For Sale by Owner

Especially for Foreign Buyers

Before making an offer to buy property, talk to both a lawyer and accountant about your plans. You will require a Greek tax number. The accountant will advise how to import money with necessary documents for the tax office. Everybody who owns property in Greece must make an annual tax declaration even if they are non-resident.

The Contract Process

• It is common to have 2 stages of contract. This may not be necessary for land but for a house, a pre-contract will be drawn up where the buyer and seller agree a price and final contract date. A deposit will be paid.

• Before the final contract can be drawn up, certificates have to be produced to show there are no debts on the property or seller i.e. tax, utilities, social security for building work. The seller will also have to produce an uptodate topography (plan of the land and buildings). The buyer then has to pay the property transfer tax, 8% on first € 20,000 and 10% on the remaining value. The property transfer tax on a new build is the current VAT rate of 23%.

• A Notary produces the contract. It is completely different to a UK transaction. It is, of course, in Greek language, a translator can be present or the lawyer can translate. The contract is very detailed about the buyer, seller, lawyers & witnesses (tax numbers, passport/ID numbers), even for the translator, details of payment (including the cheque number). Don’t be surprised that you will sign every page of the contract unlike in England where you only sign the last page.

• The Contract is not complete until it has been registered at the Land Registry office.

• Both buyer & seller will have a lawyer to represent them. The Notary is impartial and cannot advise either party. The buyer’s lawyer searches previous ownership, building permission for land etc. There are stories about other family members claiming a share of property years after the sale was completed. The layer should check that permissions to build were correct and the final sign off was completed. Without this last step, a full electric supply will not be granted. Many properties have been sold with only a building supply which is cut off after a certain number of years. Properties with only a building supply could have outstanding debts to the tax office or IKA.
  

• The contract price may not be the same as the purchase price. Local custom has been for the contract price to match the tax valuation as the tax office may investigate if the 2 prices are not similar. Hence transactions can be part in cash & part by bank cheque. The goverment are trying to stop this kind of transaction by limiting the amount allowed in any cash payment to €3000. Also note that if you are the seller, you will end up with money that cannot be paid into the bank or used to purchase anything that the tax office may find out about.
  

• Everybody sits around a computer terminal in the Notary’s office and the Notary reads every word on the contract, amending as the lawyers request, discuss and agree to changes.

• Fees
• Notary (1.2% of contract price)
• Lawyer (approx 1.5% of contract price but seems to vary)
• Estate Agent (2% of contract price, paid by both buyer and seller)
• Land registry 
  

Land for building

• Most important - make sure you can build on the land you wish to buy.  Consult surveyor/civil engineer who will know what restrictions apply to that area - BE CAUTIOUS and don't believe anything you are told until it checks out.  Find out if a forest certificate is required.  This may be necessary before a building application can be made. (Note - it may not look like a forest area but forest is counted as what existed in 1945 on a set of aerial photos.

• Find out if an archaeological survey of the land is needed to be done.  This will delay building plans. In Zante we have heard this is only applicable to areas around Bohali, near the castle ruins.
  

• Find out who owns any olive trees.  They can be owned by a tenant farmer.