Tax Audit: How the Council of State Changed Property Transfers

💡 What does the recent Council of State decision mean for property transfers?
The recent Decision 848/2025 of the Council of State (CoS) marks a pivotal development for real estate transactions in Greece. In practice, it confirms the right of the Tax Administration to determine the actual sale price of a property, even if this is higher than the amount stated in the contract or the objective (assessed) value. The tax authority is no longer bound solely by the formal figures recorded in the contract.

💰 By what means can the tax authorities verify the actual property price?
Tax audits are significantly strengthened, as the tax authorities may now rely on any appropriate evidence beyond the stated amount. This mainly includes:

• Banking Data: Review of bank movements, transfers, and other transactions indicating the real financial consideration paid.
• Indirect Evidence: Use of any indirect elements that may reveal discrepancies between the declared amount and the amount actually paid.

In the case that led to the decision, the ruling was based on banking documents, despite the audited company’s claims that the stated price was accurate.

❓ What is the practical significance of this development for buyers and sellers?
The Council of State’s decision serves as a strong warning to all parties involved in property transfers—both individuals and companies.

• Combating Tax Evasion: Efforts are reinforced to identify cases where artificially low prices are declared for tax purposes.
• Accuracy in Declarations: Stating inaccurate or understated amounts in contracts now carries an increased risk of penalties, as tax authorities have powerful audit tools at their disposal.
• Legal Certainty: At the same time, the framework for administrative audits is clarified, ensuring that any penalties imposed are based on valid and clear legal provisions, thereby enhancing transactional certainty.

It is crucial to be fully honest and transparent when declaring the consideration of a transaction.