Townhouse for sale Mijas Costa, Riviera del Sol, with golf, mountain and part sea views. With private garden, along with communal pool, gardens, tennis courts and parking. A must see!!
Once an agreement has been reached as to the price, a contract is normally drawn up and would include price, completion date and any other relevant information for the sale. A deposit can range from 10 - 30% and a mortgage can be secured by either a Greek Bank or an International Mortgage Broker. The contract is signed and an agreement is reached between completion before a Notary who will normally charge around 1-2% of the property value as his fee.
Solicitor / Lawyer
Wherever possible, try to enlist the services of a local Lawyer or Solicitor to act on your behalf, preferably one who speaks English. They will be responsible for paying any taxes and registering the property with the land registry in Greece. They will normally charge between 1 - 2% of the sale value of the property.
Fees
Allow up to 18% for your fees just to be on the safe side as purchase tax is charged depending on the value of the property at between 9-11%. Land registry fees should be about 0.4% of the assessed value plus a small sum for stamp duties and certificates. Real Estate agent's fees are usually paid by the vendor.
Property Tax
Very good value and is normally around 0.25% of the property's declared value paid annually. This will cover local services. In addition, there is a community tax of around 3% of the property transfer tax which is paid to the local municipality for general public services.
Mortgages
Greece is slowly changing its mortgage and lending criteria system which used to be quite difficult - to fall in line with other EU countries but beware as interest rates in Greece can be among the highest in the European Union. Some people have used their existing properties at home to raise finance to buy their Greek property outright thus saving on interest and hassle. Mortgages are available on residential properties through a couple of International Mortgage Brokers.
1. Formalities
All EU citizens have equal rights concerning the purchase or sale of property in Greece. Non EU citizens are also free to buy property in Greece, however with some restrictions as described bellow. The documents required for signing a property-purchase contract are: a) Both the buyer and the seller must provide: - A valid passport (or a legal identity card for EU citizens only) - A Greek fiscal number which is obtainable by non Greek citizens, within 5 working days by the Greek Tax Authorities. b) The seller should provide a "clean" B' Tax certificate issued by the competent Tax Authority, according to Law 1882/1990 proving that he has no outstanding debts towards the Hellenic Fiscus. c) An additional special permission is required for the purchase of properties close to the Greek borders. Such permission will be issued by the local Department Authorities and is not granted to non EU citizens.
According to the Greek law, the purchase contract, known also as a "Purchase Deed", is signed by the buyer and the seller in the presence of : - A Notary Public - A lawyer appointed by the buyer - A lawyer appointed by the seller
The buyer's lawyer is liable to investigate that the property being bought is free and clear of any charge, lien, mortgage, and especially of estate taxes (viz. land property and inheritance) or municipal taxes, damages to neighbouring owners and so forth. This investigation, held by the buyer? s lawyer, is the guarantee that the Title Deed of Ownership and the relevant certificates issued by the land registry, show that no third party claim or challenge of any kind exists.
Special attention must be paid to assure that the property is sold and will be delivered to the buyer, with the benefit of full vacant possession.
2. Additional cost when purchasing property
Additional costs for the purchase of property, come in the shape of : 1) 11% "property transfer tax" on the contract price, payable when buying only. The declared contract price cannot be less than the published government value which is usually far below the real cost. 2) 1-2 % lawyer's fees on the contract value, subject of agreement between the lawyer and his client. 3) Expenses of 1,5% on the contract value , for the completion of the contract, like notary fees, registry etc.. All expenses for the conclusion of the final contract, including the relative tax of property transfer will be borne by the buyer. However, each contracting party will pay the fees of his legal representative who will be present at the signing of the contract, as is required by the Greek Law.
3. Commission payable to a Real Estate agent
In Greece it is customary that both seller and buyer will contribute a commission payable to the real estate agent, for introducing the buyers to the owners. The exact amount of this commission is a matter of agreement between the real estate agent and his clients. It is understood that the agent's commission for his services, is due only in the event of a conclusive transaction.
4. Annual taxes to be paid by property owners in Greece
There are no annual taxes to pay in Greece, if the total value of the properties owned by the same person, does not exceed the value of 68.000.000 drs.(200.000 Euro). The valuation of properties, is carried out by the government, which provides published values, announced for every type of property. As already mentioned above, these values are usually far below the real cost.
Purchasing Procedure
(a) Application to the Council of Ministers To be submitted through the relevant District Officer and the Minister of the Interior with details of:
The applicant and his financial standing.
The property.
The Owner, the sales contract and the terms of payment.
The type of purchase.
(b) Application to the Central Bank for confirmation of importation of foreign exchange for the purchase. To be submitted together with:
Confirmation from the Commercial Bank that the foreign exchange for the purchase was imported. Contract of sale. Copy of the Council of Ministers' approval. Title Deed of the Property.
(c) Application to transfer registration of ownership. To be personally submitted to the District Lands Office together with:
The Purchaser's identity card or passport number.
The Title Deed.
Copy of the Council of Ministers' approval.
Confirmation from the Central Bank re importation of foreign exchange.
Proof of payment of all property and other sundry town taxes to date.
The Purchaser and Seller may give specific Powers of Attorney to a third party to attend and effect transfer on their behalf.
Permits
Immigrants The Minister of the Interior may grant a permit only if the Immigration Control Board confirms that the applicant falls under one of the following categories and meets the necessary criteria. (a) Farming. He possesses adequate land or a permit to acquire it and at least CYP250.000. (b) Mining. He possesses a mining permit and at least CYP200.000. (c) Trade. He has capital of at least CYP150.000, (d) Retirement. He has a secure income of about CYP5.000 per person and he and hid dependants will not work.
Self-employed persons must possess academic or professional qualifications, which are in demand in Cyprus and do not crate competition to the local population.
Cypriot Citizenship
Such applications are not easily approved. However the following may submit a written application to the Migration Department. (a) Foreigners married to persons of Cypriot origin for over five years. (b) A foreigner who has lived in Cyprus for a concentrated ten years within a thirteen year period. However this may not be granted to IBC employees, athletes, football trainers etc if Cypriots' interests are threatened.
Permits & Citizenship
People of Cypriot origin or the foreign wives of Cypriot citizens are not regarded as foreigners.
Residence Permits
Residence permits are issued to the following providing that certain criteria are met.
Property Purchasers
Proof of foreign income to support oneself must be submitted. An annual income of CYP5.000 per person is usually considered satisfactory. Buying a property in Cyprus does not imply that a residence permit will be issued but if the Council of Ministers has given permission for the acquisition of a property an application for a residence permit may be looked upon more favourably.
Temporary Work and Residence Permits
The prospective local employer of a foreigner must submit an application for these permits, on the foreigner's behalf, to the Migration Officer together with a curriculum vita, contract of employment, copies of qualification certificates and details of work experience in the relative field. Once the permits have been issued the foreigner may enter Cyprus to take up his employment.
For more information on buying property in Greece, please contact the Real Estate Agent or visit the Greek Governments website:
