The process of purchasing a property in Greece can vary depending on the property type, location, and the buyer’s circumstances. However, a general outline of the steps involved would be as follows:
Research: Research the property market in Greece and identify the type of property and location you are interested in. This could include visiting properties in person or searching online.
Find a property: Once you have identified the type of property and location you are interested in, you can start looking for properties that match your criteria. You can work with a local real estate agent or search for properties online.
Due Diligence: Before making an offer on a property, it is essential to conduct due diligence to ensure that the property is free of any legal encumbrances and that the title is clear. This may involve obtaining a land registry search and checking for outstanding debts or mortgages on the property.
Make an offer: Once you have found a property that meets your criteria and is satisfied with the results of your due diligence, you can make an offer.
Sign a contract: If your offer is accepted, you will be required to sign a contract of sale. This is typically a preliminary contract that outlines the terms of the deal, including the purchase price, completion date, and any contingencies.
Pay a deposit: A deposit is typically required to secure the property. The seller or their agent will hold this deposit until the completion of the sale.
Obtain a tax number: An applicant must obtain a Greek tax number, also known as an A.F.M. number, to proceed with the purchase process.
Property transfer taxes: The buyer is responsible for paying property transfer taxes, typically around 11% of the purchase price.
Obtain a notary’s certificate: A notary’s certificate is required to verify that the property transfer has taken place and that all taxes have been paid.
Obtain a title deed: Once all of the above steps have been completed, the title deed will be issued to the buyer, confirming the property’s transfer of ownership.
Register the property: Finally, the new owner must register the property with the local land registry office, which is the final step of the property-buying process.
Please note that it is essential to consult a lawyer or real estate professional in Greece for legal and tax advice throughout the buying process.
Property Ownership
Legal Information – Buying Property in Greece – Additional Costs
Procedures & Purchasing/Single Costs:
What are the taxes, fees and expenses as well as the procedures when one proceeds with a purchase of a property in Greece? Once a property is being selected, the following steps are taken:
1- Appoint an independent Lawyer
The Buyer must appoint an attorney to assist and represent him/her throughout the purchasing process. We can deal with all necessary procedures making your experience of buying a property in Greece as stress-free and pleasant as possible. We also offer to our clients a FREE in-house legal advice and provide a list of reputable real estate attorneys in Greece to represent the clients during signing process with attractive rates especially negotiated for our clients; Lawyer’s fee: 1,50% (of contract amount).
2- Issue a Greek Tax Registry Number ‘AFM’
The appointed lawyer assists the clients to issue a tax registry number as it is a prerequisite before buying/signing the purchase contract to buying a property. The tax registry number is applied for and issued by the Inland Revenue Service.
The AFM (in Greek: Α.Φ.Μ.) is the Greek tax registration number and required by the Greek Tax Authorities, and it is necessary for purchasing or renting a property, opening a bank account, buying a car and in many other occasions. Requested documents to issue the AFM usually are: copy of passport.
3- Signing the Final Sales Contract / Appoint a Public Notary
We can arrange the signing of the Final agreement (and transfer of Title Deed) at a Public Notary’s office, according to the Greek Law. The signing of the final contract is done in the presence of the Public Notary at his/her office, whom by the Greek Law is responsible for the validity and legitimacy of the title deed of the Buyer.
Note:
- The Public Notary ensures the validity and legitimacy of the text (of the final contract), in a way s/he protects the Buyer.
- During the signing of the contract, the Buyer has the right to request the presence of an official translator at his/her mother tongue in order to explain all legal terms (because the agreement is written in Greek as it is required by Greek law).
- The Buyer can sign him/herself the contract, OR, give a power of attorney to the appointed Lawyer and sign on his/her behalf.
Public Notary: 1,50% approximately (of contract amount). (This is a one-time fee)
4- Title Deed Transfer fees
The transfer of title deed tax must be paid to the local Inland Revenue Service by the Buyer prior to signing the contract. We assist clients throughout the process. This is one time government fee applicable to all property buyers. Fees are as follows:
i) For Properties with building license issued UNTIL12.2005, the title deed transfer fee is: 3,09% (on contract value)/ no VAT Properties.
ii) For Properties with building license issued AFTER12.2005, instead of title deed transfer fee, there was a VAT payment rate, however since 2020 the VAT tax is zero (0) for all property purchases in Greece.
Note:
- The Buyer can pay him/herself the above tax, OR, give a power of attorney to the appointed Lawyer and pay it on his/her behalf.
5- Registration of Title Deed at the Registry of Mortgages
The Notary ensures that the title deed is transferred to the Buyer’s name(s) by obtaining the relevant certificate from the Registry of Mortgages.
Title Registration fee is payable by the Buyer: 0,5% – 0,7% (approx. of contract amount).
This is a one-time fee.
6- Permanent Residency Application fees
i) Government Application fee for PR: 500€ excluding persons below the age of 18.
ii) Lawyer’s fee: our Legal team in Greece along with your Independent Lawyer will handle the PR process:
– One Buyer: 1000 €
– One Buyer with spouse and one child: 1500 €
– One Buyer with spouse and 2 children or more: 2000 €
7- POS fees: 1,6% on the payment amount
8- Connection of Utilities (electricity and water) on the Buyer’s name: approximately the total cost is €1.350 (applies on new buildings)
9- Property / Housing Insurance (optional):
Property is insured through insurance companies. Property insurance contracts cover all types of possible damages i.e. fire, earthquake, natural disaster, storm, theft, third party liability etc. Insurance costs are normally billed bi-annually though annual payments are also acceptable. Property insurance is not obligatory, but is required by the financial institutions mortgaging the property. The cost for property insurance depends on the value of the house. For a property of 250,000 Euros the annual fee for an insurance covering the property of major risks would be approximately 500 Euros.
Summary of Purchasing Costs/ (Single costs) when Buying a Property in Greece:
The Buyer shall cover the following costs to complete the transaction; The purchase of a property in Greece requires some standard costs that you should be aware of and are mentioned in brief below:
- Lawyer’s fee: 1,50% on contract amount.
- Fee of Public Notary: 1,5% on contract price.
- Title Deed Transfer fee: 3,09% for resale Properties or currently zero (0) VAT for new Properties.
- Registry of Mortgages: The fee payable to the registry of mortgages amounts to 0.5% – 0,70 of the property value.
- PR application fee:
– One Buyer: 1000 €
– One Buyer with spouse and one child: 1500 €
– One Buyer with spouse and 2 children or more: 2000 €
Additionally, there is a 500€ Application fee payable to the Government for every Applicant, excluding children.
6. POS fee: 1.6%
