Frequently Asked Questions (F.A.Q)

How can I purchase property in Greece?

For E.U. nationals

The same procedure applies as for Greek citizens.

For non - E.U. nationals

For the purchase of property in areas close to national borders (including some islands such as Crete and Rhodes and islands of the Eastern Aegean) a special permit issued by the Ministry of Defense in Athens is required.

For more information please contact one of our company representatives.

VAT payable on property

The acquisition of property was until now exempted from Value Added Tax (VAT). Regarding the acquisition of new buildings, the planning permission of which has been issued after the 1st of January 2006, the acquisition will be subject to VAT (the percentage comes up to 19%). In that case, the property purchase tax will be replaced by VAT. 

Do I have to be present at the signing of the contract?

Each contracting party can give authority of representation to another person by signing a Power of Attorney. The proxy can also be given to the lawyer of the contracting party. Proxies concerning real estate transactions must be specific. That means that the precise conditions of the contract (purchase price etc) as well as the specific property thereof must be clear and specifically set out.

Proxies by the real estate seller and purchaser must be in the form of a notarized document. A proxy may be drafted by a Greek Notary or, when abroad, a Greek consular office. Proxies notarized by foreign notaries shall be recognized in Greece insofar as they have been vested with the “Apostille” form.

Do I have to file a tax declaration form in Greece once I’ve become a property owner?

Yes, because all property ownership in Greece must be declared by filling out a form called E9 and submitting it to the Greek Tax Authorities. This is mandatory for every property owner in Greece, even for those who live abroad and have never filed a tax declaration form in Greece or do not have an income in Greece. You can not file an E9 form all by itself. E9 is an attachment which must be submitted together with the Basic Income Tax Form E1. If you have no income in Greece, you enter “0” income in the E1 form; still, you must submit the E1 as well.

Legal safeguards for foreign buyers – Transfer of funds for the purpose of real estate purchase    

Another important tax parameter of the real estate purchase is the so called “evidence of purchase”. According to the Greek taxation law, whoever purchases a real estate asset ought to justify the origin of the money spent on the purchase, in his next tax statement, the one concerning the economic year the purchase took place. In case he will not justify the origin of the amount the Inland Revenue will consider the amount of the purchase as income acquired in the specific economic year and will tax it on an income basis (the tax income factors in Greece for individuals – natural persons – are from 5%, escalating up to 40%). This can be solved as follows:

- ther by receiving a banking loan for the purchase of a real estate asset from a Greek Banking Institution (in this case the bank grants a certification document mentioning that the money for the purchase derives from a bank loan),

-or by transferring funds from abroad (in this case the “pink” slip of the bank transfer has to be submitted to the Inland Revenue to certify the origin of the funds).

In what currency are payments for property purchases made?

Payments are made in Euros only, as specified in the contract of sale.

What are the payment terms for purchasing a unit?

Payment terms are specified on each project’s price list and they depend on the progress of works.