Purchasing Property in Greece by a Foreign
Purchase Property in Greece
Greece is one of the top choices for European citizens and citizens of third countries looking to acquire residential or commercial properties, whether in Athens, major urban centers, or vacation homes in the mainland and islands. Additionally, many foreign investors are interested in purchasing or developing large properties for commercial or business use, particularly in the tourism and entertainment sectors.
Key Prerequisites for Purchasing Property in Greece by a foreign person or company:
The most fundamental requirement, which should be mentioned first, is that any prospective buyer looking to purchase property in Greece must have or obtain a Greek Tax Identification Number (TIN) – ΑΦΜ. Without a Greek TIN, purchasing real estate in Greece is not possible. Naturally, a passport is also necessary for all related transactions.
To facilitate transactions, it is often recommended by immediate associates (e.g., Lawyer, Accountant) to also open a bank account with a Greek bank, though this is not a mandatory requirement. However, having a bank account is beneficial, especially in cases where the source of funds for the purchase must be justified, as well as for handling any tax issues related to the financial capital used for the purchase property in Greece.
Another essential prerequisite for purchasing property is that the buyer must pay the Property Transfer Tax (ΦΜΑ) before signing the transfer contract, as generally required in property transactions in Greece. The Notaries initiate the process through the MyProperty application, and the parties involved accept the declaration via their MyAADE account. If the buyer is entitled to an exemption from the ΦΜΑ due to the purchase of a primary residence (first home) and meets the necessary conditions, the Notary will handle the application for exemption during the declaration process within MyProperty.
Digital Steps for Property Transactions as Outlined in the MyProperty User Guide by AADE
– The Notary drafts the declaration on behalf of the buyer and seller(s).
– The declaration is sent to the buyer’s and seller(s)’ MyAADE account.
– The buyer and seller(s) accept/submit the declaration.
– The declaration is automatically submitted, and if tax is due, it is assessed.
– The Notary is automatically notified of the declaration’s submission.
– The buyer pays the tax at a bank or digitally (via card or web banking, including through IRIS).
– The payment receipt is uploaded via MyProperty to the Notary and the buyer.
– The Notary uploads the contract to MyProperty.
It is clear why a foreign person needs to have a TIN and access to all digital platforms related to real estate and related actions.
Team of Associates a Foreign Buyer Needs in Greece
Every foreign citizen wishing to invest in real estate in Greece, even if they can stay in the country for a short period, must select and form a team of experienced associates.
Initially, to locate a property based on specific criteria, they should contact a professional real estate agent and officially assign them this task. The lawyer will gather all the necessary information about the properties and, if they are experienced and responsible, will conduct a preliminary check to ensure that the properties and their sellers are free from encumbrances or obstacles that could hinder the transaction.
Then, a technical inspection of the property must be conducted by a specialized Civil Engineer who is fully knowledgeable to check the technical features and structural integrity of the properties and assess their market value.
As the best real estate lawyers in Greece at Oikonomou & Oikonomou law firm, we are well-versed in the procedures surrounding property transactions and various real estate issues, such as urban planning and land registry matters. We often coordinate actions in collaboration with other professionals, such as real estate agents and accountants.
From the above, it is clear that the first member of the foreign buyer’s team of associates is an experienced and reliable Lawyer.
Lawyer for Property Purchase in Greece by a Foreign Investor
As real estate lawyers, we first undertake the legal due diligence for the property of interest. We must receive a power of attorney from the buyer to proceed with the property purchase. Legal due diligence is crucial and is conducted initially before the two parties enter substantive negotiations. This legal check for encumbrances and defects on the property or seller’s issues will be repeated just before signing the Transfer Contract. In the meantime, under our guidance, any issues that may arise regarding the property will be resolved, and we may contribute to drafting the contract or at least review it on behalf of the buyer before signing. It is important to note that the Transfer Contract is drafted in the Greek language.
