Selling a Property in Greece. 2024 Guide about Cost, Tax and the Process of Selling a House

The Process of selling a house in Greece

Selling a house in Greece requires careful planning and execution if you want to ensure that you are legally covered, compliant and get the most out of the sale.

There are a number of steps you should follow, including navigating the legal requirements, working with professionals, and marketing your property effectively.

Here’s a comprehensive step-by-step guide to help you through the process.

• Property Assessment and Valuation: Begin by assessing the condition of your property and consider making necessary repairs or improvements to increase its appeal and value. Hire a professional real estate agent to determine the market value of your property. This step is critical to setting a competitive and realistic selling price.
• Legal preparation: Gather all necessary legal documents, including the title deed, proof of identity, and any other certificates or permits related to the property, such as the Energy Performance Certificate (EPC), which assesses the energy efficiency of the property and is mandatory for selling property in Greece. Consult a Greek real estate lawyer to ensure that all your paperwork is in order and to navigate the legal requirements smoothly.
• Hire a real estate agent: Research and select a reputable real estate agent with experience selling property in your area. Discuss and agree on the terms of their services, including their commission rates and marketing strategy for your property.
  Marketing Your Property: Your agent will list your property on various platforms to maximize exposure. Be sure to arrange for professional photographs and possibly virtual tours of your property to attract potential buyers. Be prepared to host showings for interested buyers, either by yourself or through your agent.
• Negotiate offers: Your agent will receive offers from potential buyers and present them to you. With your agent’s help, you can negotiate the terms of the sale, including price and closing date, with prospective buyers to reach an agreement.
• Legal Process and Purchase Agreement: Once you accept an offer, a preliminary agreement is drawn up outlining the terms of the sale. Both parties sign this agreement and the buyer may pay a deposit. Your lawyer will conduct the necessary legal checks on the property to ensure there are no legal impediments to the sale. Upon successful completion of the legal due diligence and financing arrangements by the buyer, the final purchase agreement is drafted by the attorney.
• Closing and transfer: The final purchase agreement is signed by both parties in the presence of a notary. The buyer completes the payment according to the agreed terms. The transfer is registered in the Land Registry and ownership is officially transferred to the buyer.
• Taxes and Fees: Pay all necessary taxes and fees associated with the sale. Be aware of capital gains tax and other tax implications when selling property in Greece. As your attorney, we can help you understand and handle these payments.However, it is important to consider that by 2024, the Greek real estate market will be more mature, with stabilized prices and a more structured investment environment.

Selling an Inherited Property in Greece

Selling an inherited property in Greece involves several specific steps and legal considerations due to the country’s unique property laws and tax regulations.

First and foremost, it is imperative that you establish your legal right to the property. In Greece, inheritance is governed by the Greek Civil Code, and upon the death of the property owner, the estate must go through a probate process. This process includes examining the will, if there is one, or following statutory inheritance laws, which determine heirship in the absence of a will.

Once the legal inheritance is determined, the next step is to pay off any debts or encumbrances on the property. Inherited real estate can sometimes come with encumbrances, such as outstanding taxes or mortgages. These must be paid before the property can be sold. It’s also important to make sure the property taxes are up to date, as delinquencies can significantly complicate the sale process.

You can contact Leptokaridou Law Firm at any time if you are looking for an inheritance lawyer in Greece to take care of all these legal aspects.

Before listing the property for sale, it is advisable to obtain an accurate appraisal.

The valuation will not only establish a competitive market price, but will also determine the taxable value of the property for inheritance tax purposes. Inheritance tax in Greece is calculated based on the relationship between the deceased and the heir, and the value of the inherited property.

With the legal and financial aspects in order, marketing the property effectively is the next step. Using a local real estate agent can provide access to potential buyers and help navigate local market trends.

