With the enactment of Law 5193/2025, Greece introduces targeted reforms to the REIC regime, streamlining application issues while retaining the core tax principles of Law 2778/1999, which remains the backbone of REIC legislation.

This update reinforces Greece’s position as a fiscally attractive and institutionally solid jurisdiction for real estate investment vehicles.

📚 Framework at a Glance

REICs (Real Estate Investment Companies) — the Greek equivalent of REITs — are regulated under: ✔️ Law 2778/1999 (as amended), and
✔️ Now updated through Law 5193/2025.

They are: 

🔹 Listed investment vehicles,
🔹 Supervised by the Hellenic Capital Market Commission (HCMC),
🔹 Required to invest at least 80% of their assets in real estate,
🔹 Obliged to distribute a significant portion of annual profits as dividends.

⚖️ Key Tax Benefits under Law 2778/1999 (Preserved by Law 5193/2025)

✅ Exemption from corporate income tax on income from:

• Real estate (rentals, gains),

• Interest,

• Dividends and royalties (foreign-sourced, with conditions).

✅ Dividends distributed by REICs are exempt from withholding tax.

✅ Capital gains from the sale of real estate and shares are not taxed at the REIC level.

✅ No real estate transfer tax applies when property is contributed to a REIC or transferred under qualifying restructurings.

✅ No capital concentration tax on share transfers under certain conditions.

📌 New Elements Introduced by Law 5193/2025

🔸 Clarifies the application of exemptions and simplifies administrative procedures.

🔸 Retains income tax exemption for Greek and foreign-sourced income (except Greek-source dividends, interest, royalties).

🔸 Interest on bond loans held ≥30 days before payment is tax-exempt; otherwise, a 15% withholding tax applies.

🔸 Gains from non-listed REIC share transfers are now explicitly tax-exempt.

🔸 Taxation is not profit-based, but based on: ➡️ The average semi-annual market value of investments and cash, ➡️ At a rate of 10% of the ECB reference rate +1 percentage point.

Although there were proposals to decouple the REIC tax base from the ECB rate (to ease burdens during high-rate periods), the existing method is maintained — for now.

📈 Why It Matters

This reform strikes a balance between stability and simplification, keeping Greece attractive for institutional and cross-border investors. REICs remain a flexible, tax-efficient tool for real estate portfolio structuring, acquisitions, and public-market access.