Greece » The Purchase Process

Buying in Greece might get confusing if you are a foreign national, but with some research you can make it a pleasant experience. There are some exceptions, rules and regulations for the foreign nationals which need to be understood in order to carry out a successful and hassle free transaction. A foreign national can buy property in most regions of Greece with the exception of some troubles area bordering with Turkey, which includes some regions of the Northern Greece, Rhodes and Crete. In order to buy real estate in the above mentioned sensitive area special permission must be acquired from the Local Council. However, obtaining a permission letter for an EU national is not very difficult, even the non-EU nationals can acquire it, if all the regulations and procedures are followed correctly.

Greece is striving towards the development of a National Land Registry process which will be uniform throughout the country. According to this system titles for the property will be issued which will secure the rights of the property to the state. International Property Broker’s guide to purchasing property in Greece is;

• Once you have made your personal research for the property you are looking for, it is very important to appoint a lawyer. The lawyer will check that all the mortgages are cleared on the property and the vendor holds the deeds for the property. The lawyer will also help you with the translation of the contracts and deeds.
• In order to purchase real estate in Greece everyone including the foreigners and Greek nationals must obtain a tax role number which is known as AFM in Greece. It could be obtained from any tax office in the country. The EU nationals can obtain AFM on spot only by showing their National ID Card, and non-EU nationals must show their passport to obtain their tax role number.
• In Greece, the authorities are really concerned about from where the money is obtained to invest in Grecian Real Estate. So in order to transfer money from the home country for the purchase of the property, a “Pink Slip” needs to be obtained by the Grecian Authorities. It will ensure the source of money to the authorities.
• Once the initial procedure has been carried out, it is highly recommended to open a bank account in Greece. Because all the transaction in the purchase of Greek property must be carried out through Grecian Bank. If you have already obtained the AFM and Pink Slip, opening an account is a really swift and easy process.
• An oversee real estate purchase is monitored by a public notary. Once an offer has been made on a property, a tentative contract is drafted, at this stage 10% deposit of the actual price of the property is made by the purchaser. This deposit is not refundable unless the seller himself terminates the contract. Once all the checks and balances have been made, a final contract is signed by both the parties. Once the contract has been signed, the rights of the ownerships are transferred to the buyer.

Fees and Taxes

• Following fees and taxes are applicable on the purchase and possession of real estate in Greece
• Property Purchase Tax       9%-11%
• Land registration Fee         0.3%-0.45%
• Annual Property Taxes       0.25%
• Annual Community Tax      3%