Buying property in Greece can be thrilling but certain risks and challenges might lurk at the same time. Our main priority in Blue Skyline is not only to assist you spot the property of your dreams but also to make the whole process smooth and risk-free. Our knowledge and lengthy experience along with the cooperation with a qualified lawyer, notary, and engineer can guarantee the absolute protection of your investment.
Understanding the Greek Property Market
The Greek property market is diverse, featuring vast regional variations, fluctuating market conditions, and notable price trends. Each location offers unique opportunities and challenges for potential buyers. The market on our island of Crete is mainly driven by tourism and vacation properties, however remarkable opportunities for more authentic properties can also be found.
Market Conditions
Current market conditions in Greece can be volatile, influenced by factors like GDP growth and foreign investment. The Greek economy’s recovery has increased demand, while Government programs, such as the Golden Visa, further entice foreign investors. Contact us to stay informed about economic trends and the market successfully.
Price Trends
Property prices in Greece vary widely based on location and demand. In Crete, being a major Greek hotspot due to its varied landscapes and tourist appeal, prices have been rising steadily, reflecting economic growth. Keeping an eye on our website can help you find the best places for investment and ensure you are making financially sound decisions.
The Legal Framework of Real Estate in Greece
Understanding Greece’s legal framework is vital for avoiding purchasing pitfalls. We will help you familiarize yourself with property ownership laws, visa and residency requirements, and land registry procedures.
Ownership Laws for Foreigners
To purchase property in Greece, you’ll need a Greek tax number (AFM), essential for completing transactions and fulfilling tax obligations.
In Greece, foreign nationals are allowed to own property, but different rules apply depending on whether you are an EU resident or not, which is crucial for property investment. EU residents face fewer restrictions and can generally purchase property without any extra legal hurdles.
Non-EU residents may face more complicated conditions. Certain areas, those near national borders or on some islands, may require special permission from the Ministry of Defense. Your Greek lawyer can help you navigate these regulations.
Visa and Residency Requirements
If you plan to stay in Greece for an extended period, understanding the visa and residency requirements is essential. For non-EU residents, Greece offers a Golden Visa program. By investing at least €250,000 in real estate, you and your family members can obtain a residence permit.
This permit allows you to live in Greece and travel within the Schengen Zone. It does not lead directly to Greek citizenship, but it can be a step in that direction. EU residents do not need a visa to live in Greece, making the process simpler for them.
Financial Aspects of Acquiring Property in Greece
When buying property in Greece, it’s important to understand the financial commitments involved. You will need to account for taxes, fees, banking logistics, and the total cost of the investment.
Taxation and Fees
The costs that incur on top of the value of the property usually amount to 10-12% and include all the additional taxes and fees required to be paid for the purchase to be successfully completed. These costs are
- Transfer Tax
- Land registration
- Notary’s fee
- Lawyer’s fee
- Our agency fee
- Engineer’s inspection fee
- Accountant’s fee
Navigating Currency and Banking
Opening a Greek bank account is essential for managing payments and transactions. This step ensures you can pay local taxes and fees. Your lawyer can do this on your behalf.
You’ll need to exchange your currency to euros if required. Conversion rates can affect your budget, so plan accordingly.
Working with a reliable bank can simplify transactions and offer better rates. Some banks may also provide advice on transferring large sums and managing investments effectively.
Assessing Total Costs
Assessing total costs starts with the purchase price and deposit. The deposit is usually around 10% of the purchase price.
Include additional costs like taxes, fees, and maintenance. A detailed budget should cover everything from taxable property cost to unexpected expenses.
Make sure you consider affordable options and avoid stretching your budget too thin. It’s wise to set aside extra funds for renovations or unforeseen costs.
Conducting Due Diligence
When buying property in Greece, it’s crucial to appoint a lawyer to conduct thorough due diligence. You need to be aware of any legal, structural, or ownership issues. This will help avoid costly mistakes and ensure a smooth purchase process. You can appoint a lawyer by signing a notarial Power of Attorney here or at your country of residence. Signing a Power of Attorney while you are in Crete is less time and effort consuming and also more cost efficient. You can ask us for reliable recommendations of lawyers.
