COMMERCIAL Welcome.  To Greece and the  larger  Greek islands that are the busiest in the whole Greek tourist sector, these vast islands offer the opportunity to invest in a business in tourism. Many properties are on offer as trading establishments, or create your own kind of special  business venture. A whole variety of businesses can be purchased, the possibility to enter into a joint venture with other business is a way forward from an initial commercial property investment.

  When the search begins to get the ideal property a clear objective of the business must be considered. A business plan is the crucial aspect that shall make the business succeed. As like any business where the funding is from your own resource to a bank loan the business plan is crucial. So the preparation to invest needs  to address all the aspects of the involvement and commitment  required. Greece is one of the safest and more stable countries to move in to. Greece has the lowest crime rate as the 27th country member European Union making an attractive location to open a business to support the local and tourist population.

  One of the biggest failures of business in Greece is the preparation work in the first plan to under stand the market and the implications of the tax regulation licenses and the market. Any investor needs to understand that the market for tourism is at present limited to 6 to 8 months of the year mainly determined on the tour operators bringing the guests to Greece. So the initial trading for a tourist business is limited, so renting an commercial property the lease runs all year with the landlord requiring rent for the total period, it is paramount to negotiate a lower rent in  the winter period.

  The engagement of an accountant or book keeper is paramount to the trading of the business the liabilities and tax obligation need to fully be understood. Staff levels and income tax commitments as the workers on the tourist sector are paid by the government in the winter period. the employer have the obligation to contribute to this government payment scheme also the employer is legally obliged to contribute to a Christmas bonus scheme.

  The inland revenue services of Greece like Europe are stringent with penalties against an violation of the tax codes of Greece and fines could follow. So understand the commitments within the business.

  Any enterprise however small or large needs the skills of management, one of the biggest failures is the fact entering a new career without the understating of the business results in failure. Opening a bar or restaurant requires a commitment during the summer result in the window of opportunity to earn the income for the whole year. So many Greeks in this period work long hours 7 days a week to maximize their earning in the trading period. Work out the strengths and weakness of your own abilities to establish what sort of business to invest into. If an investor has already worked in an industry and is transferring knowledge into Greece then the operating markets in Greece can be significantly different.

  To begin with have a check list.

1. 1.   The type of business to invest in and interests you.  

2. 2.   Business locations  in a tourist resort location demand high premiums.

3. 3.   Business plan.

4. 4.   Licenses to be obtained.

5. 5.   Existing business property licenses.

6. 6.   Equipment purchasing to successfully run the business.

7. 7.   Staff obligations.

8. 8.   Tax liabilities.

9. 9.   Advertising campaigns.

The commercial properties in Greece are mainly 2 types freehold and leasehold,. Many families in Greece rent out properties under accommodation to the 1st floor. The properties can be rented on a monthly basis over a period to 1 year to 10 years or longer under the law a person that has leased a property for 10 years has the right to extend the rental agreement for a period of 2 years this can be increased to a period of 3 extra years  providing that the property has been significantly developed and the property value has increased from the development.

 In Greece freehold properties in main tourist resorts are not so common to find, as the families tend to hold onto prime properties. Outside or on the outskirts properties are more available. With any transaction in purchasing a freehold property a lawyer needs to carryout a certain amount of back ground searches, to establish the properties identity. Whether the property has all the correct paperwork to operate as a commercial property. If the building is legal and all the tax liabilities from the owner are clear.

  Both property types needs the professional help of a lawyers is to establish the property legal status. Under searches the property shall if built after 1974 l have at the local town hall a folder with the property details If before then the lawyer shall require to make further investigations. If an investor rents a building that does not have the correct paperwork i.e. to operated as a bar the under the Greek law the police have the power to enter the property demand the operation licenses if the property is not complying then the police can write a ticket to fine the operating person on the lease.

Commercial operating licenses require time to obtain all the correct licenses in the event that a business has applied for the paperwork and has the evidence to sustain such a claim then a business can operate if the authorities enter the property then documents supporting these fact are satisfactory.

 In Greece when renting a commercial property a term called air space can be introduced into the agreement this is a kind of good will aspect on the building that the landlord can claim this is noticeable as to whereto an investor wishes to pay this fee and how much. This money usually is none returnable.

 The lawyer shall need to draft an agreement contract on the property, the owner has to provide the licenses and has to apply for them under the contract, this is an area that should be the sole responsibility of the owner landlord at their expense. Make sure that these licenses are in place or are actively being sort from the local authorities.

 The property that an investor wishes to open, the business must comply to regulations such as the toilet facilities that need to comply in an restaurant or bar. These facilities have to comply for  licenses to be granted along with fire escapes fire points. Kitchen areas also need to comply with stringent rules, fridge's for cold meats raw meats, dairy produce, washing areas, work tops all need the help of a specialist to obtain the correct information and cost to alter an existing kitchen to meet the standards. All these costs need to be calculated into the business costs.

 The contract must clearly state that a separate property electric meter exist not a shared one, the property waste services such as mains sewage or septic tank that need to be pumped out whether the tank is shared or not and the liability to the costs. Telephone services for internet connection and land line availability. Commercial waste, local tax contributions. Fire regulations fire escapes, fire extinguishers have the CE stamp on and are in date, if not the extinguishers need to be replaced or serviced at a cost the the landlord or tenant. Cooking areas comply, smoke alarms are fitted. An assessment from an insurance company is critical at this point to make sure that insurance cover can be achieved on the property. In the case of a new build all of the above are more important to established the availability of the services.