Buying property in Greece is charged with several fees, which usually add up to 10-15% to the price. Most fees are based on the property˘s guiding value, which usually is lower than its real price, and usually depends on the location of the property –real estate in holiday resorts or islands tend to present a higher guiding value than those in distant, or less popular areas. The guiding price is calculated by the local Tax Office, based on the state reference charts, using criteria like the location, the size, and the major features of the property.
The fees involved in the purchase of property in Greece are the following:
- Added Value Tax (only on new buildings)
- Purchase or transferring tax
- Land Registry Service fee
- Notary Public˘s fee
- Attorney˘s fee
- Municipal Tax
- Real Estate Agent˘s fee
- Utility Charges
Value Added Tax (VAT)
As per Law 3427/2005 of the Greek legislation, any property for which the construction permits have been issued later than January 1st, 2006, bare the burden of VAT, 24%. Please note that, for the above category of property, the VAT has replaced the Purchase Tax or Transferring Tax the buyer was obliged to pay for property with a permit of construction issued prior to 01/01/06.
When buying a property with building permit issued before 01/01/2006, the largest cost is the purchase (or transferring) tax, based on the property˘s buying price. The purchase tax is paid by the buyer, at a rate of 7% on the initial ¤15,000, and 9% on the remaining of the value, unless the property is at an area covered by the public fire brigade service –these areas include those most popular among foreign buyers. In this case, the rates are increased to 9% on the initial ¤15,000, and 11% on the remaining of the value.
The purchase tax is paid before the final contract of purchase may be signed, and the notary public requires a receipt of payment in order to validate the sale.
Land Registry Service fee
The Land Service fee is from 0.3% to 0.5% of the guiding price, plus a small amount as stamp and certificate charge.
Notary Public˘s fee
The compensation of the Notary Public, who prepares the final purchase contract and validates the final sale, is usually 1-2% of the property˘s real value. Please note that, to compute the Notary Public˘s fee, the value of the property is either the property˘s guiding value, or the price quoted on the purchase contract, whichever is the largest. These fees also comprise minimum charges for each sheet and document attached to the contract.
As per the Greek legislation, any transaction involving real estate property, the value of which surpasses ¤29,347 for the region of Athens and Piraeus, and ¤11,738 for property in all other regions of Greece, is to be assigned to an attorney. The attorney˘s fee is 1% for the initial ¤44,020 of the property price, the rate stepping down up to 0.01% as the property price increases. Please note that, to compute the Attorney˘s fee, the value of the property is either the property˘s guiding value, or the price quoted on the purchase contract, whichever is the largest.
A municipal tax of 3% on the property˘s transferring tax is to be paid to the local Municipal Authorities, for the provision of general public services, i.e. road maintenance.
Real Estate Agent˘s fee
Real estate agents fees are 2%–5% of the purchase price. In Greece, the real estate agents fees are born by both the seller and the buyer of the property, while in many other countries the real estate agent fee is higher (an average of 5%), but it is born solely by the seller of the property.
When you buy your new property, you normally have to pay for the supply or electricity, gas, and water, as well as for the installation of the relevant gauges. Whether the charges for connection to the mains circuits is included to the supply fees or are considered as an extra charge, should be clearly stated in the documentation.