Costs of buying in Greece

Property in Greece is affordable by international standards and buying costs of around 10% are about average.

There are a number of factors that will affect how much these costs total, such as whether the property is new-build or resale property and how you are paying for the property — cash or mortgage. Budget around 10% of the purchase price to ensure all taxes are fees are covered.

Most of the fees payable will be based on the ‘assessed tax value’ of the property, which will usually be lower than the actual price you are paying. This has been previously calculated by local tax authorities using government criteria and you will usually find this is fixed.

Taxes associated with buying property in Greece

These are the unavoidable costs associated with buying property in Greece.

Transfer tax

If you are buying an existing home or land plot, you will have to pay 3.09% of the commercial value of the property or its taxable value, whichever is higher. In the countryside, the value is rarely over the market price.

VAT

If you are purchasing a new-build property, you may have to pay VAT at 24%. This will usually be included in the purchase price. To encourage property development, the Greek government has created a “VAT exemption” until the end of 2024. If the developer applies for this, then buyers only have to pay transfer tax at 3.09%.

Notary fees

A crucial step in the buying process is the notary signing the deed to the sale. Notaries charge about 2% plus VAT of the sale price or the tax value of the property, whichever is higher. Notary fees are fixed by Greek law.

Land registry fees

After the signing of the deed, the notary creates a summary to send to the local land registry, so that the property purchase is legally verified. Land registry fees amount to 0.5% of the property price.

Expert fees

While you may want to keep costs down by not hiring a lawyer or using an estate agent, they both can help you to avoid potentially money-draining pitfalls.

Estate agent fees

In Greece, estate agents typically charge between 2 – 4% of the agreed purchase price, plus VAT. This is split between buyer and seller.

Lawyer fees

A lawyer will ensure that the property purchase is legally sound and guide you through the process. Typically, they charge around 2% (plus VAT).

Currency costs and risks

When budgeting for the costs of buying property in Greece, bear in mind the currency transaction. The headline exchange rate you will see on the news or on rate trackers on the internet will be at the “interbank rate”. This rate is not available to the general public.

Using a specialist currency (FX) company will likely result in better service and value for money than a bank. There are two reasons for that. The first is that with a currency provider you will receive a rate as close to the interbank rate as possible, usually within 2%, and with no fees or commission charge.

Secondly, there are products and services that banks do not offer that specialist currency providers do, especially for large transactions such as property purchases.

For property purchases in Greece, we recommend using a trusted currency exchange service. Such a service can protect your budget from “currency risk”, which occurs when you agree to buy a property at one exchange rate, but complete months later. In that time the exchange rate will move, perhaps drastically, meaning that while the price in euros for the property is the same, the price in your local currency will change. It can cost thousands more.

Fortunately, this eventuality is easily solved with a “forward contract” that fixes your exchange rate for the period of the buying process. It offers peace of mind that you will still be able to afford the property with your budget when the time to complete finally comes.

Also bear in mind that all costs linked to the property price in euros will also increase if the currency rate goes against you. So, when buying property in Greece, it’s crucial to consider the impact of currency exchange rates and take steps to manage this risk.

Utility connection fees in Greece

Towards the end of the property buying process in Greece, you’ll need to set up your utilities. These include water, electricity, and possibly gas, as well as telephone and broadband. If these utilities are already connected, you’ll only need to transfer the contracts into your name, usually at a minimal cost. Shopping around for alternative suppliers in Greece may lead to cheaper services and connection fees.

Managing the costs for buying in Greece

Taxes and legal fees in Greece are directly governed by the price of the property. Reducing the purchase price through negotiation or careful selection will reduce the associated buying costs.

The type of property that you choose can also affect your cost of buying a property in Greece. In highly sought-after areas, there will likely be a larger discrepancy between the taxable value of the property and the buying price, so this is something to watch out for.

If you put your efforts into looking for properties that need some work or properties that appear to be under market value – the “buying the worst house in the best street” approach – then taxes and fees that are linked to the purchase price will also be lower. However, you will need to carefully weigh up the additional costs of renovations or repairs.

Depending on the state of the market in Greece, you can try to negotiate a lower asking price. It’s perfectly normal to offer below the asking price, especially if it is clear that the property has been on the market for a while. Costs calculated as a percentage of the purchase price will naturally lessen with a lower purchase price.

Negotiation requires some solid preparation. You should be armed with a list of similar properties recently sold in the area and their selling price, and a survey may also help you to negotiate a better price. It’s hard for a vendor or their estate agent to argue with current prices and the reasonableness of your offer.