Property owners in Greece face a number of obligations. What is the burden of taxes and fees? What are the monthly expenses for utilities and property management services? How much income can you get from renting out housing, and what costs can you expect? Our material will shed light on these and many other issues related to the content of Greek real estate.
Taxation Of Greece For Property Owners
Since January 1, 2014, the Unified Immovable Property Tax (ENFIA), established by Law 4223/2013, has been in effect in Greece. This tax, consisting of the main and additional parts, is charged on real estate owned by individuals or legal entities as of January 1 of each year.
After purchasing the property, the owner is required to submit a declaration with information about the property (Form E9), on the basis of which the tax authorities calculate the amount of ENFIA annually.
Basic Tax (ENFIA)
The amount of the basic tax is determined by various factors, including the location of the object, the year of construction, the area, the floor and its cadastral value.
- Residential and commercial properties: from €2 to €20 per square meter.
- Plots within settlements: from €3 to €9 per thousand square meters.
- Plots outside the settlements: €1 per thousand square meters.
The cadastral value of real estate, known as the "objective price", directly affects the amount of the annual tax ENFIA. However, after the last update of the objective price map in 2021, the market value of real estate in the country has increased significantly.
It is important to remember that the tax is paid by the owners who owned the property on January 1. Therefore, even if the sale of the property occurred on January 2, the obligation to pay the tax remains with you as the former owner at the reporting date. The declaration can be submitted before January 31 of the year following the reporting year.
You can pay for ENFIA in a single payment before the last business day of the month in which the tax payment was received, or in the form of ten equal monthly installments, each of which must not be less than €10, with a payment deadline in February next year.
Tax Breaks For Homeowners
Exemption from the mandatory real estate tax (ENFIA) is provided:
- Families with three or more dependent children, as well as families where one parent or child has a disability of 80% or higher. The condition is an annual family income of up to 12,000 euros, with the possibility of an increase of 1,000 euros for each family member, including a spouse.
- Owners of facilities affected by natural disasters.
A 50% tax reduction is possible for:
- Families whose annual income does not exceed 9,000 euros, with an addition of 1,000 euros per child.
- Owners of real estate with an area of no more than 150 square meters.
Additional Fee (Luxury Tax)
This tax is applied to the value of all Greek property owned by the owner in excess of 500,000 euros. The rate for individuals ranges from 5% to 20%, depending on the total value of the property. The pool in the villa is also taken into account when calculating it.
Special Property Tax (SRET)
Legal entities that own real estate pay this tax. Its rate is 0.55%. If the property is used for business, the rate is reduced to 0.1%. When calculating this tax, land plots outside populated areas, as well as buildings older than 100 years that have the status of architectural monuments, and adjacent territories are not taken into account.
Municipal Tax (TAP)
This fee, which includes payment for garbage collection and street cleaning, ranges from 0.025% to 0.035% of the cost of the facility and depends on its location and area. Charges are made through electricity bills. The owner must pay for it, but if there is a tenant, the amount is deducted from the rent. In practice, as a rule, the tenant pays the full bill, including all municipal fees.
How To Pay Taxes In Greece: A Practical Guide
In order to pay property taxes in Greece on time and correctly, citizens need to obtain a taxpayer identification number and create a personal account in the electronic services system of the tax service.
Access to tax notifications and the ability to pay for them are provided through the myAADE online platform. Here users can view the submitted invoices, download them and make the payment.
Payment of taxes from abroad is possible by bank transfer. Also, an authorized lawyer may act to make a payment on behalf of the property owner.
Important. Tax payments from Russia can be made both from a bank account opened in the European Union and from an account opened in other countries.
Greece offers an interactive resource — a map of objective real estate prices. This tool is a valuable resource for property owners. It allows you to determine the location of an object on the map and estimate its market value, which, in turn, helps predict tax liabilities.
Public Utilities In Greece
Electricity
The electricity consumption is calculated based on the meter readings. The total amount of expenses is determined by the area of the property, the amount of taxes and the actual consumption. An interesting feature is that the cost of a kilowatt-hour decreases with higher consumption.
The electricity bill is generated every two months and includes fees for garbage collection, public television, municipal taxes and fees. More detailed information about tariffs and payment options is available on the website of the State-owned Energy Company (a VPN is required for access due to the language barrier).
The approximate cost of a kilowatt-hour is about €0.1. For an apartment of 60 sq. m. The average monthly expenses are €25-30 in summer and €70-130 in winter.
High energy bills are a significant problem for property owners. Many are looking for alternative solutions, such as working with independent suppliers who purchase energy from a state monopoly, or installing their own solar panels, especially home and hotel owners. The government encourages such initiatives by providing subsidies for the installation of solar panels.
Water Supply
Local companies supply water in Greece. The largest of them are EYDAP in Athens and EYATH in Thessaloniki. The frequency of water billing varies from annual to monthly, depending on the region. The drainage fee is approximately 75% of the cost of the consumed water. The cost of a cubic meter of water increases in proportion to consumption.
Prices for domestic water range from €0.45 to €4 per cubic meter, depending on the volume of consumption. The cost of water on islands is usually higher than on the mainland. A family of three who uses water sparingly in Thessaloniki can pay about €60 per year, while a similar family on the island can pay about €100. If used uneconomically, the amount can reach €250-300 per year. There is no centralized hot water supply; the water is heated by electricity, boilers or solar boilers.
Heating
Central heating is common in only 20% of Greek homes. The main sources of heat are diesel fuel and gas, the latter is very expensive (up to €3-4 thousand per year), while gas heating systems cost €100-200 per season and about €2-3 thousand per year. These systems are also used to heat water. Many homes have stoves or fireplaces that use wood chips (pellets), which significantly reduces costs: a cubic meter of such pellets costs about €120. Wood-burning boilers are actively gaining popularity.
Gas
Centralized gasification is only available in large cities such as Athens and Thessaloniki. The gas receipt, which arrives every two months, includes a system maintenance fee (€8-10). Annual gas costs range from 140-400 euros.
Internet, TV, Phone
The leading telecom operators in Greece are Cosmote, Vodafone and Nova. The cost of mobile communication with unlimited calls and the Internet is €40-50 per month, the minimum tariffs are €20. The comprehensive offer, which includes unlimited Internet, landline phone and TV, will cost about €60 per month. Starlink satellite Internet is becoming an alternative to traditional providers, which is especially relevant for remote areas. The monthly usage fee is about €40, and the cost of the installation kit is €500-600.
Payment For The Maintenance Of The Common Area
The annual cost of maintaining the common area of an apartment building or residential complex, shared between the tenants, is 200-400 euros. In complexes with developed infrastructure (swimming pools, gyms) this amount can reach €5,000 per year.
Additional Expenses
Property owners in Greece are required to file an E9 tax return within a month of purchase. Every year, foreigners must submit an E1 income declaration, even if there are none. The cost of a declaration filling specialist starts from €50.
Real Estate Insurance
Property insurance in Greece is not mandatory, and many owners prefer to avoid these costs. However, when applying for a mortgage, insurance becomes necessary. The cost of the policy depends on various factors, including the type, cost, area, number of floors of the facility and the risks involved. Full insurance for an apartment usually costs from €140 per year, for a villa – from €350 per year. It is important to note that Greece has a discount program of up to 20% on property taxes for homes insured against natural disasters.
If you are going to buy an apartment in Athens or a villa in Halkidiki, then you should carefully study the issue of taxes and the cost of maintaining the facility so that there will be no problems in the future.
