THE COST OF PROPERTY IN GREECE

Aside from the purchase price of the property, allot about 15% more for the taxes and miscellaneous fees. These include property transfer taxes, which can go up to 11%, legal fees of about 2$, and other small payments such as notary fees and document processing in the land registry office. You may also have to pay a local municipal tax or community tax, which usually amounts to 3% of the purchase tax. Every year you will also pay property taxes for any houses or lots that cost more than 200,000 Euros.

AFM

The AFM is the local term in Greece for tax roll number, given out by the tax offices. Greeks and foreigners who have permanent foreign residence are required to get an AFM.

It is given immediately upon application and is free. You will need to present some documents, such as an ID card if you are an EU citizen, or passports, other valid documents of identification, and residence permits.

OPENING A BANK ACOUNT

In Greece all payments are done in Euros. For your convenience you should go to a Greek bank and set up your own bank account, from which you can disburse the checks and cash. This can be used to pay your legal advice, transfer money and pay bills. It is very easy. In fact, you can ask a foreign exchange brokers to give out large amounts to Greece (the rate and charges depend on the financial institution you approach). It is much easier if you can make direct debits at the bank or make online transfers.

THE PINK SLIP

No, this is isn’t a dismissal slip. In Greece this term refers to wire transfers of money from abroad. Remember you will need to provide justification of the amount of money that you have spent, or else the Greek tax authorities will declare it as unreported income and the buyer will be assessed income tax.

BUYING A HOLIDAY HOME

It’s much easier to buy a home than to rent out homes for months at a time. Holiday homes are hard to book due to the popularity of Greece as a tourist destination, and most areas will only allow rentals of up to three months or more. You will often need to get a licence from the Greek Institute of Tourism.

HOME INSURANCE

If you buy a holiday home it is highly advisable that you ask your real estate agent to refer you to an insurance company, who can protect you in case your property is damaged by fire and storms. However most insurance companies will only allow insurance for theft if you live in your property throughout the year. Another option is to approach companies in UK that can give full third party coverage.

LAWYERS

The Greek word for lawyer is dikigoros. Be sure to get one that speaks English. You can get a list from the British consul. Here is one tip. Because of Greek property law it is more complicated if you buy property that belongs to three family members. Your lawyer can also inform you of other intricacies and conduct necessary title searches.

CIVIL ENGINEERS

Also called Politikos Michanikos, they can help you look at a specific property and see if the property’s boundaries follow what is described in the document. They are also aware of the area’s building restrictions.