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Frequently Asked Questions |
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What happens if I change my mind?If you have signed a contract and paid a deposit for a property, this is considered to be an official intent to purchase. It is important that you are absolutely certain that this is the property you want, and that you feel you are under no pressure to sign a contract and pay a deposit. Should you decide to withdraw from the purchase, you will lose your deposit.
What happens if the vendor changes his / her mind?If you have signed the pre-contract and made an initial deposit, your deposit will be refunded in double.
- What happens if the legal searches highlight any problems with the property?
If the searches highlight any problems you will receive your deposit back in full.
What type of property insurance is recommended?Although no market standards exist as to the forms of insurance that can be taken out, it is reasonable to suggest that property be insured against the following risks: fire, earthquake, water damage, breaking glass, storm, theft, and third party. For more information on insurance click here. Is it possible to get a mortgage in Greece? If so, what are the requirements?Yes, it is possible to get a mortgage in Greece. To apply for a mortgage you will need your passport and proof of income for the last 2 years (P-60’s, payment stubs, or tax returns if self-employed). Please be aware that if you apply for a Greek mortgage, you must be able to pay all closing costs before any funds from the bank are released.
Do I have to pay annual property taxes?That depends on the value of your property. You will have to pay an annual property tax if your property’s tax assessed value exceeds 243.600 €.
Do I have to pay Capital Gains tax if I decide to sell my property?
Yes, if you purchased your property after January 1st, 2006. The percentage of tax owed varies depending on the length of time your property has remained in your ownership. Specifically: For properties purchased after January 1st, 2006, and remaining in one’s ownership for 0-5 years: Capital Gains Tax 20% For properties purchased after January 1st, 2006, and remaining in one’s ownership for 5-15 years: Capital Gains Tax 10% For properties purchased after January 1st, 2006, and remaining in one’s ownership for 15-25 years: Capital Gains Tax 5%
- How much are closing costs?
Closing costs, including all fees and taxes, are an estimated 13-15% extra.
Can you talk me through the buying process?
The process is fairly quick and uncomplicated. As a general rule, you must: Select your property. Make sure financing for the purchase is secured. Appoint your solicitor, notary public, surveyor, and accountant. Apply for special permit, if applicable (Blue Card or other, see above) Apply for your Tax Registry Number (AFM). Open a Greek bank account. Sign the pre-contract detailing terms of sale and payment schedule. Pay a 10% deposit to secure the property by removing it from the market; usual payment methods include cash, bank transfer. Return to Greece to sign the final contract, after all legal work is completed (6-8 weeks, usually). Alternatively, your solicitor may sign for you if he/she has been granted full Power of Attorney. Upon completion of final contract, all fees and taxes must be paid. To view a flow chart of the property purchase procedure please, click here
- Do I need a residence permit in order to purchase property in Greece ?
- For EU nationals
Yes, only if you plan to purchase property in an area near national borders (including some islands such as Crete, Rhodes, and islands of the Eastern Aegean). If this is the case, a temporary residence permit called the Blue Card is required. You may apply for it at the local police station. Issuance takes approximately two weeks, but your solicitor can collect it on your behalf if granted Power of Attorney. This permit is a formality for EU nationals in non-controversial nations. To purchase property in all other regions of Greece, you do not need a residence permit. - For non-EU nationals
Yes, if you plan to purchase property in an area near national borders (including some islands such as Crete and Rhodes, and islands of the Eastern Aegean). If this is the case, you must apply for a special permit issued by the Ministry of Defence in Athens. An alternate and more efficient way to purchase property in these areas is through an offshore company in your name, based in an EU country. This is fairly commonplace; setting up and maintaining such a company costs approximately 2,000 euros to establish and 1,500-2,000 euros annually. To purchase property in all other regions of Greece, you do not need a residence permit. - For further information and updates please visit the website of the Ministry of Order.
Do I need a Greek bank account?Yes. All necessary payments will be made through this account; also, this account will prove that funds used for property purchase have come into Greece from another country and are, therefore, not taxable in Greece. Opening a bank account in Greece only takes a few minutes and requires no minimum opening deposit. All you need is your ID or passport and your AFM (see above). To view a list of all Banks in Greece click here and follow the link.
Do I have to file tax returns in Greece once I've become a property owner?Yes. The Greek State has mandated that all property ownership in Greece must be declared by filling out a form called E9 and submitting it to the Greek Tax Authorities. This is mandatory for every property owner in Greece, even for those who live abroad and have never filed tax returns in Greece or do not have an income in Greece. As of 2006, the E9 form will be submitted only by those who obtain or sell / dispose of any kind of right over immovable property in Greece. If you own immovable property in Greece but your assets next year have not changed from what they were the year before, you do not have to submit the E9 form again. You can not file an E9 all by itself. E9 is a schedule which must be submitted together with the basic Income tax form E1. If you have no income in Greece, you enter “0” income in the E1 form; still, you must submit the E1 as well. In order to submit the E1 and E9 returns, you must have a Tax ID Number (AFM). The E1 and E9 can be prepared and submitted by accountants and / or solicitors. If you fail to declare a property you will not be able to transfer it later. Additionally, failure to file annual tax returns is subject to penalty; therefore, appointing an accountant and a solicitor early on in the buying process is critical.
