There are a number of costs involved in buying property in Greece, including property taxes, legal fees and certain additional fees. You will also need to consider the impact that currency exchange rates will have on the overall cost of buying in Greece.
The following is a breakdown of some of the main costs involved in buying property in Greece, so you can have a better idea of what to expect when purchasing a Greek property.
Taxes for buying Greek property
Transfer tax of 3% of the purchase price (or value of the property as calculated by the Tax Authorities, whichever is higher), save for the case where VAT applies, as mentioned below.
VAT is 23% of the purchase price (or the value of the property as calculated by the Tax Authorities, whichever is higher) in case for buildings for which a building permit has been issued after January 1st 2006 and which are sold for the first time by a constructor or a professional in this activity.
Transfer tax exemption
In case the buyer plans to move permanently to Greece within two years following the purchase, then they might enjoy an exemption from the above transfer tax under certain conditions. Please keep in mind the above list is subject to change as the tax system in Greece is currently under review.
Notarial fees for buying property in Greece
Notarial fees of approximately 1% of the purchase price (or the value of the property as calculated by the Tax Authorities, whichever is higher) plus VAT at 23%.
Civil engineer’s fees
Civil engineer’s fees for certifying the building’s compliance with respective building permits and eventual construction restrictions etc (approximately €500 depending on the property, plus VAT at 23%).
Please note that the seller could possibly bear this cost, depending on the parties arrangements.
How exchange rates affect the cost of buying property in Greece
When you are converting from one currency to another the difference between one exchange rate and another can literally make a difference of thousands of pounds on your purchase. We know people who have sold properties and have made more money on the exchange rate difference than they have on the sale of their property.
Currency dealers have increasingly sophisticated products. You can agree rates for the future. You can get them advising you when to buy or agreeing to buy for you when the rate hits a certain level. You can even agree a fixed rate for longer periods of time if you make regular payments abroad (for example for a mortgage or moving your pension money).
We work with various currency brokers who can give you a good exchange rate for your purchase and whom we have known for years. We will normally receive a commission for introducing them to you. This does not cost you anything more as they are simply paying us part of what they make. This commission is costed into our overall charges for providing our services.
Need help buying property in Greece?
Our UK-based team of property lawyers are highly experienced in helping clients to buy and sell property in Greece, as well as handling a whole range of related issues, such as advice on Wills and inheritance.
With a thorough understanding of both UK and Greek law, we can provide clear, reliable legal guidance in plain English, giving you the confidence to deal effectively with property in Greece.