Notary
The key associate that the buyer must have is a Notary, as this professional will handle the processes from start to finish. The Notary will submit the Property Transfer Tax declaration via MyProperty, draft the contract, search for the necessary certificates to be attached to it, and record the contract with the Land Registry (or at the Mortgage Office and Land Registry, where Land Registry Offices have not yet been established), among other tasks.
Engineer for Property Purchase by a Foreign Natural or Legal Person
Another associate who must be part of the team is the Engineer. The Engineer on the buyer’s side is the appropriate professional to conduct urban planning and technical inspections, confirm the construction quality, assess the property’s condition, and propose potential repair, renovation, and utilization scenarios. Additionally, the Engineer will check the regularization of any unauthorized constructions, the completeness of the Building’s Electronic Identity, verify the measurements of the area and spaces, and the declared uses.
Accountant
Finally, an Accountant is essential to guide the buyer on their tax obligations. Initially, the Accountant’s contribution is necessary for the buyer to obtain a TIN and access codes for the Taxisnet system, which are required for using the platforms involved in the transaction. After the purchase, the Accountant will make the necessary declarations to the tax office regarding the acquired property and, in collaboration with the buyer, manage the new owner’s tax obligations, such as ENFIA, and others depending on how the property is utilized (e.g., renting it out and generating income).
Therefore, a foreign buyer needs to form a team of at least the following associates:
– Real Estate Agent – Property Consultant
– Engineer
– Lawyer
– Notary
– Accountant
For purchasing property in Greece, a foreign investor will follow the same procedures as everyone else. After the purchase, they will have the same obligations as all property owners in Greece.
In conclusion, it should be noted that for a foreign investor to apply for a Golden Visa, the property purchase in Greece must be completed, and the Transfer Contract must be recorded at the Mortgage Office and Land Registry or the Land Registry Office.
Sequence of Actions and Necessary Steps for Property Transfer
Firstly, it is essential to understand that each property transaction is unique because every property, seller, and buyer is unique. This means that additional steps could potentially be involved in the property purchase in Greece process. However, the basic workflow of actions remains the same for all property transactions in Greece.
In the following paragraphs, we will primarily describe the usual process of property sales. This means we will briefly mention any exceptions that need to be included, simply as a prompt for further investigation by interested parties or for future development of a related article. For better understanding, we will first discuss the procedures that must be completed before signing the Property Transfer Contract and then the procedures remaining after the contract’s signing to complete the property sale.
The Process of Property Sale Until the Contract Signing
Initial Negotiation Stage and the “Deposit” for Property Purchasp
The property sale is a contract between two parties, the buyer and the seller, involving real estate legally transferred by Notarial Act from the seller to the buyer and governed by specific rules. These rules stem from the applicable laws, current tax regulations, urban planning rules, and notarial and legal procedures related to Real Estate Law.
Initially, the buyer expresses interest in a property, and with the mediation of a professional real estate agent who knows the procedures and can ensure good cooperation between the parties, they discuss initial issues concerning the property, the price, the payment method, etc., with the seller.
If they agree in principle on key issues, such as the above, and the prospective buyer wishes to purchase the property, they must immediately submit a formal financial offer demonstrating their serious interest in the property. This means that if they are genuinely interested in acquiring the property, their offer must be at least close to the asking price and certainly not below the property’s market value as estimated at that specific time. Otherwise, it will not be taken seriously and will not be among the options the seller will consider, especially if the property attracts significant interest from buyers. At this step, it is advisable for the buyer to proceed immediately and formally state their intention to purchase the property and their financial offer in writing. If an agent is involved, they act as a liaison between the two parties and will convey the buyer’s interest and offer to the seller. The seller, after considering the overall data and the offered price, may accept the offer, reject it, or negotiate it.
Given that, after or without further negotiation, there is a preliminary agreement between the two parties, the next crucial step is securing the agreement at this stage in writing. This can be done either through a Notarial Preliminary Agreement or a Private Agreement, which includes the terms of the agreement, the agreed price, describes the parties’ obligations, and secures the interests of both parties. For this purpose, a deposit is usually required to be paid to the seller, commonly referred to as a “deposit,” binding both parties to continue the process. Essentially, at this step, a written promise is made between the two parties that the seller will sell the property, and the buyer will purchase it.
