Buying Property in Greece : Taxes and Fees
Sofia Pesiou, Monday, 11 November 2013
This article is part of a series of 8 articles about buying property in Greece. The other articles in the series cover the following topics:
In Greece, all taxes and fees are based on the Tax Assessed Value or else objective value, which is the monetary value of a property according to the Greek Minister of Economics. However, this value is not standard and it depends on the location, age, size and extra features of each property. It could be considered as an equivalent to stamp duty in the UK. The Tax Assessed Value in Greece is usually lower than the actual price. The recent bills voted have been quite friendly to foreign investment in the Greek real estate markets. Firstly, those who buy property over 250.000€ have the right to apply for 5year visa residence for themselves and their families. Secondly, the law 3943/2011 exempts foreigners who live in Greece and those who are going to settle permanently in the country (in the next two years from the date of the purchase) from the obligation to pay the purchase or transfer taxes of their first residence. Nevertheless, for the buyers with no such intention, transfer taxes along with all the following taxes apply:
Before purchasing your property, foreigners need to apply for a Tax Registry Number (AFM) at the local departments of Ministry of Economics usually known as DOY. Moreover, they should open a bank account in a Greek bank.
Yearly Taxes on Property
Although there is a bill to be voted in the Greek Parliament for the reduction or even the annulment of the transfer tax from the year 2014, there are currently three yearly taxes imposed on property.
This article is part of a series of 8 articles about buying property in Greece. The other articles in the series cover the following topics:
In Greece, all taxes and fees are based on the Tax Assessed Value or else objective value, which is the monetary value of a property according to the Greek Minister of Economics. However, this value is not standard and it depends on the location, age, size and extra features of each property. It could be considered as an equivalent to stamp duty in the UK. The Tax Assessed Value in Greece is usually lower than the actual price. The recent bills voted have been quite friendly to foreign investment in the Greek real estate markets. Firstly, those who buy property over 250.000€ have the right to apply for 5year visa residence for themselves and their families. Secondly, the law 3943/2011 exempts foreigners who live in Greece and those who are going to settle permanently in the country (in the next two years from the date of the purchase) from the obligation to pay the purchase or transfer taxes of their first residence. Nevertheless, for the buyers with no such intention, transfer taxes along with all the following taxes apply:
- Purchase or transfer tax
The new owner, of a property older than 2006, is liable to pay 8% for the first 20,000€ and 10% for any amount exceeding that. This tax as all the rest are calculated based on the Tax Assessed Value. - Value Added Tax (VAT)
Value Added Tax (VAT) is paid instead of transfer tax only in cases where the building license has been issued after 1.1.2006. The rate of VAT is 23% . - Capital Gains Tax
For properties purchased after the 1st January 2013 the new Capital gains tax will affect a sale of this property in the future. This Capital gains tax, which will have to be fully paid before the execution of the transfer of the property, will be imposed on the difference between the acquisition cost (price that is written on the purchase notary contract) of the real estate property to be transferred and its sales prices. - Community or Municipal Tax
This is a tax is 3% of Tax Assessed Value and it has to do mainly with road maintenance, lightning of the street, collection of waste and cleaning of the whole area where the property is located. - Land Registry Fee
The Land Registry Fee is 4.75‰ of the Tax Assessed Value plus a small sum for stamp duties and certificates. - Lawyer’s Fee
The legal fee is 1% for property up to 44.020€.
For property that costs up to €1.467.351 the fee is 0.5% of the total value.
For cost up to €2.934.702 the fee is 0.4% of the total value.
For cost up to €5.869.405 the fee is 0.3% of the total value.
For cost up to €14.673.514 the fee is 0.2% of the total value.
For cost up to €29.347.028 the fee is 0.1% of the total value.
For cost up to €58.694.057 the fee is 0.05% of the total value.
For any further amount the fee is standard at 0.01% of the total value.
The legal fees can vary upwards depending on the case and on the agreement one has made with the lawyer. It is advisable to hire a lawyer as they carry out all the necessary legal property surveys and conduct a property title check before the purchase. - Notary’s Fees
A notary will review all the official documents and ensure the legal transfer for a standard charge of 2% of the Tax Assessed Value. There are some extra fees for each sheet and document that is included in the contract. - Real Estate’s Fees
A real estate’s fee varies between 2%-5% of the Tax Assessed Value. It is usually paid by both the purchaser and the vendor by agreement. Payment is due upon signing of contract. - Surveyor’s Fees
The inspection of the property by a surveyor is highly recommended though it is not something obligatory. The fees start from 200€ and range from one region to another. - Utility Fees
Every new contract for electricity in the National Company of Electricity (DEH) costs about 100€ while a new contract in the Water Company about 50€. The cost of gas installation varies in different areas and it depends on the size of the property, too.
Before purchasing your property, foreigners need to apply for a Tax Registry Number (AFM) at the local departments of Ministry of Economics usually known as DOY. Moreover, they should open a bank account in a Greek bank.
Yearly Taxes on Property
Although there is a bill to be voted in the Greek Parliament for the reduction or even the annulment of the transfer tax from the year 2014, there are currently three yearly taxes imposed on property.
- Yearly Property Tax (FAP)
For property whose value exceeds the amount of 200.000€, there is the Yearly Property Tax (FAP) which varies from 2‰ -2% and it can also be paid in installments upon request. - Emergency Property Tax (EETA)
The Emergency Property Tax is a relatively new economic measure collected in two installments through the electricity bills and varies from 2.5€-17€/m2 . - Yearly Property Tax (TAP)
All owners are obliged to pay TAP, the Yearly Property Tax, which is a special yearly levy and varies from 0.25-0.35‰ and which can also be paid in several installments after agreement with the local departments of Minister of Economics.
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