Buying Property
Greece is dotted with some of the most extraordinary scenery and tourists from around the world flock to Greece each and every year.
An ever growing number of foreign nationals have turned to purchasing vacation or holiday properties in different locations around Greece either as a holiday home for their own, personal purposes or as an investment property.
On many levels, buying property in Greece, particularly if you are a foreign national, can be a rather complicated and sometimes confusing process. However, by understanding the process up front, and by understanding the various requirements and regulations that apply to foreign nationals seeking to buy real estate in Greece, a foreign citizen can successfully acquire property in Greece.
As a general rule, a foreign national can purchase real estate in most locations in Greece. However, a foreign national who is not from a European Union nation must obtain the prior approval from the local prefecture in certain areas in Greece: some regions of northern Greece, Rhodes and Crete. Many real estate agents ofeer help and expertise to foreign nationals in obtaining the necessary permission in these areas. Obtaining this permission from a local prefecture generally does not take a great deal of time and usually is granted without significant fuss.
Before anyone, either Greek citizen, the EU or another foreign national, can purchase real estate in Greece, that person must first obtain a tax role number, known in Greece as AFM. This number is easy to get and can be obtained at any tax office in the country. The tax number can be obtained from these offices on the sport. Citizens of Greece or another EU nation need only show their government issued ID card. Citizens of other countries must show a passport to obtain the AFM.
Greek authorities are very concerned about where a foreign national is obtaining money to purchase property in Greece. As a consequence, a person from another country interested in buying property in Greece will need to obtain what is known as a "pink slip" for wire transfers of money from abroad. The purchaser has to be able to demonstrate where the money is coming from and if he or she cannot, Grecian governmental authorities will consider any money wired into the country as income and will tax it accordingly.
In addition, money to purchase real estate in Greece must come directly from a Greek bank and bank account. Therefore, before a person can actually make a purchase of real property in Greece, he or she will need to open a bank account. Provided that a person has proper documentation, and provided that a person has the pink slip to demonstrate the origin of the money involved, it is not difficult to open a bank account in Greece.
A public notary, who is an independent official, oversees the real estate purchase process. Once an offer is made on the property, a preliminary contract is drafted. A deposit of up to about 10% is placed on the property at the time this agreement is executed. The deposit is not refundable unless the seller somehow disrupts or ends the sales process or unless clear title to the real estate cannot be had in the time allotted under the preliminary contract. After the buyer obtains his or her financing, and the seller satisfies his or her own obligations under the preliminary agreement, a final contract is signed between the parties.
With the execution of the final contract, the ownership of the property will be conveyed legally to the buyer. The final contract is signed before the public notary. In addition, according to Greek law, the real estate agent or agents who have been involved in effecting the sale must be present for the signing of the final contract.
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