How much does it cost to buy a house in Crete ?
One of the most common questions that I hear as an estate agent is ‘How much does it really cost to buy a home on Crete?’
It’s an important question to ask as every country has its own rules and the asking price of a house is rarely going to be the final cost when all is said and done.
The good news is that the answer to this question is certainly calculable and in this post, I’ll explain how to work it all out.
First up, there are three mandatory fees that are to be paid by the buyer when purchasing property in Crete.
Tax: The first is known as the Property Transfer Tax and it comes in at 3.3 % of the price of the property. So, if a house is sold for €200,000, then the tax would be 200,000 divided by 3.3, totalling €6,600.
Notary & Land Registry Fee: Next is actually a combined fee. In accordance with Greek law, every contract concerning the transfer of property deeds must be written by a certified notary public. They are also responsible for collecting the Land Registry Fee on behalf of the Greek government, so both fees are typically handled at once. The total cost here is approximately 3% of the price of the contract. So if we use the previous example of €200,000, when divided by 3% gives us €6,000.
Agent’s Fee: The agent’s fee can vary from agency to agency but is always agreed in advance by the buyer and the agency. Here at i-land, our fee amounts to 2% plus VAT. In Greece, VAT is currently at 24% and this applied to the amount paid to the agency. Following our example, €200,000 divided by 2% gives us €4,000 which is then subject to €960 VAT, totalling €4,960.
The final expense is not obligatory by Greek law but it is something that we strongly recommend you do:
Lawyer’s Fee: This fee covers a legal check of the property. Your nominated property lawyer will pull the archives of the property you’re attempting to purchase from the Land Registry Office and check to see if everything is in order or whether there is a forgotten mortgage or any other disputes, debts or issues attached to the property. The lawyer’s fee is agreed upon between the buyer and the lawyer but will typically be 1% or 1.5 % depending on the services provided. With our example, €200,000 divided by 1% is €2,000.
So how much does it really cost to buy a home in Crete?
Well, for a €200,000 property you should expect to pay:
- Property Tax : 3.3% or €6,600
- Notary + Land Registry Fee : 3% or €6,000
- Agent’s Fee : 2% + VAT or €4,960
- Lawyer’s Fee : 1% or €2,000
- This gives us a sum total of €219,560.
We hope that you found this blog useful and if you’re looking to buy, sell, rent or rent out a property in the Chania or Rethymno prefectures, or simply have any questions about real estate in Crete or Greece, please feel free to get in touch.
You can check out our portfolio here: www.i-land.gr