Legal principles of property transactions in Greece.
Title transition and registration is a totally transparent, easily controlled and public procedure in Greece. The country is a European Union member since January 1981, so both national and European legislation are applicable.
In case one party of a property transaction is not a Greek citizen, the following actions should be performed:
- Drawing of a Power of Attorney. It is done by a Greek notary in the presence of an accredited translator (compulsory). This Power of Attorney authorizes the lawyer whose name is stated in this document to act on the foreigner’s behalf. It also contains the powers granted to the lawyer for the purposes of the Principal Property Purchase Agreement drawing and execution. Thus, the buyer doesn’t have to deal with long and complicated legal formalities and procedures.
- The authorized lawyer, acting in the name and on behalf of his principal (buyer), registers him as a tax payer in Greece and opens a bank account in a state bank (in the buyer’s name).
- The authorized lawyer thoroughly checks the state Property registry for the property history and for other details (such as existing or previous mortgages, encumbrances or other charges, existing and previous contracts and agreements concerning the property etc). After he finishes the property checkup, he draws a report, signs and certifies it and delivers it to the prospective buyer.
- The authorized lawyer draws a Title Transition Tax statement and submits it to the local tax body. The tax rate amounts to 3,09% if the property Construction permission was issued prior to 01.01.2006, and to 24%, if it was issued after this date.
- Both parties (Buyer and Seller) sign the Principal Property Purchase agreement in the presence of a notary and an accredited translator. After the agreement is signed, the lawyer registers it in the State Property Registry which is the final, integral and compulsory stage of the property purchase transaction.
- After the Principal agreement is signed, the Buyer receives the full package of documents mentioned above which are duly notarized and translated into Russian, along with the Construction Permission, Power Consumption Certificate, Property layout plan and its topographical plan.
The above information was provided by the Legal Department of Grekodom Development company.