Property buying Procedures- Taxes

Property Buying Process

Citizens of all EU nations are eligible to buy property throughout Greece. While restrictions exist for non-EU nationals it is still possible to purchase after carrying out certain procedures, at Kreta Plan we can assist in both.
As a EU Citizen you will need a valid passport and a Greek Tax Number. The latter we can help you obtain, as it does involve a small amount of paper work and visiting tax offices.

All property transactions in Greece always take place in the presence of lawyers representing both parties, and the notary, who will not autho

rize the sale without the appropriate tax papers and deeds being in order. Our company can either provide you with a list of reputable real estate attorneys and notaries here in Crete or immediately assign one for you, subject to your consent.
To secure your property, a deposit on the purchase price is normally required on signing the preliminary sale agreement. This agreement details the names of the parties, the price, a property description, the payment method and any agreed conditions.
Property can be insured through insurance companies. Property insurance contracts cover all types of possible damages such as fire, earthquake, natural disaster, storm, theft, and third party liability. Property insurance is not obligatory, but is required by the financial institutions when mortgaging the property.

Taxes and Charges

The assessed or objective value of your property is carried out by the government and is calculated by the Notary. This assessed value will be far below the real commercial value of your property. The assessed value is usually two thirds to three quarters lower than the actual selling price or commercial property value.

Generally allow for 10 to 13% taxes of the commercial property value to cover all fees. These include; Purchase tax, Municipality tax, Legal and all Notary costs.

House owners are obliged to pay a small council tax that ranges from 0.025 % - 0.035 %. This tax is paid every two months on the assessed value of the property and is incorporated in the electricity bill.

Owners of property pay a yearly property tax only of about 0.3% to 0.8% if the assessed value of their property exceeds the amount of EUR 243.000. If two people own the property the cost rises to EUR 350.000 of the assessed value.

Greece has international tax agreements of avoiding double taxation with almost all European Countries.

Capital Gains tax

Capital Gains Tax is applicable if you purchased your property after January 1st, 2006 and resell it. The percentage of tax owed varies depending on the length of time your property has remained in your ownership. For properties purchased after January 1st, 2006, and remaining in one's ownership for 0-5 years: Capital Gains Tax 20%. For properties purchased after January 1st, 2006, and remaining in one's ownership for 5-15 years: Capital Gains Tax 10%. For properties purchased after January 1st, 2006, and remaining in one's ownership for 15-25 years: Capital Gains Tax 5%

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