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Acquiring a property in Greece, whether for vacation, permanent residence or investment, is an attractive option for many Bulgarians. Although Greece is a member of the EU and the process is relatively simple, it is essential to be fully aware of all purchase fees and taxes for property in Greece. Understanding these costs when buying and the overall taxation of a foreign property is key to budgeting accurately and ensuring a hassle-free transaction.
Overview of the costs of buying a property in Greece
In addition to the purchase price of the property itself, there are a number of one-off and ongoing costs that you need to anticipate. Generally, these additional costs amount to between 8% and 15% of the property’s value, but can vary depending on the region, the type of property and whether it is new or for resale.
Basic fees and taxes when buying a property
- Property Transfer Tax(Φόρος Μεταβίβασης Ακινήτων – FMA / Property Transfer Tax):
- Rate: the standard rate is 3%. It is calculated on the higher of the two values:
- The objective (tax) value of the property (αντικειμενική αξία): this is a value set by the state which is often lower than the market value.
- The actual purchase price (selling price).
- Who pays: traditionally this tax is borne entirely by the buyer.
- Payment: payable to the tax office Before signing the final contract before a notary public.
- Rate: the standard rate is 3%. It is calculated on the higher of the two values:
- Value added tax (Φόρος Προστιθέμενης Αξίας – ΦΠΑ / VAT):
- When payable: This tax is only applicable to the purchase of new properties by developers whose building permits were issued after 1 January 2006.
- Amount: 24% VAT on the sale price.
- Important: In recent years, Greece has introduced a temporary VAT exemption for new construction (until the end of 2024 and possible extension) to stimulate the market. Check the current status at the time of purchase. If the property was built before 2006 or is a resale by an individual, no VAT is payable, only FMA.
- Who pays: the buyer.
Additional transaction costs and fees
These costs are not taxes but are mandatory for the purchase process and are paid to the relevant professionals and institutions:
- Lawyer’s Fee (Δικηγόρος / Lawyer’s Fee):
- Role: Your lawyer is key. He performs a thorough legal due diligence on the property – checking the title, encumbrances, mortgages, litigation, legality of construction. He reviews all contracts and advises you.
- Amount: fees vary but are usually between 1% and 1.5% of the property value (plus VAT). For cheaper properties there may be a fixed minimum fee (e.g. €1,000 – €2,000).
- Who pays: the buyer. The buyer.
- Notary fees (Συμβολαιογράφος / Notary Public Fee):
- Role: the notary draws up and certifies the final contract of sale. He is the official who ensures the legality of the transaction, collects the taxes and registers the deed.
- Amount: usually between 1.2% and 1.5% of the property value stated in the contract (plus VAT).
- Who pays: the buyer. The buyer.
- Civil Engineer / Architect Fee (Πολιτικός Μηχανικός / Αρχιτέκτονας / Civil Engineer / Architect Fee):
- Role: This specialist will carry out a technical inspection of the property to confirm the legality of the structure, compliance with the town plans and the absence of illegal extensions. He also issues the Energy Certificate (Πιστοποιητικό Ενεργειακής Απόδοσης – ΠΕΑ), which is mandatory in any transaction.
- Amount: about 1% to 2% of the property value (plus VAT), depending on the complexity of the property and the required certificates.
- Who pays: the buyer.
- Real estate agent commission (Μεσιτικό Γραφείο / Real Estate Agency Commission):
- Amount: usually between 2% and 3% of the purchase price of the property (plus VAT).
- Who pays: as a rule, the buyer pays. Some agencies also charge the seller.
- Payment: to be paid to the agency upon signing the preliminary contract or upon final transfer.
- Fees for registration in the Land Registry (Κτηματολόγιο / Land Registry Fee):
- Amount: about 0.475% to 0.5% of the property value, plus small fixed fees.
- Who pays: the buyer.
- Interpreter costs:
- What is: If the buyer does not speak Greek, the presence of a sworn translator(ορκωτός μεταφραστής) is mandatory when signing the final contract in front of a notary.
- Size: around €100 – €300, depending on the city and duration.
- Cost of obtaining a Greek tax number (AFM):
- Size: Free if you get it in person. If you authorize an attorney or other professional, they will charge you for the service.
- Cost of opening a bank account:
- Amount: Most Greek banks do not charge a fee to open an account, but there may be monthly service charges.
Annual costs after purchase
Once you are an owner, you will also have ongoing annual expenses:
- Unified Property Tax (Ενιαίος Φόρος Ιδιοκτησίας Ακινήτων – ENFIA / Unified Property Tax):
- Amount: this is the basic annual tax. It is calculated based on the property’s objective value and varies greatly depending on the location, size, age and type of property. It can range from a few tens of euros to several thousand euros per year.
- Municipal taxes (Δημοτικά Τέλη / Municipal Taxes):
- Includes garbage, lighting and other municipal services. They are usually paid through electricity bills and depend on the size of the property.
- Condominium fees (Κοινόχρηστα / Communal Fees):
- If the property is in a condominium or complex, you will owe monthly maintenance fees for the common areas (cleaning, lighting, elevator, garden, pool, etc.).
- Utilities: monthly bills for electricity, water, internet, gas (if available).
- Property insurance: recommended but not required (unless you have a mortgage).
- Rental income tax: if you rent out the property, the income will be taxable under Greek law.
Conclusion
Investing in real estate in Greece offers many advantages, but requires careful planning and an understanding of all purchase fees and ongoing costs. The total one-off cost of purchase (excluding the purchase price) is typically 8% to 15% of the property value. With proper budgeting and the mandatory assistance of qualified local professionals – attorney, notary and civil engineer, your transaction will be transparent and secure and your dream of a Greek home will become a reality.
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