What is a property's Tax Assessed Value?The Tax Assessed Value is the estimated monetary value of a property according to the Greek tax authorities. As a general rule, a property's Tax Assessed value is significantly lower than its purchase price.
Do I need a Tax Registry Number (AFM)?Yes. This tax number (AFM) is mandatory for all buyers, including foreigners and permanent residents abroad. It is issued on the spot at tax offices, free of charge. All applicants must present their passport and their birth certificate. If you have granted your solicitor full Power of Attorney, he / she can apply for an AFM on your behalf.
Do I need an accountant?Yes. It is essential to hire an accountant early on to help you with tax returns and explain taxation laws to you.
Do I need a land surveyor?Yes. Surveyors ensure that all acts associated with the construction of the property are based on lawful planning permissions.
Do I need a notary?Yes. A notary public is a government-appointed lawyer who processes and certifies all real estate transactions, including drawing up and reviewing all official documents, to ensure the legal transfer of the property.
Do I need a lawyer / solicitor?Yes. Solicitors carry out necessary legal surveys and conduct a property title check for the past 20 years; they ensure the property is free of any mortgage notes, claims, expropriations, rights-of-way and, in general, any legal encumbrances. In addition, solicitors ensure that all property taxes burdening the vendor have been paid.
Why buy from Exarhos-Homes?Having your house built is a time-consuming procedure. It demands time, detailed market research and personal supervision at every stage of the process. This is where Exarhos-Homes can help. We undertake the complete construction process of your new home. More specifically we offer: A trustworthy, experienced and reliable team of English speaking architects and engineers, who will suggest the best solutions for your property, obtain the required planning permission and licence for both a new house or an extension to an existing house, and draw the plans (with your input, if you so wish). English speaking Greek lawyers and notaries, who will advise you, support your interests and prepare all the necessary contracts for the purchase of your land plot and house, making sure that everything is done correctly and legally. Construction according to the latest regulations against earthquakes. English speaking Greek accountants, who will obtain for you your Greek tax number, as it is necessary to be included in the contract, and will help you to make your tax declaration for the property. It is important to note that the Greek revenue office demands that buyers prove they have the means to make the purchase of the property. Daily supervision of your house construction in order to ensure everything proceeds as agreed. Experienced and reliable technicians & engineers. At your request we can offer our interior-designer service for your new home. Property will be ready for you on the time agreed without any delays. Staff eager to help and answer any queries you may have. A detailed and complete list of all the materials, specifications and construction arrangements for each part of your house that will be followed exactly as agreed. Weekly reports and photographs that will be entered in a computer database and transmitted to you, wherever you may be. After the completion of your house, we can recommend and introduce you to many local suppliers (furniture, electrical appliances, etc.) as well as offer you any assistance and advice you may need regarding settling in your new home. We are also happy to discuss and undertake any future renovations or extensions you may require. Any snagging, technical or construction-wise, will be addressed and rectified immediately at our expense.
Why to buy in Crete?
There are really too many benefits of living in Crete and we should try to point out the most essential of them: The Cretan residential property market is more fragmented than other more developed markets. That means that most properties in Crete are either individually or part of a small complex of less than 5 units. Living in Crete is much cheaper than other Mediterranean residential market, such as in Spain, Italy or Cyprus. Crete is the place where you can buy a property and live for less, as prices are approximately 40% less than in the UK. Crete offers a huge range of residential property reflecting its varying landscape. Most house styles reflect the original Cretan character and are built according to the architectural tradition of the island. You will have the opportunity to live outside of urban areas, in villages classified by the Ministry of Culture as typical Greek villages of extraordinary natural beauty, near the sea or the mountains and taste the Cretan diet, which is internationally considered to be the healthiest and the big secret for longevity of life. You will live in a place sun-soaked approximately 10 months of every year, with people renowned for their friendliness and hospitality and you will feel absolutely safe as Crete has the lowest crime rate in Greece. You will mostly enjoy living in a place of significant historical heritage, a place where east and west civilizations meet, a place where pride, honor and dignity are a way of life, a place that most Greeks choose for their second home, as it combines wonderful beaches, mountains, crystal clear waters, beautiful lakes, deep gorges, and the only palm forest in Europe. Crete and particularly Chania area have a continuing upward trend in house prices year on year as too many people come here seeking a home in the sun. Most villages continue to see property prices go up each year. So why not consider buying your own property and making an excellent investment with your hard-earned money?
Why to buy off-plan?You can really save money by buying a house off – plan (designed but not built yet) as you pay less tax by buying the house before it is built. That is, if you buy a plot of land the tax is about 5% of the purchase price of the plot, whereas if you buy an existing house, the tax is about 15% of the purchase price including legal fees. In the first case, you only pay the tax on the plot and no more when the house is finished. If you buy a property when it is at the planning stage, or in the early stages of being built you could have the option of giving your input towards the way the property is laid out and finished. Exarhos-Homes can incorporate your ideas to the house design for the off-plan property of your choice. There are substantial cash flow benefits to buying off-plan as Exarhos-Homes requires four stage payments to be made throughout the building process. You can therefore budget to meet each payment as it becomes due.
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