Title Search and Encumbrances
Your lawyer will start with a title search to verify that the seller has the legal right to sell the property. This involves checking their ownership documents and confirming there are no outstanding inheritances or legal claims.This search will help uncover any encumbrances, such as unpaid loans, taxes, or legal disputes. It’s essential to check for inheritances or estates where ownership might be shared or contested. These issues could delay your purchase or cause legal complications. Our role in Blue Skyline is to ensure that your lawyer receives all of the required documents and we can also mediate if certain certificates need to be issued to ensure accuracy and promptness.
Property Inspection
The step of a property inspection is vital to assess the condition of the building. Look for structural issues like cracks, leaks, or mold. Check all systems, including plumbing, electricity, and heating. Inspect for any unreported renovations that might not meet local building codes.
The next step is to hire a knowledgeable and reliable engineer to confirm the legal status and if necessary to request amends. We can recommend remarkable engineers and also mediate to facilitate this process.
In case of a plot of land, the engineer is required to confirm its buildability status according to the current regulations.
By covering these steps, you safeguard your investment and avoid common pitfalls when buying property in Greece.
Purchasing Process and Negotiation
When buying property in Greece, you will encounter distinct steps like finding the right property, securing a preliminary contract, and finalizing the purchase. Each of these stages involves important considerations and potential pitfalls that you should be aware of.
Finding the Right Property
Start by identifying what type of property you want: a modern apartment, a traditional house, or something else. Use our website to explore options and gauge market prices.
Making a Private Reservation Agreement
Once you find a suitable property, the next step is to make a private reservation agreement. This is a crucial step, as it outlines the terms of the sale and protects both parties. It is a proof of serious intent and requires the seller to remove the property from the market until all of the checks have been performed.
Ensure that all of your questions have been answered and you know all of the details that you need before signing.
Payment of a deposit is typically required at this stage, so be prepared for this expense. The deposit is usually 10 % and transferred to our company’s bank account to establish the security of your money until your lawyer and engineer possess all of the answers they need to confirm that the property has no problems.
This step is important because:
- The property cannot be sold to anyone else
- The price is established
- Your money is secure
- Both parties are protected ( there are withdrawal fees)
- If the property is found to be bearing unresolved issues the deposit is transferred back to you and the agreement is cancelled
This private agreement is our agency’s policy for a transparent and risk free sale.
Finalizing the Purchase
Finalizing the purchase entails signing the property purchase agreement. This is a formal procedure governed by Greek laws to ensure the legitimacy of the transaction. Both the buyer and seller must sign this agreement either in person or through their notarially authorized representatives.
Before the final signing, make sure all your financing is in place.
Our team of professionals, including lawyers and financial advisors, will help you navigate this final step smoothly and avoid common pitfalls.
Life After Purchase
After buying property in Greece, it’s important to understand the ongoing responsibilities and opportunities. This section covers key aspects including maintaining your property and leveraging it in the rental market.
Understanding Property Maintenance and Taxes
Maintaining your property is crucial. To ensure everything runs smoothly, familiarize yourself with local regulations and required permits. Keeping utilities like water and electricity in your name isn’t just about staying compliant; it ensures uninterrupted service and your lawyer can help you in this.
Do not forget to be in touch with your accountant to fulfill your tax responsibilities on time. We advise our buyers who do not operate any kind of business or rental in Greece to be in touch with their accountants in the first months of each year to get information on their annual responsibilities as owners of property in Greece.
Regular inspections of your property can help catch issues early, avoiding costly repairs later. Your investment’s value depends on careful upkeep and routine maintenance.
Keeping your property well-maintained not only preserves its value but also enhances your living experience.
Renting and the Airbnb Market
Your property can be more than a home—it can be a source of income through long-term rentals or Airbnb. The rental market in Greece, especially in tourist hotspots, is robust.
First, secure the appropriate rental permits and understand the tax obligations. You can ask your accountant or a rental business for information. Listing your property on platforms like Airbnb can provide substantial returns, particularly during the tourist season.
Consider the logistics: proximity to amenities and transport services. Hiring a local property manager can ease the process, handling guest check-ins, cleanings, and any on-the-ground issues.
Conclusion
At Blue Skyline, we recognize that purchasing property in Greece can be both thrilling and complex. Our pivotal role as your agent is to protect your investment and make the whole procedure as smooth and clear for you as possible. We coordinate everything for you and we offer you a hassle free buying process. Explore our extensive property listings and receive support and advice before and after the purchase of your property. Start your journey towards owning a property in Greece today—contact us for expert guidance.