Buying a holiday home in Greece, who doesn’t dream of it: relaxing under the Greek sun. Should you consider this, you would like to know what additional costs you need to take into account. In this blog, we will elaborate on this. Because, the more information you have as a buyer about buying a property in Greece, the better informed the decision will be.

Fixed purchase price and transfer tax

First of all, you will face a fixed purchase price of about 5.6 per cent of the purchase price. This percentage can increase depending on whether an estate agent and/or lawyer is involved in the purchase.

There is also the transfer tax. This is 3.09 per cent of the commercial value of the property or, if higher, of the taxable value. This amount, before the purchase deed is signed, must be paid to the Greek Ministry of Finance. This is because the notary must attach a proof of payment to the deed.

Notary costs

Then there are the notary fees. In Greece, these fees are set by law with a minimum. Generally, notaries charge around 2 per cent of the sale price or the tax value of the property.

Which of the two variables is chosen depends on which value including VAT is higher. The notary prepares the deed which is signed in the presence of the parties or, if appointed, their lawyers.

Land registry costs

After signing the deed, the notary prepares an application and a summary of the signed deed. This is sent to the local land registry and registered. In this way, the transfer of ownership is completed according to the law. The cost for this is about 0.5 per cent of the property purchased.

Attorney fees and brokerage commission

While it is not compulsory to hire a lawyer, it is recommended. A legal expert can check what exactly you are buying and guide you through all the processes. Fees vary between 1 and 2 per cent, including VAT. This obviously depends on the services offered by the appointed provider.

When an estate agent is involved in the sale, you need to factor in an estate agent’s commission. Usually this is 2 to 4 per cent of the agreed purchase price, including VAT.

Costs for new-build homes

In case a completed new-build property is sold by a construction company, a VAT of 24 per cent applies. However, in an effort to support the real estate sector, the Greek government allows construction companies to apply for a tax exemption.

This 24 per cent VAT on the full purchase price is not due for new homes from the drawing. In that case, the buyer first buys the building land before construction begins. On the price of the land, the buyer pays 3.09 per cent transfer tax.

Real estate reforms

To make the real estate sector more competitive, Greece has introduced reforms. These include simplifying the sales process and putting procedures online. More work needs to be done but the start is there to boost Greece’s competitiveness.

Data from the Global Property Guide show that the transaction costs of acquiring an existing €250,000 Greek private home are lower than those in Portugal and Spain. Greece comes out above neighbouring countries like Italy in the global ranking compiled by the International Tax Competitiveness Index for 2021.

If after reading this blog you still have questions or feel like further orientation and are considering buying a home in Greece Visit the Second Home Expo in the Netherlands or the Second Home Expo in Belgium. Before you go, check the exhibitor list. This can vary from fair to fair.

Bron: Elxis