All from Greece

Welcome to the Guide: Buying Property in Greece
Your dream is to have a second residence in Greece? You want to retire or settle over to Greece or for any other reason you want to buy property in Greece?

Well, there are a lot of pitfalls out there, so be careful and well prepared. Always keep in mind “no hurry” otherwise either something IS or WILL go wrong. So the best thing you can do is to take your time, prepare yourself carefully and you will end up making your dream come true.

The following hands on step-by-step guide will help you to make the right decisions and be always on the safe side. With our profound knowledge and experience we can advise with the purchase of your dream home in the beautiful Greece enabling a smooth sale and avoiding some of the problems that can arise with the purchase of a property.

Are you permitted to purchase property in Greece?
Any European Union citizen is permitted to freely purchase property in Greece in his own right.
For Non-EU citizens there are two alternative options. One is for you to form either a Greek or an EU registered company in whose name the property becomes registered. The second option is for you, via a lawyer, to apply to the Greek Ministry of Defence for permission to own property. Further there are cases (e.g. if the property is near national borders) you’ll need a so called Blue Card, which is actually a temporary residence permit. This procedure takes 2-3 weeks and the card is issued by the local police. All procedures are well known to lawyers in Greece.

Think about what exactly you would ideally want and write it down
You have to be very clear and specific about what your goal is when buying a property. Important questions you should answer are:

• What is my Objective?
  • Holiday property (for use in summer, winter or both)
  • New home (retirement or new job)
  • Pure Solid Investment (rent it or sell it after some years)
• What kind of property?
  • New Development, Resale Property
  • Apartment, Farm, Hotel, House, Maisonette, Penthouse, Studio, Villa, Plot only
  • Size of property and or plot
  • Location (mountain, sea, island, city, village, out in the nature)

You want to buy a plot of land and build your own home?
In all cases a building permit must be obtained and this service is normally carried out by a state registered engineer who, in conjunction with you, will complete the plans of the proposed house and submit these together with the other information required to the building permit office for approval. The engineer would also make an application on your behalf for connection to the electricity and water supplies. Outside the town, most sewage is dealt with by on-site septic tanks.
Once the building permit is obtained, the normal practice is for you to enter into a fixed price building contract with the engineer to build the house.
The process of obtaining the building permit normally takes between 3 and 6 months and depending on the site, the building process itself can then take a further 9 to 15 months.

Get aware of financial issues
After you have dreamed around lets get back to the very fundamental thinks. Money!

Yes and unfortunately, but it is probably the most important step when performing such a big investment, to calculate the amount of pounds/euro you can realistically afford to spend in order to assure the financing of your dream object and to find the appropriate financing instrument and partner. Well, if you are in the lovely position to pay cash … that’s something different, but most of us will have to take some kind of credit!

If  you have no knowledge about financial matters, I would suggest you go to your financial consultant or to your bank and let them do this job for you. With this chance, I’m quite sure about that, you consultant will suggest you a financing instrument or a complete finance plan. Two thinks have to be said at this point, although we cannot generalize things. First of all, nearly everybody in this world works in order to earn his living and make profit, the more the better and this is O.K. Besides this, a financial consultant, whenever doing business with you, has to perform a trade-off between the amount he or the company he is working for earns and the profit you will make. I don’t write this to offend anybody, this is just the nature of financial matters and it is good to be aware of and no it does not necessarily make a difference if this is a good friend or a relative of yours, but it could if you are a lucky guy. So in a positive way, please be aware of that, try to understand anything that is suggested to you and bargain as if you would be on a bazaar somewhere in Egypt.

Now do this task again with someone you really trust and go also at least to a second bank/financial consultant to get a second opinion on how to do things. In the end you should have asked anything that is unclear to you and you should have received on paper a financial plan that describes exactly what you have to pay on a monthly basis and when you will actually have paid back your credit to the bank. Further it should be clearly written down, on which assumptions the whole plan is based e.g. the starting mortgage loan rate of interest. However if questions arise feel free to make further appointments with your consultant, in the end this is his job.

The result of all the calculations and your thoughts should be a fix amount in pounds/euro that is the maximum price of the object you are able to buy in sense of a threshold. Everything that is above that is automatically out of focus! Better be strict about that and never ever get emotionally about an object, otherwise you can take it for granted, that you will run out of funds and you most probably will loose both, your dream object and a lot of money.

Other expenses

1. Transfer Tax (Stamp Duty): The day before signature, the Transfer tax becomes payable to the government. Please note - this Transfer Tax (stamp duty): is NOT calculated on the actual purchase price, but on the value of the property as assessed by the Tax Office (this is often a lesser amount). Transfer Tax: 7.21% of the first 14.700€ and 9.27% of the remainder (based on the Tax Office valuation).
2. Notary Public fees: These are between 2% and 2.5% of the tax assessed value, depending on the value of the transaction (including subsequent registration fees of up to 0.5%).
3. Your Lawyer’s fees: These are between 1% and 1.5% of the sale price (depending on the value of the transaction and complexities involved).
4. VAT. For any property who’s building permission has been issued on 1.1.2006 or later 19% of the tax assessed value.
5. Real estate agents’ commission of 2-3% of the sales price.
6. In case you resell the property (that you bought on 1.12006 or later) capital gains tax have to be payed. The amount depends on how long you own the property and is 20% of the tax assessed value for 0-5years, 15% for 5-15years and 5% for 15-25 years.

