Written by Kelsey Edwards 15th March 2015

Last updated: 21/03/17

Copyright HydraDirect

Disclaimer: these notes are for guidence only. It is the responsibility of the reader to check all details to their satisfaction.

 

The Property Selling & Buying Process

 

A seller announces they have a property for sale.

 

A buyer views properties introduced to them by word of mouth, direct with the seller, through an estate agent or through an advert on the internet or magazine or newspaper.

 

A match is found and a price agreed.

 

Buyer must provide proof of ID & proof of residency prior to a viewing and must additionally provide proof of funds and readiness to proceed when an offer is made.

 

Buyer appoints a Public Notary who works for the Greek Government but is paid by the buyer. (Approx. cost 1.5% of contract value plus €500 disbursements plus VAT-ΦΠΑ).

 

If necessary, the buyer appoints a representative and obtains a Power of Attorney from the Public Notary. (Cost €50 - €150 +VAT-ΦΠΑ depending on how complex and the physical number of pages, both parties required to bring their passport or ID.)

 

If necessary, the seller appoints a representative and obtains a Power of Attorney from the Public Notary. (Cost €50 - €150 +VAT-ΦΠΑ depending on how complex and the physical number of pages, both parties required to bring their passport or ID.)

 

If it is a complicated title with multiple owners, the seller may wish to appoint a lawyer, however it is no longer legally required. (Approx fee is normally 2% +VAT-ΦΠΑ of the contract value.)

 

If it is a complicated title with multiple owners and many irregularities that can complicate a sale or if the buyer does not speak Greek and cannot be present the buyer may feel more confident if they appoint a lawyer, however it is no longer legally required. (Approx fee is normally 2% +VAT-ΦΠΑ of the contract value.)

 

Seller required to take all necessary documents to Public Notary to confirm that documents are in order and to identify any further requirements and to ascertain how long that will take.

 

If the buyer is Non-EU national they must obtain a Visa whether they intend living in Greece full-time or part time. (See Government Notes) (Approx. cost €500.)

 

Buyer must obtain an AFM (ΑΦΜ) first and then open a bank account. (Approx cost if you use Accountant to obtain AFM is approximately €150 +VAT-ΦΠΑ. You are not required to make an immedate deposit to open a bank account, however I recommend that as soon as the account is live that a small transfer is made to ensure overseas transaction work and to establish exactly how long it takes, anything from 3 - 7 working days depending on country of origin.)

 

If the buyer intends using a representative in their absence, even if they obtain a power of attorney from the Public Notary to sign the contract of sale, they must also both visit the bank to complete their paperwork to ensure that the representative can withdraw funds for the purpose of paying the tax on behalf of the buyer. The banks will not accept a power of attorney, permission to operate an account by a representative must be on the banks own documentation. It is possible for the person with the POA to sign the contract is also the same person who has been approved with the Bank's POA, or they can be two different people. 

 

If necessary, if a deposit is required (not necessary if all paperwork is in order as there is no exchange as well as completion stage for property contracts in Greece) a private agreement (this is an additional cost for both parties) is drawn up and signed by both parties (or their representative if a power of attorney has been given) and the deposit is paid.

 

Public Notary draws up the contract of sale including the schedule of tax payable.

 

Buyer (or their representative/lawyer) conducts searches. (Approx. cost  €64.57 per name on title inc. VAT-ΦΠΑ)

 

Buyer (or their representative) takes schedule of tax and makes payment to Tax Office (Piraeus) (Approx. cost €457.56 inc VAT-ΦΠΑ and dolphin tickets plus the full tax due on the schedule.)

 

Seller and Buyer (or their representatives) meet at the office of the Public Notary to read through contract (interpreter required if non-Greek speaking and paid for by non-Greek speaking party, approx. cost €50 +VAT-ΦΠΑ unless you have the contract officially translated prior to signing, in which case approx. cost €150 +VAT-ΦΠΑ) and then signed by both parties once funds from buyer have been confirmed as recieved by the seller's bank.

 

Buyer pays fees due to Public Notary (Approx. cost 1.5% of contract value, plus €500 disbursements +VAT-ΦΠΑ, and as applicable.

 

Buyer (or their representative) takes copy of contract (title deed) and registers it with the Hydra Land Registry office. (Using a representative, approx. cost €36.90, inc. VAT-ΦΠΑ plus approx. 1.5% of the contract value plus disbursements (nominal) +VAT-ΦΠΑ.)

 

Buyer and seller (or their representative) visit the property to read and agree the water and electricity meters. Seller to provide copy of latest electricity and water bills that will show the property reference number.

 

Buyer (or their representative) contacts the Electricity Office (DEH - ΔΕΗ) in Patras to change the name of the account holder. (Using a representative, approx. cost €147.60 inc. VAT-ΦΠΑ.)

 

Buyer (or their representative) visits the water office in Hydra to change over the name of the account holder. (Using a representative, approx. cost €147.60 inc. VAT-ΦΠΑ.)

 

Buyer (or their representative) contacts the Telephone/Internet provider (OTE) to setup a new account. (Using a representative, approx. cost €92.25 inc. VAT-ΦΠΑ, excluding cost of equiment and/or installation costs from OTE.)

 

E1 & E9 Delcarations: The buyer (or their accountant) is required to officially declare ownership of the property as soon as the title deed is confirmed with land registry. The owner is also required to annually submit an income tax declaration even if it is zero and regardless of whether they work and earn an income in Greece - they must also prove that they have sufficient funds, either in Greece already or brought into the country that is tax paid, to operate their property (pay for upkeep and utilities, etc).

 

It should be noted that all fees due need only be paid if an invoice is presented or given. This is also true for any commission paid to an agent (whether an official real estate agent or a local individual who introduced the buyer and seller to each other.) Invoices/receipts should always have a note of the providers AFM as well as the AFM of the person it is made out to. All invoices from Greek suppliers must include VAT-ΦΠΑ at the percentage in force at the date of the invoice (24% March 2017). The exception to this is payment to the Public Notary for any work they conduct which is recorded in official books and the Power of Attorney, contract, etc. is the offical receipt and already includes VAT-ΦΠΑ. Similarly services provided by non-Greek suppliers will require an invoice issued in accordance with and at the rate of VAT applied by the country they operate from.

 

If it is the intention of the buyer to holiday rent their new property then they MUST ensure that they have an EOT license number.

 

Print Print | Sitemap Recommend this page Recommend this page
© Kelsey Edwards HydraDirect 2000 - 2016
Book direct with HydraDirect. No booking fees, no commission, no added percentages. Putting visitors in direct contact with Hydra businesses.