The final sale of the property involves several detailed steps, usually coordinated by a notary and your attorney. This includes the drafting and signing of the final contract of sale. All parties involved must be present at the signing of the contract or appoint legal representatives by power of attorney. Once the contract is signed and payment is secured, title is officially transferred to the buyer and the proceeds of the sale can be paid.

Costs of selling a house in Greece

There are several costs associated with selling a home in Greece. As these can vary depending on the location, value of the property and the professionals involved, it’s important to discuss all potential costs with your real estate agent and lawyer early in the process in order to budget effectively.

The main costs to consider are real estate agent fees, legal fees and notary fees.

Estate agent commissions are usually a percentage of the final sale price. This percentage can vary, but is usually between 2% and 5%.

Legal fees for an attorney to handle the sale can vary widely depending on the complexity of the transaction and the attorney’s rates. It’s usually a percentage of the property value or a fixed fee.

The notary’s fee for notarizing the sale contract and other legal documents is usually around 1% to 1.5% of the property value, but this can vary.

If a survey of the property is required to assess its condition or boundaries, the cost may vary depending on the scope of the survey and the surveyor’s fees.

You may also incur costs if you decide to make repairs or improvements to increase the property’s appeal and value, and these will vary depending on the extent of the work.

In some cases, if your real estate agent doesn’t cover all marketing expenses, you may have to pay for additional advertising, professional photography, and possibly staging services, which can vary widely.

The final cost is to obtain the mandatory Energy Performance Certificate (EPC). The cost depends on the size and type of property, but typically ranges from €100 to €300.

Taxes to pay when selling a house in Greece

When selling a property in Greece, there are several taxes and fiscal obligations you may need to consider.

The tax landscape can be complex and the details can change. This overview provides a general idea of the taxes involved in selling property in Greece, but keep in mind that the actual tax burden can vary greatly depending on specific circumstances and the ever-changing tax regulations.

It’s always a good idea to consult a local tax advisor or lawyer for the most up-to-date information!

• Capital gains tax: Capital gains tax on property sales has been reintroduced in Greece and applies to properties purchased after January 1, 2014. The rate may vary, but the general approach is to tax the difference between the acquisition cost and the sale price of the property. Specific exemptions and reductions may apply based on the length of time the property has been owned and other factors.
• Real estate transfer tax: If the property was purchased before 2014, you may be subject to a real estate transfer tax instead of capital gains tax. This tax is calculated on the “objective value” of the property (an officially determined value based on location, size, and other criteria) rather than the actual sale price. The rate has historically been around 3%, but it is important to always check the current rate as it can vary.
• Municipal tax: In addition to the property transfer tax, there’s also a municipal tax, which is a percentage of the transfer tax (usually around 3%).
• Value Added Tax (VAT): New buildings sold by developers may be subject to VAT in lieu of transfer tax. The VAT rate is 24% of the sale price. However, this mainly applies to properties for which the building permit was issued after January 1, 2006.
• Withholding Tax: In certain situations, if the seller is a non-resident, the buyer may be required to withhold a percentage of the purchase price as an advance tax payment on behalf of the seller.
• Social Security Contributions: There may be situations where social security contributions are applicable, particularly in cases where the sale of the property is considered a business activity.

If you sell a property worth €100,000, these are the taxes and fees you can expect to pay:

There are various exemptions and deductions available, especially for primary residences, long-term ownership, and under certain conditions.

It’s important to declare the sale on your annual tax return in the year following the sale.

Given the complexity of property and tax laws in Greece, which can also vary by location and specific circumstances, professional advice is essential to fully understand your tax liability.

Why hiring a lawyer is recommended when selling a house in Greece

The involvement of a real estate lawyer when selling a house in Greece is not only recommended, it’s a legal requirement.

The Greek legal system requires the presence of a lawyer to ensure the legality of the real estate transaction, to protect the rights of both the buyer and the seller, and to formally record the transfer of ownership.

