FAQs for Crete property buyers

FREQUENTLY ASKED QUESTIONS (f.a.q.) Do I need a UK solicitor as well as a Greek one? No. This would only serve to increase your legal fees but do make sure that your Greek lawyer speaks and writes fluent English.

Who is the Public Notary?
The Notary is a state official in the presence of whom the contract deed is read and signed by both vendor and purchaser. He / she is there to draft the contract deed, make sure that both vendor and purchaser understand it and verify and register in the public records the transaction, which takes place in his/her presence.

What does the Public Notary do?
The Notary is not there to advise or to protect either the vendor’s or the purchaser’s interests. He/she is there to record the transaction based on a contract prepared by him/herself. When this record is made then the contract becomes a valid title to the property purchased. The process is completed by registering the contract at the Registry of Mortgages, which results in the transfer being affected. The parties concerned meet at the Public Notary’s office where the contract is read out and they place their signatures on the contract and the Public Notary’s Registry Book. Payments by the Purchaser to the Vendor are made on the basis of their contract at the Public Notary’s office. The Public Notary issues official receipts upon request.

Do I have to be in Greece to sign the paperwork?
No. You can give your Greek lawyer Power of Attorney, which means that he can act on your behalf at each stage of the buying process.

What is the “ Power of Attorney”?
It is a legal document signed by you in the presence of a Public Notary. It contains concrete and specific guidelines and it can be addressed to any person you choose.

Is there a Land Registry system in Greece?
Greece is in the process of establishing a National Land Registry whereby official certificates and titles shall be issued for property thereby securing the ownership of property by the State. Some areas already have a Land Registry (Crete in some areas) while ownership of property in the remaining areas is based on a different system, that of the Registry of Mortgages on a Municipal basis.

What is the Registry of Mortgages?
The Registry of Mortgages is a State Authority where titles to property are kept and where all encumbrances on properties are registered. Property is filed under the names of the owners as opposed to the Land Registry system whereby property is filed under the National Grid irrespective of who the owner is. Lawyers are entitled to check property belonging to any individual or company to establish whether ii has been properly transferred, whether it is encumbered, whether there are any claims, etc. This is always carried out in the convincing process with the aim of securing the future purchaser’s rights.

What is the difference between registering a property under the Land Registry or the Registry of Mortgages?
The difference between the two cases lies in the basis of the security of the titles: once an owner holds an uncontested title from a Land Registry it means that his/her title is secured by the State, while in the Registry of Mortgages the title is secured through the contract held by the owner, and hence, the owner must secure his interests through his lawyer. Therefore, in the first case there is an independent Authority, which regulates the various ownerships while in the second the process is left to individuals on a contractual basis. Diligent legal work will mean that ownership is as secure with the Registry of Mortgages system as with the Land Registry one.

When i ”ll pay for the Transfer Tax?
Payments of Transfer Tax must take place prior to the signing of the Title Deed. Should the signing of the Title Deed be canceled for whatever reason while Transfer Tax has already been paid, the Tax is refunded after making the appropriate application to the Tax Authorities.

How is the property tax calculated in Greece?
The total value of all property holdings of a person or legal entity are summed up and tax is determined on that. Tax is calculated on “Objective Values”.

What are the “Objective Values”?
In many cases purchasers opt to declare as the contract amount, the Government-issued values, for tax purposes, the so-called “Objective Values”. The Public Notary and the Inland Revenue Service calculate these on the basis of Governmental Data. The “objective value” of each property is calculated according to a specified formula and a price per sq. m for the location and particular characteristics of a property. The advice of your lawyer is highly recommended on this issue.

What are the associated costs for acquiring a property in Greece?
The property belongs officially to the buyer/s only after the Notarius / public contract.
Before singing that contract the buyer must pay the contract expenses which include:
· Taxes: 9-11% of the contract’s value
· Especially for new homes with a building licence edited after 1-1-2006 will be charged with V.A.T of 19% and not the above taxes.
· Notary’s fees: 1,5-2% of the contract’s value
· Registration το Registry of Mortgages: 0,5%
· Lawyer's fees: 1% up to 44.000 euro of the contract’s value, 0,5% for the rest. These are necessarily paid from both sides-seller and buyer- in all contracts. (Payment for the Lawyers' Association included.)
· According to Greek real estate regulations, registered real estate agencies are entitled to receive 2% service, unless if you buy directly from the developer. (as Property Experts –Texniki Anelixi)
Notice: The above expenses are always paid from Greek and Foreigners
in all purchases.

