Property Tax

PROPERTY TAX CONSULTING SERVICES

Most agents in Greece, are aware of certain markets (regions), but their knowledge is limited to the property transfer and are not capable of providing a piece of advice, concerning the advantages and drawbacks which accompany a property purchase.

From the other hand, we do understand that potential investors are interested to know what a property acquisition would mean in terms of added value creation, tax burdens and maintenance costs. GoldGreece is powered by TaxExperts, a boutique Financial and Tax consulting firm, so a team of experts have the required knowledge and experience to facilitate your dream in all stages.

More analytically, the services provided to high net worth individuals and companies are:

1. Property Selection

Identifying buying opportunities could be very tricky. Is Glyfada a better value for money than Vouliagmeni ? Is Mykonos still overvalued ? Will Crete appreciate more than Corfu ? Why I shouldn’t buy an amazing cheap apartment in a small island ?

The region selection is a quite complicated case, as there are developing areas expected to offer greater returns than the real estate market in the near future (Peloponnese Peninsula, Cephalonia, Crete, even regions in the center of Athens) and prestigious areas (Vouliagmeni, Kifisia, Mykonos, Rhodes) which maintain and increase their value over time.

The residence type is also of much importance. Apartments ‘get older’ and lose their value much faster than country villas and detached houses. In addition, villas offer a great number of facilities such as playroom, pool, garden, which beautify your holidays or your stay in general.

Our team of experts can provide you with useful advice during the property selection, in accordance with your needs, your budget available and the time horizon of the investment.

2. Valuation

The correct valuation and the determination of the property’s ‘fair’ price comprise key points before a purchase. Quantitative and qualitative factors are taken under consideration during pricing. The building’s and plot’s size are the main quantitative variables, while the region, the distance of means of transport, the existence or not of a fireplace or a pool are some of the most significant qualitative variables.

Moreover, the income that can be produced by property as well as the necessary maintenance cost should be taken into account during valuation.

Our executives may compose an opinion of value for a property you already own or for a property you admire to acquire, based on specific property’s characteristics and comparable transactions that took place in area concerned.

3. Tax planning

Times said that “Greece is an investment hell”. We just say that they have employed the TaxExperts.
It is true that the Greek legal framework governing properties and taxation is really confusing, because several Laws refer to almost the same things and the Laws are modified continuously.

However, Greek bureaucracy can be easily stepped aside with TaxExperts. We undertake:
a) The calculation of all conveyance and acquisition costs,

b) The calculation of all annual taxes and assessment of the payable municipality fees in advance,

c) The arrangement of all paperwork during the asset acquisition (notaries, contract, Tax Authorities, registration in National Cadastre etc)

d) The maintenance of the legal and tax status of your property

The above services can be also provided to companies plus:
a) The calculation of amortization and depreciation for own commercial buildings and the relative tax saving,

b) The composition of reports to ensure the most beneficial choice between buying and renting a commercial property,

c) The communication with Greek banks for a loan approval, the calculation of periodic installments and the relative tax saving due to interest payments.
TaxExperts Financial Due Diligence Services ensure that an investment plan has been properly set up and that the decisions will are solidly based on economic and financial criteria.

4. Legal Due Diligence

TaxExperts has an established in-house legal department which is capable to proceed with the legal inspection of the asset. All the necessary paperwork in the public services and the notary can be undertaken by our legal division in order to acquire your admirable property without fatigue and stress.
In addition, our Legal Services’ experience in corporate and commercial matters includes company formation and structuring, mergers and acquisitions –  including share and asset sales and acquisitions, –  private equity management advice, financing and refinancing, data management, as well as competition law.

For more information regarding our Real Estate Agent please visit: www.goldgreece.com

Taxes – Fees – Charges imposed to real estate property

Taxes – fees – amounts withheld from property income
Rental income tax

10% up to 12.000

33% above 12.00

Stamp Duty + OGA (not on housing rents)

3.6%

Additional rental income tax (usually paid from the lessee)

3%

Special solidarity surcharge on individuals

1-4%

Imputed income for living in owned or leased residence(Foreign Tax Resident who don’t gain any income in Greece are excluded from imputed taxes).

Depending on surface and zone price

State withholding tax on rents in favor of MTPY (only when the lessee is a public organization or a governmental agent)

3%

Municipal withholding tax on rents in favor of TADKY (only when the lessee is a public organization or a governmental agent)

2%

 

B. Taxes – fees imposed during the conveyance of immovable property

VAT: For purchasing newly built premises

23%

Tax on Property Acquisition (calculated on the value of the property)

8-10%

Municipal tax for conveyance (calculated on principal tax)

3%

Capital gains tax on property resale ( for property acquired after 1.1.2013)

20%

Fee in favor of Lawyers’ Fund within the preparation of contracts and the transcription (calculated on the value of the property)

7.75 ‰

Additional contract transcription fee (calculated on the value of the property)

4.5-7.5‰

 

C. Heritage tax / Parental donation tax / donation property tax

Heritage or Parental donation tax
A’ class: children, grandchildren, spouses, parents

1-10%

B’ class: descendants, brothers, uncles, grandparents, etc

5-20%

C’ class: other relatives and outsiders

20-40%

Donation immovable property tax
A’ class: grandchildren, spouses, parents

5-20%

B’ class: descendants, brothers, uncles, grandparents, etc

10-30%

C’ class: other relatives and outsiders

20-40%

 

D. Annual – Periodic taxes on ownership

Annual Real Estate Property Tax – FAP (from 1.1.2010)

2‰ -2% (individuals)

6‰ (enterprises)

Annual electrified surfaces fee (via PPC) for 2011-2012

3-20€/s.m.

Annual immovable property fee – TAP (buildings and plots)

0.25-0.35‰

Annual Property Tax on Offshore Companies

15%

Revaluation tax (addressed to enterprises – periodic)

Plots 5%, buildings 8%

 

Other taxes, fees and levies to municipality and third parties
Municipal cleanliness and lighting fee

Depends on municipality

Municipal tax for electrified surfaces

Depends on municipality

Special fee for renewable energy sources

Depends on kwh

Various municipal fees

Depends on municipality

Sewerage Fee

Depends on municipality and EYDAP

Levy of land or cash payment to enter the city plan

Land up to 60%, cash up to 25%

Registration fee in National Cadastre

35€/concession + 1‰*objective value

Restructuring fee in favor of DEPOS

L.2508/1997

 

Taxes, Fees & Levies for building license and construction of building
Building license fee

1%*budget

Construction works fee

Ruling 1947

Withholding in favor of municipality, TEE, TSMEDE

Depends on budget

Employer’s levy to IKA and TEAEDXE

90%*daily wage

VAT on building materials and works

23%

Municipal duty for pavement’s usage

Depends on municipality

Power supply fee

L.4483/65

Fines for illegal buildings ownership

L. 4014/2011

 

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