AGDev

1. Notary Public - Notary Fees

• The first thing you should have in mind before buying a property in Greece is that the final purchase is completed only by signing a notary deed, which is a public document drawn up, signed and confirmed by a Notary Public. The Notary Public refers to the Public Prosecutor Authorities since he is within the jurisdiction of the Ministry of justice. In signing such a document you have assured the accuracy and validity of the agreement you have made.
• If you buy a property and sign a private document, then that purchase is null and void under the Greek law. Usually, the buyer chooses the notary since he is the one that is going to pay the fees. The work of the notary public is of great importance to both contracting parties, since the deed safeguards and guarantees their rights and is the legal title of ownership.
• The notary fees vary according to the purchase price. A percentage of 1.2% is usually charged on the contract value. Extra money will also be given to the notary, on behalf of third parties (Greek Fund's rights etc) and for the notary's rights deriving from the final number of pages of the contract and from the number of certified copies that will be issued.  Furthermore a percentage of 0.5%, estimated on the purchase price will be demanded by the Registry of Mortgages for the conveyance of the title.

     2. Appointment of a Lawyer - Fees

• The buyer's lawyer is the most significant person during the whole process of buying a property, since he is the one that will protect and secure his client's interests when drawing the deed. There is a peculiarity of the Greek law, which imposes as obligatory the presence of the lawyer during the conclusion of a property transfer if the value of the transaction exceeds the amount of 29,347€ for property located in the area of Athens or Piraeus, or the amount of 11,739€ for all other parts of Greece. The obligatory presence of a lawyer means that he will be present during the conclusion of the contract and he will also sign the document himself.
• There is no maximum limit to the lawyer's fees for any property transaction under the Greek law. These fees are agreed solely between the lawyer and the purchaser. On the other hand there is a minimum amount, according to the law, on any fee for the following:

a) For contract value (purchase price) up to 44,020€ the minimum fee is 1%.     
b) For contract value (purchase price) from 44,020€ to 1,467,351€ the minimum fee is 0.5%.     
c) For contract value (purchase price) from 1,467,351€ to 2,934,702€ the minimum fee is 0.4%.     
d) For contract value (purchase price) from 2,934,702€ to 5,869,405€ the minimum fee is 0.3%.     
e) For contract value (purchase price) from 5,869,405€ to 14,673,514€ the minimum fee is 0.2%.     
f) For contract value (purchase price) from 14,673,514€ to 29,347,028€ the minimum fee is 0.1%.     
g) For contract value (purchase price) from 29,347,028€ to 58,694,057€ the minimum fee is 0.05%.     
h) For any amount over 58,694,057€ the minimum fee is 0.01%.

• These fees must be paid prior to the signature of the contract to the relevant Bar Association, witch retains part of the fee (Athenian Bar Association, for example, retains 35% of the fee) and the rest of the amount is attributed to the lawyer.

3. Land Registry - National Cadastre

• The Land Registry system has recently been launched in Greece.
• Law 2308/95 (last amended by law 3212/2003) introduced the National Land Registry (National Cadastre), which will gradually replace the existing Registries of Mortgages. Today, it only covers a small part of Greece and as far as the islands of Rhodes and Kos there is an operative Land Registry system that goes back to the period of the Italian occupation.
• The notary deed, by which the buyer is attested, is registered to the competent Registry of Mortgages and by that time the purchaser haw full right of ownership.
• The Land Registry expenses (0.5% on the value of the contract) are paid by the buyer.

TAXATION

4.1 Real Estate Transfer Tax

• If you buy a property in Greece, you should know that is subjected to taxation. The tax is calculated on the contract value and has to be paid, by the buyer, prior to the signature of the Notary deed.
• According to the Greek taxation law, the following factors have to be taken under consideration, in order to calculate the tax: 9% is calculated to the part of the price up to 15,000€ and 11% to the part of the amount exceeding that amount. In some areas of Greece (usually not in urban areas), these percentages are reduced to 7% and 9% respectively. To the amount of the tax (not of the purchasing price) an additional public tax of 3% is added.
• Tax free purchase of 1st residence may be applicable, according to the respective legislation.

4.2 Capital Gains Tax
  

• Property that was bought donated etc on or after 1/1/06 is subject to the Capital Gains Tax.
• This tax has to be fully paid before the execution of the transfer of the property and is calculated on the difference between the purchase price of the real estate and its sale price. The rate of Capital Gains Tax is inversely proportionate to the time of ownership of the real estate, therefore higher Capital Gains Tax is charged for shorter term ownership.

a) In case the property remained at the ownership of the seller for less than 5 years: 20%  
b) In case the property remained at the ownership of the seller for more than 5 years but less than 15 years: 10%  
c) In case the property remained at the ownership of the seller for more than 15 years but less than 25 years: 5%
d) In case the property remained at the ownership of the seller for more than 25 years: 0%  

4.3 Real Estate Transaction Duty

• A subsequent transfer of property, that has to be paid by the buyer, bears a Real Estate Transaction Duty of 1%.
• Exceptions are made only for properties that were bought before 1/1/06 that have to pay Real Estate Transfer Tax according to the law.

4.4 Annual property tax (Local Municipal & Yearly Property Tax)

• Local Municipal Tax: the Council Tax ranges from 0.025% - 0.035% on the assessed value of the property and is incorporated in the electricity bill.
• Yearly Property Tax: Both individuals and entities that own properties in Greece, irrespective of nationality, residence or seat, are annually subject to this tax. There is provision for tax relief up to a value of 243,600€ which applies to both individuals and entities. Couples are entitled to twice the amount of tax relief (487,200€). This amount is increased by 61,650€ for each of the first 2 children and 73,400€ for each additional child.
• Currently the tax liability in connection with Large Real Estate Property Tax is as follows:

a) For value from 243,601€ up to 390,350€ the tax rate is 0,354%  
b) For value from 390,351€ up to 537,100€ the tax rate is 0,472%  
c) For value from 537,101€ up to 683,850€ the tax rate is 0,590%  
d) For value from 683,851€ up to 977,350€ the tax rate is 0,708%  
e) For value from 977,351€ up to 1,270,850€ the tax rate is 0,826%  
f) For value over 1,270,851€ the tax rate is 0,944%  

  4.5 Inheritance & Donation (or Parental Donation) Tax

• These taxes vary according to the degree of relationship as below: 

  4.6 Stamp Duty

Stamp Duty for rentals on houses is as follows:

• As of 1/1/07 1.8%
• As of 1/1/08 0% (Abolished)

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