Greek Properties, Important Considerations

1. There are no restrictions on buyers from the European Union – EU citizens have the same rights as Greek nationals.

2. There are some Building Restrictions – Protection of archaeological sites & the natural & cultural environment restrictions apply. For example if you buy a plot of land where antiquities can be found in the sub soil you can only build after the site has been declared free of antiquities or once excavation of the site has been completed. Your solicitor will advise you.

3. In some areas of Greece National Security is very important – You must obtain authorisation from the Ministry of Defence before buying on some of the islands e.g. Chios, Samos, Lesvos, Skyros, Santorini & the Dodecanese Islands. Again your solicitor will be able to advise.

4. Your Lawyer is critical – Greek law states that a lawyer's presence is required during the conclusion of the transfer of a property with a value exceeding €29,347 (Athens / Piraeus area) or €11,739 (elsewhere in Greece). The lawyer will ensure the property is free of all encumbrances including unpaid taxes & has clean title. We can provide details of English speaking lawyers in Greece or Greek speaking lawyers in the UK.

5. You will need a Public Notary – Property purchase in Greece is by a Notarial Deed, drawn up, signed & recognised by a public notary, it ties both seller & purchaser into the transaction. Again your lawyer will advise.

6. You may need a Mortgage – It is possible to arrange a mortgage in Greece with a Greek bank, but check the interest rates against those in the UK. Some UK mortgage providers will lend on property purchases in Greece. Many buyers however raise a mortgage on their existing property in the UK & purchase outright in Greece. We are very happy to direct you to competitve lenders both in Greece and the UK.

7. Ownership is established through the new Land Registry and the old Mortgages Registry – A centralised land registry system is being introduced but some areas still operate under the registry of mortgages system. Your lawyer will ensure the property is owned by the seller & is free of all debt and taxes.

8. Buying Land to build your own home is not difficult – Whether in the city or the countryside the planning regulations vary as to what can be developed on any land, the percentage of land that can be built on and the height you can go to. When buying land with or without a licence to build it is essential you employ an architect / engineer to advise.

9. A deposit will be required as elsewhere in the Europe – this can be between 10% and 30% and becomes due on signing a pre-contract agreement (heads of terms). This must not be paid prior to a full & satisfactory legal search. Again your lawyer will advise.

10. A Tax Registration Number is required – To buy in Greece you will need a tax registration number (AFM), your lawyer can arrange this or you can obtain one from the Tax Office for Foreigners.

11. The Purchase Contract – is always witnessed by the notary & is signed in the presence of the lawyers for both parties who can sign on their behalf. Both buyer & seller must provide valid passports or EU identity cards and their AFM's. The seller must provide a tax certificate proving that he has no outstanding debts.

12. You must Register your Property – Once the contract is signed the notary or your lawyer must register the transaction with the new Land Registry or the system existing in your location. The cost of registering your property is 0.4 to 0.5% of the value. Until it is registered it is not yours, registration is the legal transfer.

13. As always there are associated Purchase Costs – Allow up to 18% for fees & taxes. In Greece it is custom & practice for both the buyer and seller to pay real estate fees. When we can we get our fee from the seller however when we cannot the buyer will pay our commission of 2% of the actual purchase price paid. In addition you will pay Notary fees usually at 1.2% of the value. Lawyers have a minimum remuneration system of 1% for a purchase up to €44,020; 0.5% from €44,020 to €1,467,351; 0.4% from €1,467,351 to €2,934,702; 0.33% from €2,934,702 to €5,869,405. You should ask your lawyer to provide an exact amount of legal fees in advance and a breakdown of how it is made up.

14. Sadly Taxes will need to be paid – on land, older buildings & those new buildings with a construction licence issued prior to 31st December 2005 the purchaser prior to signing the contract pays Transfer Tax. It is calculated at 9% for the first €15,000 & 11% on the remainder (reducing to 7% & 9% in some parts of the country). This is calculated on the price stated in the contract which is not necessarily the price agreed. You could agree €200,000 but state in the contract €120,000, the amount on which tax is paid.

15.  VAT is also charged on new homes – Charged at 19% on new build properties with a construction licence issued after 1st January 2006.

16. Then of course there is the Annual Property Tax – Properties whose value falls below €243,600 are exempt, couples can double this exemption. The tax runs from 0.3% above the exemption limit to 0.8% for those over €1,270,851.

Please read our information on "Foreign Ownership" »