Buying Your First Car in Greece: Hidden Costs You Need to Know

Road Tax (Teli Kykloforias): The Annual Surprise

Road tax in Greece is calculated based on your vehicle's engine size and CO2 emissions. A typical 1.4L petrol car costs around €135 annually, while a 2.0L diesel can run €300 or more. The real shock comes with older, high-emission vehicles—a pre-2006 car with a large engine can cost over €1,000 per year. This is due every December and must be paid before renewing your insurance.

Insurance: Mandatory but Variable

Car insurance is legally required in Greece, with minimum coverage (third-party liability) starting around €200-300 annually for a safe driver. Full coverage (mixed insurance) that includes theft, fire, and own damage typically costs €400-800 depending on the vehicle value and your driving history. Young drivers under 25 face significantly higher premiums. Shopping around between insurers like Ethniki, Interamerican, and Eurolife can save you 20-30%.

KTEO Inspection: The Biennial Check

KTEO (the Greek equivalent of MOT) is mandatory every two years for vehicles over 4 years old. The inspection costs €40-80 depending on whether you use a public or private center. Private KTEO stations are faster but slightly pricier. Common failure points include worn brake pads, headlight alignment, and emissions levels. Budget an extra €100-300 for repairs if your car is older.

Car Loans: What Banks Don't Tell You

Greek banks offer car loans with interest rates typically between 6-10% depending on your credit profile. However, the headline rate isn't the full story. Expect processing fees of €50-150, mandatory life insurance on the loan, and sometimes requirements to open accounts. The real APR is often 1-2% higher than advertised. Consider saving for a 30% down payment to get better terms.

Used vs. New: The True Economics

New cars in Greece carry a registration tax that's already included in the showroom price, but imported used cars face customs duties and registration fees that can add 10-30% to the purchase price. Buying a locally-used car avoids these fees but requires careful inspection. Always check the vehicle history on the EPEY database and verify there are no outstanding debts.