Special Tax on Real Property for Trusts Purchasing Real Estate in Greece

Under Articles 15 to 17 of Greek Law 3091/2002, Greece introduced the Special Tax on Real Property, which applies to legal entities holding real estate in Greece. This tax is levied annually, and since 2010, the rate has been set at 15%, calculated based on the value of the property.

The primary purpose of this tax is to combat tax avoidance, particularly by preventing individuals from using corporations—especially those registered in tax havens—to hold Greek real estate. If Greece permits corporations to own property, the tax authority may struggle to identify the corporation's actual business activities and, most importantly, its ultimate beneficial owner (UBO). To encourage individuals to purchase property in their own names rather than through legal entities, Greece implemented the Special Tax on Real Property to deter the use of corporate ownership structures.

However, not all legal entities are subject to this tax. The law exempts certain qualified entities from paying the Special Tax on Real Property, including:

• Publicly listed companies and their subsidiaries;
• Entities with active business operations in Greece, where operational income exceeds income derived from real estate;
• Shipping companies holding real estate for business purposes;
• Charitable organizations, churches, and religious institutions;
• Greek state-owned enterprises;
• Greek and foreign companies;
• Qualified investment institutions (e.g., social security funds, excluding those from jurisdictions on the EU tax blacklist);
• EU Alternative Investment Funds;
• Public limited companies (excluding those from jurisdictions on the tax blacklist);
• Limited liability companies and partnerships that disclose their UBOs and obtain a Greek tax identification number (TIN), provided they are not based in tax-blacklisted jurisdictions.

Are Trusts Subject to the Special Tax on Real Property?

Strictly speaking, trusts are not considered legal persons. Does this mean they are exempt from the Special Tax on Real Property? If trusts were classified as legal entities, could they qualify for exemptions by disclosing their UBOs?