The VAT in the real estate market is gone from 1/1/2020 and in its place is the clearly lower transfer tax which can even be zero if you are going to acquire a main residence. This change alone can reheat the market. Of course, if you’re looking to get into the property acquisition game you shouldn’t limit your research to just tax.
Transfer Tax
In order to qualify for a first home, one must not have full ownership, usufruct or occupancy rights in a property that meets one’s housing needs. This happens with 70 sq.m for the unmarried, while the surface is increased according to the marital status of the buyer. If one has the right of first residence, then transfer tax-free limits apply which start at €200,000 for singles or €250,000 for married and increase according to the number of children. The transfer tax can be increased by up to 10% due to the charges in favor of the municipality.
Notary expenses
For the drawing up of deeds, the object of which is valued in money, the notary collects:
a) a fixed fee of twenty (20) euros and a proportional fee, which is calculated based on the total value declared in the contract or the greater value determined by the competent authority, temporarily or definitively. The percentage of this fee, depending on the value of the object of the transaction, is determined as follows:
For an amount up to 120,000 euros at a rate of 0.80%
For an amount from 120,000.01 to 380,000.00 at a rate of 0.70%
For an amount from 380,000.01 to 2,000,000.00 euros at a rate of 0.65%
For an amount from 2,000,000.01 to 5,000,000.00 euros at a rate of 0.55%
For an amount from 5,000,000.01 to 8,000,000.00 euros at a rate of 0.50%
For an amount from 8,000,000.01 to 10,000,000.00 euros at a rate of 0.40%
For an amount from 10,000,000.01 to 12,000,000.00 euros at a rate of 0.30%
For an amount from 12,000,000.01 to 20,000,000.00 euros at a rate of 0.25%
For an amount from 20,000,000.01 and above at a rate of 0.10%
b) For each additional sheet of the notarial acts, for which the proportional fee is determined according to the above scales, five euros (5.00).
c) For each sheet of copies of the same notarial acts as above, if these copies are issued immediately upon the drawing up of the act, four euros (4.00). The fees and royalties for the issuance of these copies must be indicated on the original contract, together with the other royalties, as specified above.
The notary fees are borne by the buyer and amount to the amount calculated and necessarily written by the notary on the last pages of the contract. This is also the receipt for the tax office of the fee paid.
Attorney’s fee
Since 2014 the representation of the lawyer in the contracts is optional. If the representation of a lawyer is indicated in the contract, then the fee scale is as follows:
Minimum fee under which the relevant triplicate is issued by the relevant bar association up to 44,000 euros is 1%,
from 44,001 to 1,400,000 euros 0.5%,
from 1,400,001 to 3,000,000 euros 0.4%,
from 3,000,001 to 6,000,000 euros 0.3%,
from 6,000,001 to 15,000,000 euros 0.2%,
from 15,000,001 to 30,000,000 euros 0.1%,
from 30,000,001 to 60,000,000 euros 0.05% and fee
from 60,000,001 and over 0.01% based on the code on lawyers, which was included in the relevant Official Gazette. If the representation of a lawyer is not indicated in the contract, it is not required to issue the relevant triplicate, then the fee is determined freely based on the will of the respective Lawyer and a Certificate of Provision of Services is issued, which is subject to 24% VAT. The fpress.gr tool calculates based on the aforementioned scale
Land registry
The costs for transferring the contract to the mortgage registry of the property area are calculated at a rate of 0.475% without limit.
The mortgagor issues a Certificate of Provision of Services on which he also charges 24% VAT. The costs of the mortgage office are borne by the buyer.
Real estate agents
It is possible that a broker intervened during the sale. In this case, his own fee, which “plays” in the market, should also be paid. The tool uses a rate of 1% (plus 24% VAT).