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Taxes on real estate in Greece. Archive article

The level of taxes on the purchase of real estate and income from renting her rent - the average for Europe.
22.03.2011
Homesoverseas.ru editorial office
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Attention! The information is out of date. For current data on property taxes in Greece, see here: www.homesoverseas.ru/articles/4862
Before Buying Before buying a property in Greece, a foreigner must obtain a tax registration number (AFM) from the local tax authority or tax office for foreigners. Real estate taxes in Greece are most often calculated based on the cadastral value, that is, the state appraisal of objects. This estimate may be 50% below market value. However, there are times when the tax authorities are guided by "comparative value", that is, similar transactions with similar properties in the same area. Usually in Greece, the cadastral value is written in the sales contract. (The actual price of the transaction may appear in the preliminary agreement.) This helps to significantly reduce purchase costs, but entails additional risks for the buyer. Transaction Tax At the transaction, the buyer pays the transfer tax and city tax. When buying land and housing, the building permit for which was issued before January 1, 2006, the transfer tax is calculated as follows: 8% of 20,000 euros and 10% of the rest of the transaction. The municipal tax rate is 3% of the property transfer tax. When buying a home for which a building permit was issued on or after January 1, 2006, the transfer tax is 23% for mainland Greece and Crete and 16% for the rest of the islands (from 1 July 2010). The costs of a notary and a lawyer (obligatory participant in the transaction) are about 2% of the cost. Taking this into account and the fact that the cadastral value is prescribed in the contract, additional costs when buying a home in Greece usually do not exceed 14% of the real value of the property. Regular Taxes For the calculation of the annual flat real estate tax (ETAK), the tax authorities perform an “objective appraisal” of real estate as of January 1 of each year. The tax is paid by individuals and legal entities who own real estate in Greece. The rate for individuals is 0.1% (but not less than 1 euro per 1 sq. M), for organizations - up to 0.6%. When calculating the tax from individuals, tax is not levied on: • 100,000 euros of the cost of housing - for unmarried, • 200,000 euros - for married, • 230,000 euros for married with three or more minor children. When purchasing the first property in Greece with an appraisal value of up to 243,000 euros, individuals are exempt from tax. This figure rises to 487,200 euros for couples. If the family has one or two minor children, the latter figure is increased by 61,650 euros for each child. The presence of a third child does not provide additional benefits. In addition, homeowners in Greece regularly pay a municipal tax (TAP) of 0.025-0.035% of the value of the property. The fee is included in electricity bills. Real estate under construction is not subject to this municipal tax. Income Taxes There is an agreement on the avoidance of double taxation between Russia and Greece. In 2010, Greece changed the tax rates on income, including on income earned from the rental of Greek real estate. The amount of tax depends on the amount of annual income and is determined as follows: • tax on the first 12,000 euros (0-12,000 euros) - 0% for residents (persons who stay in the country for more than 183 days a year), 5% for non-residents; • tax on the next 4000 euros (12,001-16,000 euros) - 18%; • for the next 6,000 euros (16,001-22,000 euros) - 24%; • for the next 4,000 euros (22,001-26,000 euros) - 26%; • for the next 6,000 euros (26,001-32,000 euros) - 32%; • for the next 8000 euros (32,001-40,000 euros) - 36%; • for the next 20,000 euros (40,001-60,000 euros) - 38%; • for the next 40,000 euros (60,001-100,000 euros) - 40%; • for the rest of the amount over 100,000 euros - 45%. The threshold is shifted depending on the number of underage children. The spouses submit their declarations separately. Until 2008, rental income was also subject to a 3.6% stamp duty. Today, this fee is charged only on profit from the rental of non-residential premises. There are two legal routes for those looking to rent out Greek property. The first is a long-term lease (more than three months): in this case, the parties conclude an agreement and the owner registers it with the tax office. The second is a short-term lease: in this case, the property is registered with the Greek Tourism Organization (EOT) and is rented either through an agency or on behalf of a company established by the owner. Sales and inheritance taxes As of 2010, there is no tax on real estate gains on resale in Greece. Inheritance tax depends on the degree of kinship and the value of the inheritance. In the case of first degree kinship (inherited by children, parents, husband or wife), the tax is calculated according to the following scheme: • tax on the first 150,000 euros - 0%; • for the next 150,000 euros (150,000-300,000 euros) - 1%; • for the next 300,000 euros (300,000-600,000 euros) - 5%; • for the rest of the amount over 600,000 euros - 10%.
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Nikita
There are specialists versed in taxes in Greece?
write 9150132817@mail.ru
12 of Nov 2013 15:57:51
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Oleg
Vyvod- I made a terrible mistake by buying a 1-for. sq. through unscrupulous relatives of his wife in 2008 g..v Patras. EVEN in Ukraine is not so sad it ...
16th of May 2013 16:58:38
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dina
Taxes when buying property for the citizens of Greece are not who living in the country and not the citizens, changes in tax laws
11 of Oct, 2011 10:49:07
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