During the purchase of a property, there are some procedural expenses that either the buyer or the seller must cover, beyond the acquisition cost that has been agreed upon for the purchase of the property. Below, you can see this in detail.
Initially, with the purchase of the property, the new owner faces a tax burden. Although with the current abolition of VAT for the first 3 years the buyer is exempt from this cost for the initial period, they must pay the transfer tax. This fee amounts to 3% of the property’s cost. In the case of buying a first home, the law provides, under certain conditions, the buyer’s exemption from this specific tax.
Additionally, the notary’s fee must be included in the additional expenses that the buyer will have to bear. This fee is determined by the price paid for the purchase of the property, provided it exceeds its objective value. If the price is lower than the property’s objective value, the percentage is determined by the property’s objective value and is usually about 1.2% of the amount.
Additionally, some expenses must be incurred for the transfer of the property at the οland registry, the cost of which amounts to 0.475% plus some fees on the objective value or the price paid by the buyer (whichever is higher). Along with these, a sum intended for the legal fund is also paid, amounting to 0.125% of the property’s value.
Moreover, the brokerage fee is a cost borne by both sides of the transaction. This percentage is usually around 2-7% of the purchase price of the property, both from the buyer’s side and from the owner’s side. Sometimes, real estate agencies bill their services differently, and their fee may arise following negotiation with the involved parties.
Finally, since the beginning of 2014, the lawyer’s fee is not a mandatory expense for either of the contracting parties, but in practice, their presence during the drafting of the contract is necessary. Specifically, it is up to the buyer to consult a lawyer for many issues that arise during the transaction process, such as checking the terms of the contract, verifying details with the land registry, etc., and their fee is determined after mutual agreement.
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