taxes and Expenses When Buying Real Estate in Greece

Purchasing real estate in Greece is open to foreigners, who can buy both residential and commercial properties and rent them out. 

The Greek real estate market is attractive to investors due to its stable prices and favorable conditions for obtaining residency through investment.

Property prices in Greece vary depending on location, type, and condition of the property. The average price per square meter is about €1,848. For example:

• A three-bedroom apartment may cost around €2 million
• An apartment in a prestigious area of Athens or its suburbs is approximately €500,000
• An apartment with a sea view, located 2 km from the beach, is around €200,000

You can obtain residency and citizenship in Greece by participating in the Greece Golden Visa Programme for investors. The key requirement of the programme is the purchase of property worth at least €250,000. The residency permit granted through this programme is valid for 5 years.

Living in Greece is not mandatory to maintain your residency status. After 5 years of continuous residence in Greece, you may apply for permanent residency. 

Property Transfer Tax:

• For new buildings: 3.09% of the transaction amount instead of VAT at 24%, applicable until the end of 2023 as part of the government’s support for the construction market
• For existing properties: 3.09% of either the cadastral value or transaction amount, whichever is higher. This rate includes the municipal property transfer tax

Additional expenses:

• Notarial Fee: 1%—1.24% of the transaction amount, including VAT at 24%
• Registration Fee: 1%—2% of the transaction amount

• Agency Fee: Usually included in the property price, ranging from 2.5%—5% of the transaction amount, including VAT at 24%
• Legal Services: The cost of a lawyer is 1.24%—2.5% of the transaction amount, including VAT at 24%

Additional expenses when buying property can range from 5% to 11% of the transaction amount.

For example, with a property purchase of €250,000, total expenses may reach approximately €277,500, including additional costs.

In Greece, property owners are required to pay an annual unified tax called ENFIA.

This tax consists of a basic part and an additional part. The basic part is calculated at a rate of €2 to €16 per square meter, depending on the cadastral value, year of construction, and floor.

If the cadastral value exceeds €200,000, an additional tax of 0.1% to 1.15% of the cadastral value is levied.

Sellers of real estate in Greece are subject to a capital gains tax of 15% on the difference between the sale and purchase prices.

There is no income tax on the profit from the sale of property.

• Utilities: Electricity, gas, water, and waste removal range from €95 to €280 per month
• Building Maintenance: Costs for the elevator, cleaning, repairs, and security range from €10 to €300 per month
• Internet, Television, and Telephone: Costs range from €25 to €50 per month, depending on the plan and location

In Greece, water, electricity, and gas are billed based on meters. Centralized gas supply is available only in major cities such as Athens and Thessaloniki. Generally, central heating is not provided in residential buildings.

Income from property rentals is taxed at progressive rates from 15% to 45%.

The return on investment from renting out property in Greece can be attractive due to the steady demand for rental housing. Effective property management and proper tax planning can ensure a good return on rental investments.

Mercury Group experts handle the entire process of purchasing property in Bulgaria, from selecting the property to preparing a comprehensive set of documents "turnkey," and also assist our investors by providing a full range of concierge services.