USEFUL INFORMATION

If you wish to buy or sell a property, please read the information below to save yourself time and worry.

YOU WILL NEED THE FOLLOWING DOCUMENTS TO PURCHASE A PROPERTY:

1. A photocopy of your identity card.
2. A Tax Identification Number and the name of the tax office where you are registered.
3. A copy of the E9 document.
4. If this is your sole residential property, you will need to make a declaration with a notary in order to claim tax relief on this property.

If you are a foreigner and wish to buy property in an area which is no longer classified as a border region, then you will need the following documents:

1. Your country of origin passport or a legal residence permit.
2. A Tax Identification Number issued by the Greek tax authorities.

Under Article 36A of Law 4146/2013, citizens of third countries, who are not EU members, can obtain a five-year residence permit by buying or leasing a property or a timeshare in Greece with a value of at least €250,000. A joint decision of the Ministers for the Interior and Finance states that the value of the above real estate property may be adjusted and shall result from the property value stated in the contracts or from the lease agreements.

This 5 year residence permit gives the holder and their family members the possibility of extending the permit and of travelling freely throughout countries of the European Union and of the Schengen Convention, without having to show any entry visa in these countries.

The countries which have signed the Schengen convention are the following: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland and Liechtenstein.

 

You will need the following documents in order to sell your property.

1. A photocopy of your identity card.
2. Title of property ownership.
3. Proof of transfer certificate by the land registry. Usually there is a stamp on the title to you.
4. If a building is being sold, you will need recent topographic site plans and floor plans based on the Greek Geodetic Reference System.
5. Building Permit for a building or building plot.
6. Social Security Insurance certificate. This is NOT required unless you employed workers, who are registered with IKA or you are a member of a company. Neither is it required if a building permit has been issued in the last ten years.
7. When the property is given by a parent, is a gift or is inherited, verification from the tax office is required that shows no tax is owed. The notary will advise on this.
8. The rent agreement if the property is rented.
9. Certificate from the town hall if the property is contained within the town plan. This will show that no payment is outstanding and that the title deeds have been filed, if it was included in the town plan after the 24/11/1994. The lawyer will advise. It is also necessary to get proof that no payment is outstanding on a plot of agricultural land within a functioning Land Improvement Agency, in accordance with Article 65 of N.2538 / 1997.
10. Depending on the location of the property, if there is cadastral surveying and at what stage this is, the following are required: a) the certification of the surveyed property or certification of declaration from the land registry and b) the cadastral diagram and cadastral sheet of the property from the land registry.
11. If the property is bordered by woodland, a certification is required to show that it is not forest land. If it is designated woodland, then you will need certification under Article 25 of N.998/79. In areas where there are forestry maps, you will need certification under Article no. 20 N.3889/2010 from the Forestry Commission.
12. Energy performance certificate of the building.
13. A competent engineer certificate, in accordance with Law 4178/2013, which carries the unique number of the property. (If there are additional facilities e.g. exclusive uses, parking, warehouses, etc. these should be mentioned therein). If additional work has been done on the property, a work completion certification and a floor plan of the property certified by the town planning office are required. If these spaces are not shown on the zoning plan, they should be submitted by the engineer, showing the spaces that will be passed by the system.
14. Certification of ENFIA under article 54A of 4174/2013, which shows that you declared the property on your tax statement for the years 2011, 2012, etc. The certificate, the description of the property and any additional work done must be exactly as stated in the contract and will leave the on-line tax record TAXISnet with your electronic codes. If there is any difference with the acquisition title, the accountant enters the system to make corrections and then prints the E9 document.

 

In inheritance cases, the following must be checked:

1. The death certificate,
2. The certificate of the next of kin,
3. Details of the will.
4. The dispute certificate of inheritance,
5. A declaration of non renouncement of inheritance rights.

These documents are checked and you are suitably advised by your conveyancing solicitors.

We need to know if there are any claims to the property. The lawyer should check the title deeds to make sure that there are no claims to the land by the state or individuals. Also we need to know how many square meters our building can cover on this plot. Finally, we need to be aware of any building regulations in this particular location that may create problems.

Cost of buying or selling a property.

Your outgoings during the process of buying or selling are the following.

Α. Legal Fees

Since 2014, the representation of a lawyer in the contract has been optional. If you do have one, then the fees are as follows.

  • Minimal fee, for which the relevant triplicate by the local bar association is issued: 44,000 EUR 1%
  • From 44,001-1,400,000 EUR 0.5%
  • From 1,400,001-3,000,000 EUR 0.4%
  • From 3,000,001-6,000,000 EUR 0.3%
  • From 6,000,001-15,000,000 EUR 0.2%
  • From 15,000,001-30,000,000 EUR 0.1%
  • From 30,000,001-60,000,000 EUR 0.05%
  • From 60,000,001 and above 0.01% (This is negotiable with your lawyer.)

A lawyer will help you to understand the legal jargon and take care of your interests during the drafting of the contracts. These might be mortgages, loans, or claims from individuals or the state. The level of the fees will depend on the size and complexity of the work involved.

