All Greece 4U - Info for buyers on Greek property market

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The Greek property market

The basic principles when buying a property in Greece are the same as in the UK and most other European countries. There are however enough differences in the procedures that could create difficulties for the unfamiliar buyer. Below are the main points:

• Greece does not operate a Land Registry scheme like it is in the UK with the exception of some islands. For each transaction, solicitors have to check very carefully all the deeds and the history of the property for sale, going at least 20 years back. In recent years, the Ktimatologio (Land Registry) was introduced but it has only covered some areas so far.

• Selling and purchasing property in Greece has to be carried out by a Greek solicitor. The signing of the deeds has to be witnessed by a Notary Public Officer.

• Most properties in Greece are freehold. Apartment owners have a share of the freehold. Leasehold properties exist but are not common.

• Greece-registered estate agents receive commission from both seller and buyer. This is 2%+ from each party.

• In Greece, there is a property evaluation system called Antikimeniki Axia (Objective Value) set by the Greek Ministry of Finance based on location, size and age of the property. In general, Antikimeniki Axia is lower than the actual selling price which is guided by market forces. In places where Antikimeniki Axia has not been established (most rural areas), local tax offices produce an Assesssed Value.

• There is a government tax levied on each property purchased. This is always paid by the buyer and is independent of personal income.

• It is common practice in Greece to state in the Contracts the Objective or Assessed value rather than the actual value. This results in paying tax and professional fees on a lesser amount. The method can, however, create problems for those financing the purchase with a mortgage. Each case has to be assessed carefully to balance the buyer's needs.

• Greeks show a preference for newly built properties. As a result, older properties represent very good value although certain work may be needed to bring them up to date. It is also common in Greece, to buy a house or flat from the developer before it is built (off-plan). This has the advantage that you can have the property tailored to your needs at very little extra cost. They are also a sound investment as they immediately appreciate in value once completed.

Please note that from 1st January 2006, VAT has been imposed on new builds - if the licence was obtained after that date. The VAT replaced the transfer tax.

Renovated old properties have a lot of character and original features and they are very sought-after. This 2-bedroom house in Crete sold recently for 175,000 euro.

derelict properties are usually a bargain

Old properties needing renovation are also on demand by keen DIY enthusiasts. Prices very depending on condition. This example in Crete is partly habitable and was in the market for 90,000 euro.

If you prefer a new house, ready to move in, new properties are being built all the time in Greece. This semi-detached 2/3 bedroom house in Crete is selling for 262,000 euro. (Click on the picture for more details.)

buying from plan gives you flexibility

An alternative proposition is to buy off-plan from a reputable developer. Prices are quite competitive as they aim for a quick turnover and properties increase in value once finished. You can also have an input on the finishing touches.

DID YOU KNOW?

EU citizens have the right to buy property, live, work and study in any EU country they choose.

Non-EU citizens can also buy property in Greece but there are certain restrictions.

Notary Public Officers are independent from both buyers and sellers.

Freehold ownership of a property in Greece can be 'horizontal' or 'vertical' (apartments).

FOR SALE boards are not common in Greece. Owners often place a small sign outside the property or on the nearest lamp-post or tree.

If you buy an apartment, you need, by law, to inform yourself about the regulations of the building. These usually state that apartments can only be used for private purposes and detail usage of common spaces like parking or storage areas.

Some areas in Greece are 'restricted' for purchasers - either because they are close to an archaeological site or in a protected nature area like forests.

A strip of land next to a beach, always remains a public area. So, even if your property is right up on the seafront, you cannot claim private ownership of that beach.