Greek property law


	Property law in Greece
Since 1990 if you are a citizen of the EU then it's been possible to own property in most areas of Greece. Prices are still considerably lower than in other parts of the Mediterranean, but are estimated to rise considerably in the future, making the purchase a particularly good investment at the present. Legal overview When you find a property you want to buy you're required to place a deposit of 10% - this should guarantee sole negotiation - hopefully eliminating the risk of being gazumped. Once you've paid the deposit the agreement is signed confirming both parties' details, the description of the property and any other conditions relevant to the purchase. The lawyer holds all cash until everything is finalised and the sale is authorised. The deposit is non-refundable should the prospective purchaser back out after the agreement has been signed. If the vendor backs out of the sale the deposit is refunded plus a 10% indemnity paid by the vendor if a pre-contract states this. Property sales are always conducted by a notary and in the presence of two lawyers who represent the vendor and the purchaser. Your lawyer and the Notary will carry out the necessary searches to ensure that the property has a clean title. Your lawyer will deal with the local regulations concerning the "assessed value" for tax purposes, and carry out the searches. The Notary should not allow any sale to go ahead should any of the papers or deeds not be in order. You should allow 2 months for this process. If you can't be present then give Power of Attorney to your lawyer. If you would like to know more about Power of Attorney then try Fishers Notary		So how much does the process cost? Allow 2% of purchase price for the notary and around 1.5%-2% for your lawyer. There is a one-off purchase tax, at the time of writing 9% on the first 15.000 € Thereafter it is between 11% and 13% depending on assessed value as set by the local tax office. If you're buying an existing property then you will need an Architectural Survey. This is prepared by an architect and provides a technical description of the property. Based on this the Notary Public makes the written description of the property and a copy of this document forms part of the contract. This costs around 290 € depending on location. You, the buyer, pay all these expenses. Tax Cost of ownership isn't great in Greece. There is a small public tax, which is incorporated into the electricity bill every second month. The exception to this is if the assessed value of the property is significantly high. Should the assessed value of the property exceed 176.000 € or 352.000 € if there is joint ownership, then the property will be subject to a small property tax payable each year. As an example a jointly owned property of 352.000 € would be liable to a yearly property tax of approximately 480 €. Transfer of Funds. If you've opened a bank account in Greece then remember to keep the documents - the "pink slip", in order to ensure that you are exempt from local taxes.

Property law in Greece

Since 1990 if you are a citizen of the EU then it's been possible to own property in most areas of Greece. Prices are still considerably lower than in other parts of the Mediterranean, but are estimated to rise considerably in the future, making the purchase a particularly good investment at the present.

Legal overview

When you find a property you want to buy you're required to place a deposit of 10% - this should guarantee sole negotiation - hopefully eliminating the risk of being gazumped. Once you've paid the deposit the agreement is signed confirming both parties' details, the description of the property and any other conditions relevant to the purchase. The lawyer holds all cash until everything is finalised and the sale is authorised. The deposit is non-refundable should the prospective purchaser back out after the agreement has been signed. If the vendor backs out of the sale the deposit is refunded plus a 10% indemnity paid by the vendor if a pre-contract states this.

Property sales are always conducted by a notary and in the presence of two lawyers who represent the vendor and the purchaser. Your lawyer and the Notary will carry out the necessary searches to ensure that the property has a clean title. Your lawyer will deal with the local regulations concerning the "assessed value" for tax purposes, and carry out the searches.

The Notary should not allow any sale to go ahead should any of the papers or deeds not be in order. You should allow 2 months for this process. If you can't be present then give Power of Attorney to your lawyer. If you would like to know more about Power of Attorney then try Fishers Notary

So how much does the process cost? Allow 2% of purchase price for the notary and around 1.5%-2% for your lawyer.

There is a one-off purchase tax, at the time of writing 9% on the first 15.000 € Thereafter it is between 11% and 13% depending on assessed value as set by the local tax office.

If you're buying an existing property then you will need an Architectural Survey. This is prepared by an architect and provides a technical description of the property. Based on this the Notary Public makes the written description of the property and a copy of this document forms part of the contract. This costs around 290 € depending on location. You, the buyer, pay all these expenses.

Tax

Cost of ownership isn't great in Greece. There is a small public tax, which is incorporated into the electricity bill every second month. The exception to this is if the assessed value of the property is significantly high. Should the assessed value of the property exceed 176.000 € or 352.000 € if there is joint ownership, then the property will be subject to a small property tax payable each year. As an example a jointly owned property of 352.000 € would be liable to a yearly property tax of approximately 480 €.

Transfer of Funds.

If you've opened a bank account in Greece then remember to keep the documents - the "pink slip", in order to ensure that you are exempt from local taxes.