I want to buy a home in Greece, but I don’t know anything about the process. Who will I work with when buying a home in Greece? If I don’t speak Greek, will someone help me with the documents? Do I need a lawyer, a real estate agent, or an engineer? Which of these contacts do I need to have in Greece before I start the process of buying a home?
1. The Lawyer
The lawyer is one of the most important and useful resources you can have as a foreign buyer of real estate in Greece. The lawyer helps you navigate many parts of the home purchase, especially the legal jargon that leaves you saying, “it’s all Greek to me.” The lawyer assists you with the following:
Searching Land Titles
The lawyer checks the sequence of ownership titles and the existence of liens (mortgages, third-party claims etc.) to ensure that everything is legally in order (due diligence).
Special Permits
The lawyer can advise on any extra permits required in certain areas of Greece. For example, special permits may be required for foreigners buying in border areas. Other exceptions apply for forestry land, areas of military interest, and Natura 2000 conservation areas.
Reviewing and Negotiating Purchase Agreements
The lawyer can prepare the private purchase agreement, one of the first steps of buying a home in Greece. The lawyer can also advise or review the terms and conditions of the contract on your behalf to make sure that your best interests are safe.
Transferring Ownership of the Property
If you have signed a Power of Attorney, your lawyer can sign the final purchase deed on your behalf, which transfers ownership of the property into your name. Additionally, the lawyer can help register the deeds with the Land Registry and/or the Hellenic Cadastre.
Understanding the roles of each professional involved in the property transaction ensures a smoother and more efficient home-buying experience in Greece.
Do I Need to Hire a Lawyer to Buy a Home in Greece?
There is no legal obligation to hire a lawyer for your home purchase in Greece, but it is strongly advisable because he/she performs all due diligence checks, coordinates the whole process and guides you from A to Z.
https://www.youtube.com/watch?v=2lDfDxtD-iA&feature=youtu.be
2. The Engineer
The engineer is part of many technical aspects of a property transfer in Greece, including processes related to energy ratings, zoning, and construction permits. For example, an engineer is necessary when:
Obtaining a Building Permit
If you are being a plot with the intention to build a home, the engineer will perform all checks to make sure that the plot is buildable, that the house is going to be constructed according to building requirements, and meets other local regulations.
Getting an E-ID for a Property Transfer
The “E-ID” (electronic property ID) is an electronic file that includes a variety of information about a property being sold. The E-ID needs to be prepared by a registered engineer and will include information such as construction plans, the building permit, its energy performance, and whether any extensions or alterations have been made to the house.
Note that assigning this task to an engineer is the obligation of the seller, who must ensure that all relevant documents are prepared before the signing of the final purchase deed. The engineer will also prepare the topographical diagram and the floorplans of the house which are necessary for an E-ID.
Assigning an Energy Rating
This is relevant to those who already own a home in Greece. Before renting out or selling a property, you are obligated to include an EPC (Energy Performance Certificate) in the rental agreement or purchase deed. For the issuance of an EPC, an inspection is done by a specialized engineer from the Energy Inspectors record.
3. The Notary
The notary has a more passive role in the real estate transaction when compared to notaries in other countries; they are the person from the Greek government who makes sure that the transaction happens as required by Greek law. A few of their roles in the process are:
Sharing Key Documents & Information
The notary in Greece can inform you of the objective value of the property, which affects the annual taxes you will pay. He/she can also provide official copies of the deed to both parties.
Calculating Transfer Tax
In Greece, the transfer tax which you pay when purchasing a property is 3.09%. This percentage is taxed on either the purchase price or the ‘objective value’ of the property, whichever of the two is higher. The notary does the calculations for the objective value and submits these documents to the Greek tax authorities for approval, before the transfer tax is paid.
Drawing up the Purchase Deed
After the seller and buyer have gathered all required paperwork, the notary will draw up the purchase deed in collaboration with the seller’s and buyer’s lawyer and invite both parties to come and sign the final purchase deed, either in person or through their authorised proxies.
4. The Real Estate Agent
A real estate agent is a licensed professional who assists buyers and sellers in real estate transactions. They have a portfolio of properties and can arrange viewings. Moreover, they can advise on all matters regarding the purchase of a property in Greece, such as choosing the area and the type of property that suits you best, and on matters like taxation, local regulations and procedures. Once you’ve found a suitable property, they can assist in the negotiations with the seller.
Various types of real estate agents are active in Greece:
Large Brokerage Firms
These are mainly located in Athens and deal with the upper part of the market.
Small ‘Traditional’ Greek Real Estate Agents
These agents are often very capable but not always service-oriented offices that sometimes want to get the deal done too quickly.
“Tourist” Brokerage Offices
Brokerage offices in the more touristy areas work mainly with Western European clients. It is necessary to inquire locally about the reputation and service of the real estate agent.
International Agencies, Specializing in Greek Real Estate
Elxis falls into this category. The advantage of this is that you have your point of contact and get answers to your questions in English, Dutch, or German, and can discuss everything with experienced brokers and legal experts that deal with international clients on a daily basis.
Expected Agent Fees
You must sign a clear written agreement with an authorized broker, stating the agreed brokerage fee, in a language you understand. Never sign anything in Greek if you do not know exactly what it says.
For most Greek real estate agents, the brokerage fee is between 2% and 4% plus VAT.
5. The Accountant
It is important to hire an accountant to help you with tax returns once you own a home in Greece. It doesn’t matter if you will live in Greece or in another country. It will still be necessary to have an accountant.
The accountant submits yearly tax statements, guides you on payment of taxes (income tax, property tax, etc.) and informs you on any tax matter related to ownership of property in Greece. Just after the home purchase is completed, the accountant is the one who declares the property in your E9 form.
If you are buying a property for passive income or as an investment, it is also necessary to have an accountant. Any person or legal entity who earns income in Greece is required to submit annual tax income statements. For a full list of taxes on homes in Greece, see here.
