How much does it cost to purchase a house in Greece?
House Purchasing in Greece
The more knowledge a buyer has regarding purchasing a house in Greece, the better. Here at Economou & Economou Law Office, we’ve provided a clear, concise breakdown of the expenses related to obtaining your ideal home.
The top real estate attorneys in Greece at the Economou & Economou law office in Athens are available to assist with procedure management and to walk you through each step of the way. Check out what people are saying about our top-notch services. Generally speaking, fixed buying costs for investors are 5.6% of the purchase price; however, this percentage may go up based on the involvement of a real estate agent and/or a lawyer.
1. Tax on transfers. The buyer is responsible for paying this tax, which is 3.09 percent of the home’s taxable value or commercial value, whichever is higher. Prior to the purchase deed being signed, this sum must be paid to the Greek Ministry of Finance because the notary must affix the evidence of payment to the deed.
2. Notary fees. The deed is prepared by the notary public and signed in front of the parties or, if designated, their attorneys. 2. Greek law establishes the minimal fees for notaries. Typically, notaries take up to 2% of the property’s tax value or the sales price (plus VAT), whichever is greater.
3. Registry fees for land. In order to legally complete the transfer of property, the notary prepares an application and a summary of the signed deed to be sent and registered at the local land registry after the deed is signed. The amount owed for land registry fees is approximately 0.5 percent of the sold property. In addition to those fees, the purchaser ought to consider:
•Legal fees. While having legal counsel throughout the process is not required, it is strongly advised that you have one as they can verify exactly what you are purchasing and help you navigate it. Their charges, which vary based on the services provided, range from 1 to 2 percent (plus VAT).
•Real estate commission of an agent. If a real estate agent is involved in the transaction, commission is due. The commission that most agencies charge is between 2 and 4 percent of the purchase price that was agreed upon (plus VAT).
RECENTLY CONSTRUCTED HOMES
A 24 percent value-added tax (VAT) is applicable if a construction company sells a newly constructed home that is completed. But the Greek government allows construction companies to apply for an exemption from this tax in an effort to boost the real estate industry.
When new homes are sold off-plan, there is no need to pay this 24% VAT on the entire purchase price. The buyer would then begin by purchasing the building plot and paying the 3.09% transfer tax on the plot’s purchase price before construction begins.
Greece has been enacting real estate reforms in the past few years in an effort to increase industry competition. Simplifying the sales process and moving procedures are two of the changes being implemented.
Contact the best real estate lawyers in Greece of the law firm Economou & Economou in Athens at econlaw@live.com or call us at (+30) 2103603824 or fill out our contact form and make yours the house of your dreams in Greece enjoying the exciting experience of owning a house in the sunny Mediterranean weather!
For more information about real estate law in Greece follow the links
