The Purchasing Process & Frequently Asked Questions

The purchasing process of property in Greece is very straightforward and quite similar to that in the UK & Ireland.

As a general rule:

Frequently asked questions:

The notary public is a government-appointed lawyer who processes and certifies all real estate transactions in Greece, including drawing up and reviewing all official documents, to ensure the legal transfer of the property.

Yes. Even as a non-resident once you purchase a property in Greece it is important to hire an accountant to help you with your property declaration in the year you purchase the property and thereafter your annual tax return, together with explaining to you your taxation obligations.

Yes. A Greek tax number (AFM) is mandatory for all buyers of property, local and non-local. It is issued at the local tax office, free of charge and applicants must present their passport together with some personal details, for married couples also you will require a copy of your marriage certificate should you intend doing a joint tax return each year. If you have granted your solicitor full Power of Attorney, he / she can apply for the tax number(s) on your behalf.

     
Yes.  Since 2006 the Greek State has mandated that all property ownership or sale of property in Greece must be declared by filling out a form called an E9 and submitting it to the Greek Tax Authorities. This is mandatory for every property owner in Greece, even for those who live abroad or do not have an income in Greece.  If you own immovable property in Greece but your assets next year have not changed from what they were the year before, you do not have to submit the E9 form again.
An E9 is a schedule, which must be submitted together with the basic Income tax form E1. If you have no income in Greece, you enter “0” income in the E1 form. Both forms can be prepared and submitted by your accountant.
If you fail to declare a property you will not be able to transfer it later. Additionally, failure to file annual tax returns is subject to penalty; therefore, appointing an accountant early on in the buying process is important.

The Tax Assessed Value 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.  On the contract it is always the Assessed value that is shown & it is also on this amount that the transfer tax or VAT of a property is calculated by the Greek Inland Revenue.

The market value is the value of a given property or the land in a particular area and what can be obtained in the sales market, this then is what a seller asks and hopes to receive.  The market value is by rule higher than the objective value.

Yes. All necessary payments must be made through your own account & then funds transferred either to your solicitor, vendor or the developers; this account is proof that funds used for the property purchase have come into Greece from another country and are hence, not taxable in Greece. Opening a bank account in Greece only takes a few minutes and requires no opening deposit. All you need is your passport and your AFM (local Greek tax number).

For EU nationals to purchase property in Greece a residence permit is not required, except if you plan to purchase in an area near national borders or on certain islands such as Rhodes and islands of the Eastern Aegean. If this is the case, a residence permit called the Blue Card is required.

Purchasing costs are approximately 10%, which consist of the transfer tax on the property, the solicitor & notary fees & registration of Deed of property fees.

Yes, if you purchased your property after January 1st, 2006. The percentage of tax owed varies depending on the length of time your property has remained in your ownership:

Only if your property’s tax assessed value exceeds 243.600 euros.

Yes, it is possible to get a mortgage in Greece. To apply for a mortgage you will need proof of income for the last 2 years (P-60’s, payment stubs, or tax returns if self-employed). Please be aware that if you apply for a Greek mortgage, you must be able to pay all closing costs before any funds from the bank are released.

Although no market standards exist as to the forms of insurance that can be taken out, it is always recommended that the property be insured against the following risks: fire, earthquake, water damage, theft and third party.

If the searches highlight any problems you will receive your deposit back in full. This is why prior to the legal searches the deposit is paid to the solicitor and not to the vendor.

If you have signed a pre-contract and paid a deposit for a property, this is considered to be an official intent to purchase. It is important that you are absolutely certain that this is the property you want, and that you feel you are under no pressure to sign a contract and pay a deposit. Should you decide to withdraw from the purchase, you will lose your deposit.

If you have signed the pre-contract and made an initial deposit, your deposit will be refunded in double.

It is advisable to make a Will in any country where you have immovable assets, as afterwards it makes the process of inheritance more straightforward & quicker to complete.