Property Maintenance in Greece
The maintenance of an apartment in Athens costs on average from 700 to 1.8 thousand euros, villas on the islands – from 1.5 to 15 thousand euros. The main items of expenditure are taxes and utilities.
All property owners in Greece, including foreigners, pay an annual tax, which consists of two parts – the main and additional.
The main part varies from 0.001 to 13 euros / m². Its size determines a number of coefficients: the area, the notional value established in a particular municipality, the date of construction, etc. The tax inspectorate calculates the amount individually for each object.
The additional part for individuals and legal entities is calculated in different ways. The first pay this part of the tax only for objects with a cadastral value of more than 200 thousand euros at a rate of 0.1 to 1.15%, depending on the value of the property. For companies, the additional part rate is fixed and amounts to 0.55% of the cadastral value of the property if the legal entity rents the property, or 0.1% if the company-owner owns the object.
In addition, there is an annual municipal property tax. Its size is from 0.025 to 0.035%, depending on the location of the object.
For villas on the coast, the cadastral value may be several times lower than the market value; for inexpensive objects in the center of large cities, on the contrary, it is higher than Oleksii Khodakivskiy / Unsplash
Companies also pay a special property tax at a rate of 15% of the value of the object. However, it does not apply if an active business brings a company more income than a passive one, and also if a legal entity discloses data on all beneficiaries.
When renting real estate individuals pay tax on income at a rate of 15 to 45% depending on the amount of income received. The cost of maintaining the real estate is deducted from the taxable base: for example, depreciation charges (wear of furniture and real estate) and repair costs. If the income from real estate is more than 12 thousand euros, then the increased rate applies only to the part that exceeds this threshold. For example, if the earnings amounted to 20 thousand euros, then 12 thousand euros are taxed at a rate of 15%, and the remaining 8 thousand – at a rate of 35%.
Companies pay tax on rental income at a corporate tax rate of 29%.
Electricity. Electricity bills in Greece come every two months, and meter readings are taken every four months. 1 kWh costs about 0.1 euros. On average, the monthly electricity bill is 25–30 euros during the warm season and can reach 70–100 euros in winter.
Water supply. In different regions, utilities send bills with different frequency: once a year, quarter or month. A family of three pays for water from 60 to 250 euros per year. On the islands, water is on average more expensive than in mainland Greece.
Gas. Gas can only be used by residents of major Greek cities: Athens and Thessaloniki. The average gas bill is 140–400 euros per year.
Telephone and Internet. In Greece, there are several providers of telephone and Internet. This item costs from 180 to 600 euros per year, depending on the volume of services.
The content of the site and the total area. The owners of the villas pay from 800 to 4 500 euros per year for the care of the garden and swimming pool. Apartment owners share among themselves the costs of maintaining a common area: lighting, cleaning, maintenance of elevators, maintenance of green spaces, security and maintenance – in the amount of each owner pays 200-400 euros per year.
When renting housing for a short-term lease, the owners pay for the services of the management company – 20–25% of rental income per month. The cost of utilities in this amount is not included.
Insurance property in Greece is optional. Since Greece has a low crime rate, many owners prefer to save on this cost item.
The cost of the policy depends on the type of object, its cost, area, number of floors, year of construction, as well as the insurance claims included in the contract. For example, full insurance for an apartment will cost 500 euros per year (if furniture and appliances are included in the contract, the cost will be more expensive), for a villa – from 1,500 euros per year.