Some of the expenses that the buyer has to pay when purchasing a property, are based on the value of the property that will be mentioned in the purchase contract.
The Objective Value is usually the one taken into consideration when drawing up a Purchase Contract. However, in cases where the Objective Value is higher than the Commercial one, then the last one mentioned is the one taken into consideration in the Purchase Contract.
Below you can find a brief list of the expenses that one is to expect during a property purchase :
EXPENSES FOR THE BUYER
Transfer Tax :
Property purchases in Greece are subject to taxation. It is obligatory for the purchase tax to be paid prior to signing the contract. The amount of tax is calculated on the value of the property that is mentioned in the contract.
When it comes to buildings :
– If the Building Licence was issued before 01/01/06, then the tax is charged at 3,09% of the property value mentioned in the contract .
– If the Building Licence was issued on or after 01/01/06 and the seller is a developer-contractor, taxation of 24% of the purchase price will apply.
Municipality tax :
An amount of 3 % of the Transfer Tax is to be paid to the local Municipality.
Notary fee :
The notary fee is calculated in most cases at 1.6 %, including tax and VAT, of the property value mentioned in the contract. This fee is decreased as the the amount of the purchase price is increased.
Land Registry fee :
Land registry fees include registrar’s rights, certificates, and stamp duty. They are calculated at 0.475-0,575 % of the property value mentioned in the contract, plus 23 % Value Added Tax (V.A.T.).
Lawyer fee :
The legal fee is a matter of agreement but usually it is 1% of the property price or a minimum of 1.500 Euro plus taxes. The legal fee is also affected by the extent of the service provided by the lawyer and it is all upon agreement by mutual consent between the buyer and the lawyer.
Real Estate Agent’s Commission :
The buyer pays 2.5 % of the property price as a fee for the real estate agent.