Just a few days ago, Greece lifted restrictions on entry for foreign tourists, including Russians. Now you can come to the country without going through quarantine, you only need to have a negative result of a PCR test for coronavirus, received no more than 72 hours before arrival, or a certificate in English about vaccination or a disease. You will also need a completed PLF (Passenger Locator Form) with the personal data of the tourist, sent before the trip to the travel.gov.gr.website. In addition, the expansion of flights connecting Greece and Russia is expected soon.
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Due to these factors, Greece is expected to return to the pre-pandemic level of demand for purchase of real estate by foreigners, among whom there are a lot of citizens of Russia and other CIS countries. Moreover, both during the quarantine restrictions and now, the remote option of buying a home is working smoothly in Greece. But it is obvious that most of those who want to buy foreign real estate, including in Hellas, prefer the classic option of buying offline with a trip to the country.
Advantages of buying a property in Greece
The "Golden Visa" program, when a foreigner receives a residence permit when buying a property exceeding a certain amount of investment, is very popular in many European countries. But it is in Greece that the buyer will find the lowest threshold for obtaining such a visa - it is necessary to purchase one or several real estate objects with a total value of at least 250,000 euros. In addition, the cost of facilities in Greece is now lower than in many EU countries that issue "golden visas".
Object selection: what to pay attention to
After formulating the main parameters of the buyer's request, realtors select the most interesting offers in accordance with the specified criteria. It is also very important to clearly define for yourself what exactly a person expects from the acquisition of the desired property. It is very important to pay attention to logistics – how convenient it will be to get from your country, especially if the accommodation is located on an island, and not on the mainland. When buying a house, it is worth bearing in mind that the cost of its maintenance may be higher than in the case of an apartment. And of course it is necessary to analyze the possibilities of infrastructure in a particular place of real estate acquisition - is there everything you need nearby.
If we are talking about moving a family with children to permanent residence, then it is important to understand how conveniently the kindergarten and school are located. If an object is being sought for a future student, then you need to see where the universities are, where he plans to enroll, and calculate how convenient it will be to get to study. If elderly people will live in an apartment or house, it is important to take into account the distance from hospitals, the noise level in the evenings (if these are large cities or popular resorts) and walking distance to shops. There are many factors and they are often individual, so it is very important to contact experienced real estate companies that have been working in the Greek real estate market for many years.
How is the transaction going
Object reservation
After the buyer has decided on the object for purchase, the transaction processing process begins. But first it must be reserved: for this, the deposit is transferred to the developer or the current owner (if we are talking about a secondary housing stock)and a receipt is signed for the payment of this amount. After the buyer makes such an advance payment for the purchase of real estate (usually 5%-10% of the cost), the procedure for concluding a preliminary contract begins.
Object control
Then the object undergoes full legal control, which is carried out by an authorized lawyer. He sends a request to the cadastral land archive of the region where the object is located, in which the following parameters are checked: the seller's ownership, the legal purity of the property (the presence of encumbrances, lawsuits, arrests, etc. for the purchased housing). After the inspection, a report certified by a lawyer in writing is provided.
Signing of the preliminary agreement
If the legal control is successfully passed, then a preliminary private contract is signed between the buyer and the developer. This document will determine the value of the property, the conditions for the payment of the amount, as well as penalties in case of not signing the final notarial contract for the sale of real estate. The contract is signed by the parties in two languages. Based on this agreement, the buyer will transfer funds for the payment of the house through the bank.
Georgaphic nuances
When buying, it is important to pay attention to geography: if the selected object is located in the border area of Greece (prefectures of Dodecanese, Evros, Fesprotia, Kastoria, Kilkis, Lesbos, Xanthi, Rhodopi, Preveza, Samos, Chios and Florina, provinces of Nevrokopiou prefectures of Drama, Pogoniou and Konitsa prefectures of Ioannina, Almopia and Edessa prefectures Pally and Syndicates of Serres Prefecture and the islands of Skyros and Santorini, then you will need to obtain a special permit from the Greek Ministry of Defense to purchase real estate in Greece (for persons who do not have Greek or European citizenship). This is due to the exclusion of danger to public order and the security of the country. To do this, the lawyer, acting on behalf of the buyer, must submit a corresponding application to the Greek Ministry of Defense, to which a fairly simple set of documents is attached. This is just a time-extended procedure, which, by the way, often allows you to get an installment payment on the house for the period of obtaining this permit. This stage is not necessary if the property is located in areas of the country that are not considered border areas.
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Final stage
After that, the lawyer draws up a tax number, opens a bank account and draws up a final purchase and sale agreement, which is notarized. The seller, the buyer and a lawyer are present at the signing, or only a lawyer with a special power of attorney from the buyer to sign the contract, a realtor, and in the case of the personal presence of the buyer who does not speak Greek, there is also an interpreter or only a lawyer who speaks the buyer's language of communication.
In accordance with this contract, the ownership of the selected object passes to the name of the buyer. It comes into force after the registration of the contract in the cadastral register – land archive – the certificate of this is the final confirmation of the ownership of the new owner.
The buyer must, within thirty days from the date of signing the final contract of sale, declare the sale of real estate in order to remove it from his property, and the seller must declare the acquisition of real estate to notify about the new property. Usually this process is assigned to the accountant.
Expenses paid by the buyer
The lawyer's fee is 0.8-1.2% of the commercial value of the property (as well as VAT). The calculation of such expenses is quite complicated, however, in general, they amount to approximately 1.2% of the cadastral value (plus VAT), and it will also be necessary to pay for the preparation of the contract in the amount of 500 euros. Additionally, there may be expenses for acts of withdrawal of financial claims or other additional documents and their registration in the cadastral register.
Tax on the transfer of ownership tosecondary real estate in Greece is 3% of the value specified in the contract. For all new buildings, instead of the tax on the transfer of ownership, there is and must be paid VAT in the amount of 24% of the contract value of the property. Municipal taxes amount to 3% of the tax on the transfer of ownership.
The cost of registration in the mortgage register is 0.5% of the cadastral value. It is important to note that various additions to the contract (for example, when real estate is bought in installments and payment takes place after signing a notarial contract and registration of ownership, then upon completion of payments to obtain a residence permit in Greece, it is necessary to issue an Act of withdrawal of financial obligations) the state fee is also registered and paid. Payment for intermediary services is contractual and usually does not exceed 2% of the commercial value of the property, but also depends on the complexity of the transaction and the amount of the contract.
Calculation example
If the commercial value is 250,000 euros and the registration goes to the full amount for obtaining a residence permit, then the costs are:
Lawyer's fee: (250,000 X 1.2%) = 2,500 euros + VAT 24%= 372,000 euros
Notary expenses: (250,000 X 1.2%) = 4340.20 euros
Property transfer tax: (25,000 X 3%) = 7,500 euros
Municipal taxes: 7,500 X 3% = 225euro
Registration in the mortgage register: 120 000X0.5%+ 24% (VAT) + 80 euros = 1630 euros
Payment for intermediary services: 250,000 X 2%= 5,000 euros (the price is negotiable)
The total amount of expenses is 22,415 euros (this amount cannot be considered as a percentage of the value of the property)
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Additional expenses also need to include the payment of interpreter services (translations of contracts, contracts, etc.) and mandatory one-time costs for connecting to municipal electricity and water supply networks. All taxes and fees, as well as notary services and notary fees are calculated based on the prices prescribed in notary contracts, if they are not lower than cadastral prices (prescribed in the cadastral books of tax authorities).
Thank you for your help in preparing the material:
Natalia Kovaleva, Sales Director of the companyReal Estate Service
Spyros Saridis, consultant of the company PRONAON
