A ban on real estate transactions for cash has come into force in Greece
On January 1, 2024, a new law regulating real estate transactions came into force in Greece. According to this law, any purchase and sale agreement that specifies payment in cash is invalid. Such changes are aimed at combating tax evasion and preventing money laundering through real estate transactions.
Buyers who decide to use cash to pay for real estate are subject to severe fines ranging from €10,000 to €500,000. Additional penalties of up to €20,000 are also provided for non-compliance with the requirements for posting receipts and sales documents on the platform of the Independent Office of State Revenue (AADE).
The Greek Finance Ministry stressed that these measures were taken in response to the growing problem of unpaid taxes and the use of criminally earned funds to buy real estate. The legislation is aimed at strengthening tax discipline and reducing the possibility of hidden turnover of large amounts of cash in real estate.
According to the latest data from Ekathimerini, over the past five years, more than 338,000 real estate transactions worth an impressive €27.7 billion have been completed in Greece. Of these, more than 42,000 transactions worth €462.24 million were made in cash. Additionally, in 41,741 transactions, part of the amount was paid in cash, reaching a total of €2.98 billion, which underlines the need to take legislative measures to prevent the withdrawal of funds into the shadows and ensure the sustainable development of the country's tax system.