Steps After the Preliminary Agreement for Property Purchase
Following the “deposit” stage, the following actions take place in the property sale process. The seller, in collaboration with their agent, withdraws the property from the market, removes any sale advertisements, and provides the buyer with the ownership titles, the declaration to the Land Registry, and a certificate of non ownership (if the property was acquired before the Land Registry started its operation). They also provide various property details (e.g., licenses, square meters, etc.). The buyer’s lawyer, after conducting the necessary legal and land registry checks and preparing the property to be sold, starts preparing the final contract, sometimes collaborating with the seller’s lawyer. The seller’s and buyer’s notaries collaborate with each other, preparing the draft contract and handling all tax matters.
The tax authority prepares and assesses the Property Transfer Tax (ΦΜΑ) for the buyer, and the buyer submits the tax declaration, pays the tax, and collects the receipts. In special cases, if the buyer is entitled to exemption from the ΦΜΑ due to a first home purchase, the application for exemption is submitted.
In the meantime, the seller provides the buyer with all the certificates required by law and regulations to attach to the contract. The Engineer, in collaboration with the seller, gathers all the necessary urban planning documents, architectural plans, titles of unauthorized constructions, declarations, certificates, etc.
Before signing the contract, the seller must ensure that they have prepared the property for sale. This includes acquiring all necessary certificates, ensuring the property complies with legal and regulatory requirements, and paying all outstanding obligations, such as utility bills, taxes, etc. After the buyer’s lawyer completes the legal checks and all documents are ready, the Notary finalizes the contract.
Finally, the contract is signed, the price is paid, and the buyer receives the keys.
Post-Signing Procedures of the Property Transfer Contract
The contract is signed by both parties in the presence of the Notary, who records the signatures in their official records, and the property is transferred to the buyer.
Next, the Notary submits the signed contract to the Land Registry or the Land Registry Office, which formally records the transfer, making it public and completing the property purchase process.
Finally, the buyer is registered in the Land Registry as the legal owner of the property. The property is now legally the buyer’s.
Which Greek Island is the best to invest in real estate?
There are over 6,000 islands in Greece. Close to 230 of these are habitable.
Some of these Greek islands are important real estate markets, in high demand by Americans and Europeans as a summer holiday destination.
Below, we focussed on some of the more popular islands all of which have international airports, so quite accessible with airway and seaway. These include Crete (Heraklion), Corfu, Rodos, Cyclades islands (including Mykonos, Paros, Santorini, Tinos and a few others) and Lefkada.
At Economou & Economou law office we provide full legal service for your real estate property investment in Greece offering end-to-end solutions on residence and citizenship by investment program of golden visa in numerous countries worldwide.
Summary
Buying property in Greece, particularly as a foreign investor, is a process that requires careful attention, the assistance of experienced professionals, and adherence to legal and regulatory requirements. With the right team and following the correct procedures, a foreign buyer can successfully navigate the Greek real estate market and acquire property with confidence.
As the Best Real Estate Law Office in Greece, we helped hundreds of clients buy the right property in Greece through our law office, the top law office in Greece for real estate law according to lawzana https://lawzana.com/lawyer/economou-economou-law-office/athens-attica
Want to buy a house in Greece?
visit our online guide of Economou & Economou law office in Greece specialized in Real Estate law here: https://www.econlaw.gr/blog/page/2/ and learn more about real estate law in Greece here https://www.econlaw.gr/portfolio-item/best-real-estate-lawyer-in-greece/
Contact us by email at econlaw@live.com , call us at (+30) 210 3603824 or complete our contact form here in order to come in touch with our English speaking real estate lawyers in Greece for consultation and one of our experienced real estate lawyers of Economou & Economou law office in Athens Greece will help you answering your questions so to make easy to purchase property in Greece and live the exciting experience.