What is the nature of ownership of buildings in Greece?
Most properties built in Greece are owned in a absolute ownership (Fee Simple Absolute). In some cases, for tax or other purposes, ownership may be split into two parts: the life interest income portion of ownership, called “epicarpia”, and the residual value and ownership right called “ypsili kyriotita”. After the death of the person who has the “epicarpia”, so called “epicarpotis”, this right is automatically transferred to the person who has “ypsili kyriotita” who has absolute ownership. Unlike London, New York and other major cities where ground leases and long term building leases (over 12 years) have been in existence for years, these have only recently been adopted in Greece. An official list of all ownerships is currently being drawn. Usually, deeds and court decisions to this effect are sufficient proof of title to a property.

In whose name could you purchase the property?
a. In your own name.
b. In the joint names of you and your wife/husband or co-purchaser(s).
c. In your children’s names or in the name of somebody who will eventually inherit the property from you .
d. In the name of a company either local or overseas or even an offshore one.
Each choice has its own advantages and disadvantages. Everything depends on your own personal requirements. It is worth paying careful attention to this point because of the potential tax and other savings that can be made at a later stage.

How do I get the money to Greece?
By a simple transfer from your account to a new account in Greece.

How do I open a bank account in Greece?
This is a straightforward process that is the same to open an account in all the countries of E.U.. Your lawyer “ll help you to open the account in Greek bank.

Should I have Greek mortgage or my country mortgage?
Either is acceptable. You’ll find less choice and fewer options in Greek but the interest rates can be lower and by having a mortgage in Euros you won’t be affected by currency fluctuations. The banks in Greece prefer to lend against property that has already been built as the developer will typically already have taken out a mortgage on the plot to fund the building. Our company can help with this through the banks with we do business.

How do I apply for a mortgage in Greece?
As in other countries, Greek banks will want to be satisfied as to your income. This usually means supplying recent salary slips, banks statements. If you’re self-employed you’ll need to submit your most recent tax statement and audited accounts for at least the last two years.

When can I move in?
You can usually take possession of the property within a couple of weeks of the title deeds being signed. This allows time for your solicitor to arrange for connection of electricity and water supplies. He will inform you when this has been done.

How do I get electricity and water to my house?
If the property purchased is a new house, then with the residence permits of the property, copy of Title Deeds and your passport you need to apply to Electricity Company for electricity and to Municipality for water.

After I have settled in, what are my continuing obligations?
Since you have acquired property in Greece you have the obligation to submit a declaration to the tax authorities each year, declaring your property, in order to pay any taxes due for the said property

How about insurance?
Although no market standards exist as to the forms of insurance that have to be taken out, it is reasonable to suggest that the owner of the property should insure his/her property against risks given below. Usually insurance risks include fire, earthquake, water damage, breaking glass, storm, theft.

Do I have to be a resident of Greece before I can buy a property there?
No. Anyone can buy property in Greece.

Are there any problems for a foreigner in buying a property in Greece?
In areas near the national borders and in some islands, non-EU nationals require a special permission by Ministry of Defense in order to purchase property. There is no restriction for all other mainland or island areas. This permission tends to be a formality for non-controversial nations. Thus, if you are a EU national you do not have any problem purchasing property anywhere in Greece.

What happens if I decide to live and / or work in Greece?
There is no restriction to live or work in Greece for EU nations. Others must apply for permission.

What about Resident and Work permits?
Resident permits are a formality for EU citizens.
Visitors can stay for 3 months without any formalities but if someone wants to stay longer a resident permit is required.
Work permits are not necessary for EU nationals.

