A great benefit of buying property in Greece is that the process of obtaining a mortgage is relatively simple and remarkably similar to what we are used to in the UK.
The Financial Side of Buying Property in Greece
Buyers need to be aware of not just the purchase price, when purchasing a property in Greece; there are other incidental costs and ongoing obligations that will have to be met by any foreign investor.
Additional Purchase Costs
As a general rule, it is worth allowing between 13 and 15 percent of the purchase price for additional costs and fees associated with purchasing a property in Greece.
If you are obtaining a Greek mortgage, then you will need a valuation. In fact, this sort of valuation is advisable regardless, in order to make sure that your investment is sound. The cost of this valuation is normally around the €300 mark.
Legal fees are usually around 1 to 2 percent of the value of the property and are payable on completion. Tax on the purchase is payable at anything between 9 and 11 percent of the value of the property, depending on the overall value; again this will be payable on completion.
Anyone intending to let their Greek property is required to obtain an EOT licence at a cost of approximately €5,000, but this will last for 5 years and ensures that all property being used as holiday lets are of a suitable standard.
On a positive note, there is no council tax in Greece, although there is a general property tax of around 0.25 percent of the total value of the property. In addition, some local municipalities will charge around 3 percent of the value of the property for public services.
Once you become a property owner in Greece, you are required to complete a tax return to the Greek state, every year, regardless of whether or not you have any tax liability within Greece itself.
Every property owner in Greece, whatever their nationality, has to complete the form E9 in any year that they acquire or sell a right over property in Greece. An E9 form is actually a schedule of the main income tax form E1. Therefore, anyone who has acquired or sold property in Greece in any given year will also have to fill in form E1, even if the amount of income in Greece is nil. E1, E9 and your tax identification number will all have to be submitted. Failure to do so may mean that you will be unable to sell the property in the future and you will be subject to penalties.
Additional costs on purchasing are quite high in Greece and can amount to anything between 13 and 15 percent of the total value of the property;
most of these costs have to be met on completion;
whenever property is bought or sold, tax returns have to be made to the Greek state; failure to do so may result in fines and an inability to sell the property on, in the future;
although there is no council tax in Greece, there is an annual property tax and municipality tax which amount to around 3 percent of the value of the property, every year.