New Building Regulation & VAT Freeze in Greece 2025

New Building Regulation from September 2025: What Changes for Construction and VAT on New Properties

Starting in September 2025, Greece’s Council of State is expected to issue its final ruling on the New Building Regulation (NOK), a decision that will reshape the framework of construction and building rights. The Ministry of Environment has submitted a Presidential Decree draft that eliminates horizontal urban planning incentives, creating new conditions for both developers and property owners.

For investors monitoring the Greek real estate market, the changes in building regulations are critical, as they directly affect construction permits and property development opportunities.

Who can still build under the NOK incentives?

Those who began construction works – even at the excavation stage – by December 11, 2024, and who do not face pending legal challenges, will be allowed to benefit from the regulation’s provisions, such as building higher structures. Developers who missed the deadline will have to revise their building permits, removing features ruled unconstitutional by the Council of State, such as mezzanines, rooftop structures, or pools excluded from building ratios.

Zero VAT on new properties until 2026

In parallel, the government has extended the suspension of 24% VAT on new-build properties until the end of 2026. All sales will only be subject to a 3% transfer tax, reducing costs for buyers and boosting demand. For example, a home valued at €200,000 would have cost €248,000 with VAT; under the suspension, it now costs €206,000 – a €42,000 saving for buyers.

This measure is expected to further stimulate demand for new property investments, especially in urban centers where housing demand remains high.