ALL YOU NEED TO KNOW HOW TO BUY A PROPERTY IN GREECE…
EXPENSES OF THE BUYER
The whole picture of costs when buying a property in Greece ….
When buying a holiday home or main home abroad, it is easy to make the mistake of focusing solely on the price of the property during the planning stage. However there are some substantial transaction costs associated with buying property in Greece, not to mention maintenance costs once you are an owner. All of these costs need to be identified and quantified if you are to avoid financial distress.
Cost of the property
Value Added Tax ( VAT)
Land Registry Fee
EXPENSES FOR THE BUYER
Transfer Tax :
Property purchases in Greece are subject to taxation. It is obligatory for the purchase tax to be paid prior to signing the contract. The amount of tax is calculated on the value of the property that is mentioned in the contract.
When it comes to buildings :
– If the Building Licence was issued before 01/01/06, then the tax is charged at 3,09% of the property value mentioned in the contract .
– If the Building Licence was issued on or after 01/01/06 and the seller is a developer-contractor, taxation of 24% of the purchase price will apply.
Municipality tax :
An amount of 3 % of the Transfer Tax is to be paid to the local Municipality.
Notary fee :
The notary fee is calculated in most cases at 1.6 %, including tax and VAT, of the property value mentioned in the contract. This fee is decreased as the the amount of the purchase price is increased.
Land Registry fee :
Land registry fees include registrar’s rights, certificates, and stamp duty. They are calculated at 0.475-0,575 % of the property value mentioned in the contract, plus 24 % Value Added Tax (V.A.T.).
Lawyer fee :
The legal fee is a matter of agreement but usually it is 1% of the property price or a minimum of 1.500 Euro plus taxes. The legal fee is also affected by the extent of the service provided by the lawyer and it is all upon agreement by mutual consent between the buyer and the lawyer.
Real Estate Agent’s Commission :
The buyer pays 2 % of the property price as a fee for the real estate agent.