property tax

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garyw
Posts: 7
Joined: Thu May 18, 2017 9:13 pm

property tax

Postby garyw » Sun May 28, 2017 10:22 am

We are looking at moving to Crete and buying a property but somewhat confused about the costs, particularly property tax. We have found sites which say around 10 percent of the price of the house, but the following says this has changed.

Reduced Property Tax in Greece – Changes have been made which have lowered Property Tax in Greece, as part of a series of new laws announced by the Greek government. They include substantially reducing the purchase tax paid by buyers of homes and land in Greece to the government. Previously, property buyers were subjected to a Government purchase tax of between 8% and 10% of the purchase price of a house or a piece of land.
From January 1 2014 ,these taxes have been reduced to only 3% of the purchase price and that has been changed to encourage investment into the Greek property market.

Can anyone tell us what the additional costs to buying a property are? We know about lawyers, notary, moving costs but is there anything that may have slipped past us? Any info appreciated.
Gary

Guy M
Posts: 203
Joined: Fri Mar 15, 2013 9:20 pm
Location: Kalamitsi Alexandrou

Re: property tax

Postby Guy M » Sun May 28, 2017 11:45 am

Hi there

1. Crete is a great place - that overrides anything else I might say.

2. I'm like a broken record on this subject, but...the best advice I ever had was to get a decent lawyer in Crete: not just for the property purchase, but for everything from opening a bank account, buying a car, recommending an accountant, chatting about football..

3. There are some very knowledgeable and helpful people on here, but, while we may all 'have had enough of experts' (Copyright: M Gove) I'd always go to an expert for any serious financial advice and most of us are amateurs.

mouche
Posts: 564
Joined: Sat Jan 15, 2011 5:43 pm

Re: property tax

Postby mouche » Sun May 28, 2017 1:23 pm

When buying a house in Crete you have to expect charges in connection with the purchase of about 12 percent, everything included(lawyer, notary, statetax, VAT etc)

Propertytax, ENFIA, is for our house abt 650 euro per year.

bobscott
Posts: 2076
Joined: Wed Aug 05, 2009 5:36 pm
Location: Kokkino Horio

Re: property tax

Postby bobscott » Sun May 28, 2017 4:42 pm

mouche wrote:When buying a house in Crete you have to expect charges in connection with the purchase of about 12 percent, everything included(lawyer, notary, statetax, VAT etc)

Propertytax, ENFIA, is for our house abt 650 euro per year.


Remember though that ENFIA is based on the size of the house, its age and its location. Our 97sqm house in Kokkino Horio was about €360. Bob.
Yesterday today was tomorrow. Don't dilly dally!

Kilkis
Posts: 8905
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: property tax

Postby Kilkis » Mon May 29, 2017 9:29 pm

I think you are mixing up a number of taxes related to property.

There is a transfer of ownership tax. The rate that is charged at depends on when the propert was first sold. This is charged at a low rate for the first x euro of the price and then a higher rate for the rest. The rates depend on whether the propert is within the area of a fire department or not.
There is the possibility of VAT also depending on when the property was first sold. If it is liable for VAT the transfer of ownership tax is at al lower rate.
You also pay a Notary's fee, you lawyer's fee and often an estate agent's fee.

Your lawyer should be able to tell you what these taxes and fees are for the particular house you are buying. Once you own it you will need to pay an annual property tax, ENFIA. That depends on the size of the house, the size of the plot, where it is located, the frontage onto roads, the age of the house, whether it is detached etc. There is web site where you can enter all the details and it will tell you what ENFIA to expect. Your lawyer should be able to tell you all the information you need to enter. If he can't get a new lawyer.

Warwick


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