Buying Property in Greece

A Brief Guide

Greece is a Safe Place to Invest in Real Estate

Besides being a modern democratic European state, Greece is a country with a very strong feeling of its people towards real estate property. More than 80 % of its inhabitants own their homes. The Greeks were never deprived from their properties, unlike most of the other Balkan peoples during the communist era. Greek Constitution, courts and authorities fully respect property rights. So, I would say, Greece is a very safe place to invest in real estate property.

You can invest 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 real estate property or rent it for a period over six years in border areas, have to apply to the relevant authority which can grant authorisation for the transaction.

It is simple not difficult and not risky to invest in Greek real estate property

The procedure for buying real estate property in Greece is fast and simple. The law requires that for each real estate property transaction, there are three legal professionals involved: A lawyer, to investigate for the property, a notary public to draw the contract and a registrar to register it officially to the local Mortgage Office.

All property titles in Greece are kept on the Mortgage Offices of each municipality, according to the alphabetical order of the names of the owners. A modern Land Registration System is being constructed, and is gradually replacing the old system. Until now we have 84 Land registry offices already functioning throughout the country, while almost half of the area of the country has been mapped with new technology systems.

Cost and Fees of the Law Professionals

Lawyer: The fee is 1-2% of the agreed price, depending on the difficulty of his research.

Notary Public:The fee is approx. 1,5% of the contract price plus a small sum for other duties and certificates.Mortgage Office: The fee is approx. 0,5% on the contract price, plus a small sum for other duties and certificates.Land Registration Fee :It is only 1‰ of the tax value, with a minimum of 35 euros for every property right.Real Estate Agent: It is usually 1-2% of the market value of the property. Any special agreement is valid.

Taxation when buying

Concerning taxation for property acquisition, there is a positive evolution going on in Greece today. The general transfer tax which was formerly 11-13% is now down to 9-11% and is gradually being replaced by a transaction duty of only 1%, when purchasing land or used buildings recently transferred, VAT 19% is being gradually introduced upon the purchase of newly built houses, but this does not seem that will affect market prices, since building companies will be able to deduct the VAT they have paid to their subcontractors, which was not possible before.

Annual taxation on the possession of property

Only huge properties are subject to annual capital taxation in Greece. Small and medium size properties, like a summer house, are not practically affected by annual taxation. Local rates apply to all houses and premises, which are collected through the electricity bill.