Jan 19, 2014

Total transaction costs are high in Greece

How high are realtors and lawyers fees in Greece? What about other property purchase costs?
TRANSACTION COSTS Who Pays? Transfer tax Registration fees Notary fees #ega$ fees Rea$ %state !gent &ee Total costs paid by the buyer: Total costs paid by the seller: ROUN TR!" TR#N$#%T!ON %O$T$ *ee &ootnotes *our+e, -$oba$ .ro)erty -ui(e 3% 0.475 0.65% - 1% (+ 23% !T" 0.40% - 1% (+ 23% !T" 1% - 2.5% 1% - 2.5% 6.57% - '.23% 1.00% - 2.50% 7.57% - 11.73% buyer buyer buyer buyer buyer se$$er (for o$( )ro)erties"

How difficult is the property purchase process in Greece?

EU nationals can freely purchase property in Greece, while there are a few restrictions for non-EU nationals. Acquiring property near military bases, national borders mainly for security reasons, especially those close to Tur ey - and in some islands requires special permission from the !ocal "ouncil. #uch permission is not granted to non-EU nationals. The importation of funds for real estate acquisition needs to be documented and requires the permission of the $an of Greece. %ou will also need to secure a Ta& 'egistry (umber from the )nternal 'e*enue #er*ice. )f you are a married couple planning to purchase property +ointly, you should each obtain one. The first step to purchasing property in Greece is to hire a real estate attorney. ,e will be responsible for performing due diligence and ensuring the protection of your interests in the transaction. -nce you ha*e selected the property, ma e an offer to the seller. )f it is accepted, your lawyer will draw up an initial purchase agreement. $oth parties will sign and you must pay a ./0 deposit to reser*e the property. Title search follows. %our lawyer must chec if there are any charges on the property, if the construction followed go*ernment planning regulations, and all ta&es due ha*e been paid by the seller. This can be accomplished at the 'egistry of 1ortgages. 2hen the results are to your satisfaction, proceed to settling the remaining balance and necessary go*ernment duties. "losing usually ta es four to si& wee s. %ou must obtain copies of the title from the seller. )t is your responsibility to hire a notary public to prepare the contract deed, ensure that it has been drawn up correctly, and o*ersee the finali3ation of the purchase. $oth parties must sign the contract deed in the presence of the notary who will *erify and register the transaction in public records. This requires you to present a *alid passport, your Ta& 'egistry (umber, and a special permission to purchase 4if necessary5. )n addition to this, the seller will also need to submit a $6Ta& certificate pro*ing he has a clean record with the ,ellenic 7iscus 4ta& office5. 2hen this has been done, the final step in*ol*es submitting copies of the deed and transfer certificate to the 'egistry of 1ortgages to change property ownership to your name.

A (ational !and 'egistry is still in the process of completion.

Footnotes to Transaction Costs Table

The round trip transaction costs include all costs of buying and then re-selling a property lawyers6 fees, notaries6 fees, registration fees, ta&es, agents6 fees, etc. Transfer Tax: Transfer ta& is around 80 of the property *alue as of 9anuary :/.;. VAT: )f property was constructed on or after /. 9anuary ://<, the property will be sub+ect to :80 =alue Added Ta& 4=AT5 instead of transfer ta&. Land Re istry Fees: The property transfer is registered in the "adastre. !and registry fees include registrar6s rights, certificates, and stamp duty. 'egistrar6s rights are around /.;>?0 of the property *alue, plus :80 =AT. Notary &ees: (otary fees are around /.<?0 to .0 of the property *alue, plus :80 =AT. The sale and purchase agreement must be notari3ed for it to be *alid.
Notary fee Property Value, /) to 01201000 01201000 - 03201000 03201000 - 02 4i$$ion TAX RATE 1% 0.70% on ban( o3er 01201000 0.65% on ban( o3er 03201000

'egal &ees: !egal fees are around /.;/0 to .0 of the property *alue, plus :80 =AT. $uyer and seller share the costs. Employing the ser*ices of a lawyer is highly ad*isable to a*oid the @who owns what@ mischief rampant in Greece. The lawyer will ma e sure that the land title is clear. The Gree law defines the minimum amounts of remuneration for any property transaction. There is no ma&imum limitation and these shall be agreed by mutual consent between the buyer and the lawyer.
LEGAL FEE PROPERT VAL!E , /) to 0441020.55 0441020.55 - 0114671351.43 0114671351.43 - 021'341707.26 RATE 1% 0.50% on ban( o3er 0441020.55 0.40% on ban( o3er 0114671351.43

Real !state A ent"s Co##ission: $uyer and seller each pay .0 to :.?0 real estate agent6s fee. #ometimes an allowance is made for this when setting the sale price, so in effect the buyer pays.