The tax value of a property often bears no resemblance to the actual ‘purchase value ‘. It is simply a figure set by the tax office in Greece of what they consider the land to be worth. This will vary depending on the size of the land, the “build-ability”, the size and age of any buildings constructed within it, it’s proximity to the coast and many other factors. As a purchaser you will be required to pay a percentage of the tax value, but again this figure varies with each individual case.

Annual property tax
There is no annual property tax in Greece. However, as a property owner you would need to complete an annual tax return. Provided you have proof that the purchase was made with funds coming in from abroad, you are not employed or otherwise receiving an income in Greece (e.g. renting property), you will not be liable to pay tax. However ther is an annual wealth tax that is charged on properties over a specific value and is about 1-2% of the tax assessed value.

Council rates
There are no council rates. There are small charges for ‘community services’ which include such things as rubbish collection and street lighting. These are added onto to your quarterly water bill.

Do your research in the internet
If you didn’t already do it, visit Greece and get to know the country, the culture and the people. With this chance I would suggest you visit at least a city and one of the lovely islands or whatever is according to your preferences. Information concerning Greece, its variety of locations and anything else you could be interested in are available in the itnernet or in a good travel guide for Greece. Do your research to see if your dream property and your budget are in-line and if not get these two things in-line. And finally come up with the locations that really meet your expectations and your requirements.
After you have decided on the locations you want to visit, use the internet to find interesting objects and contact some real estate agencies and make some appointments in order to get to know the people and visit the objects. Some agencies provide also support for your flight and accommodation arrangements.
Finally use the internet to get in contact with some Greek lawyers and get to know them on-site. Be aware that this is your most important partner for the whole procedure that follows, when you actually have found the candidate properties. It sounds hard, but, he is the only one who you can trust further on!
Further, in case the lawyer has power of attorney, he is able to act on you behalf and prepare most of the paper work without your presence.
Well you are now ready to book your flights, your hotels and to rent a car for your pleasant stay in Greece.

Do your research on-site, in Greece
with the following tools at hand:

-paper or electronic map of Greece and especially the areas you visit

-photo camera and a way to save the pictures, videos you are taking on a mass media like a laptop

-either a local SIM card or any other means to be able to make affordable calls to Greek numbers and also back to home.

-electrical adapter for the power plug of your mobile phone, laptop or other electrical equipment

-a travel insurance in case your insurance does not cover any expenses

Found the are you want to buy something? Come back and make holidays!
Get your family, your friends, your pets and come back and have holidays in this area. And whatever is your intention with the property you want to buy, think of the thinks that are important, when actually using it. If the area passes this test repeat your research in the internet and on-site in Greece, but this time very focused.

Buying Process ”OR” Let your lawyer work
Buying a house, apartment or a building plot in Greece is subject to similar legalities to those applying in most other EU countries. After having identified your candidate properties, it is necessary to appoint a local lawyer, who will proceed with a variety of necessary procedures.

• If you intend to let your property out, you’ll have to get a letting license from the GNTO. Let your lawyer check if licenses are available and issued in the area of your property and if there are any legal restrictions. This can be a complex process and can take some time.
• The lawyer will work out a preliminary sales agreement, that fixes some issues like a deposit amount, the payment method, the total price and probably some conditions that are bound to the sale, like the buyer getting planning permission, electricity, water and telephone access rights.
• The lawyer will further check the title of ownership and ensure that there are no mortgages outstanding or legal encumbrances attached to the property. So the lawyer will guarantee that all land titles are clear, confirm that any building permits are legal and in line with the existing building regulations and after a look into the family history ensure that there will be no questions of ownership at a later date.
• Your lawyer would be responsible for the appointment of a local notary who prepares the necessary Final Contract in conjunction with him. Once the sale has been completed, it is the Notary who registers it with the Land Registry, and retains a copy of the Final Contract. The Notary, will also give you certified copies. In certain cases, it may be necessary to appoint a qualified surveyor to assist with enquiries.
• Obtain a Greek tax number prior to the final contract being signed. The so called AFM is the Greek Tax Registry Number and is needed for any kind of transaction. Whether you are living in Greece or not is irrelevant for this.
• Obtain a Greek bank account over which all payments will go through. Your bank will issue you with what is commonly known a ‘pink slip’ or other verification that the money for the purchase was brought in from abroad. To open an account you need a passport and your AFM.
• Obtain an accountant tha will handle all your tax issues. As it is very difficult to find a good accountant in Greece the ideal solution when living abroad is to have your local accountant doing this thinks for you.
• Optional: Although not usual in Greece, you could let an independant civil engineer survey the property (e.g. for potential repairs due to earthquakes).
• NOTE1: As the process is far more complex and can take from 1 to 8 weeks it is a good idea to have your lawyer a power of attorney, that enables him to act on you behalf and do most of the work without your presence. This includes also the signing of the final contract!
• NOTE2: Negotiate anywhere you go. This is normal in Greece!

Wish you all good holidays in Greece and a successful investment!

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