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WHAT TO KNOW WHEN PURCHASING PROPERTY IN GREECE

Legal Procedure

Although Greek Law does authorize foreigners to own properties in most areas of Greece, restrictions apply for Non European Union citizens who wish to purchase property in border areas; i.e. East Aegean, Dodecanese islands, Crete, Rhodes, and some regions of Northern Greece.  We offer assistance to Non European Union citizens who wish to purchase property in border areas, by applying to the Council of local Prefecture, which grants authorization.

Deposit

A 10% deposit is usually required on the signing of the agreement to secure a chosen property.  Names, description of the parties, description of the property, price, methods of payment, and any general conditions negotiated by the parties, is contained within this agreement.  In some cases, when the property is very cheap, this agreement is not necessary, and the two parties can proceed directly to an exchange of contract phase that should be executed before a Notary Public, with two lawyers representing the parties.  However, the Notary Public will not authorize any sale if the appropriate tax papers and deeds are not in order. The purchaser is subject to lose the deposit if he should back out of the deal.  If for any reason the vendor should back out and a pre contract has been signed, he is subject to pay a sum equal to the deposit, as an indemnity to the purchaser, who will get the original deposit paid back in full.

Purchase

Legal procedures in Greece can be quite painless if all the necessary papers are ready and in order. If the cost of the property is 11,700 euros or higher, it is required that the property transaction be executed before a Notary and in the presence of lawyers, whom should be representatives for the purchaser as well as the seller.  A lawyer is needed to act on the behalf of the purchaser in order to assist with the Local Regulations to fix the “assessed value” and ensure that the purchaser will obtain a clean property title.  The lawyer representing the purchaser must carry out searches in cooperation with the Land Registry, and assure that the property has a clean title.

Expenses

Fees in Greece must be paid by the purchaser with include the Purchase Tax and the Notary.  These fee’s are calculated on the official estimated price of the property, which is usually lower than the true purchase price. The Notary’s fee is 2%, while the lawyer’s fee ranges from 1.5% to 2%.  The Purchase Tax ranges from 9% to 13%, but in some cases where there is no fire station in the area, the tax begins lower at 7%.

Local Taxes

Owners of properties in Greece are subject to a very small Public Tax which is incorporated in the electricity bill payable every second month.

Planning Permission

Permission to build any plot of minimum of 4,000m(2) can be granted on the terms that the plot of land is not within the town plan, and if there are no forest or archaeology restrictions by Greek law.  However if the plot of land is located within the planning zone or with frontage to principal municipal roads, permission can be granted for plots of land of 2,000m(2) or less.  Inside villages, cities, and towns planning permission can be generally granted for any plot.  Specific Greek laws do apply for some Greek areas about planning permission regulations. We can recommend skilled and experienced architects and engineers, who will give advice, work on plans and carry out the procedure for building permission.  Building Permits can be obtained through registered architects or engineers, and the costs range anywhere from 4% to 5% of the total cost of the building.

Building Costs

Building costs can range anywhere from 1,000 Euro to 1,500 Euro per m2, depending upon the materials that are used, certain locations (difficult access etc.) the building cost might reach 1,600 Euro.

Renting your Property

If you are not able or interested in staying in Crete all year round, we offer the service of renting out or letting your home or property to interested parties.  We handle for you the legal procedures and the maintenance if necessary, and keep you informed fully of the goings on with your property.  Renting or letting your property can be quite profitable, especially during the summer months. 

For more information on this, you can inquire through e-mail at our address: info@sitiarealestate.com