Buying a property is a significant financial decision that comes with various expenses. Buyers need to be fully aware of the costs they will encounter to properly plan their budget. From legal and notary fees to taxes and brokerage fees, understanding these expenses is crucial to avoid unexpected surprises during the purchasing process. In this article, we will detail the key expenses associated with purchasing a property in Greece.
- Legal Fees (Optional)
While having a lawyer is not mandatory for purchasing a property, many buyers choose to work with one to ensure the process is secure and legally compliant. Legal fees typically range around 1% of the property’s value, but this fee is negotiable and may vary depending on the complexity of the transaction.
- Notary Fees
Notary fees are mandatory and constitute a significant portion of the overall purchase cost. They include a fixed fee of 20 euros and a proportional fee based on the total value stated in the contract. This proportional fee ranges from 0.80% to 0.10%, depending on the transaction’s value. Additionally, each extra page of the notarial deed incurs a charge of 5 euros, while each copy costs 4 euros. All notary fees are borne by the buyer and are subject to 24% VAT.
- Land Registry Fees
The registration of the contract at the land registry in the area where the property is located is necessary for the transaction’s legality. Land registry fees are calculated at a rate of 0.475% of the property’s value and are also subject to 24% VAT. The registration process is essential, as only after this is the sale considered complete and legally binding.
- Property Transfer Taxes
The property transfer tax (ΦΜΑ) is one of the main taxes borne by the buyer. This tax is 3% of the property’s objective value or the value stated in the contract if it is higher. Additionally, a 3% surcharge in favor of the local municipality is calculated on the ΦΜΑ. For example, if the property’s value is 100,000 euros, the total tax will be 3,090 euros.
- Brokerage Fees
Typically, buyers and sellers each pay a brokerage fee equal to 3% of the property’s market value, plus 24% VAT. However, this fee can vary depending on the agreement. In some cases, the brokerage fee can reach up to 7%, especially when it comes to identifying properties considered as opportunities.
- Land Registry Fees
Land registry fees are calculated as follows: 35 euros for each usufruct right and 20 euros for each additional right in spaces other than the main area. These costs are necessary for completing the property transfer process and registering ownership rights in the National Land Registry.
