REAL ESTATE TRANSFER TAXES
The Greek real estate market has by various taxes, which are required to be paid just before the completion of transfer of the property, prior to the signing of the Final Contract.
Taxes are calculated on the purchase amount, which has been agreed by contracting parties. However, if the agreed amount of the transaction is lower that the objective price of the property, defined by the Tax Authority, buyer will be charged with taxes based on the objective price.
The taxes that the contracting parties are charged to pay on a real estate purchase/sale are the Transfer Tax and occasionally Value Added Tax (V.A.T.).
Real Estate Transfer Tax
Real Estate Transfer Tax is imposed on every transfer of a real estate/property. This tax is calculated as mentioned above. This tax is charged by law on the purchaser of the property, who has to pay, in full, the competent Tax Office which regulates the real estate prior to concluding the transfer deed.
This Taxes amounts to 3,1 %.
Value Added Tax (V.A.T)
V.A.T. at 23%, is levied where a newly-erected real estate is acquired against a price and in money, for which building licence was issued after 1.1.2006. In case VAT is payable, then Transfer Tax does not apply. However if a buyer buys a plot with out building then he/she pays transfer taxes 3,1%. If buys an appartment where the building licence was issued after 1.1.2006, then he/she pays VAT.