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Overview of Property Taxes for Buyers and Sellers
When buying or selling property in Greece, understanding the various taxes and fees is crucial. Buyers face the Property Transfer Tax (PTT), calculated based on the property's objective value or sale price, whichever is higher. The current rate is generally 3%. Sellers need to consider capital gains tax on the profit made from the sale. However, certain exemptions exist, such as for properties owned for a long period or the seller's primary residence. Knowing these taxes helps both parties budget and avoid unexpected costs.
Annual Property Taxes (ENFIA) and How They Are Calculated
ENFIA, the Unified Property Ownership Tax, requires annual payment from all property owners in Greece. This tax consists of two parts: the main tax and the supplementary tax. The main tax depends on the property's size, location, and age, along with its objective value, which the government standardizes. The supplementary tax targets properties exceeding a certain value threshold, adding an extra layer of tax for more expensive properties. Greek tax authorities determine the objective value, ensuring fair and uniform ENFIA assessment across regions. Understanding ENFIA's calculation helps property owners anticipate their annual tax obligations and manage their finances effectively.
Other Fees Associated with Property Transactions
Property transactions in Greece involve several fees in addition to taxes. These include notary fees, legal fees, and registration fees. Notary fees, mandatory for signing and registering the property transfer contract, usually represent a percentage of the sale price. Legal fees prove essential, as hiring a lawyer ensures due diligence and legal soundness in the transaction. This process involves verifying the property's title, checking for encumbrances or liens, and ensuring compliance with local laws. Registration fees at the Land Registry cover the official recording of the property transfer. Buyers needing a mortgage will face additional fees for the mortgage application, appraisal, and approval process. Budgeting for these expenses helps avoid surprises during the transaction.
How MLV Realty Can Assist
MLV Realty offers comprehensive support to navigate the complexities of property taxes and fees in Greece. Our expert agents provide detailed information and guidance on tax obligations for both buyers and sellers, keeping you well-informed throughout the process. MLV Realty connects you with experienced legal and financial professionals to accurately calculate and manage all taxes and fees, helping you avoid legal issues and ensuring a smooth property transaction.
MLV Realty's end-to-end service includes assistance with property searches, legal consultations, contract negotiations, and the final registration process. Our expertise and local knowledge help you understand the financial obligations involved in buying property in Greece, making the process more transparent and manageable. With our support, you can confidently navigate the Greek real estate market and make informed decisions about your property investment.
