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So you decided to buy property in Greece. Good choice! Greece is an ideal place to live. Greece combines the great weather, the sun, along with more than 3.500 years of history, archaeological sites and museums, the cleanest beaches in Europe, healthy and tasty cuisine, low cost of living, safety, and open hearted people. There are great thing about Greece that you may not know, such as ski resorts, mountain climbing, extreme sports, natural beauties, bird watching, several local and international cultural events and much - much more.
Restrictions in Buying a Property:
In certain areas of Greece that are known as frontier regions there are some restrictions to buy. These frontier regions are of high importance to the security of the country. One may buy a property at these regions only if they hold official permission. The area that you choose to buy a property may well be at the frontier region. You may ask your lawyer or your real estate agent if the properties that you are searching for a located at such restricted areas. There are certain steps that one must take in order to receive the final permission to buy. Your lawyer should take care of all these procedures. There is really nothing that you should worry about.
Restrictions for EU Citizens
Greece is a member state of the European Union since 1981 so EU citizens, like Greek nationals, should apply for lifting of the restrictions to the local Prefecture. The process lasts anywhere from 30 to 45 days and it’s free of charge. Your lawyer should prepare and file all necessary documentation on your behalf.
Procedures for non EU Citizens
In order for non EU citizens to buy property in Greece they should address the permission application to the Greek Ministry of Defence. This process may last up to six moths and it’s also free of charge. Again, your lawyer in Greece should prepare and file all necessary documentation for you.
Choosing a Lawyer in Greece
First you need to make sure that your lawyer is authorised to represent clients at the Prefecture which the property is located. If for example the property that you are interest in buying is located in Crete and your lawyer is based in Athens most likely he is not authorised to represent you in the transaction and you will need to hire a local lawyer.
Make sure that you speak a common language. Most lawyers in Greece or their staff speak at least English.
Property Values
Property values in Greece may vary widely from town to town and from area to area just as at any real estate market worldwide. Before making a final offer for a property you need to search and compare similar properties at the same area just as you would if you were to buy a property back home. These comparisons cannot be done properly by viewing properties and photos from the internet. Your physical presence is required.
You will also need to know that there are to acceptable property value systems in Greece. One is the “objective value” (antikimeniki axia) and the other one is the so-called “market value” (emporiki axia). The local Tax Office calculates the first value and it represents a minimum value hat the State sets for a specific property. The “market value” on the other hand is the value of the market and it is set by the standards of the free economy, supply and demand. There for, it should not come as a surprise to you if your lawyer tells you that the “objective value” will be stated as the selling price of the property in purchase contract agreement while you are actually paying a higher “market value” for it. This is a common practice in Greece.
Taxes
Taxes are calculated based on the contract value. The “market or real value” of the transaction might be considerably higher. Unless you are a Greek national or a Greek living abroad, and you have decided to use your tax free “First Home” legal right you will be asked to pay the following taxes at the time that the property is brought:
1st Case:
At areas where a Fire Department exists the taxes are:
For a contract value of up to 15.000€: 9%
For a remaining contract value of 15.000€ and higher: 11%
2nd Case:
At areas where a Fire Department does not exist:
For a contract value of up to 15.000€: 7%
For a remaining contract value of 15.000€ and higher: 9%
Example: If you are purchasing a property at an area where a Fire Department exists and the contract value of the property is stated to be at 100.000€ you will be paying for taxes:
For the first 15.000€ of value times 9% = 1.350€
For the remaining 85.000€ times 11% = 9.350€
Total purchasing taxes: 10.700€
Professional Fees
In order to conclude a property transaction in Greece you will need to hire a lawyer as well as a Notary (symboleografos). Both of these professional are paid in regards of the contract value and their fees are fixed.
The Lawyers’ Fee
For a stated contract price of up to 44.020€ 1%
For a stated contract price of 44.020€ to 1.407.351€ 0,5%
For a stated contract price of 1.407.351€ to 2.934.702€ 0,4%
The lawyer will also need to search the legal status of the property and that is an additional service.
The Notary Fee
The Notary fee is fixed at 1,20% times the contract stated value of the property. The Notary may charge you additional fees for any other services or obligations such as preparation of tax returns, revenue stamps, notarised copies of the agreement etc.
The Real Estate Agent Fee
In Greece it is customary that both seller and buyer will contribute a commission payable to the real estate agent, for introducing the buyers to the owners. The Agent is the only professional that is paid based on the “real – market value” of the transaction. The Agents fee is times 2% that value plus 19% VAT (sales tax).
Example: If you are purchasing a property for 130.000€ then the Agent will charge you times 2% or 2.600€ times 19% VAT or 494€. Total fee is 2.600 + 494 = 3.094€.
For more information on Greek property or advice you may contact a HELLENIC ESTATES Real Estate Agent.
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