Additional costs to be accounted for in a purchase

General Information

Greece now comes under EU ruling, with regards to the transfer of ownership of land and property. It is permitted for European Union citizens to purchase property in Greece.

 

 

Non-EU citizens must follow the old system of purchase and for such individuals there are two options:

 

 

· Form a Greek or EU registered company

 

· Apply to the Greek Ministry of Defence, for permission to own a property.

 

 

These procedures are well known to Greek lawyers, who will be able to advise further, in such cases.

 

It is necessary to appoint a lawyer in the case of buying property, who will check and confirm title of ownership and ensure that there are no mortgages outstanding on the property.

 

A public notary is also appointed, to make a record of all contracts and file necessary documentation within the Land Registry Records.

 

Once a decision has been made to purchase a property and the sale is agreed, the following procedure takes place:

 

1) Tax Number

 

Anybody wishing to purchase land/property in Greece must obtain a Greek Tax Number. This is a relatively easy process and JM Property will make the necessary arrangements for this to be done.

 

The procedure requires the completion of a form, consisting of personal details along with a copy of a valid Passport. An administration fee of fifty euros is payable for each tax number made.

 

2) Appointment of a lawyer

 

The purchaser is responsible for the appointment of a lawyer. JM Property can assist and advise on this matter and if required and provide details of reputable lawyer to represent the purchaser.

 

3) A pre-contract Agreement

 

This is an agreement made between the purchaser and JM Property in order to secure a sale transaction once a decision has been made to purchase. It determines the agreed purchase price and expected date of completion of the final contract, subject to the property satisfying necessary requirements. The pre-contract agreement usually lasts for a period of sixty days.

 

Although  JM Property carries out necessary checks as far as the build potential and title of a property is concerned, we recommend that the purchaser appoint a lawyer to make the final checks along side the notary in the pre-contract stage; before transfer. During this period the lawyer will satisfy him/herself that the property in question, is clear of mortgages or tax liabilities and confirm that title of ownership is clear and poses no future risk of contest.

 

At this time the purchaser will deposit with JM Property a sum equivalent to ten percent of the agreed purchase price. This deposit is held in trust until completion.

 

In the event that completion can not take place because the lawyer is not able to satisfy requirements on behalf of the purchaser, the deposit shall be returned immediately.

 

In the event that the purchaser no longer wishes to complete the sale, the deposit is forfeited.

 

The pre-contract agreement is done in the office of the Public Notary, who is appointed to oversee and approve all legal agreements.

 

 

4) Completion

 

Signature of the final contract takes place in the office of the Public Notary. The presence of the purchaser is necessary, unless somebody has been appointed with power of attorney to act on their behalf.

 

 

Power of Attorney in the case of Purchasing Abroad

 

Many clients have found this an invaluable asset when purchasing on Paxos as it eliminates the potential difficulty in traveling to and fro during the buying process and importantly, it allows us to act with the nominated person as and when necessary.

Clients will often opt to arrange a power of attorney during their time on Paxos as a means of being able to initiate and if required, complete the process of buying without the need for their continued presence. The public notary is authorized to activate a power of attorney to any person nominated by the purchaser and this should be given only to a trusted person or legal representative chosen to deal with the case. JM Property can arrange this with the purchaser if required and the notary will charge a small fee for drawing up the document. Power of attorney can be arranged from the UK, but the process is more lengthy and costly and an official translation is also necessary.

 

 

A note about the tax system in Greece…

 

All land and property in Greece is given an objective value, as assessed by the tax office. Transfer tax must be paid as a percentage of the objective value, which is often much lower that the commercial price of the estate.

The purchaser is obliged to pay tax on the objective value of a property and this is in fact normal procedure on the Greek property market. Should the choice be made to declare the full commercial value however, tax will be payable on this amount.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Please note: The tax system is undergoing changes and current tax information will need to be obtained by us for each individual property at the time of enquiry.

About buying in Greece

Procedures for purchase