A Guide for Buying Property
1. Select the property you are interested in.
Decide where/what property you want to buy for your own use or the best market opportunity. The use of a Real Estate Agency relieves you of unnecessary waste of time and possible complications.
Note that in certain areas, defined as “frontier zone”, the transfer of ownership of real estate is allowed to citizens of the European Union and foreign citizens only after the Buyer has a special permit issued by the Council of Prefectural Administration.
2. Select Lawyer.
a) The control of property titles and the legal status of the property for the last 20 years and the confirmation that the property is free of all liens, encumbrances, and mortgages and the seller has fulfilled all of his obligations to the State must be made before any commitment is undertaken. In case you do not have a lawyer, we can recommend one out of the experienced and trustworthy ones collaborating with our Company.
3. Select Civil Engineer / Architect.
The technical inspection is carried out by a Civil Engineer or Architect and concerns the location of the property (within or outside an urban plan) and if the construction has been done in accordance with the provisions of the Town Planning Code.
As regards plots and land having or not a building, the topographical diagram, the integrity of the building, the approvals of the Archaeological and Forest Service and the chartings such as Shore line (Aegialos) and Biotope are checked. Should you need them, experienced Civil Engineers and Architects collaborating with our Company may be introduced to you.
4. Select Notary.
The Notary ensures the legally correct transfer of the property by checking all the official documents required and prepares the Purchase Agreement (Title of the Property), which is signed by the parties in his/her Office.
5. Select Accountant.
Since you acquire a new asset, it is important to have an Accountant for relations with the Tax Office. It will help you obtain, if you do not have, a Tax Registry Number (AFM) and will inform you about your obligations under the Real Estate Tax Laws.
6. Get Tax Registry Number (if you do not already have one).
The acquisition of Tax Registry Number (AFM) is mandatory for those wishing to buy a property in Greece (Foreigners, Permanent Residents abroad). The Tax Registration Number is issued by the Tax Office directly with the display of your passport and birth certificate either by you or by a proxy attorney or accountant.
7. Open an account with one Greek Bank.
Account opening is easy, requires a minimum of time and usually does not require a minimum deposit. You must present personally to the Bank your Passport or Identity Document, the VAT number and proof of permanent residence (e.g. Public Utilities Account – PPC, Water, Phone landline Bill). All payments related to the purchase of the property will be made through this Account to prove that these funds come from abroad and are not taxable in Greece.
8. The Contract.
As a rule, before signing the final contract, a preliminary agreement is signed detailing the property to be purchased and the terms of the sale and payment. An advance is deposited, usually up to 10% of the agreed price, so that the property can be withdrawn from the market.
Once the Legal control and Technical Inspection has been completed and the Notary has approved all the required documents, the Final Contract, drawn-up by the Notary, will be signed, and will be filed by the Notary at the Land Registry, which will issue a relevant certificate of registration of the property in the name of the Buyer.
Subsequently, this certificate with a copy of the Contract will be deposited in the Land Registry by the Attorney for transcription of ownership.
9. The costs involved.
The below listed costs are in force as of today and the amounts depend on a number of parameters thus there is not a fixed amount that is calculated case by case.
1. Value of property
2. Property Transfer Tax (FMA 3%))
3. Brokerage fee (2% +VAT 24%)
4. Lawyer’s fee. (1%+VAT 24%)
5. Engineer’s fee.(To be agreed)
6. Notary fees. (1.2%+VAT 24%)
7. Registration fees.(0.475% to 0.775%)