The more information a buyer has about acquiring a house in Greece, the better the decision. At Elxis we have outlined below the costs involved in getting that dream home in a simple, easy-to-understand manner.
What Are the Costs of Buying a Home in Greece?
As a rough guideline, investors are faced with fixed buying costs amounting to 5.6 percent of the purchase price. This figure can change, depending on whether a real estate agent and/or a lawyer is involved.
1. Transfer Tax
This tax is paid for by the buyer and amounts to 3.09 percent of the commercial value of the home or its taxable value, whichever is higher. This amount needs to be paid to the Greek Ministry of Finance before the purchase deed is signed, as the notary needs to attach the proof of payment to the deed.
2. Notary Fees
The notary prepares the deed which is signed in the presence of the parties or their lawyers, if appointed. The minimum notaries’ fees are defined by the Greek Law. Notaries normally charge about 2% of the sales price (plus VAT), or the tax value of the property, again whichever is higher.
3. Land Registry Fees
Following the signing of the deed, the notary prepares an application and a summary of the deed signed to be sent and registered at the local land registry so that the property transfer is by law completed. The land registry fees due amount to about 0.5 percent of the property sold.
Other Costs of Buying a Home in Greece
Beyond those charges, the buyer should also take into consideration the following:
4. Lawyer’s Costs
It is not obligatory to have a lawyer take part in the process though it is highly recommended to have a legal expert check over what exactly it is that you are buying and to guide you through the whole process. Their fees range between 1-2 percent (plus VAT), depending on the provider services.
5. Real Estate Agent’s Commission
Commission is due if a real estate agent is involved in the sale. Most agencies charge a commission that ranges between 2-4 percent of the agreed purchase price (plus VAT).
Note on VAT For Newly Built Homes In Greece
In the event that a completed newly-built home is sold by a construction company then VAT of 24 percent applies. In a bid, however, to support the real estate sector, the Greek government allows construction companies to apply for an exemption of this tax.
This 24% VAT on the full purchase price is not due for new homes that are sold off-plan. In that case, the buyer starts by buying the building plot before construction starts, paying the 3.09% transfer tax on the price of the plot. For a complete explanation of VAT in Greece, click here.
What Are the Costs of Owning a House in Greece?
1. Internet & Utility Fees
On average, you can expect to pay around 20-35 Euros for internet monthly. For an 85 m2 apartment, you’ll pay between €150-300 for utilities, such as electricity, gas, and water. This number will vary based on the size of your house, the season, and your usage.
2. Vehicle Registration
This cost isn’t necessarily associated with your home in Greece, but if you live in many areas of Greece outside of Athens or Thessaloniki, having a car can be a necessity.
Paying annual taxes on your car or motorbike in Greece must be done online. You can pay through AADE’s myCar platform. Payment receipts typically include a QR code, so that you can pay through mobile banking.
3. Home Insurance
Greek law does not require home insurance, so insuring your property is not mandatory, but is surely recommended. If you are the owner of a new development, note that the construction company’s insurance has probably expired on the date of delivery. There are various insurance agencies throughout Greece with plans provided for every budget.
Expected Cost of Home Insurance in Greece
For a home of 80 square meters, you can expect to pay about 130-200 euros per year. Similarly, for a larger house of 135 square meters, the insurance would cost about 230-300 euros per year. The price can increase or decrease based on the year in which the house was built. Newer constructions typically offer better value.
4. Maintenance Costs
Annual maintenance on your home in Greece will make sure you can keep enjoying your home’s amenities for years to come.
Pool & Garden
Maintaining a pool and garden can cost between 150 and 350 euros per
month. Of course, these costs can change based on the style of the pool
and the size of the garden.
Annual Upkeep
Most homes in Greece (and anywhere else, for that matter) require updates like painting, polishing, and repairing over the course of years of use. In Greece, it is recommended to repaint pergolas or wooden items which are exposed to the sun, so that they continue looking like new. Costs for annual upkeep can vary from 1,000 to 4,000 euros per year, depending on the quality of construction and furniture.
