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Objective Value & Agreed Selling Price Are Contract Values
24-Aug-08 - On a contract of sale there are two values noted. The first is the Objective Value and the second is the agreed selling price which is negotiated between the buyer and the seller. By law, the buyer is required to pay Property Purchase Tax on the HIGHER of the two values. If the Objective Value of the property is €200,000 but the agreed selling price is €400,000, both values are noted on the contract of sale but the expenses for both the seller and the buyer are calculated on the higher selling price value, ie the buyer will pay property purchase tax at about 11% on the €400,000.
However in some areas of Greece it can happen that the agreed selling price is lower than the objective value. But the costs are then calculated based on the higher objective value.
This is not a change. The law has always very clearly stated that the contract value should be the objective value or the agreed selling price WHICHEVER is the higher and that property purchase tax should be paid on WHICHEVER IS THE HIGHER PRICE.