Expenses for Buying & Taxation in Greece & Cyprus

Expenses & Taxation of real estate purchases

Greece Real Estate Taxes and Fees

An additional amount of around ca. 10%-12% of the purchase price should cover the costs of:

Transfer Tax: 3.09%

Legal Fees: 1.5%

Public Notary Fees: 1.5%

Registration of Title Deed / Land/ Cadastral Registration office: 0,6%-1%

Technical Due Diligence: Expenses vary according to the complexity of
the research and the value of the property.

Estate Agent Fees: Depends on the Property

The Greek economy has demonstrated notable stability in recent years, despite the challenges posed by the pandemic. Through effective domestic policies, a focus on developing the tourism sector, and the implementation of property tax regulations, the government has successfully steered the country out of crisis. As early as 2019, the leadership of Greece took the decision to suspend the collection of VAT for newly constructed properties with building permits issued after January 1, 2006, a measure that was initially planned until 2023. In a recent address at the Thessaloniki International Exhibition, Kyriakos Mitsotakis announced the extension of this tax relief for two additional years, now extending until the end of 2025.

Income tax scale (rental)

Annual Income tax:

– up to € 12,000 the tax rate is 15%

– from €12,001 to € 35,000 tax rate is 35%

– and from € 35,001 and upwards, the rate is 45%.

Different tax rates apply to companies!

Moreover, a special solidarity contribution is due at a progressive tax scale of up to 10%.

Annual Property Taxes:

ENFIA (Uniform Real Estate Property Tax) €0,0037-€11.25/sq.m.

TAP (Municipal Tax) 0,025%-0,035%

Special Tax 15 % (This applies to all companies in Greece which own real estate).

You can find more information here.

Cyprus Real Estate Taxes and Fees

Property VAT

VAT – Value Added Tax, one-time payment, paid by the purchaser of the new properties and land. VAT on land and new real estate purchase in 19%.

A reduced rate of 5% can be applied to the acquisition or construction of a residential property, providing that:

The property is used by the applicant as the principal and permanent residence in Cyprus (minimum for 10 years). There is no time limit for non-Cyprus residents to stay in the country;
The applicant has not acquired any other residence in Cyprus with a reduced VAT rate.
The applicant must be an individual, over 18 years old. Legal entities are not eligible for the VAT reduction.
A reduced VAT property cannot be used for rental purposes or any other economic activity.

A buyer pays 19% VAT and after property, purchase applies for refund. The application must be submitted before the applicant moves into the dwelling. If the property is under construction (off-plan) the application can be submitted at any time during the construction period.

The reduced VAT rate of 5% applies to the first 200 square meters of the area of the property. In cases of large families, the total area is can be enhanced. In the event a VAT reduced property is sold or rented out prior to the expiration of a 10-year period, the previously affected VAT refund must be returned to the state for the remaining years.

VAT on Resale Real Estate is not applicable.

Property Ownership Transfer Fee

The property ownership transfer fee is a one-time payment, paid by the purchaser of the property. No transfer fees payable for properties with VAT.

Rates:

3% for property value €0-85,000
5% for property value €85,000-170,000
8% for property value €170,000 and above
50% reduction is applicable to the property ownership transfer fee amount.

Transfer fee calculator is available on the website of Ministry of Interior, Department of Lands and Surveys, here https://portal.dls.moi.gov.cy/en-us/Pages/CalculateTransferFees.aspx

Stamp Duty

Stamp Duty is a one-time payment, paid by the purchaser of properties and land. Stamp duty is paid within thirty days from the date of co-signing of the property acquisition contract in Cyprus in order to register the transaction in the Inland Revenue Department.

Rates:

0% for property value €0-5,000
0.15% for property value €5,000-170,860
0.2% for property value €170,860 and above
The maximum amount of stamp duty payable is €20.000 per agreement.

Immovable property ownership tax in Cyprus is not applicable.

Municipality Tax in Cyprus

Municipality tax is an annual tax paid by the owners, which ranges from €85 to €500 per year, for garbage collection, sewage, lighting of common areas, etc.

Capital Gains Tax in Cyprus

The property seller is paying Capital Gains Tax (CGT) at the rate of 20% on gains arising from the sale of immovable property in Cyprus.