Purchasing real estate in Greece is a great investment with numerous benefits. However, the transaction itself can take a significant amount of time without the knowledge and technical expertise to cut the red tape and complete the process faster.
The parties involved in real estate transactions are
a) the seller,
b) the buyer,
c) the real estate agent who usually represents the seller, introduces him to the buyer and always acts as an intermediary between the two,
d) the lawyers representing the seller and the buyer, responsible for due diligence and the issuing of all necessary documentation,
e) the public notary who is responsible to draft and issue the title deed, also corroborating the validity of the documentation in hand and
f) the civil engineer who issues certification that the property is free from unauthorized usages/ constructions, along with providing the energy performance/efficiency certificate to the seller.
After the notarial title deed is issued, it must be registered in the pertinent Land Registry or the competent Cadastral office. The buyer has to pay the transfer tax to the competent tax office.
The seller and the buyer must agree to pay the lawyers’, civil engineer’s and real estate agent’s fees. The calculation of the public notary’s fees is based on the value of the land, the number of pages of the notarial title deed and the number of the issued certified copies. The real estate agent’s commission is usually around 2% plus 24% VAT, calculated upon the property’s selling price. The lawyers’ fees are also based upon the real estate’s selling price.
The buyer’s lawyer inspects the property at the competent Land Registry and the National Cadastre (electronic land register), ensuring that there are zero burdens or third persons’ rights to the property. If needed, a foreign buyer’s lawyer can obtain a TIN (Tax Identification Number/Greek AFM) which is necessary for the transaction. Moreover, along with the seller’s lawyer, they monitor the issuing of all relevant documentation needed for the transaction. They also check the draft of the notarial title deed and ensure that the buyer pays the agreed installments in due time, when the parties have signed an installment sale agreement. Finally, they handle the work and the documentation needed by other actors such as banks, competent tax authorities, executive branches, they register the notarial title deed at the competent cadastral office etc.
A real estate transfer is subject to a transfer tax under Greek law at a 3.09% rate of the taxable property value. The Greek Ministry of Finance has established an Objective Value system in order to determine a property’s value. The system’s criteria include the property’s location, technical specifications and size. There is a tax exemption from the transfer tax, only for natural persons, when they purchase a property that will be solely used as first residence.
The offices’ lawyers specialize in real estate transfers. If you are interested at purchasing property in Greece, get in touch via e-mail or phone to arrange an appointment or submit your questions and we will guide you step by step until the transfer is complete.