The legal and tax aspects of owning and renting a property in Greece

If you are thinking of buying or renting a property in Greece, you should be aware of the legal and tax aspects that apply to your situation. Owning and renting a property in Greece involves certain obligations and benefits that you need to consider before making a decision. In this blog post, we will explain some of the main legal and tax aspects of owning and renting a property in Greece.

- Legal aspects: To buy or rent a property in Greece, you need to obtain a Greek Tax File Number (AFM) and appoint a local tax agent who can handle your tax affairs. You also need to open a bank account in Greece and transfer the funds for the purchase or rental through it. You should hire a lawyer who can check the legal status of the property, draft the contract, and represent you at the notary's office. You should also hire an engineer who can inspect the property and issue a certificate of energy efficiency. You should also obtain a certificate from the Land Registry or the Cadastre that confirms that the property is free of any encumbrances or debts. You should also pay the relevant fees and taxes, such as the real estate transfer tax, the notary's fee, the lawyer's fee, the engineer's fee, the registration fee, and the agent's commission.

- Tax aspects: Owning and renting a property in Greece involves paying various taxes, such as the annual property tax (ENFIA), the municipal tax (TAP), the income tax on rental income, and the capital gains tax on property sales. The ENFIA is calculated based on the objective value of the property, which is determined by the Ministry of Finance according to various criteria, such as location, size, age, etc. The ENFIA ranges from €0.0037 to €11.25 per square meter, depending on the zone price of the area where the property is located. The TAP is levied by the municipality where the property is located and ranges from 0.025% to 0.035% of the objective value of the property. The income tax on rental income is progressive and depends on the amount of rent received. The rates are 15% for rent up to €12,000, 35% for rent between €12,001 and €35,000, and 45% for rent above €35,000. The capital gains tax on property sales is 15% of the difference between the sale price and the acquisition price of the property.

These are some of the main legal and tax aspects of owning and renting a property in Greece. By following these guidelines, you can ensure that you comply with the law and optimize your tax situation. If you need any help or advice on buying or renting a property in Greece, feel free to contact us at Peace of Mind Property Management Service. We are a professional and experienced team that can take care of all your property needs and give you peace of mind.