Popular Locations for Real Estate Investment in Greece

1. Athens:

• As the capital, Athens is a hub for business, culture, and history.

• Properties here are ideal for long-term rentals and short-term tourist accommodations.

2. Santorini & Mykonos:

• These iconic islands are famous for luxury tourism, offering high returns on rental properties.

• Expect higher property prices due to strong international demand.

3. Crete:

• Known for its natural beauty and affordability, Crete is a great choice for families and retirees.

4. Thessaloniki:

• Greece’s second-largest city offers affordable property prices with increasing appeal among young professionals and students.

5. Peloponnese and Halkidiki:

• These regions combine stunning coastal properties with relatively lower prices, making them attractive for investors seeking value.

HOW WE MAY ASSIST YOU

Our office has long-term and specialized knowledge in the field of real estate sales and leases, having represented international clients (private individuals, construction companies and Real Estate development and property management companies) both out of court and before the courts.

Our mandates include, among others:

• Control of property titles (possible existence of claims, mortgages, seizures, study and registration of titles at the Land Registry Offices and the Cadastral Offices)

• Preliminary issues of real estate such as issuance of Tax number and preparation of a power of attorney for the proper representation of our clients

• Consulting during the process of negotiations with sellers / buyers

• Opening bank accounts and negotiating loan terms

• Land Registry applications and lawsuits

• Lease disputes

• Presentation and representation at the signing of the real estate purchase contract and other transactions

The main requirement is to obtain a Greek Tax Registration Number (“AFM”). A prospective investor can do this either as a tax foreigner or as a Greek tax resident. This number is unique to each individual and is essential for conducting any transaction throughout the country.

The Tax Registration Number appears on a certificate you will receive after registering your personal details with the Greek Tax Authority. This number must be presented to the Notary Public when signing the final deed.

Unlike other European markets, property investors do not need to have a Greek bank account. However, it makes many related transactions and bureaucratic processes much simpler to navigate. It’s also easier and more convenient when making payments and transfers.

Our office can assist you in the process of obtaining a Tax Registration Number as well as setting up a Greek bank account.

After the due diligence checks have been completed (usually 2-8 weeks) the Property Transfer Contract is signed, either by you in person or your lawyer with power-of-attorney. The law requires that the sale contract is drafted and concluded before a notary public. The choice of the notary is usually a privilege of the buyer. However, the notary’s role is to safeguard the transaction and must be neutral. Since 01.01.2014 the presence of a lawyer in drafting and signing contract transfer is optional for all parties. However the presence and effective participation of a lawyer in contracts property law is always helpful and can prevent major property damage.

The seller has to adduce a series of documents that are listed below. Identity card or passport.

• Certified copy of the planning permission (if the property is a building).

• Tax clearance certificate, as evidence that the seller has no debts against the Greek State.

• Insurance clearance certificate, as evidence that the seller has no debts against social security institutions, in case that he is an employer or if it is a construction company.

• A confirmation that the seller has submitted the relevant statement to the Tax Office, if the property on sale has been acquired by inheritance or donation.

• A confirmation of the Municipality where the property is located, as evidence that there is no Real Estate Duty (called TAP) owed for this property.

• A declaration that the property on sale has not generated income in the last 5 years. In the event that the property has generated income, the seller has to adduce a certificate by the competent tax office confirming that the income was declared.

• A declaration that he has declared the property being sold among his assets (form E9).

The buyer has to adduce at least the following documents:

• Identity card or passport.

• Receipt of payment to the competent tax office of the Real Estate Transfer Tax (F.M.A.), otherwise a confirmation that the buyer is exempted from its payment under the provisions for obtaining its primary residence.

  
  

PURCHASING EXPENSES

• Notary - Notary costs usually amount to an average rate of 0.65 - 1.2%.

• Land Deed Registry - The expenses of Land Deed Registry amounts to 0.475% of the Contract value.

• Cadastral fee - According to the Law 3481/2016, the cadastral fee is set at thirty five (35) euro per right, with the exception of rights in parking spaces or warehouses that are independent properties, for which the fee shall be twenty (20) euro. The remaining fee is fixed as a percentage of 0,1% of the property value (over the value of 20.000 euro), which is calculated based on the value zone of the property.

Why to choose our office

1. Legal Due Diligence

A lawyer conducts thorough checks to ensure the property is free from legal encumbrances. This includes:

• Title Search: Verifying the property's ownership and any claims against it.

• Zoning Regulations: Ensuring the property complies with local zoning laws and can be used for your intended purpose.

• Building Permits: Checking that any structures on the property have the necessary building permits and are legally constructed.

2. Navigating Bureaucratic Processes

Greek bureaucracy can be daunting. Lawyers streamline the process by handling paperwork, dealing with government offices, and ensuring all necessary documents are in order. This saves you time and reduces the risk of errors or omissions that could delay or derail your purchase.

3. Contract Negotiation and Drafting

Contracts in Greece are typically in Greek, and legal jargon can be tricky to decipher. A lawyer will negotiate terms on your behalf and draft a contract that protects your interests, ensuring you understand all the terms and conditions before signing.

4. Network of Trusted Professionals

Beyond legal services, we collaborate with a trusted network of professionals to provide a complete solution:

• Real estate agents for property selection.

• Accountants for tax planning.

• Engineers and architects for property inspections and renovations.

5. Overcoming Potential Problems

- Language Barriers

The language barrier is a common issue for foreign buyers. Legal documents are in Greek, and dealing with local authorities can be challenging if you don't speak the language. A bilingual lawyer can bridge this gap, translating documents and facilitating communication.

• Hidden Costs and Taxes

Foreign buyers might be unaware of additional costs such as property taxes, legal fees, and transaction costs. A lawyer will provide a clear breakdown of all expenses, ensuring you’re fully informed about the financial commitments involved.

• Case Study: Avoiding a Common Pitfall

Consider the case of John, an American who decided to buy a vacation home on a Greek island. Without a lawyer, John proceeded based on the seller’s assurances. However, after the transaction, he discovered that the property was part of an ongoing inheritance dispute. Consequently, John faced legal battles that could have been avoided if a lawyer had verified the property’s legal status beforehand.

• Wrapping Up: Peace of Mind

Hiring a lawyer when buying property in Greece isn't just a formality; it's a necessity that ensures your investment is secure and free from legal complications. The right lawyer will guide you through every step, from initial search to final purchase, providing peace of mind and allowing you to enjoy your new property without worry.

Real estate transactions in Greece can be complex, but with our guidance, they become straightforward and stress-free. From identifying the perfect property to ensuring a secure and legal purchase, we are committed to delivering unparalleled service and protecting your investment.

Choose us, and gain a trusted legal partner who will prioritize your interests every step of the way