  • Before drafting contracts, the lawyer checks the legality of the property and the title deeds for the last twenty years at the land registry.
  • They verify the ownership of the property.
  • Another matter the lawyer will deal with, is to check if there is a claim to the property. This might be a mortgage or loan from an individual or the state.
  • If the seller has inherited the property, the lawyer checks the death certificate etc.
  • If the seller has been bequeathed the property, the will and the certificate of non-waiver of inheritance are verified.
  • If the seller is a business owner, relevant bankruptcy searches are carried out for any pending petitions. If the seller has filed for bankruptcy, then the necessary checks are carried out.

Caution: if you pay a deposit, your lawyer should draft a private, preliminary contract in order to protect you until the final contract is drawn up. It is essential that you safeguard yourself against potential problems with the seller, or any issues that may arise due to financial or health matters.

With the agreement, the lawyer ensures the value of the property, the methods of repayment, penalties for the buyer and seller, completion deadlines etc.

The deposit should be as low as possible, to mitigate loss, in cases where the sale does not go through.

 

B. Notary fees

The notary is an unpaid public officer. The role of the notary is particularly important for the legitimacy of the wording of any agreement on the official contracts.

The notary fees are determined according to the provisions:

a) Article 40 of Law. 2830/2000 "Code of Notaries" (A / 96), as in force after its amendment by Article 4 par. 1, 2, 3, and 4 of Law. 3919/2011 (A. / 32), and

b) Article 90 of the Legislation Code for the Government and government agencies as ratified by the first article 63/2005 (A / 98).

For drafting documents the notary is paid according to the value of the property. They are paid a fixed fee of twenty (20) Euros and a proportional fee, which is calculated based on the total value stated in the contract, or the highest value according to the relevant authorities.

  • Up to 120,000 Euros 0.80%
  • From 120,000.01 to 380,000.00 Euros 0.70%
  • From 380,000.01 to 2,000,000.00 Euros 0.65%
  • From 2,000,000.01 to 5,000,000.00 Euros 0.55%
  • From 5,000,000.01 to 8,000,000.00 Euros 0.50%
  • From 8,000,000.01 to 10,000,000.00 Euros 0.40%
  • From 10,000,000.01 to 12,000,000.00 Euros 0.30%
  • From 12,000,000.01 to 20,000,000.00 Euros 0.25%
  • From 20,000,000.01 and above 0.10%

b) For each additional sheet of a notarial deed, where the fee is in accordance with the above scale, there is a cost of five (5.00) Euros.

c) For a copy of each additional sheet of the notarial deed (b), the cost is four Euros (4.00). The fees and charges for the issuance of such copies are marked on the original contract, along with other rights, as defined above.

The notary fees are recorded on the last pages of the contract. This can be presented to the tax office as evidence of payment made.

 

C. Land Registry

The costs for the transfer of the contract in the local land registry are calculated as follows:

  • For gifts from parents 0.775%
  • For transfers, sharings or exchanges etc. 0.475%

The land registrar issues a receipt with a 23% VAT charge. The costs are incurred by the property buyer.

Caution - your transaction will be completed and will be totally legitimate only after the transfer of the property at the land registry.

 

D. Tax

The transfer tax is the tax that the buyer pays to the IRS to purchase the property and is charged at 3%. Another 3% is added as payment to the local municipality.

If the property is bought from a professional contractor whose license was issued after 01/01/2007, there is a 23% VAT charge.

 

E. Real Estate Consultant

The worth of the consultant is in the fact that they can find you the ideal property you want. They will find it within the timeframe you specify. According to your specifications, it will be in the place you choose, the size and the quality you decide. Their advice and action will benefit you financially.

Their fee is freely negotiable and agreed with the seller or buyer. Buyers should avoid a no fee deal. In these cases, the price of the property is raised and ultimately the buyer pays a fee indirectly anyway. Often this indirect fee is higher than a standard fee.

The fee should only be paid when the contract the consultant is handling, has gone to the notary. No fees should ever be paid up front to a real estate consultant solely for taking you on as clients, without good reason.

The fee you pay to the real estate consultant for their property services is not defined by any law, is freely negotiable and not subject to minimum legal limits. General business conditions in the brokerage contract are governed by Article 2 of Law 2251/1994 (A 191).

The fee is usually 2% from the buyer and 2% from the seller and is calculated according to the market value of the property. However prices may increase or decrease. There are several cases where rates have been set up to 7%. If it is a rental agreement, the fee is usually set at 1 rent from the tenant and 1 rent from the landlord (1/2 rent in the case of small homes.) These fees are subject to the statutory VAT 23%.

Once you choose to buy or rent a property through a real estate consultant, you need to sign a document which specifies the consultant’s fees and which displays their full details: their tax registration number and their General Electronic Commercial Registry (G.E.MI.) number.

If the agent does not operate legally, then you have no financial obligation and should avoid dealing with them.