
Which goods and services are included in Greece’s reduced VAT rates for 2023?
The 13% VAT rate continues to apply to non-alcoholic drinks, gyms, dance schools, passenger transport, zoo tickets, and art imports. The 6% rate applies to hygiene products, cinema, theatre, and concert tickets.
Is VAT still charged on new buildings in Greece?
No. The 24% VAT on new property purchases has been suspended until 2024 to encourage real estate investment.
