Property for sale in Greece
Legal basis of a property purchase in Greece
The transfer of ownership of real estate and its registration is a transparent and public procedure in Greece. The country has been a full member of the EU since January 1981 and thus national and European legislation applies.
People who are not from Greece should take the following steps during a property purchase:
- Signing of a power of attorney. This is done by our Greek notary in the presence of an accredited translator (mandatory). This power of attorney entitles the attorney to act on your behalf and during your absence. It also contains the powers conferred on the lawyer to rewrite the main land purchase contract if necessary. The buyer is thus spared long and complicated legal formalities and procedures.
- Your lawyer is thus and by arrangement authorized, in your name e.g. To pay bills, as well as to carry out official registrations, or to make tax payments through your account.
- The licensed lawyer carefully checks the state of the real estate registration, the origin and whether there are any old claims (such as existing or previous mortgages, encumbrances or other fees, existing and previous contracts and agreements, etc.). He will present a signed report and certify his results to you before the transaction/purchase.
- The licensed lawyer applies for a tax certificate and submits it to the local tax authority. The tax rate is 3.09% if the building permit was issued before 01.01.2006, or 24% if issued after that date. The payment of 24% tax will be suspended until 31.12.2022 (Article 6, VAT code, L.2859 / 2000).
- Both parties (buyer and seller) sign the main land purchase contract in the presence of our notary and a recognized translator. After signing the agreement, the lawyer registers this in the Greek cadastral office. This secures their rights and completes the real estate purchase transaction.
- After the main contract is signed, the buyer receives all certified documents translated into German, together with the building permit, certificate of energy certificate, object overview plan and topographic plans.
Real estate purchase contract: fees and ancillary costs
Costs and fees Case study
For a property worth € 100,000 and the tax is 3.09%, the expenses are calculated as follows:
– the lawyer’s fees are fixed and in this case amount to 1.5%* = 1,500 € (plus 24% VAT, which is added to this amount) = 1,860 €- the notary costs are 1.5%* = 1,500 € (plus 24% VAT) = 1,860 €- the real estate transfer tax is 3.09% = 3,090 €- the propertyregistration costs are 0.5% + 150 €= 650 €- the brokerage commission is 2% = €2,000 (plus 24% VAT)=€2,480
Total amount: €9,940 (This amount is not a service fee calculated based on the property price)
The fee varies between 1.5% and 2% of the actual property price, depending on the region of purchase.
If the real estate price is € 100,000 and the tax rate is 24%, the expenses are calculated as follows:
– the lawyer’s fees are fixed and in this case are 1.5%* = € 1,500 (plus 24% VAT) = € 1,860 – the notary fees are 1.5%* = € 1,500 (plus 24% VAT) = € 1,860 – the real estate transfer taxis 24% = 24.000 €- the land register registration costs are at:100.000 X 0.5% + 150€= 650 €- the brokerage commission is 2% = 2.000 €(plus 24% VAT)=2.480 €
Der Total amount: 30,850 € (This amount cannot be considered as a service fee calculated on the basis of the property price)
(The payment of 24% tax will be suspended for the time being until 31.12.2022)