A purchase of the real estate in Greece was studied by many foreigners in connection with the general falling of the prices in recent years.
Potential buyers are interested in acquisition of property either for private use or for operation. But let's look at the main points that every buyer should know before moving on to purchasing real estate.
Purchase – Levies
The cost of purchase varies depending on types, the size of a real estate object, the square on which it is located, and is a subject of free negotiations with the seller. The basic duty is the Real Estate Tax (Φ.Μ.Α.) on transfer of property which is estimated at 3 percent.
In exceptional cases, for real estate with a construction permit issued after December 31, 2005 and it is sold by an individual or legal entity in the course of its activities, the first re-registration is paid at a rate of 24%.
The percent of a transfer tax of an object and all other extra charges is calculated on the basis of the highest price between purchase and sale and objective value of property. The objective value is monetary assessment according to the Greek tax authority which is defined by the notary and for its calculation, the property type, its size (area), the place where it is, year of its acquisition, the floor, etc. is considered.
Other collecting about which it is worth knowing is the fees of the notary which are in range from 0.80 to 2 percent, transcription cost in the land registry from 0.475 to 0.575 percent and the fees of the accountant and lawyer (if there is nay) from 200 euros.
Maintenance – Levies
The main burden during a period of maintenance of property is the annual single tax on the real estate (ENΦΙΑ) which depending on the area of the real estate and location, makes from 0.001 to 13 euros for each square meter.
For owners of the real estate with the total objective value more than 250.000 euros the additional tax is levied from 0.10 to 1.15 percent (for legal entities the fixed tax is 0.55 percent) always in relation to the total objective cost. There is also annual municipal tax which makes about 0.03 percent a year from the objective value of the real estate.
The annual cost of tax representation and accounting begins from 50 euros for those who use property for own needs or do not use it in general.
Rentals – Levies
In case of property leasing by the physical person, there are two types of collecting and pay off step by step:
For legal entities the fixed tax rate of 29% is established, and the dividend tax is established of 15%.
The cost of the annual tax representative and accounting of taxes begins from 70 euros and is based on quantity of real estate objects and rent which were concluded within a year.
Donation – Levies
Property donations are subject, after deduction of the tax-free amount, to staggered taxation which may reach up to 10% of the target value if the donation is made to parents, children or spouses and grandchildren, up to 20% if donation is made to siblings, uncles or nephews and up to 40% if they are made to any other third party. The cost of transcription in the Land Registry is 0,775% - 0,875% of the fair value of the property.
Heritage - Levies
Property inheritance is taxable in the amount from 1 to 10 percent from its objective value for close relatives after a deduction of the sum of non-taxable. For other successors the tax makes 40 percent. The payment for renewal in local offices of registration of the land or cadastral offices approaches 25 euros per property for the person taking the real estate and for the deceased.
ATTENTION! This article intends to give only a general informative picture and should not, in any case, be taken as a rule. It is strongly recommended to seek a full and professional guidance specifically for your circumstances before making any decisions.