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Greece Property Purchasing Process, Taxes & Expenses

Greece Property Taxes, Fees, Rates

There are straight forward procedures when buying a property in Greece.  The Greek legal system secures the buyer's position and the title deed of a property is issued simultaneously with the settlement and signing of the final contract.  

Our property specialists will guide you all the way through from choosing the right property till the day of registering the title deed.  The following steps are taken:

 

1.

Appoint an independent Lawyer

Lawyer’s fee: 1% + vat (of the contract amount), so at the moment is 1,24%.

2.

Appoint a Public Notary

We can arrange the signing of the final agreement at a public Notary’s office, according to the Greek Law.  The signing of the final contract is done in the presence of the Public Notary at his/her office, whom by the Greek Law is responsible for the validity and legitimacy of the title deed of the Buyer.

Note:

a)      During the signing of the contract, the Public Notary is obliged to arrange the presence of an official translator in order to explain to the Buyer at his/her mother tongue all legal terms.

b)      The Buyer can sign him/herself the contract, OR, give a power of attorney to the appointed Lawyer and sign on his/her behalf.

 

 

3.

Issue a tax registry number (‘AFM’)

We assist the clients to issue the Greek tax registry number in order to proceed with the opening of a bank account as well as to purchase a property.  The tax registry number is applied for and issued by the Inland Revenue Service.

The AFM (in Greek: Α.Φ.Μ.) is the Greek tax registration number and required by the Greek Tax Authorities and it is necessary for purchasing or renting a property, opening a bank account, buying a car and in many other occasions.  Requested documents to issue the AFM usually are: copy of passport.

Note:

a)      The Buyer can obtain the AFM him/herself, OR, give a power of attorney to the appointed Lawyer and receive it on his/her behalf.

4.

Title Deed Transfer fees

The transfer of title deed tax must be paid to the local Inland Revenue Service by the Buyer prior to signing the contract and we assist clients throughout the process.  This is one time government fee applicable to all property buyers, fees are as follows:

i) For Properties with building license issued UNTIL 31.12.2005, the title deed transfer fee is: 3% (on contract value).

 

ii) For Properties with building license issued AFTER 31.12.2005, instead of title deed transfer fee, there is a VAT payment 24%.  (based on contract value)

 

Notes:

a) Check our property portfolio to find properties that are VAT exempt and save approx. 21% !

b) The Buyer can pay him/herself the above tax, OR, give a power of attorney to the appointed Lawyer and pay it on his/her behalf.

 

VAT, as explained above, for projects/properties which the building permit was issued before 31.12.2005, there is no VAT.  IF the building permit of a property is issued after 31.12.2005, then VAT is 24% .

 

5.

Signing the sales contract

The final contract is signed in the presence of a Public Notary.  When the contract is signed, the Notary registers the transaction at the local Registry of Mortgages.

 

The fee of public Notary is: 1,5% (approx.) on the contract price.

 

6.

Effect transfer at the Registry of Mortgages

The Notary ensures that the title deed is transferred to the Buyer's name(s) by obtaining the relevant certificate from the Registry of Mortgages.

Title Registration fee is payable by the Buyer: 0,5% (approx. of contract amount).  This is a one-time fee.

7.    Permanent Residence Application ANd Lawyer’s fee: we have negotiated special fees to issue the PR and an independent Lawyer will handle the whole PR process.  Fees are as follows:

Application fee is €500 for every Applicant, plus:

- One Buyer: €1.000

- One Buyer with spouse and one child: €1.500

- One Buyer with spouse and 2 children or more: €2.000 

 

8.    Capital Gains Tax (on the sale of property) which at the moment is:

 

In the case of reselling a property, the Owner (Seller) of the property pays on the profit a tax of 20%, with the following  notes:

 

- If the property is kept up to 5 years, the taxable amount (of the profit) is 90% (at the rate of 20%).

- In case the property remained at the ownership of the seller for 5 – 10 years, the taxable amount (of the profit) is 80% (at the rate of 20%).

- In case the property remained at the ownership of the seller for 10 -15 years, the taxable amount is 75% (at the rate of 20%).

- In case the property remained at the ownership of the seller for 15 -20 years, the taxable amount is 70% (at the rate of 20%).

- In case the property remained at the ownership of the seller for 20 -25 years, the taxable amount is 65% (at the rate of 20%).

- In case the property remained at the ownership of the seller for 25+ years, the taxable amount is 60% (at the rate of 20%).

Notes:

i) IF the possession of the property exceeds the five – year duration, and the profit from reselling the property is less than €25,000  and it is the first property sale within Greece, then there is NO Capital Gains Tax.

 

ii) This Capital Gains tax will have to be fully paid before the execution of the transfer of the property to the new Owner.

 

iii) Profit is the difference between the acquisition cost (purchase price) and the new sales price.

 

9.    Medical Insurance: medical insurance is requirement by the PR law.  Each Applicant (of PR) must have a medical insurance in Greece.  The insurance fees depend on the age of each Applicant.  In general, medical insurance fees start from 250Euros per year upto 500Euros.  Our After Sales Team will put you in contact with Greek Insurance companies.