Property for Sale in Greece

Buying Costs

Allow around 10% in total when buying a resale property. Transfer tax of 3% of the purchase price (or value of the property as calculated by the tax authorities, whichever is higher), save for the case where VAT applies. If you plan to move permanently to Greece so the property is your primary house, you might receive an exemption.

VAT is 23% of the purchase price in the case for properties with a building permit issued after January 1st 2006 and which are sold for the first time by a builder or developer.

You will also need to pay notary fees of approximately 1% of the purchase price plus VAT at 23%. Land registry fees, lawyer fees and any survey costs will also need to be budgeted for

Completion

By this time, you will have engaged a public notary who will prepare the final deed. The buyer will normally attend the signing of the deed in person, at the notary’s office, along with lawyers from both sides and the seller. You don’t have to attend the signing of the final deed; you can assign power of attorney to your lawyer. The balance of the sale price will be transferred along with the notary’s fees, estate agent fees and all taxes. Keys are transferred and the property is yours.

Who does what?

Lawyers

You should also engage a lawyer. When buying a property in Greece you are required by law to engage a lawyer anyway, and it is sensible to choose an English-speaking one. You can find international property lawyers at shows such as A Place In The Sun Live as well as in our magazine or website.

Or you can choose a local lawyer in Greece. Sometimes a local lawyer will be cheaper, but it is important that they are experts in property, that you can communicate with them easily, and that they are working exclusively for your benefit and are not financially associated with the developer or estate agent such that there could be a conflict of interest.

Legal fees in Greece are set at 1 per cent for properties up to €44,000, 0.5 per cent on property up to €1,467,251 and 0.4 per cent over that, all plus 23 per cent VAT. Remember to take certain documents with you to Greece if you intend to buy a property as you will need to get a tax registry number (one for each person buying), and open a Greek bank account. You will need your passport of course, plus proof of your address on a couple of utility bills and proof of your tax number.

Your estate agent and lawyer will be able to advise on what you might need to prove for each eventuality. Property buying in Greece is reasonably straightforward. Property is sold freehold and with documents signed before a notary. Buying costs have come down in recent years and add around 10 per cent to the purchase price.

Estate Agents

The Greek for house is spíti. When you head to Greece, estate agents are regulated by law and should be professionally qualified and licensed. The main professional association for agents is the Hellenic Association of Realtors (www.sek.gr) and there is also a branch of FIABCI, the International Real Estate Federation.

A good start would also be Greek members of the London-based Association of International Property Professionals (AIPP: www. aipp.org.uk). Agents normally charge between 2 and 5 per cent of the property price which is split between buyer and seller, and they normally accompany clients on viewings to prevent any private deals being done.

If buying new build property, ensure the advertised price includes VAT. Check your agent will be working before booking any flights; Greece has a lot of public holidays and celebrates Easter according to the Greek Orthodox Church which is a month separate from when we celebrate it in the UK.

Taxes and Fees

If you are non-resident you must declare any income you have earned in Greece. This applies even if you receive this income by renting out to people from your home country and the money never touches Greece.

You will also normally have to declare this income in the country where you are tax resident but can normally offset the tax paid in Greece through Double Taxation Treaties.

In any case, even if you do not earn any income in Greece, you should file annual tax returns as long as you own real estate property in Greece.

The taxes that you pay when you buy a property in Greece will normally depend on whether you are tax resident there or not.