Buying a property in any foreign country can be a nightmare and there are many frequently asked questions about buying property in Greece. This list of questions and answers has been compiled to give you a starting point and is intended to help you with the necessary research involved in buying a property in Greece.
What types of properties are available to buy in Greece?
There are many different types of property available to buy in Greece: cottages, villas, town houses, town houses, and apartments. There are old properties to renovate or you can buy land and design and build a new house. There is usually something for every taste and budget.
Can I buy a property in the Peloponnese?
Yes, there are no restrictions for foreigners who wish to buy a property in the Peloponnese.
Are foreigners welcome in Greece?
Yes, the Greek people are among the friendliest in Europe. Now there are a large number of citizens of all nationalities living in Greece.
Do I have to have my financing ready before my inspection visit?
It is advisable to have your financing before your inspection visit. If you see the house of your dreams, you will be able to buy it without delay. This way you won’t miss it.
I found the house I want to buy in Greece. What happens now?
Choose a lawyer who speaks English. The British Consul provides lists of recommended lawyers. Telephone: 0030 210 369 2333.
You can sign a power of attorney so that your lawyer can represent you; Obtain your tax number (AFM). You need this to complete your purchase; check property titles and make sure there are no problems; and sign the contract on your behalf. This way the property can be relinquished to you and you do not need to make additional visits. Your attorney will also deal with the Notary Public on your behalf. The Notary Public is responsible for drafting your contracts, witnessing the signatures/payments, and recording the new ownership of your property. When this process is complete, the attorney will provide you with a copy of the deeds. The original is placed in the land registry department.
All transactions are in Euros. You will need to open a Greek bank account to pay for your legal advice, transfer money and pay bills. There are forex brokers who can transfer large amounts to Greece according to the commercial rate. Payment of utility bills can be set up very easily via direct debit through the bank, and money can be transferred online. Leki Bank is connected to HSBC and UK accounts may be opened.
Tea ‘MISSING PINK’ for electronic money transfers from abroad. If the buyer cannot justify the amount of money he has spent, the Greek tax authorities will allocate it as unreported income and the buyer will have to pay income tax.
Do I need to pay a deposit?
Yes, it is normal to pay a deposit of 10/20% of the agreed purchase price. This seals the contact between the seller and the buyer.
If the seller backs out (which is unlikely) you must return the money plus the same amount again. If the buyer withdraws the deposit it will be lost. However, if previously known issues are revealed, the deposit will be returned automatically.
How long does the purchase process take?
The purchase of the property is usually completed in a short period. It can take as little as 48 hours to 2 weeks. However, if the seller has not collected all the necessary documents for the transaction, it can take up to 3 months.
Will I have to pay taxes on the property I buy?
Yes. The custom in Greece is to keep the declared value of property low to reduce legal fees and property taxes. The Single Purchase Tax (which is the Greek equivalent of our Stamp Duty) is calculated at between 9% and 11% of the assessed property value for land. For apartments and houses the charge is between 11% and 13%. The Tax Agency will base its assessment on special tables issued by the Greek Ministry of Finance. The tables help determine the value of the property based on its merits, i.e. location, nature, construction quality, etc. The appraised value will generally amount to around two-thirds of the actual purchase price.
What other costs can I expect?
Other costs include the following:
Union Fees: 1% of the taxable price of the property up to EUR 44,000 and then 0.5% on the remaining taxable price of the property.
Attorney fees: Lawyers charge between 1% and 2% of the appraised value recorded in the sales contract.
Notary Public Fees and Registration Fee: The notary public fee is between 1% and 2% of the appraised value of the property
To the above cost of buying your property you should factor in the purchase of furniture or white goods in Greece or the transport of your furniture and household goods from the UK.
Do I have to pay a fee to find a property?
Yes, the commission is generally paid by the seller and the buyer in Greece. Fees and are normally 2% to 5%. After sales services are often available and will also incur an additional charge. Rates are generally set according to the services you require.
If something happens to me, will the property automatically go to my next of kin?
Yes, it will go to relatives. Inheritance rights are paid on property up to £100,000. This can be avoided if the property becomes a “parental gift” for children. If there are no children, a will must be made.
Now, enjoy your new home in Greece, you deserve it!
Keep in mind
This information is provided in good faith and is believed to be correct at the time of writing. However, its accuracy cannot be guaranteed.