INVESTING GUIDE HOW TO ACQUIRE A PROPERTY IN GREECE
Greece is located at the crossroads of Europe, Asia, and Africa. Situated on the southern tip of the Balkan peninsula, it shares land borders with Albania to the northwest, the Republic of Macedonia and Bulgaria to the north, and Turkey to the northeast.
The Aegean Sea lies to the east of the mainland, the Ionian Sea to the west, the Cretan Sea and the Mediterranean Sea to the south. Greece has the longest coastline on the Mediterranean Basin and the 11th longest coastline in the world at 13,676 km (8,498 mi) in length, featuring a large number of islands, of which 227 are inhabited.
Eighty percent of Greece is mountainous, with Mount Olympus being the highest peak at 2,918 metres (9,573 ft). The country consists of nine geographic regions: Macedonia, Central Greece, the Peloponnese, Thessaly, Epirus, the Aegean Islands (including the Dodecanese and Cyclades), Thrace, Crete, and the Ionian Islands.
Greece is considered the cradle of Western civilization,[a] being the birthplace of democracy, Western philosophy, the Olympic Games, Western literature, historiography, political science, major scientific and mathematical principles, and Western drama.[15]
From the eighth century BC, the Greeks were organised into various independent city-states, known as poleis (singular polis), which spanned the entire Mediterranean region and the Black Sea.
Greece is a country in southeastern Europe with thousands of islands throughout the Aegean and Ionian seas. Influential in ancient times, it’s often called the cradle of Western civilization.
Athens, its capital, retains landmarks including the 5th-century B.C. Acropolis citadel with the Parthenon temple. Greece is also known for its beaches, from the black sands of Santorini to the party resorts of Mykonos.
Capital: Athens
Dialing code: +30
Capital and largest city: Athens; 37°58′N 23°43′E /37.967°N 23.717°E
Population: 10.75 million (2016) World Bank
Official language: Greek
INVESTING GUIDE HOW TO ACQUIRE A PROPERTY IN GREECE
The following mentioned application is necessary for NON-EU Citizens or entities based in foreign third countries not belonging to the European Union and being not parties of other conventions, acts, agreements, contracts or special protocols that allow them to obtain real estates in Greece.
In case EU Citizens or entities/companies based in the EU want to proceed to legal transactions than a permission from the local prefecture is required only if the real estate lies in a military/controlled zone.
NATURAL PERSONS
1. Application that includes
A. Application aim for raise of the law 1892/90
B. Curriculum Vitae
C. Detailed description of the real estate
D. Aim of purchase (investment or private use)
E. Details of the lawyer where the reply must be sent
2. Certified copies of passport(s) or Identity card(s)
3. Registrar Birth Acts (1 original and 5 copies)
4. Official translations of the above acts (1 original and 5 copies)
5. Penal Records (1 original and 5 copies)
6. Translations of the penal records (1 original and 5 copies)
7. Certified topographical plan fo the properties under sale or regarding dwellings, house drawings (4 times)
8. Certified land maps showing the position of the real estate (4 times)
LEGAL ENTITIES/COMPANIES
1. Application that includes
A. Application aim for raise of the law 1892/90
B. Curriculum Vitae
C. Detailed description of the real estate
D. Aim of purchase (investment or private use)
E. Details of the lawyer where the reply must be sent
2. Documents related with the entity as
A. Certification of establishment of the association or company (5 times)
If the certification document names as shareholders legal entities than the articles of that entity is also required in order to complete control on the natural persons.
B. Certified copy of the articles of the association or company
The articles must include the capital, the available number of shares, and the personal details of the shareholder as well their percentage.
If the articles of the association or company names as shareholders legal entities than the articles of that entity is also required in order to complete control on the natural persons.
C. Certified copies of the list with the members of the General Council, their position at the entity/company and their personal details (6 times)
D. Certified copies with future cadres in case shares have been transferred and all their personal details (6 times)
E. Certified Power of Attorneys for company transfer (6 times)
F. Certified copy of commercial record of the entity/company (6 times)
G. Balance sheets of previous financial uses
H. Certifications of non-bankruptcy
I. Statements for the combination of the capital and the main shareholder of an share company or the members of a personal company or the company shares of limited company.
3. Documents related with the natural person of the entity/company
A. Certified copies of passport(s) or Identity card(s)
B. Registrar Birth Acts (1 original and 5 copies)
C. Official translations of the above acts (1 original and 5 copies)
D. Penal Records (1 original and 5 copies)
E. Translations of the penal records (1 original and 5 copies)
4. Documents related to the real estate
A. Certified topographical plan fo the properties under sale or regarding dwellings, house drawings (4 times)
B. Certified land maps showing the position of the real estate (4 times)
1.Appoint a Lawyer
The Buyer must appoint an attorney to assist him with and represent him in the process. Our company can either provide you with a list of reputable real estate attorneys here in Greece or immediately assign one for you, subject to your consent.
In case you are NON-European citizen, find here the list of necessary documents when buying property in border areas.
2.Appoint a Public Notary
A public notary must be appointed since any property purchase agreement, to be valid, must be done in the presence of a public notary.
The public notary does not represent the interests of the Buyer. (S)he is a public official in the presence of whom the contract is read, understood by both parties and signed.
The notary drafts the contract and is responsible for the verification and registration of the transaction in the public records, so that the buyer acquires the official title of the property.
Our company can either propose many notaries for the buyer to select or immediately assign the one responsible for the contracts of a specific project, subject to your consent.
