What do you pay for when purchasing a property in Greece?
The total cost of buying property includes not only the price of the property but also various transaction fees. Some costs may come as a surprise to an unprepared buyer. We've put together an overview of all the costs involved to help you avoid this.
We'll explain how payments will be made, what each party has to cover and what costs will be associated with the purchase.
Buying property in Greece: the buying process
Buying property in Greece requires the signing of a notarial deed of sale between the buyer and the seller (or their representatives). How long does the processtake? On average, the entire transaction can take up to a month.
The exacttime scale depends on the complexity of the deal and how quickly the necessary documents are collected. Ultimately, it's the willingness of both parties to cooperate that determines the final timeline. By this we mean responding promptly to enquiries and providing the necessary documentation.
The property purchase process involves:
Choosing the property and signing a preliminary agreement to reserve the property andpay a deposit.
Legal due diligence to check for any encumbrances or debts. This is usually carried out by the buyer's lawyer.
Obtaining aGreek tax number (AFM). This is required for financial transactions in Greece.
Opening a bank account to cover future costs.
Preparing and signing the notarised purchase contract before a notary.
Paying according to the contract.
Registering the contract with the Land Registry, confirming transfer.
Buying property in Greece - taxes and fees
The buyer is responsible for the main costs during the transaction. The main costs include the following:
Notary fees
Notary services include checking documents supplied by the seller, preparing the sale contract and payment deed, and submitting the necessary Land Registry and tax filings once signed. Standard notary fees are 2% of the property purchase price plus VAT (2.24% in total).
Registration fees
The land registry fee is 0.9% of the purchase price of the property.
Property transfer tax
Newly constructed properties with building permits issued after 1 January 2006 are subject to VAT at a rate of 24%.
For other properties, the transfer tax is 3.09% of the property value, comprising transfer tax (3%) and municipal tax (0.9%).
Additional costs to be paid by the buyer:
Legal fees
The lawyer checks the title deeds, prepares and reviews the preliminary and final agreements and liaises with the notary and the seller's legal team. The lawyer's fees are usually 1% of the value of the property, plus VAT (a total of 1.24%).Agent fees
The agent's fees are not regulated by law and are to be agreed between the parties to the transaction. Typically 2% of the property's value plus VAT (2.24% total) from each side (buyer and seller), although the rate may vary depending on transaction amount and other factors.
Golden Visa fees
There are additional fees to consider if you're planning to obtain a Golden Visa in Greece by purchasing a property worth over €250,000. This cost is separate from the actual property purchase, but it should be taken into account when calculating the total cost.
From 12 September 2018, the government fee for investor residency is €2,000 per adult applicant. This fee applies to new applicants as well as those renewing every five years.
Additionally, you will also need to cover health insurance and legal fees for services such as filling in forms and guiding you through the Golden Visa application process.
Renovated apartment in the centre of Athens
From 1 September 2024, Greece introduced new investment thresholds of €400,000 and €800,000, which we discussed in detail [here]. This means that the only way to obtain a Golden Visa for €250,000 is to buy a property that is being converted from a commercial to a residential use, or a listed property that is being renovated.
Purchasing an apartment that has been converted from a commercial to a residential use offers additional opportunities for investors seeking high rental returns and a golden visa. In Greece, such properties can be purchased with a minimum investment of €250,000. This makes them an attractive option with easier rental potential.
There is a great demand for these apartments, especially in the central areas of Athens. Converted residential units - such as former office spaces - are particularly attractive, as they offer a steady rental income stream.
For example, the estimated initial payments and fees for a Golden Visa applicant purchasing such an apartment in Athens for €275,000 would be as follows
Notary fees:
2% of €275,000 = €5,500
VAT (24%) on €5,500 = €1,320
Total: €5,500 + €1,320 = €6,820
Registration fees:
0.9% of €275,000 = €2,475
Property transfer tax (assuming a resale property):
Main tax: 3% of €275,000 = €8,250
Municipal tax: 0.9% of €275,000 = €2,475
Total: €8,250 + €2,475 = €10,725
Legal fees:
1% of €275,000 = €2,750
VAT (24%) on €2,750 = €660
Total: €2,750 + €660 = €3,410
Agent fees (assuming only the buyer’s side):
2% of €275,000 = €5,500
VAT (24%) on €5,500 = €1,320
Total: €5,500 + €1,320 = €6,820
Golden Visa application fees:
Residence permit fee: €2,000 per adult (assuming one applicant) = €2,000
Grand total: €32,250
This means that the total cost to the buyer, including all the necessary fees and taxes, will amount to 307,250 euros.
Rental income tax in Greece
Any property owner has the right to let their property and receive income from it in Greece, regardless of whether they are a resident or a foreigner. A residence permit is not required for letting as it is not considered a business activity. Nevertheless, rental income must be declared to the tax authority.
Rental income in Greece is taxed as follows:
In addition, if your annual income exceeds 12,000 euros, a solidarity surcharge is levied at a rate of between 2.2% and 10%, depending on the total amount of your income.
Calculation example:
If the rental income is €20,000, the tax calculation would be:
On the first €12,000 at 15%: €12,000 × 15% = €1,800
On the remaining €8,000 at 35%: €8,000 × 35% = €2,800
Total tax amount: €1,800 + €2,800 = €4,600
