F.A.Q.s

Frequently Asked Questions
Show All Answers | Hide All Answers What legalities are involved in the purchase a property? Buying a house, apartment or a building plot in Greece is subject to similar legalities to those applying in most other EU countries It is necessary to appoint a lawyer, who will check the title of ownership and ensure that there are no mortgages outstanding or legal encumbrances attached to the property. STAR ESTATES INTERNATIONAL can, if requested, make recommendations for the appointment of an appropriate lawyer and subsequently liaise with him/her on your behalf Your lawyer would be responsible for the appointment of a notary public who prepares the necessary Final Contract in conjunction with him/her. Once the sale has been completed, it is the Notary who registers it with the Land Registry, and retains a copy of the Final Contract. The Notary, will also give you certified copies In certain cases, it may be necessary to appoint a qualified surveyor to assist with enquiries You are required to obtain a Greek tax number prior to the final contract being signed. STAR ESTATES INTERNATIONAL can assist in obtaining this number and will require a Power of Attorney from you to perform this task. What happens after I decide to buy a property? Once the sale/purchase and price of a property has been agreed, we recommend you sign a pre-contract (preliminary agreement). This is prepared by STAR ESTATES INTERNATIONAL and signed by yourself and the Seller. It commits both of you to a price and a date for 'completion'. (Completion refers to the time frame within which your lawyer must determine and be satisfied that clear title exists in the property and that no mortgage or tax liabilities exist. The completion period is usually a maximum of 30 to 60 days). What amount of deposit would I be expected to pay and where is the money held? At the time of signing the pre-contract (preliminary agreement), you would be asked to deposit a sum equivalent to 10% of the agreed purchase price. This deposit is held in a trust account until "completion". What other expenses would I be expected to pay? a. Transfer Tax (Stamp Duty) b. Notary Public Fees c. Your lawyers fees a) Transfer Tax (Stamp Duty) - The day before signature, the Transfer tax becomes payable to the government. Please note - this Transfer Tax (stamp duty): is NOT calculated on the actual purchase price, but on the value of the property as assessed by the Tax Office (this is often a lesser amount). Transfer Tax: 7.21% of the first 14.700€ and 9.27% of the remainder (based on the Tax Office valuation). b) Notary Public fees: These are between 2.2% and 2.5% of the tax assessed value, depending on the value of the transaction (including subsequent registration fees). c) Your Lawyer’s fees: These are between 1% and 1.5% of the sale price (depending on the value of the transaction). Do I have to pay annual tax on my property? There is no annual property tax in Greece. However, as a property owner you would need to complete an annual tax return. Provided you have proof that the purchase was made with funds coming in from abroad, you are not employed or otherwise receiving an income in Greece, you will not be liable to pay tax. What if I want to buy a plot of land and build my own home? The planning regulations on Greece are complicated and at the moment subject to a number of changes. In all cases a building permit must be obtained and this service is normally carried out by a state registered engineer who, in conjunction with you, will complete the plans of the proposed house and submit these together with the other information required to the building permit office for approval. The engineer would also make an application on your behalf for connection to the electricity and water supplies. Outside the town, most sewage is dealt with by onsite septic tanks. Once the building permit is obtained, the normal practice is for you to enter into a fixed price building contract with the engineer to build the house. The process of obtaining the building permit normally takes between 3 and 6 months and depending on the site, the building process itself can then take a further 9 to 15 months. How do I complete the annual tax return? STAR ESTATES INTERNATIONAL can, if requested, recommend you to an accountant who can submit the appropriate forms on your behalf every year. Alternatively, you could use the services of our Property Management Services department. How do I prove that I purchased a property with money brought into Greece? Your bank will issue you with what are commonly known as a "pink slip" or other verification that the money for the purchase was brought in from abroad. This verification will be needed on completing your tax return. Is there Council Tax in Greece? There is no council tax. There are small charges for "community services" which include such things as rubbish collection and street lighting. These are added on to your electricity bill. Can I get help with financing to buy a property? Mortgages can be arranged relatively easily on most properties through a Greek bank. You would be able to raise up to 75% of the market value of the property. There are certain documents you would need to produce, such as proof of income and tax declarations.