Procedure and legal aspects of buying real estate in Greece
Who is allowed to buy a property?
Citizens of the European Union are allowed to purchase property in Greece. Title, transition and registration is a completely transparent, at the same time easy to control and represents a public procedure in Greece. The country has been an EU member since January 1981, so national and European legislation applies.
Non-EU citizens, as persons, are not allowed to purchase property in Greece. There are two ways for these people to purchase real estate. One is the formation of either a Greek or an EU company in whose name the property is registered. The second option is for each individual buyer – through a lawyer – to obtain permission from the Greek Ministry of Defence.
The purchase of a house or apartment in Greece is subject to similar laws that are usually applied in other EU countries. It is necessary to hire a lawyer to check the title of the property to ensure that there are no outstanding encumbrances or that they are included in the notarized purchase contract and are deleted before a transfer of ownership.
After the purchase decision and the purchase price have been determined, the following usual procedure is usually recommended:
Signing a power of attorney.
It is carried out by a Greek notary in the presence of an accredited translator (recommended). This power of attorney authorizes the lawyer to act on your behalf. It also contains the powers delegated to the lawyer to rewrite the main land purchase contract. Thus, the buyer does not have to deal with long and complicated legal formalities and procedures. The licensed lawyer is authorised in your name to carry out invoices, authority registrations and tax payments via your account.
A preliminary contract. This can be signed by both parties, which includes the obligation for the purchase and the purchase price. However, this cannot be entered in the land register as a notice of conveyance, but is only a contract under the law of obligations. The buyer’s lawyer must check the titles at the land registry office so that no mortgage/land charge or tax debts exist or they are cancelled. The buyer ultimately takes over ownership free of encumbrances. The preliminary contract is sometimes also necessary because some properties in Greece require “legalization”. This refers to extensions, changes or non-conformity with applicable building law and regulations. Of course, this effort and costs are borne by the seller and is usually a formal matter.
The licensed attorney authorized by you will carefully check the condition of the property registration, origin and check whether there are any old receivables (such as existing or previous mortgages, encumbrances or other fees, existing and previous contracts and agreements, etc.) and prepare a report, sign and certify it to you before the transaction/purchase. The obligation to seek legal advice on a purchase has been lifted, but it is still recommended to consult a lawyer – also for land register research. The buyer is obliged to have a Greek tax number before the final signing of the contract. This can be applied for by his lawyer.
The signing of the final purchase contract takes place in the notary’s office. The presence of the purchaser is required, unless someone has been commissioned with a general power of attorney. The purchase contract must be accompanied by the building permit, the building plan and the site plan of the property, as well as the certificate of payment of the municipal fees for the last two years. The notarial contract must be entered in the Greek land register. Only with this registration is the purchase considered complete and the ownership transferred.
Even before the purchase contract is signed, the real estate transfer tax – usually 3.09% of the purchase price – is due. This can also be transferred to the purchaser’s lawyer – as trustee.
In addition, the following ancillary acquisition costs are incurred:
Notary costs between 2 – 2.5 % plus VAT, land registry costs approx. 0.5 – 0.85 %, lawyer’s fees between 1 – 1.5% plus VAT and broker’s commission approx. 3 % plus VAT of the sales price.
As soon as the purchase is completed, it is registered by the notary at the land registry. The notary sends a certified copy to the parties to the contract and also keeps a copy himself.
We will be happy to advise and support you in the purchase of your property in Greece. Contact us!