the greek property society lawyers caring for clients  GREECE    

  Greece's vast property market is open for business and the rush is on! The property laws in Greece can be incomprehensible in terms of the red tape, long delays in planning applications, urban zones, natural zones, land planning, agricultural areas, tourist development zones, archaeological sites, restricted military zones, forestry areas, property ownership, boundary disputes, building sizes, dwelling area permitted, services, environmental impact studies on the immediate area, National park zoning and beach zones to Natura.  And this is before a planning application has been submitted.  Without the right help, it is easy to  make mistakes. The Greek Property Society can help you and make your experience of property hunting in Greece as stress free as possible.

The current planning regulations in Greece stipulate that, if a building plot of land is outside of the town plan or the boundary of planning consents under town planning, and if no archaeology or forestry restrictions apply, then permission can be granted to construct a building on a land plot area of a minimum of 4,000m2.  Land located within the town or village, or if a building plot has direct roadside access via a main or secondary road, then permissions can be granted for building plots of 2,000m2. Generally building permissions can be granted for dwelling usage relatively easily. In some cases, under Greek laws certain areas have been allocated for specific purposes for example, for tourism, agrological or forestry and strict regulations apply to building in these areas. The main drawback and where many problems can arise from is poor investigation of the land usage before any purchase is made.

The most important issues facing any potential property investment is the amount of equity that can be achieved from a new build, conversion or renovation of a property. The engagement of a professional architect, or engineer will provide all the answers that will support any property investment. The professional affiliated architect or engineer will execute all procedures, in the pursuit of planning permissions and permits.   The drawings provided by the architect/engineer form the basis for all documents to be submitted to the planning authorities. The plans produced provide the  working specifications for construction and these plans are tendered to the  contracting building company for a detailed  build estimate of total  construction costs. The fees for an architect or engineer are approximately 4% -5% of the total build cost. Always agree with a written contract before work begins. Lodge agreements.

Under current Greek legislation, citizens of member states of the European Union  are permitted to purchase  and occupy property in Greece, as permanent residents or not, a dwelling home, retirement home, or holiday home. However, there are exceptions in terms of purchasing properties in areas of sensitivity which are protected by Greek law. Citizens living in non member states of the European Union are governed by some restrictions in relation to the location they wish to live in.  Such cases, an application needs to be submitted by a lawyer  to the  Minister for the Interior in Greece who will determine purchasing permission. These restrictions apply to  Crete, Northern Greece, Dodecanese islands, Rhodes, East Aegean. In general the Greeks welcome newcomers to the local villages and assist wherever possible. Honour all statements made.

Once all parties are satisfied with the purchasing price, all the paperwork must comply legally. An offer can be made to the property owners lawyers and if accepted a pre contract agreement is drawn up. This agreement outlines the names of the two parties involved in the transaction, the contents  of the property, demographic plans, boundaries, selling price and payment schedules. A purchasing deposit  of 10% of the costs of the selling price in Greece secures the property in your name. It is important to note that under Greek law if the purchaser for any reason terminates the pre contract agreement after the deposit is paid and accepted  then the 10% deposited money is fortfeit. In the case of the vendor terminating the pre contract, then the original deposit is repaid plus an indemnity to the value of the original  deposit amount.

A purchaser, for their own protection, requires the assistance of a lawyer to act on their behalf and provide support with the Local Regulations  fixing the "assessed value" of the property or land and more importantly, securing the property title deeds. The lawyer representing the purchaser must carryout searches with the Land Registry confirming property title ownership and that the titles are clean for selling, prior to the final contract being signed. Legal procedures in Greece are are reasonably quick. The final exchange takes place at the office of the Public Notary with the two lawyers representing vendor and seller. The Notary is not authorised to permit any sale of a property if all the presented documents of ownership including deeds and tax papers are not in order. Always insist all papers are correct before before seeing the Notary.

Purchasing a property in Greece requires a tax registry number which is issued by the Inland Revue Services.  This tax number is also valid for your own personal taxes as all transactions require a tax number in Greece. The property taxes owed by the seller have to be paid in full to the local Inland Revenue Service prior to the completion of a property transaction. Copies of the title, and a certificate from the Registry of Mortgages is required to register the property under the buyer’s own personal name at the office of the Land Registry. If the land registry is not in operation within a province where the property is being purchased ownership of property can be registered with the local Registry of Mortgages. The lawyers then secure the property by registering ownership with  the Register of Mortgages.  A fee of  0.5 % of the value of the property is payable. Always make payments on time to avoid delays.

  The purchaser is totally liable for complying with all regulations under Greek law. These obligations  include purchasing tax, Notary court fees and lawyers legal fees. The official estimated price of the property sets the fee structure for the purchasing land tax currently legislated at average 5 - 7 % of the Official Estimate. The Notary’s fee is a flat rate of 2%. Where there are limited emergency services such as a local fire station in the area the tax legislation is at a lower tax rating of 7%. Instructed Topographical  plans for boundaries and property exact sizes prices range from €210 to € 500 depending on the size of the property and the location. The lawyers fees for carrying out the in-depth works within the searchs is not standard and varies as the amount of investigation required for a clear title deed can differ substantially. However, the average is €400. Public utilities, i.e. water, electric and phone  to the property are charged locally, new or derelict building make sure that services can be provided. The new recently legislated laws on property purchases include VAT on purchases of most new and old property types at a rate of 19% payable to the government. New buildings are subject to IKA charges this depends on many factors in the building system uses this costs can run up to 10% with the new Building environmental systems  this figure can be greatly reduced. The new legislations on planning permissions for new building is now 18%.