Filenews 26 November 2025 - by Eleftheria Paizanou
Under strict terms and conditions, the Tax Commissioner will stop – prevent the transfer of real estate in case of non-submission of tax returns and debts to the Tax Department.
This provision is included in the legislative package of the tax-reform, which is being discussed in the parliamentary Finance Committee. Specifically, in the bill on the taxation of Capital Gains, a provision has been introduced, according to which the Tax Commissioner may not consent to the transfer of immovable property, in case either the testator or the buyer are not fully compliant with their tax obligations towards the Tax Department, with the exception of sales acts.
This regulation caused reactions and reservations when it was put under the microscope of the competent committee, with the Commissioner of Taxation, Sotiris Markides, informing the MPs that he will include safeguards in the legal framework and will propose transitional provisions, so that the law is clear and its implementation is smoother.
This regulation is very important for the Tax Department, as in the long run it will be possible to build a tax culture and compliance. That is, everyone will know that in order to transfer a property they must be tax compliant, which is why, whether they want it or not, they will have to submit their income declarations and pay their tax every year.
The formula
The competent department recognizes that, in the event that this provision is implemented immediately, there will be some deregulation and dysfunction in the real estate market. The Tax Commissioner has already informed the MPs that he will include safeguards in the bill, so that buyers can be shielded through the gradual implementation of the legislation. The Tax Department has already prepared a relevant formula, which will be forwarded to the members of the Finance Committee, in order to strengthen and specify the specific provision in the bill.
Terms and conditions will be added to the legislation, which will make restrictions on the transfer of real estate more difficult or sparse. According to information, the conditions - exceptions that will be set will concern cases where a taxpayer has tax pending issues in court or has submitted an objection to the Tax Council. In such cases, the debts will be considered to be zero and he will be listed as tax compliant, until the examination of the cases by the competent bodies.
Also, the same treatment will be given to a taxpayer who is part of a settlement in the Tax Department and repays his debts through instalments and within an agreed schedule. Therefore, in these two cases, the transfer of the property will take place normally.
One-year time credit
In the meantime, another provision will be added that will further shield some of those affected. Specifically, taxpayers will be given a one-year credit to settle their tax obligations, with the legislation to prevent the transfer of property coming into force on January 1, 2027, instead of the 2026 currently provided for in the bill. As we are informed, during 2026 taxpayers will be able to submit all overdue tax returns and pay off tax debts.
Gradual implementation
The gradual implementation of the new tax regulation will concern transactions up to €100,000 and will be done as follows:
– From January 1, 2027, the Tax Commissioner will be able to stop the transfer of a non-compliant taxpayer's property for debts to the Tax Department over €1 million.
– From January 1, 2028, it will be able to stop the transfer of real estate for debts to the Tax Department up to €500,000
– From January 1, 2029, the Registrar will be able to block the transfer for tax debts of €200,000.
– From January 1, 2030, the transfer of real estate for tax debts of €50,000 will stop.
– From January 1, 2031, the transfer of real estate will stop for tax debts amounting to €10,000
In all cases, the main residence up to €500,000 will be exempt from the transfer restrictions.
Today, the legal framework provides that when the seller of the property has debts after a court decision, a MEMO (real charge) is placed on his properties.
