Important: Note the difference between the terms market value and objective value. Market value is the one the vendor demands in order to sell his land. The objective value is the one stated in the contract and it is determined from the official tables set by the tax office. The objective value is usually lower than the market value and the reason why this one is stated in the contract is for saving on transfer tax.
The costs associated with a purchase of a property are the following :
a. Attorney’s fees: i) Investigation of Property Deeds: 1,5% of the objective value, ii) Presence at the signature of the contract: 1% of the objective value for amounts up to 45.000,00 Euro and 0.5% on the remainder.
b. Public Notary’s fee: 1.5% of the objective value.
c. Transfer tax: This is calculated on the objective value and it is 7 % on amounts up to € 14,674 and 9% on the remainder. Upon the tax, which shall arise, an additional tax of 3% is imposed in favor of the Municipality where the property is located.
d. Registration Fee: 0.5% of the objective value.
e. Doriza fee: 2 % of the market value and 19% VAT on the value of the fee. This includes guidance and assistance until you actually acquire a sound title to your new property .