For a foreigner the Greek real
estate market can be mind-boggling experience and at first seems to
be a very complicated purchasing process. Approaching the problem
step by step shows that it is not that hopeless.
By law foreigners can own property in most
areas of Greece. However, there are some restrictions on property purchase that
apply in border areas (eastern Aegean, Dodecanese Islands, regions of northern
Greece, Crete and Rhodes) for non-European Union citizens. In such cases, non-EU
citizens must apply to the council of the local prefecture. Some real estate
agents offer assistance with this procedure.
Below are a few general tips and information
foreigners should bear in mind when purchasing property in Greece.
- COST OF BUYING PROPERTY IN GREECE:
When buying property in Greece add at least 15 per cent of the purchase price
for fees and taxes, including a property-transfer tax of 7 to 11 per cent.
Lawyers fees 1-2%, other expenses approx 1% for notary fees and land registry.
Local municipal tax or community tax is currently calculated at 3% of the
purchase tax and is paid together with the purchase tax. Annual taxes are
payable in Greece on properties owned over the value of 200,000 Euros. The
valuation of properties is carried out by the government which provides
published values, announced for every type of property.
- AFM:
All buyers of property in Greece
must have a Greek tax roll number (AFM) which is issued by the tax offices.
It’s free and issued on the spot. Greeks and EU citizens must show their ID
card. Foreigners living in Greece are required to present their passport or
another valid document of identification and their residence permit. Greeks
and foreigners who permanently reside abroad can also apply for an AFM. They
must submit the application to a special tax office located at 18 Lykourgou
St, Omonia
- SETTING UP A BANK ACCOUNT:
All
transactions are in Euros. You will need to set up a Greek bank account to pay
for your legal advice, transfer money and pay bills. There are foreign
exchange brokers that can transfer large amounts to Greece according to the
business rate. Payment of utility bills can be set up very easily by direct
debit via the bank, and money can be transferred online.
- THE “PINK SLIP”:
The ‘pink slip’ for
wire transfers of money from abroad. If the buyer cannot justify the amount of
money they have spent, the Greek tax authorities will assign it as unreported
income and the buyer will be assessed income tax.
- HOLIDAY HOMES:
Letting a holiday home
short-term is not easy. Different areas vary, but generally you can let only
for three months or more - and to holiday-makers only if you have a licence
from the Greek Institute of Tourism.
- INSURANCE:
If you intend to use your
home only for holidays, insurance can be arranged through your Greek Bank for
fire and storm damage. However insurance for theft may only available if you
live in your property throughout the year. There are company's in the UK that
can offer full insurance (3rd party for example).
- LAWYERS ('DIKIGOROS'):
Get an
English-speaking lawyer. The British Consul's provide list of recommended
lawyers. Beware of buying a property that belongs to more than three family
members. And take photocopies of everything. The lawyer conducts the title
search at the relevant land registry.
- A CIVIL ENGINEER ('POLITIKOS MICHANIKOS'):
may be hired to review a specific plot and to ensure that boundaries are
within the description in a title document. They can also be consulted
regarding specific building restrictions in place in your chosen area.
- PUBLIC NOTARY (SYMVOLEOGRAPHOS):
The
notary public is independent of either the seller or the purchaser. He draws
up the contract for transfer of property and the various terms and conditions
contained therein.
- REAL ESTATE AGENT:
The Real Estate
Agent's fees are usually paid by the vendor. All expenses for the conclusion
of the final contract, including the tax on property transfer will be borne by
the buyer. Each party will pay the fees of their legal representative who must
be present at the signing of the contract; this is required by Greek Law.
About The Author
Claire May, R & C Property Management Services
ABOUT OUR COMPANY
R & C Property Management Services offer full Property Management, building
maintenance and renovation services. We also provide care for you holiday
home when you are not there or when you have guests staying. We offer
cleaning package to guarantee that your holiday home receives the best
possible care and attention. You can be assured that your house is secure
and in safe hands. Your guests will leave with only the utmost praise for
both your home and our services. For details of our services & prices follow
the link.
http://r-and-c-pms.biz/prices.html.
For those of you looking for the prefect
holiday home we can help you find your dream property in Greece. We have
developed association with reputable companies covering the Kalamata area
and can introduce you to professional and reliable people who will help your
house purchase to go smoothly. For information about property in Kalamata
follow the link.
http://r-and-c-pms.biz/property.html.
For more information visit our website,
http://r-and-c-pms.biz/.
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