Understanding the Extra Costs of Buying a House in Crete
Buying a property in Crete, Greece, involves several additional costs beyond the purchase price. Here’s a detailed breakdown of these costs based on the latest Greek laws and regulations:
Purchase Tax
The purchase tax for a second property or building plot is set at 3.09% of the property price. This tax is paid when signing the notarized purchase agreement for the transfer of ownership.
Additional Costs at the Conclusion of the Transaction
Several services and fees are associated with the re-registration of property rights. These include:
- Lawyer’s Services
- Full verification of documents
- Opening a tax number (TIN/ΑΦΜ) and a bank account for the client
- Signing the contract
- Interest on registration of the transaction
- Cost of translating the contract
The lawyer’s fees range from 1.5% to 2% of the property price. For a property valued at €200,000, the lawyer’s fees would be between €3,000 and €4,000. Additionally, a VAT of 24% is charged on this amount, bringing the total to between €3,720 and €4,960.
- Notary Fees The notary fees range from 1.3% to 1.5% of the property price. For a €200,000 property, the notary fees would be between €2,600 and €3,000. With the added 24% VAT, the total notary fees come to between €3,224 and €3,720.
- Registration in the Cadastral Register This fee is 0.7% to 0.8% of the property price. For a €200,000 property, the registration fee would be €1,400.
- Intermediary Services The payment for intermediary services is 2.5% of the property price. For a €200,000 property, this fee is €5,000. Including the 24% VAT, the total comes to €6,200.
Example Breakdown for a Property Valued at €200,000
- Lawyer’s Services: €3,720 – €4,960
- Notary Fees: €3,224 – €3,720
- Tax on Transfer of Ownership: €6,180
- Registration in the Mortgage Registry: €1,400
- Intermediary Services: €6,200
Total Estimated Additional Costs: €23,724 – €24,460
Summary
When buying a house in Crete, it’s essential to account for these additional costs, which can significantly impact your overall budget. For a property valued at €200,000, you should expect to pay an additional €23,724 to €24,460 in various fees and taxes. This total amount reflects the complexity and various stages involved in the property registration process in Greece.
By understanding these costs, you can better prepare and budget for your property purchase in Crete, ensuring a smoother and more transparent transaction.