BUYING
PROPERTY IN CRETE
♠ While Greece enjoys a largely unspoilt environment, the country has become more popular among foreign buyers in the past few years. The island of Crete is one of the most popular locations for foreign purchasers seeking holiday homes.
House prices in Greece have increased by more than 60pc in the past seven years, according to the National Bank of Greece.
♠ EU citizens have equal rights concerning the purchase of property in Greece. In the past, foreigners were prohibited from buying property close to the borders of the country - and on many of the Greek islands. However, today EU members can buy property in Greece, but special permission is needed to buy close to the borders. Non-EU citizens cannot purchase properties close to the Greek borders.
♠ In order to buy a property in Crete, you must provide: a valid passport and a Greek VAT registration number (This can be obtained within five working days from the Greek Tax Authorities).
♠ The transaction contract, or Transaction Deed, is signed by the buyer and seller, in front of a notary and lawyers for both parties.
♠ The registration system in Greece is currently being developed, and is improving all the time. In most areas, the transaction deed is registered by the notary public, under the name of the buyer. However, in some Greek prefectures, the properties are registered under the identification number in the Cadastral Public Registry.
♠ Make sure the person selling the property has the full right to do so. Otherwise, someone else could come along and claim to be a joint owner. Before you sign the contract, find out how long it will take to obtain a clear title deed.
♠ Outside money used to buy a property in Greece should be officially documented and declared to the Bank of Greece.
♠ A deposit of 10-30pc is paid after an agreement to buy is signed. However, this is normally 10pc. The balance will be paid on the signing of the transaction deed. If the purchaser backs out he loses the money, but if the seller reneges, the deposit and an equal sum will be paid to the buyer.
Fees
Þ The notary charges 1-2pc of property value.
♠ Solicitor fees are usually 1pc of properties.
♠ Purchase tax is charged depending on the value of the property, at 9-11pc. This is called a Property Transfer Tax, rather than VAT.
♠ Land registry fees are about 0.3pc of the assessed value.
♠ Real estate agent fees are usually paid by the seller, but in Greece it is common for both to contribute.
♠ There are no annual property taxes to pay in Greece, if the value of the property is less than €200,000. The valuation of properties is carried out by the government, and is usually far below the real cost.
♠ Introduced in 1997, the property tax is between 0.3-0.8pc on the property valued over €200,000.
♠ Real estate agents in Greece must hold a real estate licence, which is issued by the local Chamber of Commerce.
All contracts should be checked by a Greek lawyer before you sign anything or pay any money.
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