So, you have decided to sell your property in Greece. There are several issues that you should consider before you actually put your property up for sale.

1st How much is my propert worth?

2^nd How do I choose a real estate Agent in Greece?

3^rd What are the expenses following such a transaction?

4^th Are there any taxes that I may have to pay?

5^th When and how do I receive the money from the sale?

6^th Do I need to come to Greece for the sale?

1^st How much is my property worth?

Before you set your property for sale you should have an idea of its current value at the market. Greece is a free economy and so prices of all goods, products and services are a subject to the laws of supply and demand. The Greek real estate market is under development and there are still many major structural mechanisms that need to be in place. For example: There is no organization that can provide accurate data on property prices that were sold at the recent past. Even if such an organization were set up, its data would not be accurate since most of the times the contract value is much lower than the real value of a sale.

In addition, you should not draw conclusions of your property‘s value by comparing it to other properties that are currently for sale. Due to emotional attachments, most property owners in Greece tend to overestimate the value of their properties. It usually takes for them many months to understand the current trends of the market and to adjust the asking price to market values. So classified ads in general are false criteria for comparisons.

More over, some owners turn to their lawyers for a property estimate. Even though lawyers are most of the times well educated professionals they are not specialized at the real estate market. The overwhelmingly majority of lawyers in Greece practice general law.

The only source of an accurate estimate of your property is an experience real estate Agent who specializes at the market where your property located. That Agent should know by first hand the current trends of the market as well as the real values of sold properties.

2^nd How do I choose a real estate Agent in Greece?

As we have already mention the Greek realty market is under development therefore there is no accurate data of sales per Agent. The best way to go for choosing the right Agent is by looking out for indications of professionalism:

a. Does the Agent have a web site?

b. Is he or she specializing at the local real estate market where your property is located?

c. Is the Agent or the real estate firm that he or she works for experienced and well known at the market?

d.     Does the Agent provide mortgage solutions to his or her prospects?

e.     Does the Agent or the office distribute or place marketing material such as brochures, sale signs etc.

f.       Is the Agent member of a real estate network?

g.     How many other agents does his or her real estate office or network employ?

h.     Can the Agent provide you with accurate real estate advice?

3^rd What are the expenses following such a transaction?

The owner is hiring and paying two professionals at the time of the transaction. One is the real estate agent and the other is the lawyer.

The Agent’s Fee:  2% +19% sales tax (VAT) on that. The Agent’s fee is calculated based on the real transaction value of the property and not on the contract value which most of the times is significantly less.

The lawyer’s Fee is calculated based on the contract value and not on the real value of the transaction. Based on that the lawyer’s fee is:

1% if the contract value is from 0 – 44.020€

0,5% if the contract value is from 44.020 – 1.407.351€

0,4% if the contract value is from 1.407.351 – 2.934.702€

The buyer pays off the Notary’s fee.

4^th Are there any taxes that I may have to pay?

If the property that you are selling is a house, which you purchased less than five years ago and at the time of the purchase it was declared by you as a “First Residence”, then you will have to pay some taxes based at the contract value:

For the first 15.000€ of property value you will pay a tax of 9% or 1.350€, and for the remaining contract value of the property you will be asked to pay 11% tax. If the area which the property is located has no Fire Department then there is a discount of 2 percentage points on the above taxes.

If there were taxes paid by you when you purchased the property there will be no additional taxes asked when you sell it unless you purchased the property after 01.01.2006 and there is a profit made out of it. In such a case you will be asked to pay a 20% tax on the profit margin. Example: If you purchased a property in 2006 for 100.000€ (contract value) and you are selling it in 2007 for 120.000€ then you will pay 20% tax on the 20.000€ profit, meaning 4.000€.

5^th When and how do I receive the money from the sale?

If the property is purchased with a mortgage loan by the buyer then it usually takes 1 – 3 months after the date the contracts were signed in order for you to receive the money. Most of the times the amount difference between the real value of the sale and the contract value is received by you at the time of the contract. In addition, depending on the financial status of the buyer, a bank may give the entire amount at the time of the contract.

All checks received by you from the buyer should be cashier’s / teller’s checks. Often a property transaction is complicated. In such a case you should just trust your lawyer or even look for a second legal advise.

6^th Do I need to come to Greece for the sale?

One does not need to be present at the contract in order to complete the transaction. You may give a power of attorney to your lawyer and he will represent you at the contract. A power of Attorney needs to be precise. Just to be on the safe side ask for the power of attorney to be composed by the same Notary that was chosen by the buyer for the transaction.

If you live in Greece you should sign the power of attorney at the presence of a Notary. If you live abroad you will then need to sign the power of attorney at the closer Greek Consulate. The Consulate could take anywhere from 10 – 40 days to give you a valid power of attorney document. You should call the Consulate before hand and ask them how long it usually takes and what type of documentation do they need.

In addition, one can empower a non-lawyer. If you have a close relative or a friend that you trust in Greek you could empower him or her to represent you at any transaction or business that you may have.

For any further advise or guidance that you may need please feel free to contact HELLENIC ESTATES.