What taxes you need to know when buying property in Greece?

February 16, 2021

Greece is considered to be one of the most attractive countries for buying real estate

Greece is considered to be one of the most attractive countries for buying real estate. This is due to the relatively low prices for residential and commercial properties. For example, you can buy an apartment here on average from 39 thousand euros. This cost is one of the lowest in Europe.

Many foreigners choose this particular country to buy apartments, houses or offices, hoping that the price per square meter will increase significantly in the future. There are reasons for this, since not so long ago Greece experienced a severe crisis, but the situation is getting better nowadays. Today, it shows a stable increase in property values.

What tax is calculated when buying a home?

When buying real estate in Greece, you must pay tax. A few days before the appointed date of the transaction, the buyer receives a copy of the document and is supposed to go with it to the tax office. If the person is away and is not able to attend, then all actions can be performed by a trusted person. The tax is about 3% of the cadastral value of the property.

It should also be noted that real estate in Greece may be subject to tax in the form of VAT. In particular, it applies to old housing. If the buyer chooses new buildings, then in most cases the need to pay VAT can be avoided.

There is also maintenance tax on properties, which is paid once a year. The final amount to be paid depends on the city where the house or apartment is located. The lowest rates apply to properties in small towns. Higher - to apartments and houses in large cities. The highest taxes apply to coastal villas. Here you will have to pay about 10-12 euros per year for 1 m2 of the object area. Additionally, tax is paid up to 1% of the value of the property, if it exceeds 300 thousand euros.

All homeowners in Greece are required to pay council tax, the price for which goes up to 0.035% of the cadastral value of the object. This amount is automatically included in the electricity bill, so the owner does not have to pay it separately.