Information on buying a property
Acquiring a property in Greece is a simple case. The opportunity is given equally to everyone, regardless of their nationality and is carried out through simple procedures. The residences that we recommend or purchase are manufactured according to the European Standards and they fully comply with the strict earthquake protection regulations. Below are provided some useful information that you should keep in mind when you decide to search of a property in Greece and will make the purchase process easier.
Taxes and property rights
To calculate the total cost of buying a property you should consider the tax cost that must be added to the original market value of the property. The tax corresponding to a property that its building permit is issued before 1.1.2006 is amount to 3% on the “objective value” of that property, while for a property that its building permit is issued after 1.1.2006 the tax is 23% on the “objective value”. The property purchase tax is paid by the purchaser before the signing of the final contract. Additional costs include the legal and notary fees and the land registry expenses needed in order to draft the contracts and acquire property rights.
Tax Identification Number
Every buyer of property in Greece must have a Greek Tax Identification Number (AFM), which is issued by the Greek tax offices free of charge and instantly.
Foreign nationals and Greeks nationals that resident abroad permanently residents abroad are also permitted to submit applications for A.F.M. but in this case the application is submitted to the relevant tax office, located in 18 Lykourgou Street in Omonia, in central Athens.
Obtaining Bank Account
All transaction in Greece is carried out in Euros. Therefore you will have to open a bank account in order to fulfill your tax obligations, to transfer money and pay bills when necessary. The payment of utility bills can also be paid quickly and easily by direct debit of this account through the bank.
Deposits
When you find the most suitable property and you have decided to purchase it, it is customary to 10% of the agreed purchase price as a deposit. This seals the oral agreement between the buyer and the seller. Then, the seller will also give to your lawyer the necessary documents for a legal scrutiny of the property and the preparation of the contracts.
Appointment of a lawyer and a notary
The presence of a lawyer is mandatory in drafting and signing the purchase contract of a property. The lawyer’s fee amounts to 1-1.5% of the value of the property as stated in the contract. The notary’s fee equals to 1.2% of the recorded value of the contract plus some additional expenses such as copies of contracts, revenue, preparation of tax returns, etc.
Brokerage
Agency fee is 2% of the true value of the property, plus the trade tax, which is 23%. This fee shall be paid upon signing the final contracts. Our fee includes the following:
1) Selection and suggestion of properties corresponding to the client’s preferences
2) Meeting with the representative of our agency at the client’s hotel
3) Visiting the properties by car provided by the company
4) Translations throughout the process
5) Mediations between seller and buyer throughout the process
6) Legal advice and information about the process
7) Recommendation of a lawyer, notary and engineer if needed