What are the benefits of buying brand new or off-plan property?
New property comes with a 20year guarantee for construction elements. Also, the purchase price is fixed as soon as you pay the deposit which, given the steady rise in Greece property values, means that the house you eventually move into will be worth considerably than the money you owe for it. It is quite common for a person buying purely as an investment to sell the property before moving in or even before the building work has been finished, making a considerable profit.

What are the benefits of buying older property?
If you’re buying a property in Greece to live in or as a ‘buy to let’ investment, a pre-owned home has the advantage that you can move in within a very short space of time and you can see first hand exactly what it is you’re buying. Be aware that older properties will not have the benefit of 20 year guarantee (according to Greek Civil Cod) and that you must satisfy yourself as to the quality of the property before you buy it.

Does Greece have a National Healthcare System (NHS)?
Yes. It’s a high standards system. Since the Crete is at the same time very popular tourism area, in most of the districts there are at fully equipped public and private hospitals in each main towns –Rethimno, Chania, Heraklion, Agios Nikolaos and many of health centres in the mainland.
You can if you are ill or have an accident during you visit in Greece beneficiate emergency treatment, for free or with reduce cost. You can also bring from you country a formular E111 (you can get it before travelling, from you social security or health insurance office), this will be helpful as evidence that you are entitled to these benefits. Only publicly funded emergency treatment is included in this scheme.

Are there schools in the districts of major cities as well?
There are at least one private college (primary and high schools) mainly with English language and Greek government schools and many kinder gardens.

Can my UK State Pension be paid to my Greek bank account?
Yes.

Can I take my car to Greece?
Yes, assuming you have owned it for six months or more. If you’re planning on keeping it in Greece (after the first six months) you’ll need to get an export certificate from the DVLA and if you take up residency you’ll have to register the car in Greece and get Greek number plates.

Can I take up employment in Greece?
Yes, if you are from a country that is in the EU.

Can I bring my pets with me to Greece?
There’s no problem with this providing you have evidence of the relevant vaccinations. Don’t forget to apply for a pet passport if you want to bring your animals UK.

Will I need an ID card?
No for EU citizens.

Will I have to pay ‘Community’ fees?
If there are communal areas in the development that you’re considering – gardens, walkways, swimming pools etc. – then you will probably have to pay a small sum at regular intervals to contribute to their upkeep.

Why invest or live in Greece?
Investing in an expanding economy with a major and increasing economic role in the Balkans which is part of the EU and the Euro area is always a paying proposition. Greece as a member of E.U. is a warranty of your Real estate investment. Prices are still very attractive in comparison with other E.U. countries –Spain, Portugal, South France.
Greece has the highest growth rate in Europe and, given its prospects, is anticipated to keep this position in the foreseeable future. It is also a natural destination for holiday homes. With a very low crime rate, low cost of living in most areas (compared to the majority of European countries), a friendly and hospitable people ready to teach others how to enjoy the simple things in life, a natural environment and weather hard to beat, it is one of the best countries in which to live.
Chance to make a good investment for your future. And with the last changes in the regulations on property ownership for foreign citizens, buying a property is a lot simpler now.
In Greece your stress level will drop and your enjoyment of life will rise.

Can I do a letting Easy?
If you wich,you can let for rent you apartment or you house during the summer as well the winter. They exist companies you they will arrange for you the letting. You will find a lot of companies who are doing these activities on the net, or we can also introduce you a companies in Rethymnon and abroad.

What does Property Experts offer and Why to choose Property Experts?
Property Experts works with local agents in Europe to enable our clients to communicate with our agents in their home language and to open the possibility to set a meeting in their country to have more information on all aspects before planning an inspection trip. As team members of Property Experts, our philosophy is to give service at the optimum level, and our main objective is to set a strong relationship with our customers that do not end at the time of sales. By providing after sales services for any questions you may have such us (refurbishment, insuring your property, finding house keeper, finding gardener, etc) we not only assist you for all your needs but also help you to ensure that your property is safe at all times

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FAQs for Crete property buyers

FREQUENTLY ASKED QUESTIONS (f.a.q.) Do I need a UK solicitor as well as a Greek one? No. This would only serve to increase your legal fees but do make sure that your Greek lawyer speaks and writes fluent English.

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