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FREQUENTLY ASKED QUESTIONS
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Buying property of any description in Greece is not difficult, any longer.
As long as you deal with reputable, licensed and legal companies and
individuals you should have no difficulties in achieving what you set out to
do – buying property in Greece.
The
process of buying however, is different to many other countries so we will
try to answer a few of the very obvious questions you may have. For
further clarifications we will be very pleased to answer any of your
e mail
enquiries
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USEFUL INFO
FAQ
VIEWING TRIP
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Can I buy property in Greece ?
Do I need a Greek bank account ?
How can I be sure I won’t be ripped off ?
Do I have to pay a deposit ?
Why should I pay a deposit ?
Do I have to have my finance in place
prior to making an inspection trip ?
What if there is a problem in place with
the property I choose or the seller changes his mind ?
What taxes do I have to pay on the
purchase of my property in Greece ?
How much extra should I allow for costs
over and above the purchase price ?
If I want to build, how do I get
planning permission ?
What about local council taxes ?
How do I pay water and electricity bills
if I am not resident in Greece ?
Can I buy property in Greece ?
Greek laws allow foreigners to own properties in most areas of Greece.
Restrictions apply for Non European Union citizens who wish to buy in border
areas (East Aegean, Dodecanese islands, regions of Northern Greece, Crete,
Rhodes). Non European Union citizens who wish to purchase property in border
areas should apply to the Council of local Prefecture which grants
authorisation. Lesvos is considered a border area.
Do I need a Greek bank account ?
Yes. This is very quick and easy to set up - normally less than an hour at
the Bank, if you have a Greek Tax Registration Number (AFM). In fact part of
our service to you is to save you the hassle by registering you at the Tax
Office and open a bank account for you, before you even get to Lesvos. This
will make it easier for you to transfer funds to your account before your
arrival.
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How can I be sure I won’t be ripped off ?
Any
property conveyancing is always executed before a Notary Public and in the
presence of lawyers representing the vendor and the buyer. A buyer needs a
lawyer to act on his/her behalf in order to assist with the local
regulations, to fix the "assessed tax value", and to ensure that he/she
obtains a clean property title. We collaborate with reputable
English-speaking lawyers, which we will introduce to you.
Before the transaction takes place, the lawyer representing the buyer
carries out searches with the Land Registry to confirm that the property has
a clean title deed. Legal procedures in Greece are simple and if all the
papers in order and ready a sale can be completed quite quickly by signing
an official contract prepared by the Notary Public.
However rest assured that we will be with you to assist you through the
whole process.
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Do I have to pay a deposit ?
To
secure your chosen property, a 10% - 20 % deposit on the purchase price is
usually required on signing a pre-contract agreement. This agreement
contains the names personal details of the vendor and buyer, the description
of the property, the price, the methods of payment, the date by which the
sale will be completed and any general conditions negotiated by the parties.
In the case of a very cheap property or where the deal will be completed
quickly this agreement does not take place and the parties move straight to
an exchange of contract phase.
The Notary Public will not authorise any sale without making sure that all
the appropriate tax papers and deeds are in order. The purchaser will lose
the deposit if he/she backs out of the deal, or if he doesn’t keep to the
date by which the sale should be completed and of course looses the right to
buy the property. If the vendor backs out and a pre-contract has been
signed, he will have to pay a sum equal to the deposit, as an indemnity to
the purchaser, who, of course, gets the original deposit back.
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Why should I pay a deposit ?
In
Greece, unlike in the U.K. and other northern European countries, there are
no long chains of people selling and buying property. You are most often
buying “ a vacant property”, which means that a purchase takes a very short
time to conclude, and people mostly are cash buyers. However vendors in
Greece are the same as anywhere else – they want to best price they can get
for their property and if there is a high interest on their property, this
could mean an unexpected hike on the price of the property. The deposit acts
as a mutual commitment between the vendor and the buyer.
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Do I have to have my finance in place prior to making an inspection trip
?
If
you are serious about the property you are inspecting (having done all
possible checks beforehand), it is a good idea to have your finance in place
before you make your inspection trip. At the minimum you should have enough
available to put down a deposit. After all, if you find your dream home you
will want to make arrangements to buy it as soon as possible. Delays in
securing the property may mean you loose the property! You can avoid
“gazumping” by putting down a deposit with a pre-sale legal agreement. This
will secure the purchase and fix the agreed price.
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What if there is a problem with the property I choose
or the seller changes his mind ?
We
always advice that a surveyor should be engaged to check out the property (
buildings). We also never advice payment of a deposit, before the survey of
the property and the appropriate legal searches show satisfactory results.
Should the seller decides not to sell after the deposit has been paid, then
he must return the amount of the deposit to the buyer.
If the buyer changes their mind after the deposit has been paid the deposit
is not returned. The deposit really acts as a mutual legal binding
commitment between the vendor and the buyer.
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What taxes do I have to pay on the purchase of my
property in Greece ?
You will have to pay a one off Purchase Tax to the Greek tax authorities.
This amount is based on the "tax assessed value" of the property, which is
not the same as the price you are actually paying. Sometimes the “ tax
assessed value” is lower sometimes it can be higher. We undertake to
negotiate a lower tax figure with the tax assessor, should this become
necessary, although we can’t guarantee a successful outcome each time.
The
tax payable is between 9 and 11 percent of this assessed value.
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How much
extra should I allow for costs over and above the purchase price ?
We
suggest to budget for an extra 12% to 15%, although we can be a little more
specific on figures, once you know which property you are interested in.
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If I want to build, how do I get planning permission ?
According to Greek law, if a plot of land is not within the town plan and if
there are no forest or archaeology restrictions, permission to build can be
granted for any plot of minimum of 4,000m2. Permission can be granted for
plots of land of 2,000m2 or less, if they are located within the planning
zone or with frontage to the principal municipal road. Inside villages,
towns and cities planning permission can be generally granted for any plot.
We can recommend English-speaking architects, and engineers who will give
advice, work on plans and obtain building permission. Building permits can
be only be obtained through registered architects or engineers in Greece and
cost about 4% - 5% of the total cost of the building.
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What about local council taxes ?
There is a very small local council tax which is included in your
electricity bill and it gets calculated on the size of the property /
buildings. The electricity bill arrives every two months and the tax is so
small as to be almost unnoticeable. This bill also includes your TV licence
fee - whether you have one or not!
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How do I pay water and electricity bills if I am not
resident in Greece ?
You
can pay your electricity bill by arranging a standing order at your bank.
The water bills are paid at the Town Hall of the Municipality where you
bought your property. Some Town Halls are more efficient than others in
issuing the bills on time, therefore our advice will be more specific for
each case as it arises.
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