Buying property in Greece, the basic guide

Like most European countries, Greece was strongly affected by the 2007 economic crisis. Real estate prices then collapsed, losing more than 45% of their value in a few months. More than 10 years later, Greek real estate prices have not yet reached their pre-crisis level, except in highly tourist areas such as Athens, Santorini or Mykonos.

Now is still a great time to invest in Greece. Let yourself be enchanted by its stunning landscapes, rich heritage, and pleasant climate. Build or buy a second home by the sea in Greece. Here are some essential tips to secure the purchase of your property in Greece.
 

The steps to know when buying in Greece

Get help from a professional.
It is strongly recommended to be accompanied by a specialised lawyer when buying a property in Greece. There is no land registry in Greece except in a few cities including Athens. So it is necessary to have a lawyer's assistance before signing any sales agreement. The latter will thus be able to check the property titles, the building permit, the length, the buildability of the land... Similarly, it is advisable to call upon an accountant, a notary (often chosen by the seller) and even a surveyor who will ensure that all construction acts are in conformity with the law.

Obtain all the necessary administrative documents.
To buy a house or an apartment in Greece, you need a non-resident tax registration number (AFM) and access codes to the "TAXIS" system. This system allows you to meet your reporting obligations, including paying the property tax. It is also recommended to open a bank account in Greece to facilitate the transaction and the fiscal procedures related to the real estate purchase.

How to finalize your real estate purchase?
When signing the promise of sale, it is usual to pay a "deposit" and set a deadline for signing the sale agreement. However, you should be aware that the amount paid is not a legally binding guarantee of sale. To conclude the sale, the owner must provide a certain number of documents (tax certificate, energy performance certificate, etc.). The transfer of ownership is then done before a notary. The presence of an interpreter at the signing will be mandatory for people who do not speak Greek. Once the transaction is effective and with the help of his lawyer, the new owner must file the acquisition declaration within one month of purchase (E9 declaration).
 

Property costs in Greece

Once you become a homeowner, you must pay some related taxes such as property taxes. The Property Tax is assessed according to the price of the property concerned. Thus, the rate is 0.10% for a property over €200,000; 0.15% for a property over €300,000; 0.25% for a property over €400,000, then 0.35% for a property over €500,000 and so on. It is then 1.10% for a property of 2 million euros. Beyond that, the property tax applied is 1.15%.

A foreign owner whose country is under treaty with Greece (such as France) is not subject to double taxation. Thus, he will not have to declare his assets to his country's taxes unless he is subject to an additional tax in his own country, such as the real estate wealth tax in France. Income from its properties in Greece will be taxable in Greece.

Rental investment, the things to know

Rental income in Greece is taxable.
However, if you receive income in Greece and in particular a real estate revenue, you will have to pay the individual "non-resident" income tax. Therefore, each year, it will be necessary to file an E1 tax return. Property income is taxable at 15% up to €12,000, 35% between €12,000 and €35,000 and 45% for annual rental income above €35,000.

Income from holiday rental is not subject to tax if the duration of the rental does not exceed 90 days per year and 60 days on islands with less than 10,000 inhabitants. It is possible to rent for longer, but if the income reaches €12,000 per year, the owner will be liable for the income tax.

Meretdemeures.com.

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