Buying property in Corfu is an exciting endeavor, whether you’re purchasing a luxury villa, vacation home, or investment property. However, beyond the purchase price of the property, buyers must also account for a variety of closing costs that are necessary to complete the transaction. These costs can vary based on the type of property, the location, and the buyer’s individual circumstances.

This guide provides a detailed breakdown of the closing costs you need to expect when buying property in Corfu, helping you to plan your budget effectively and avoid any surprises during the purchase process.

1. Transfer Tax

What It Is:

The transfer tax (also known as property transfer tax) is one of the most significant closing costs when buying property in Corfu. It is calculated as a percentage of the property’s sale price.

Current Rate in Corfu:

• The transfer tax rate in Corfu is 3% of the property’s purchase price or the market value, whichever is higher.

Example:
If the property price is €300,000, the transfer tax would be €9,000.

Why It’s Important:
This tax is paid directly to the Greek government and must be settled before the transaction can be completed. It is a non-negotiable expense for all property buyers in Corfu.

2. Notary Fees

What It Is:

In Greece, notary fees are required for the signing of the purchase contract. The notary ensures that the transaction complies with Greek property law, and that the ownership transfer is legally documented.

Current Rate in Corfu:

• Notary fees typically range from 0.5% to 1% of the property price.

Example:
For a property purchased at €300,000, the notary fee would typically range from €1,500 to €3,000.

Why It’s Important:
This fee is a required part of the official property transfer process. The notary ensures that the title deed is legally valid and recorded with the Land Registry.

3. Registration Fees

What It Is:

Once the property transfer is complete, it must be officially registered with the Land Registry. This process ensures that the new owner’s name is recorded in the national database.

Current Rate in Corfu:

• Registration fees are generally around 0.5% to 1% of the purchase price.

Example:
For a property purchased at €300,000, the registration fee would range from €1,500 to €3,000.

Why It’s Important:
This fee is necessary to officially transfer ownership and make the sale legally binding.

4. Legal Fees

What It Is:

Most buyers in Corfu work with a local lawyer to ensure the transaction is legally sound, that the property title is clear, and that there are no legal issues with the sale.

Current Rate in Corfu:

• Legal fees typically range from 1% to 2% of the property purchase price.

Example:
For a property purchased at €300,000, legal fees would typically range from €3,000 to €6,000.

Why It’s Important:
A lawyer ensures the property is free from encumbrances, checks the title deed, and drafts the sale contract. They also help with the legal due diligence to make sure there are no hidden liabilities with the property.

5. Valuation Fees

What It Is:

A property valuation may be required to confirm the market value of the property, especially if you are applying for a mortgage.

Current Rate in Corfu:

• Valuation fees typically range from €300 to €500, depending on the property size and complexity.

Why It’s Important:
A property valuation ensures that the price of the property is reasonable and that it is worth the asking price. It is particularly important if you are applying for financing and need the valuation for loan approval.

6. Bank Fees and Mortgage Costs (if applicable)

What It Is:

If you’re financing the property purchase through a mortgage, there may be additional fees from the bank, such as administrative fees, loan set-up fees, and mortgage registration.

Typical Fees:

• Mortgage set-up fee: Around €500 to €1,000.

• Mortgage registration fee: Around €100 to €300.

• Interest: Typically 3% to 5% of the loan amount, depending on the bank.

Why It’s Important:
Bank fees and mortgage-related costs are crucial to factor in when calculating your overall closing costs. If you’re not paying in cash, it’s important to understand these additional expenses to avoid surprises.

7. Miscellaneous Costs

What It Is:

In addition to the major closing costs listed above, there are smaller, often overlooked expenses that should be planned for.

Typical Miscellaneous Costs:

• Utility connections: Fees for connecting water, electricity, and gas services to your new property.

• Property insurance: While not mandatory, it’s advisable to get property insurance to protect your investment.

• Maintenance and repairs: If purchasing an older property, expect costs for repair work or upgrades.

Why It’s Important:
These costs are often smaller but can add up quickly. It’s essential to budget for things like utility connections, insurance, and property maintenance.

8. Conclusion: Understanding Closing Costs in Corfu

Closing costs are a significant part of the home buying process in Corfu, and understanding them is crucial for budgeting. From property transfer taxes to legal fees, these costs add up, but they are necessary to ensure a smooth transaction and legally binding ownership transfer.

Be sure to plan for these costs early in your buying process and work with a local lawyer, real estate agent, and notary to ensure that all legal steps are completed correctly.

For expert guidance and more information about purchasing property in Corfu, visit Chase Real Estate Corfu.