Property transfer Expenses
The transfer of real estate property involves a series of steps and procedures, which require the assistance of certain persons. The notary plays a primary role, as they coordinate and execute the process in substance, while the engineer conducts the necessary technical inspection and proceeds to the issuance of the required documents. Although not mandatory, the role of the lawyer is considered particularly important, in the case of a real estate purchase, as they assure the buyer of the legal status of the property. The final stage of each transfer is the registration at the competent local cadastral office, something which finally completes the transfer procedure and the change in the ownership.
The total costs required to complete the property transfer procedure are the following:
Transfer Tax
Every transfer of real estate by sale is subject to a tax on the value, which is determined at 3% of the higher amount if there is a difference between the objective value, i.e. the value determined by the Tax Authority for the property sold, and the agreed value. Thus, if the agreed value (the price) is less than the objective value, then the transfer tax is calculated on the basis of the objective value, whereas if the agreed value (the price) is greater than the objective value, then the transfer tax is calculated on the basis of the agreed value.
Notary’s fee:
The Notary’s payment is determined according to the notary’s fee percentage of the highest price between the objective value of the property and the agreed price. This means that when the objective value of the property is higher than the agreed price, the following rate of remuneration is applied to the objective value. Otherwise, the reverse applies.
Percentages of royalty of payment:
– For amounts up to €120.000,00 percentage of 0,8%
– For amount from €120.000,01 to €380.000,00 percentage of 0,70%]
– For amount from €380.000.01 to €2.000.000.00 rate percentage of 0,65%
– For an amount from €2,000,000.01 to €5,000,000.00 rate percentage of 0.55%
– For an amount from €5.000.000.000,01 to €8.000.000,00 percentage of 0,50%
– For an amount from €8.000.000.000,01 to €10.000.000,00 percentage of 0,40%
Additionally, the notary receives a fixed fee of €20 and for each additional page of the notarial deed, their fee is increased by €5, while €4 is added for each page of the copy of the contract.
Please note that 24% VAT is added to all the above fees.
Cadastral Office and Land Registry Office costs:
The proportional cost for the registration of the transfer deeds is calculated at 4.75‰ of the value of the property in Cadastral offices and at 5‰ + 1‰ in new land registry offices. 24% VAT is charged on these fees.
Broker’s fees:
The brokerage fee is a matter of negotiation between the buyer and the broker. It is usually 2% of the value of the property.
Engineering fees:
It is an optional expense for the buyer, as the seller of the property bears the cost of issuing the Electronic Building Identity, the cost of settling any arbitrary actions and generally the cost of ensuring the technical soundness of the property, however, in most cases it is recommended that the buyer addresses an engineer to carry out a technical inspection and verify the seller’s engineer’s assurances. The engineer’s fee is the product of free negotiation, for which the previous experience of the engineer is taken into account.
Attorney’s fees:
As of 1 January 2014, buyers or sellers are not required to be accompanied by a lawyer when drawing up a contract for the sale and purchase of real estate. However, hiring a lawyer is necessary for the buyer (inspection of property titles at cadastral offices, assessing the terms of the contract, etc.). The lawyer’s fee is the product of free negotiation, which takes into account both the lawyer’s experience and the value of the transaction.
* The information is accurate to the best of our knowledge as at the time of writing. We have no obligation to update it. We accept no responsibility against any third party who is not a client of the firm and has not signed the terms of our engagement.