VAT (Value Added Tax)or Property Acquisition Tax in Greece

VAT or property acquisition tax in Greece is ALWAYS paid by a BUYER.

Housing built on the basis of the construction license issued after 01.01.2006 is subject to VAT of 23% from its inventory (!) value.

Housing built earlier is subject to taxes for the transfer of ownership in the amount of 9-13% from its inventory (!) value.

Note that any object of property in Greece has got two prices - the market price i.e. the real price at the time of the purchase or the one for which you are buying or selling the property and the price estimated by the state i.e. cadastral (inventory).

Until now, Greece had the practice of indicating automatically cadastral (inventory) value of the object in the Tax Office (and usually the actual price exceeded the inventory in 2 or even 3 times). Adopted 20 years ago coefficients, according to which the cadastral value of objects was evaluated, were changed (increased) from time to time, depending on the area. These changes are also increasing the estimated value, and thus while selling the real estate there appears some price difference from the time of its purchase. This difference is called overvalue and it is taxed too, but it not paid by the buyer, it is paid by the seller. Usually, if the property was in possession of not more than ten years, such a tax is zero.

It is worth noting that the overvalue tax in new and elite districts of the country is adjusted more frequently than in the inhabited areas.

Summarizing, we can say that the property sale in Greece is subject to two taxes actually. Of these, the tax on the purchase of the real estate is paid by the buyer.

Although its overvalue tax is paid by the seller, it happens only if for the years of ownership of the real estate its inventory value increased according to the Tax Office records.

Real Estate Taxes in Greece Today

Buying property in Greece, you are starting to have tax obligations in this country.

In Greece today as in any European country the taxpayer is required to submit his annual tax return (declaration) to the Tax Office each year and pay taxes on the real estate property (in the annual tax return) and pay for municipal and utility costs.

Annual Tax on Ownership of Real Estate in Greece

Real estate in Greece, as in all European countries, is subject to the annual tax. This tax is small; in the EU it is considered to be a low one. For example, in 2012 it amounted 600 € for the residential real estate in Greece with an estimated value of 500,000 €, and it amounted 1,500 € for the housing worth 500,000 €.

A bank loan for buying real property in Greece is not taxed.

Tax on Rental Property in Greece

Real estate in Greece, both commercial and residential can be freely rented. This concerns both individuals and legal entities.

Usually the cost of a monthly rental of residential real estate in Greece is calculated as 0.5% of the market price of the object.

Rent of real estate is accompanied by the signing of the respective contract; its minimum duration is usually two years. It provides monthly payment, as well as annual increase in the percentage (about 3% - every 2 years).

In Greece, as in all European countries, rent of real estate is a kind of income and therefore is taxable. In 2013 this tax was 10% for the income up to 12,000 € and 22% for the higher income. This is lower than the previous one, which was 26%. In the future its further declines are anticipated.

The taxes on rental payments are annual. The payment is made, as well as payment of all annual taxes in Greece, in March or April next year, the Tax Office informs about it beforehand by the media.

Some owners of residential property in Greece do not declare their rental services to the Tax Office and do not sign the contract with the tenant, agreeing with him about it and giving a discount to him for this. But it may have bad consequences.

Terms of cooperation with our AGENCY provide an opportunity of further asset management of your real estate.

Housing and Public Utility Services in Greece

Public services in Greece include electricity, water, sewerage, street lighting and garbage collection.

As for electricity, it is produced and sold by the Public Electric Company. Notifications (bills) are sent every two months. Average household expenditures are approximately 120-200 €, i.e. 60-100 € per month. This amount also includes fees for municipal services provided by the municipality in your neighborhood - garbage collection, cleaning sidewalks and streets as well as their coverage in the evening and night hours.

Water supply and sewerage services are managed by Water Supply and Sewerage Service. Its bills come every three months, and the cost of water and sewerage services for this period will be around 60-150 €, that is around 20-50 € per month. Of course all estimated costs are averaged.

If you buy an apartment then you share corporate domestic expenditure on maintenance and heating of an apartment building . Your part in it is the proportion of your area to the total area of ​​the house, it is stated in the Statement of horizontal and vertical separation of the areas of your block of flats and it will be handed to you by your notary.

Summer costs are usually 20-30 € per month and in winter they grow (due to the heating) and are approximately 70-120 € (provided the heating is with kerosene.) In case of using natural gas these costs are reduced by about 25 - 30%).

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