The Total Cost of Buying Property in Greece: Taxes, Fees, and Hidden Expenses

Planning Your Budget for Property Purchase

The price stated in the listing is only part of the total budget. For a foreign buyer, it is crucial to account for taxes, professional services, registration fees, banking costs, and ongoing maintenance expenses in advance. The final amount depends on the property type, payment method, and specific contract terms.

Property Transfer Tax

In a standard transaction, the buyer pays a property transfer tax. The base rate is 3%, and including the municipal surcharge, the actual burden usually reaches about 3.09% of the taxable value. This tax is calculated and paid before signing the notary deed. For some new properties, a different tax regime may apply, so it must be clarified for each transaction individually.

Notary and Registration

The purchase agreement is executed by a notary. Their fee depends on the property value, the volume of documentation, and the complexity of the transaction. After signing, the contract must be registered with the Greek Land Registry, where the corresponding registration fees are paid. Without this procedure, the transfer of ownership is not considered complete.

Legal and Technical Due Diligence

Saving on property checks can lead to serious financial losses. The audit process includes:

• Lawyer: Checks the title, existence of mortgages, liens, debts, easements, and the absence of legal disputes.
• Engineer: Compares the property with official permits, checks for unauthorized alterations, extensions, boundary accuracy, and building potential.

Professional fees can be fixed or calculated as a percentage of the transaction value.

Agency and Banking Costs

Real estate agency commissions should be agreed upon in advance: clarify who pays them, whether they are included in the price, and if VAT applies. Additionally, budget for international transfers, currency exchange, power of attorney preparation, document certification, and bank checks on the source of funds. Before transferring a large sum, learn how to safely transfer money to Greece for property purchase.

Post-Transaction Expenses and Annual Payments

After the deal is closed, you may need to cover insurance, utility contract transfers (electricity and water), internet setup, repairs, furniture, and lock replacements. For apartments, consider common building expenses (hallways, elevators), and for villas, maintenance of pools, gardens, security, and technical upkeep.

Every year, the owner pays the ENFIA tax, the amount of which depends on the area, location, and characteristics of the property. The property must be correctly declared in the E9 form. Read more about this in the article what is the ENFIA tax in Greece.

If you plan to rent out the property, consider rental income tax, accountant fees, management costs, cleaning, repairs, and vacancy periods.

How to Calculate Your Budget

Before paying a deposit, create a personal estimate including the property price, taxes, notary fees, land registry fees, lawyer and engineer fees, agency commission, banking costs, insurance, and a reserve for the first months of ownership.

AILIT Group helps verify properties, obtain an AFM, open a bank account via a lawyer, and coordinate the transaction. To calculate your expenses, reach out via AILIT Group contacts. A proper budget is the key to safe property ownership in Greece.