Properties purchased through the Greece Golden Visa program come with permanent ownership rights. Against the backdrop of Greece's economic recovery, real estate investment holds significant value. However, many are not clear about the taxes and fees associated with purchasing property for immigration purposes. Let us take a look.
I. Property Transfer Tax
The property transfer tax in Greece is highly dependent on the age of the property. If the property was built before January 1, 2006, a tax of 3% of the total property price is required. If it was built after this date, a 24% tax applies. After purchasing the property, an accountant must register it with the government, which incurs a property holding tax of 0.2%.
II. Property Management Fees
Property management fees are based on the size of the property, typically ranging from 20 to 150 euros per month. This fee is mandatory regardless of whether you reside in the property. Furthermore, if you intend to rent out the property, this cost should be factored into the rental income, as the actual amount paid varies depending on the specific property project.
III. Personal Income Tax
This tax must be paid annually and is primarily based on total rental income. Rental income under 12,000 euros is taxed at 15%, while the portion exceeding 12,000 euros is taxed at rates between 30% and 45%.
IV. Property Insurance
This cost is approximately 350 euros per unit per year. The exact amount depends on the age and size of the residence, and is subject to the actual rates charged by the insurance company.
V. Property Custody Fees
If the applicant is not in Greece after obtaining residency through property investment, they may entrust the property to an agency for maintenance and management. Agencies typically charge a service fee of 600 euros per year. This covers only the management service; any third-party repair costs must be paid by the landlord.
VI. Legal Fees
Legal fees for property transfer are generally 1.24% of the property price. This rate is the same whether purchasing from an individual or a developer, so there is no need for concern.