Smart and Prosperous Investments in Realestate

vMinimum deposit is 10% on the final agreed price (commercial value of the property).

vRemaining amount is due as follows: 30% at the time of signing the contract, 30% when the skeleton of the house is built and 30% when all doors and windows have been installed.

 

vThe lawyer’s fee is 1% on an objective value up to 44.020 € and 0,5% on any value above that, plus any expenses for legal research or any other legal services offered to the client.

vThe notary public’s fee is more complicated to calculate, but, generally, it is also around 1% on the objective value, plus a fixed amount of 500 € for the drawing of the contract.

vThe transfer tax is 9 - 11% on the objective value¹, but, if the commercial value is higher than the objective value, then the tax authorities could decide to calculate the tax on that value. If the building permission is granted after 01/01/2006, then the transfer tax is replaced by 19% V.A.T. on an assessed, and approved by the tax authority, value.

vThe Municipality tax is 3% on the amount of the transfer tax.

vThe registration fee at the Register of Mortgages is 0,5% on the objective value.

vThe estate agent’s fee depends upon the agreement between the agent and the purchaser, although it normally doesn’t exceed 3% on the commercial value.

 

Example: If the property’s objective value is 50.000 € and commercial value is 200.000 €, then the expenses are:

ØLawyer’s fee: (44.020 * 1%) + [(50.000 – 44.020) * 0,5%] = 470 €

ØNotary Public’s fee: (50.000 * 1%) + 500 = 1.000 €

ØTransfer Tax: (15.000 * 9%) + [(50.000-15.000) * 11%] = 5.200 €

ØMunicipality Tax: 5.200 * 3% = 156 €

ØRegistry of Mortgages: 50.000 * 0,5% = 250 €                Total minimum expenses = 5.950 €

ØEstate Agent’s fee: 200.000 * 2,5% till-3% = 5.000 + 19% (V.A.T.) = 4.760 € (If applicable)

ØTotal Expenses = 13.026 € (not to be considered as a corresponding percentage)

 

vLocal Municipal Tax ranges between 0,025% and 0,035% on the assessed value² of the property and is incorporated in the electricity bill.

vLarge Property (wealth) Tax is paid only if the assessed value of the property exceeds 243.000 €³ and the amount varies between 0,3% and 0,8% on the assessed value.

 

Generally, the Greek banks offer loans to EU citizens for buying, building or renovating property, reaching up to 80% of the commercial value of the property and at interest rates that lie in the range of 3,5% – 5,0%. However, in many cases, PANHOL can help you arranging loans to cover 100% of the commercial value.

 

For any further information about living, working and paying taxes in the EU, please visit: http://europa.eu

 

 

 

 

 

1.         The objective value is the product of the property area (stated on the deed of purchase) multiplied by a price per square meter imposed by the tax authorities (depended of the location of the property).

2. Normally the objective value of the property.

3.   This value is increased to 487.200 € for married couples and is further increased by 61.650 € for each under-aged