Process & Costs In Buying Real Estate

You might be wondering how easy it is to buy property in Greece, which are the exact steps and what are some of the common implications like taxation. You might also be wondering if there is any financing you can obtain to make your investment easier. Below, you will find all these details, but if you have any questions, please feel free to directly contact us. We are always happy to share more details depending on your situation.

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^{Buying a property in Greece is pretty straightforward}

The key steps of a property purchase include:

1. Make an offer to a property that you found alone (i.e. online) or with a help of a broker
2. Once your offer is accepted, you will need to involve a lawyer and a notary public
3. The lawyer will perform the due diligence on the title and ensure proper registration of the property
4. The notary public will prepare and help you finalize the purchase contract

This process will usually take no more than 2 months from an accepted offer to closing the property. Keep in mind that during the process you will need to showcase your personal identification, such as your ID, passport, tax ID, or social security number, and of course, proof of funds.

With regards to the costs, the notary public and lawyer usually charge 1-2% of the purchase price, the broker fees depend on your own agreement but usually range between 1-2%, and the registration fee is currently at 420 euros. In addition, there are some tax costs, which are covered right below. 

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^{Property purchase taxes are the lowest in southern Europe (for now)}

The main tax to keep in mind is a 3% purchase transfer tax that is charged for any property. If you are buying a non-residential property, then there is an additional 3.6% tax you will have to pay. Most importantly, with the current day announcements, there will be a 24% VAT added to new developments that get their permit after 2024, making buying new development property now very enticing.

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^{Annual property taxes are  low and comparable with other southern EU nations} 

There are two parts to the yearly property taxes one has to pay for their property. The first one is named TAP (telos akinitis periousias) and ranges between 0,025% to 0,035% of the property value and is currently charged directly on everyone’s electricity bill. The second one is called ENFIA and is approximately between 2 to 13 €/m2 per year depending on the government-defined property value of your area, and is paid as part of your yearly tax filings. 

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^{Real estate income taxes depend on the yearly gross income of the person or entity that owns the property}

The rental income received from either long-term or short-term renting of the property is 15% for individuals with income up to 12.000€ per year, 35% for income between 12.001 and 35.000€, and 45% for income of 35,001€ or above. Keep in mind that if the property is owned by a company or any form of a corporation, it will be taxed at 22% of the company’s net income, or else the rental income excluding any expenses associated with running the rental business. Some costs for example are maintenance and utility costs that can range from €100 to €285 per month for an 85 sq.m. apartment.

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^{Getting financing has become easier making the rental properties in Greece solid and approachable investments}

First of all, any local or international buyer can obtain a loan from a Greek bank with competitive interest rates that are usually linked to Euribor. Secondly, the growth of platforms like AirBnB and Greece’s uprise as a major touristic destination have made rental properties a great source of returns. More specifically, return on a rental property investment investment in Greece can be much more than 10% per annum. If you are curious, learn more on Why Invest In Greece.

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^{The Hellenic Residencies team is here to help}

Last but certainly not the least, Hellenic Residences are always here to help. We can help you find lawyers and notary public offices, get in touch with a variety of banks to solicit loan quotes, and dive deeper on expected returns from a rental property in Greece.

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