3.Get a copy of the title deed and perform a title search at the Registry of Mortgages
The buyer must obtain the contract deed (title) held by the vendor. This can be done with the help of the lawyer. It is then the lawyer’s obligation to search the title deed at the registry of mortgages. The search must be carried out to secure that:
• The vendor holds the absolute deed of the property.
• The property is unencumbered.
• All property taxes burdening the vendor have been paid.
• The construction was completed in accordance to all planning and building permissions.
Only if the title deed is secure should the buyer proceed to contract.
4.Issue a tax registry number (AFM)
A tax registry number must be issued for the buyer, to be able to proceed with any transaction. The tax registry number is applied for and issued by the Inland Revenue Service.
5. Pay the transfer tax
The transfer tax must be paid to the local Inland Revenue Service by the buyer prior to signing the contract. This can be done with the aid of the attorney.
6. Signing the contract
To have a valid contract, it must be signed in the presence of a public notary. When the contract is signed, the notary registers the transaction at the local registry of mortgages.
7. Effect transfer at the Registry of Mortgages
The buyer’s attorney makes sure that the title is transferred to the buyer’s name by obtaining the relevant certificate from the Registry of Mortgages.
8. Notify the Land Registry for the transfer (if applicable)
A copy of the title, and the certificate from the Registry of Mortgages is needed to register the property under the buyer’s name at the Land registry.
Not all regions of the country have a Land registry, as Greece is currently undergoing the process of establishing a Land Registry. In areas that do not yet have a Land Registry, ownership of property is based on and secured by the local Registry of Mortgages.
What are the costs associated with this procedure that burden the buyer?
The buyer must cover the following costs to complete the transaction:
• Lawyer’s fee: about 1-2% (subject of agreement) on the selling price adding the legal research and any other legal advice had offered to the client.
• Fee of public notary: 1,3% on the value of the property.
• Transfer tax: This is payable to the local tax authority and amounts to 9% for the value up to 15.000 Euro plus 11 % for the value above 15.000 Euro. In areas that are not covered by a fire department these figures drop to 7% and 9% respectively.
• Municipality tax: This amounts to 3% of the above transfer tax and is also payable to the local tax authority.
• Registry of Mortgages: The fee payable to the registry of mortgages amounts to 0.45 % of the property value.
• Brokerage fee: The brokerage fee is between 2-5% on the selling price, depending on the agency and location of the property.
Are there any yearly costs related to property ownership?
Yearly property taxation in Greece is limited to the following:
• Local municipal tax: The council tax ranges from 0.025 % – 0.035 % on the assessed value of the property and is incorporated in the electricity bill.
• Yearly property tax: Owners of property pay a yearly property tax ONLY if the assessed value of their ownership/s exceeds the amount of 243.000 Euro. The tax amounts 0.3 % to 0.8 % of the assessed value of the property.
What is the “assessed value” of a property and what is its use?
The “assessed” or “objective” value of a property is the minimum accepted value for transaction purposes set by the State.
These values are calculated by the Public Notary and the Inland Revenue service for each individual property and are based on public data relating to prices per square meter as well as other location or specific property characteristics. Assessed Values constitute public information readily available.
The other use of the assessed values, as previously stated, is for the calculation of yearly property taxes.
How is the ownership of property secured in Greece?
The ownership of property in Greece is secured, by a state authority called Registry of mortgages. Titles to property are kept there, where all encumbrances on properties are registered.
Property is filed under the names of the owners and lawyers are entitled to check property belonging to any individual or company.
A title search is performed in order to find out if there are any claims, liens and encumbrances on the property.
A title search will also show you if the property was properly transferred.
This is always done during the contracts process.
B. FINANCING AND OTHER MONETARY ISSUES
How can I transfer funds from my home country to pay for the property?
It can be done by a simple bank transfer from your account to your account in Greece.
Buyers are advised to officially document any funds imported for buying property so that in case of a subsequent sale of the property, the proceeds can be repatriated.
Please take notice of the income taxation in Greece.
Can I draw-up a loan to buy property in Greece?
Greek banks are well developed and equipped in offering a variety of financing programs.
They have branches throughout the world and similarly many international banks have branches in Greece.
Financing to buy property in Greece can be arranged by both Greek and international banks with branches in Greece.
PROPERTY ACQUIRING CONTRACT
Property price: €100.000
TAX: 3,09%
Relevant expenses
A Lawyer’s fee: 100.000х1,5% = 1.500 € (plus 24% VAT which is added up to this amount) = €1.845
A Notary’s fee 100.000х1,5% = 1.500 € (plus 24% VAT) = €1.845
Title transition tax: 100.000х3,09%=3.090 €
Mortgage registry fee: 100.000х0.5% = 500 €
Estate agent’s fee: 100.000х2%= 2.000 € (plus 24% VAT)= 2.460 €
Total amount: 9.740€ (This amount can’t be considered a service fee calculated based on property price).
Property price: €100.000
TAX: 24%
Relevant expenses
A Lawyer’s fee: 100.000х1,5% = 1.500 € (plus 24% VAT which is added up to this amount) = €1.845
A Notary’s fee 100.000х1,5% = 1.500 € (plus 24% VAT) = €1.845
Title transition tax: 100.000х24%=24.000 €
Mortgage registry fee: 100.000х0.5% = 500 €
Estate agent’s fee: 100.000х2%= 2.000 € (plus 24% VAT)= 2.460€