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Questions and answers regarding real estate purchase in Greece from Grekodom Development company

Frequently Asked Questions concerning property purchase from Greekodom Development

What’s the amount of additional expenses for property purchase in Greece?

Expenses paid by the Buyer:

  • A Lawyer’s fee is 1.5% of the property price stated in the Property Purchase Contract (actual or cadastre price depending on the buyer and seller’s agreement) plus 24% VAT
  • A Notary fee, as a rule, is appr 1.5% of the property price stated in the Property Purchase Contract plus 24% VAT
  • The amount of Title of ownership tax depends on when the construction permission was granted.
    • if it was granted prior to 2006, the tax payable is 3% cadastre price.
    • if it was granted after 2006, the tax payable is 24% cadastre price.

 

Property registry fee is 0.5% cadastre price.

The Company fee is not included into the property price and it amounts to 2% of its actual price plus 24% VAT.

 

Does your site display actual price of property?

Grekodom Development service fee amounts to 2% actual price of property (plus 24% VAT, the fee is stated formally in the Property Purchase Contract). It’s a fee common for all real estate agencies in Greece and it is paid by the Buyer by installments (some amount is paid upon signing of preliminary contract and the balance, upon signing of the final contract). This fee is not included into the property price, and the prices displayed on our site are the actual prices asked for by the property owner. The buyer has an opportunity to bargain with the property owner (in Greece, bargaining is acceptable always and everywhere) which confirms our honesty and trustworthiness. Besides, the buyer always has an opportunity to compare our prices with the prices offered by other companies working in the same market. We can guarantee that the prices we offer are at least 10% lower. We manage it, because there are no intermediary links between our company, property owner and buyer – just the three of us are involved into the property purchase transaction.

 

Do Greek banks grant mortgage loans to foreigners? If yes, then what are their terms and conditions?

In Greece, there are banks specializing in mortgage loans they grant to foreigners, such as Russian banks branches. Most banks which grant loans for property purchase in Greece take into consideration their client’s obligations and payments existing in Russia, including their mortgage and rent payments, personal and other bank loans and alimony. Statement of income is obligatory. Statements of salary/wage, savings or investment interest are accepted. The mortgage term is up to 10 years, interest payable is 8% per year or higher.

 

Is there an annual property tax in Greece?  

Annual property tax was introduced in Greece in September 2011. Its amount depends on the metric area of the property and on its location. The tax is payable by the property owners only and it doesn’t apply to tenants. Tax bills are delivered by mail together with electricity bill. Total tax amount is going to be 160-1000 Euro per year.

 

Which parts of Greece are most popular with Russian and foreign buyers?

Most buyers are interested in property located on Khalkidhiki peninsula, for the most part due to its very clean sea and its beaches which were awarded the “Blue flags” – the highest ecological prize granted by EU. Experts rate this area as the most promising in terms of price and quality correlation. Property located on the “third finger” of the peninsula, in Aphon, is one of our special offers. This part of Greece can boast of its beautiful natural landscapes and unique atmosphere of sublime peace created by the proximity of the holy land which the legend describes as the earthly lot of Virgin Mary.

Other areas which gained popularity among property buyers are Thessaloniki and Athens. Regular flights all year round connect these cities with Moscow and other Russian cities which make them open for business activities and first class rest in hospitable Greece. Is there a single person who wouldn’t look forward to owning some property in the heart of Greece’s cultural and business life and who wouldn’t want to enjoy a view of some ancient monuments and ruins which can recollect thousand years of this land’s glorious history?

Greek islands are long since favored by tourists from different countries such as Great Britain, Germany, France and Italy. Crete is one of the largest Greek islands. It is surrounded with legends and myths and it strikes the visitor with its natural unique beauty, its mountain landscapes, gorges covered with thick forests, ancient ruins and monuments and stunning beaches with their snow white sand. That’s where human civilization came into existence centuries ago, and modern Crete remains one of the most attractive sea resorts of the world.

 

What documents are required to buy property in Greece?

The package of documents required to buy property in Greece is not large and easy to collect. It includes:

  • Valid passport
  • Visa valid for this country
  • Document confirming permanent residence address  (national ID/passport of the country of residence)
  • Statement of employment, i.e. a document confirming main occupation of the prospective buyer (type of occupation is not relevant).
  • Copy of Tax declaration (or Income Tax Statement (NDFL)), or any other income statement (salary statement, bank statement, etc). The amount of income displayed is not relevant and it is not correlated with the price of property. This document is required for registration as a Tax Payer in Greece.

 

What’s the minimal time required to finalize the property purchase transaction and obtain a document confirming the title of ownership?

First, the prospective buyer has to register as a tax payer and open an account with a local bank. It takes a couple of hours and can be done within one day. After that your lawyer starts checking the titles of property which may take several days in case all documents are in good order, or a little longer if you intend buying land or a complex unit (such as a hotel or a business). After that, if the buyer is ready to pay the full price of property, the title transition contract is signed. After that all documents are submitted to a competent body for the title to be entered into the registry. The title certificate is issued within 5 days. Hence, all formalities concerning property purchase can be finalized within 7 days (unless there occur some circumstances which hinder the process, i.e. the buyer is not ready to pay the full price of property or there are too many documents to be checked before the contract can be signed).

 

Can I count on your company’s assistance if I want to rent out the property I’ve purchased?

Yes, our company renders this type of service. We can help you find a tenant willing to rent your property which guarantees you a constant income while you live outside Greece.

 

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