The legal process of selling property in Greece involves various formalities, from obtaining the necessary certificates to registering the sale. A lawyer will coordinate these tasks and ensure that they are completed efficiently and correctly. Ensuring that all legal aspects are handled correctly the first time will help avoid delays and additional costs that could arise from non-compliance or errors in the paperwork.

• A real estate lawyer in Greece will ensure that all legal documents required for the sale of the property are accurate, complete and properly processed. This includes, but is not limited to, title deeds, building permits, and energy performance certificates.
• Attorneys are required to facilitate the transfer of property titles and ensure that the transaction complies with all local regulations and tax laws.
• Lawyers draft and review sales agreements to ensure they reflect the agreed terms accurately and protect the seller’s interests. This includes specifying the conditions of the sale, payment terms, and any contingencies.
• If any disputes or legal issues arise before, during or after the sale, an attorney will represent your interests and work toward a resolution.
• Greek real estate laws can be complicated and vary from region to region. An attorney with expertise in real estate law can navigate these complexities and ensure compliance with all legal requirements.
• Lawyers often work closely with tax advisors to help sellers understand their tax liabilities, including capital gains tax, real estate transfer tax, and any applicable exemptions or deductions.

Hiring a lawyer is not only a legal requirement, but also a prudent step when selling a house in Greece. Given the significant financial and legal implications of selling property, the expertise and guidance of a qualified lawyer is invaluable.

Contact us today if you are selling your house in Greece. Our law firm will ensure that the transaction is legally sound, your interests are protected and the process is as smooth as possible.

Selling a House in Greece Without an Estate Agent

Selling a house in Greece without a real estate agent is possible and can save you money on commission fees, but it requires more effort and knowledge of the real estate market.

The first step is to determine the market value of your property. Without a real estate agent to help you, the best way to proceed is to research similar properties in your area.

Advertise your property through online platforms, social media and local newspapers to attract potential buyers. High-quality photos and detailed descriptions are key to communicating your property’s value.

Arrange and conduct property viewings with interested buyers. Be prepared to answer questions and provide additional information.

Negotiate the terms of the sale, including the price and any contingencies.

After the sale is finalized before a notary public, who will ensure that all legal requirements are met and register the transfer of ownership, be sure to pay all applicable taxes and fees, such as capital gains tax and notary fees.

Given the value of the transaction, whether you sell your house with or without a real estate agent, it is always highly advisable to hire a lawyer to draft the purchase agreement and handle the legal aspects of the transaction, and to ensure that all property documents are in order, including the title deed, building permit and any other required certificates.

Is it easy to sell a property in Greece?

Selling property in Greece can be relatively straightforward, but it depends on a number of factors, including market conditions, property location, legal requirements and the seller’s preparation.

Properties in urban areas or tourist hotspots are generally easier to sell due to higher demand, as are vacation properties attractive to international buyers, especially in coastal and island locations.

Rural properties, on the other hand, may take longer to find buyers.

Pricing is also critical. Overpricing a property can keep it on the market longer, while underpricing can result in a quicker sale, but at a loss of potential profit.

Can I sell my house in Greece after a divorce?

In Greece, the sale of a house during or after a divorce depends on several legal factors, including the ownership of the property, the consent of both parties and the involvement of the court, if necessary.

During a divorce, if the property is jointly owned, both parties must agree to the sale. A sale cannot be made unilaterally unless there’s a court order.

If one party wants to sell and the other does not, a court may intervene. A judge can decide on the division or allow the sale if it is in the best interests of both parties.

It’s worth noting that during divorce proceedings, courts often impose temporary measures that may include restrictions on the sale of marital assets, including real estate. These measures are usually designed to prevent one party from unilaterally diminishing the community property.

After the divorce, if the property division is finalized and ownership of the home is clearly assigned (to one spouse or jointly), the assigned owner(s) can decide whether to sell it. If it is jointly owned after the divorce, both parties must again consent to the sale, unless one has legally acquired full ownership.