In Greece, as elsewhere, buying a property involves several ancillary expenses that are important to budget for. From property taxes to transaction costs, this guide gives you an overview of the various fees of buying a house in Greece.

Buying A Property in Greece: An Overview of the Taxes

The commercial value of the property is the starting point for calculating the expenses of purchasing a property in Greece. First, the competent tax authority determines the property price based on factors such as its location, size, and condition. Then, the commercial value is used to calculate property taxes, registration fees, and transfer taxes.

Property Tax

Property tax is calculated on the property's market value and is charged according to a progressive scale ranging from 0 to 1%.

Property Transfer Tax

In Greece, the buyer pays a property transfer tax upon the property transfer. The tax rate is 3.09%. The tax is applied on the higher between the market and the property's objective value.

Municipal Taxes

The local government in Greece charges municipal taxes for the provision of local services, such as waste management, street lighting, and road maintenance. The city taxes are typically between 0.025% to 0.035% of the commercial value of the property.

VAT

Value-added tax (VAT) is a consumption tax applied to most goods and services in Greece. When purchasing a property, VAT is added to the fees of some professionals involved in the transaction, such as lawyers and estate agents. The current VAT rate in Greece is 24%.

Fees Associated with Purchasing a House in Greece

Registration Fees

The local land registry charges registration fees in Greece for property transfer registration. The registration fees are calculated based on the commercial value of the property and the transfer tax rate. They are typically between 0.2% to 0.5% of the commercial value of the property.

Bank Fees

If you plan to finance your property purchase with a Greek bank, you should know the additional expenses associated with the bank loan. For example, the bank may charge fees for the loan application, appraisal, processing, and disbursement. These fees vary depending on the bank and the loan amount.

Building Permit Fees

If you plan to build a property in Greece, you must obtain a building permit. The building permit fees vary depending on the size and complexity of the construction project. The fees are typically between 1% to 3% of the construction cost.

Lawyer's Fees

A lawyer can provide valuable assistance during the property purchase process, especially when dealing with Greek law and legal procedures. The lawyer's fees are typically between 1% to 2% of the commercial value of the property.

Notary Deeds

Notary deeds are required for the transfer of property ownership in Greece. The notary fees are typically between 1% to 2% of the commercial value of the property.

Power of Attorney

If you cannot attend the notary appointment in person, you may appoint a representative with power of attorney to act on your behalf. The power of attorney fees is typically between 1% to 2% of the commercial value of the property.

Estate Agent's Fees

Most individuals wishing to purchase property in Greece choose to work with a local estate agent. The real estate agency fee is minimum 2% of the property's purchase price.

Get a clear idea of the costs involved

Buying a home in Greece can be a complex process, and you have to be aware of all the costs involved before making a decision. In addition to the property's purchase price, there are several fees and taxes that you will need to pay. Working with a knowledgeable property lawyer and experienced estate agent can help you navigate the process and protect your rights.

Are you looking to buy a house in Greece, or have any questions about the buying process? Please contact us!

Summary of the costs of buying a house

It's important to note that the below costs are just estimates and may vary depending on the specifics of the property and the location.