What you need to know when you buy a property in Greece
Purchasing a property in Greece is straight forward with a very well-regulated system and procedures. There are a number of steps and statutory checks that have to be carried out before a property purchase can be finalized.
The Purchaser must appoint a lawyer in Greece who will be responsible:
- To search for the title deeds at the Registry of Mortgages.
- To secure the copies of the title deed held by the Vendor.
- To apply on his behalf for the Tax Registry Number (AFM).
- To represent (the Purchaser) at the Notary Public where the contract deed is signed.
- The Lawyer must transfer at the Registry of Mortgages the contract deed.
- We at A&R Cyprus-Greece Fine Properties can deal with all the necessary procedures making your experience of buying your property stress-free and as easy as possible.
TAXATION & EXPENSES
The Purchaser has the following obligatory fees as required by the Greek Law:
Lawyer Fee: The Greek Law does not impose a maximum limitation concerning the lawyer’s fees for any property transaction and these shall be agreed by mutual consent (between the lawyer and the purchaser). Typical fees are around 1.0 %.
Public Notary: 1.5% of contract amount.
Title (Land) Registration Fee: 0.5% of contract amount.
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. 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 which for the islands (except Crete) is 16% and all the rest of Greece 23%. (Based on contract value)
Note: The Buyer can pay the above tax, OR, give a power of attorney to the appointed Lawyer and pay it on his/her behalf.
Immovable Property Tax: Every physical person or entity is obliged to pay an annual property tax of the ‘objective value’ of the property with the first €200,000 being exempt. If the ‘objective value’ exceeds the €200,000, then the follow is applicable:
From €0 - €200,000: 0%
From €200,001 - €500,000: 0.2%
From €500,001 - €600,000: 0.3%
From €600,001 - €700,000: 0.6%
From €700,001 - €800,000: 0.9%
From €800,001 and over: 1%
Capital Gains Tax (on the sale of property): 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%).
Inheritance tax: There is inheritance tax but generous exemptions apply.
OTHER IMPORTANT DETAILS
Objective Value (of properties): the objective value of a property is calculated by the Government using a specific formula and is based on a price per sq.m. according to the location of the property.
Notary Public: Contracts are signed at the Notary Public. The Notary is a state official who ensures that both parties understand the procedure and verifies and registers the transaction in the public records.
Registry of Mortgages: in Greece there are public records where transfers of real property and mortgages are recorded, at the Registry of Mortgages. The Registry of Mortgages secures the title deed with the contract held by the owner.
Any person has the right to obtain as many properties as s/he wishes.
LAND REGISTRY - NATIONAL CADASTRE
The Land Registry system has only recently been launched in Greece. Law 2308/95 introduced the National Land Registry (National Cadastre), which gradually replaces the existing Registries of Mortgages. For the time being, Land Registries cover a minor part of the country and it’s worth saying that as far as the islands of Rhodes and Kos are concerned there is an operative Land Registry system, which dates back to the period of the Italian occupation.
The notary deed, by which the purchase of any property is attested, is registered to the competent Registry of Mortgages or to the National Land Registry and by that time the purchaser obtains full right of ownership. The expenses of Land Registry burden the purchaser. As it is indicated above, the land registry fee is about 0.5 % on the value of the contract.
The aforementioned information is valid as per the current legislation in Greece and is subject to change at any time. A&R Cyprus-Greece Fine Properties, Ltd assumes no responsibility for any errors contained or omissions made in the above information.
Cyprus property prices point to an accelerating growth, according to the THIRTIETH edition of the RICS (Cyprus) Property Price Index.
Sun, 3 Sep 2017