ID: 
 
For Sale  To Let
 

Legal Information


Purchasing a property in Greece is straight forward with a very well regulated system and procedures.

The Purchaser must appoint a lawyer in Greece who will be responsible for:

- To search for the title deeds at the Registry of Mortgages.
- To secure the copies of the title deed held by the Vendor.
- To apply on his behalf for the Tax Registry Number (AFM).
- To represent (the Purchaser) at the Notary Public where the contract deed is signed.
- The Lawyer must transfer at the Registry of Mortgages the contract deed.
- Helen’s Real Estate can deal with all the necessary procedures.

Taxation & Expenses


The Purchaser has the following obligatory fees as required by the Greek Law:

- Lawyer fee: 1% of contract amount.

- Public Notary: 1,5% of contract amount.

- Title Registration fee: 0,5% of contract amount.

- Title Deed Transfer fees: The transfer of title deed tax must be paid to the local Inland Revenue Service by the Buyer prior to signing the contract. We assist clients throughout the process. This is one time government fee applicable to all property buyers. Fees are as follows: i) For Properties with building license issued UNTIL 31.12.2005, the title deed transfer fee is: 10% (on contract value). ii) For Properties with building license issued AFTER 31.12.2005, instead of title deed transfer fee, there is a VAT payment which for the islands (except Crete) is 16% and all the rest of Greece 23%. (based on contract value) Note: a) The Buyer can pay him/herself the above tax, OR, give a power of attorney to the appointed Lawyer and pay it on his/her behalf. VAT, as explained above, for projects/properties which the building permit was issued before 31.12.2005, there is no VAT. IF the building permit of a property is issued after 31.12.2005, then VAT is payable as follows: For Crete and mainland Greece: 23% For islands: 16%

- Immovable Property Tax: Every physical person or entity is obliged to pay an annual property tax of the ‘objective value’ of the property with the first €200,000 being exempt!

IF the ‘objective value’ exceeds the €200,000, then the follow is applicable:
From €0 - €200,000: 0%
From €200,001 - €500,000: 0,2%
From €500,001 - €600,000: 0,3%
From €600,001 - €700,000: 0,6%
From €700,001 - €800,000: 0,9%
From €800,001 and over: 1%

- Capital Gains Tax (on the sale of property): In the case of reselling a property, the Owner (Seller) of the property pays on the profit a tax of 20%, with the following notes: - If the property is kept up to 5 years, the taxable amount (of the profit) is 90% (at the rate of 20%). - In case the property remained at the ownership of the seller for 5 – 10 years, the taxable amount (of the profit) is 80% (at the rate of 20%). - In case the property remained at the ownership of the seller for 10 -15 years, the taxable amount is 75% (at the rate of 20%). - In case the property remained at the ownership of the seller for 15 -20 years, the taxable amount is 70% (at the rate of 20%). - In case the property remained at the ownership of the seller for 20 -25 years, the taxable amount is 65% (at the rate of 20%). - In case the property remained at the ownership of the seller for 25+ years, the taxable amount is 60% (at the rate of 20%).

- Any person has the right to obtain as many properties as s/he wishes.

- Inheritance tax is applicable but generous exemptions apply.

Other Important Details


- Objective Value (of properties): the objective value of a property is calculated by the Government using a specific formula and is based on a price per sq.m. according to the location of the property.

- Notary Public: Contracts are signed at the Notary Public. The Notary is a state official who ensures that both parties understand the procedure and verifies and registers the transaction in the public records.

- Registry of Mortgages: in Greece there are public records where transfers of real property and mortgages are recorded, at the Registry of Mortgages. The Registry of Mortgages secures the title deed with the contract held by the owner.

Residency


All citizens of the EU enjoy their full rights and privileges as EU citizens, including the right to establish residency, buy property, open a business and work in Greece.

For non-EU citizens, a Residence Permit is granted with a purchase of a property with a minimum value of 250,000 Euros! This Residence Permit is also a Schengen Visa, and can be obtained with the purchase of property with minimum value 250,000Euros. By decision of the General Secretary of Decentralised Administration, a Residence Permit for five (5) years is issued to non-EU Nationals, IF he/she has obtained an entry visa first (if required), and legally owns a property in Greece.

The residence permit can be renewed (every time for a 5-year duration), if the property remains unchanged in its legal ownership status The period of residence, under these specific conditions, is not taken into account in cases of granting citizenship to said residents. The aforementioned Non-EU National (property owner) may be accompanied by the members of his/her family, as specified under paragraph 1 of Article 54 of Law 3386/2005.

Upon their own request, family members may be granted a personal residence permit that is renewed and/or expires concurrently with the residence permit of the sponsor (property owner). The residence permits do not allow a right to employment of any type. BENEFICIARIES 1) Purchase of a property in Greece with a minimum value of 250.000 € 2) Purchase of more (than one) properties with a total minimum value of 250.000 € 3) Purchase of property or properties by more than two buyers, with a minimum participation of each 250.000 €.

The residence permit is issued individually for 5 years to buyers and members of their family: - Spouse - Common non-married children under the age of 18 years of age - Adopted children - Spouse’s children from previous marriages For children, the residence permit is valid until the completion of 18 years of age. After the age of 18, their residence permit can be renewed annually until the completion of 21 years of age.

In any case, adult children over 18 years old can obtain a residence permit, if they purchase together with one of their parents, a property with a minimum value of 250.000 € . PRIVILEGES 1) Residence permit in Greece with renewal every 5 years if the property remains at the possession of the Applicant (Buyer). 2) Free entry and exit to and from the territories of Schengen. 3) Access and use of the State’s Health services (hospitals) and Education (schooling) in Greece.