How to buy a property
- Buying procedures -
Our office will help you to select from the wide range of properties we allocate, the ones that are suitable for you. Select your property and make sure that the financing for the purchase is secured.
Meet your lawyer, notary public, surveyor, and accountant.
The lawyer will check all property deeds, planning permission and building permits, and the topographic plan and ensure that all property taxes burdening the vendor have been paid. If he has been granted power of attorney before the above mentioned pre-contract he is obliged to open a customer account where the deposit will be held until all deeds, planning and building permits are cleared. Lawyer's services are going to cost you 1-2% of the purchase price.
A notary public is also necessary because he is a government-appointed lawyer who processes and certifies all real estate transactions, including drawing up and reviewing all official documents, to ensure the legal transfer of the property. All contracts must be drawn up and certified in the office of a Notary Public appointed by the buyer. According to the law, representatives of both parties must be present when the contracts are being signed. Greek revenue offices demand that buyers prove they have the means to buy, and that sellers show a tax declaration of the respective property. Without these documents any contract may be void. Notary Public services are going to cost you 2% of the purchase price. You may need a surveyor to ensure that all acts associated with the construction of the property are based on lawful planning permissions. Also you may need an accountant in order to help you with tax returns and explain taxation laws to you.
Sign a private agreement(engagement) between the two contracting parties, so that the property is withdrawn from the market, with simultaneous payment of
an amount equal to the 10% of the property's value. Usual payment methods include cash, bank transfer or credit card. If your lawyer has been granted
power of attorney, he is obliged to open a customer account where the deposit will be held until all deeds, planning and building permits are cleared.
The Tax Registry Number (AFM) is mandatory for all buyers, including foreigners and permanent residents abroad. It is issued at tax offices in one day, free of charge. All applicants must present their passport and their birth certificate. If you have granted your lawyer full Power of Attorney, he can apply for an AFM on your behalf. As a property owner you will have to complete a tax declaration form each year, this does not necessarily mean that you will have to pay Greek taxes.
The Tax Assessed Value must be paid. It is the estimated monetary value of a property according to the Greek tax authorities. As a general rule, a property's Tax Assessed value is significantly lower than its purchase price.
It is essential to open a Greek bank account. All payments will be made through this account. Also, this account will prove that funds used for property purchase have come into Greece from another country and are, therefore, not taxable in Greece. Opening a bank account in Greece only takes a few minutes and requires no minimum opening deposit. All you need is your ID or passport and your tax number (AFM).
Necessary to know:
- EU citizens are authorized by law to own properties in all areas of Greece. Restrictions apply only to non-EU citizens.
- Non-EU citizens who wish to purchase property in border areas should apply for a special permit first to the Ministry of Defense in Athens. Your lawyer may sign for you if he has been granted full Power of Attorney. Upon completion of final contract, all fees and taxes must be paid.
The contract is ready for signing when all the documentation is complete. The contract will be signed at the Notary's office and there will be your
lawyer, the vendors and yourself.
Last but not least,
To conclude, including all fees and taxes, costs are an estimated 13-16% on top of the purchase price. (10-12% fees, taxes etc, 1-2% lawyer and 2% notary
The Real Estate Agent's fee is usually 2% of the property's market value or otherwise according to an alternative agreement.
All the above or part of it can be accomplished by our office, in agreement with you, by letters of procurator.