ProperCRETE Crete Property Developers

Property Purchase

Procedures of property purchase in Greece

 

To purchase a property in Greece, one should take the following steps:

·         Issue a Greek tax ID. Tax office will only ask for a passport copy and a form of personal particulars.

·         Appoint a lawyer to examine legal and technical documents of the property.

·         Purchasers are advised to open an account to a Greek Bank, as it is the easiest and safest way to arrange payments.

·         Having done the above, contracts are prepared by lawyers and are handed to a notary public to be checked and signed by vendors and purchasers.

·         To conclude the purchase, notary public submits contracts to the Greek "land and property registry office".

Greek law requires all contracts to be in Greek, but they can also be officially translated in English or any other language.

If required, ProperCRETE can introduce purchasers to lawyers and provide assistance at all steps of purchase procedure. In case purchasers wish to avoid paperwork or conclude purchase without their physical presence, their lawyer can be authorised with a power of attorney to issue tax ID, open bank account, arrange payments and sign all documentary on their behalf.

 

Taxes and legal expenses

Taxes and legal expenses on property purchase are as follows:

  • According to latest Greek legislation, all new-built property purchases are subject to VAT at 19% of the objective value. (objective value is the minimum value that Greek state asseses for all properties, and is usually less than 50% of market value).
  • Notary public fees are at 2% of the objective value.
  • Land and property registry office fees are at 0.5% of the objective value.
  • Lawyer fees are usually at 1% of the property price.
  • According to the new law applied in 2008, all properties in Greece are subject to annual tax at 0.1% of the objective value, which, in the case of Analipsi Residences, is aproximately 50 € per year. This is the only on going property ownership tax payable.

 

For further information, please contact us.
Click on the link below to download the personal particulars form in word (.doc) format.
personal particulars form

Mortgages in Greece

In case purchasers wish to apply for mortgages to a Greek Bank, ProperCRETE can provide assistance and professional advice. The procedures are relatively simple and do not require the applicant’s physical presence. An attorney at law can be appointed to represent the applicant for the whole procedure of the mortgage loan (as well as the procedure of the purchase).

 

To apply for mortgage to a Greek bank, required documents usually are:

  • Bank application form.
  • A valid passport.

For employed applicants:

  • A copy of the most recent tax return slip issued by the Tax authorities of the applicant’s country of residence and a copy of the most recent salary slip.

For self employed applicants:

  • A copy of the two (2) most recent tax return slips issued by the Tax authorities of the applicant’s country of residence.

 

After the loan application is approved, and before disbursement, copies of the purchase contract and property documentation are required.

 

The property documentation (planning permission, drawings etc) are forwarded to the bank by ProperCRETE.

 

The loan disbursement will take place only after all required documentation and respective collateral have been checked and found to be in order.

 

Below one can find some general information about mortgages from Greek banks.

 

Loan amount: Unlimited and usually up to 80% of the market value of the property (as evaluated by the bank).

 

Interest rates: There are numerous programs, with fixed or variable interest rates. Variable rates usually have a spread of 1.5% to 2.5% over Euribor. Fixed rates usually vary from 3.5% to 6%, depending on the loan and the fixed period duration. There are programs combining fixed and variable rates.

 

Mortgage registration:  On the property bought in Greece. Most banks require security of 120% to 130% of the loan amount.

 

Period of loan: In most cases up to 30 years. The applicant’s age must not exceed the 75th year at the loan’s maturity.

 

Insurance: Most banks require fire and earthquake insurance.

 

For further information on mortgages you can contact us or visit the following links of major Greek banks (in English language):

 
Emporiki Bank
Piraeus Bank
Bank of Cyprus