Buy real estate
(a house, a flat, an apartment,
a land plot) in Greece
Real estate in Greece is divided into elite, average and economy class real estate. Prices depend on location of real estate, year of construction, level of construction and profitability of its usage. Better option is to buy a cottage, a house, a townhouse with an adjacent land plot. Availability of open pool will positively influence liquidity of usage or resale of the object.
Real estate in Greece attracts more and more investors as this market is not established yet as in other countries of European Union.
Moreover jump in prices is possible which is caused by relative overpopulation of specific areas in Greece. And at the moment relatively low prices for real estate in Greece enable to profitably invest money. You can buy on mortgage a house, a flat, a townhouse or apartments in Greece. Minimum of documents is required for that - a passport, recommendations from any servicing bank and an income confirmation for the two months and an extract confirming your place of living.
You can get a mortgage credit just in one month. And interest rate is about 5%. Additional expenses are for taxes, a notary and a lawyer.
Short instructions on real estate purchase in Greece (for citizens who are not the members of the European Union):
Terms of payment for houses (unfinished construction):
Minimal sum of downpayment amounts to ˆ 5 000.
The rest of the sum is paid in the following way:
- 10% - at contract signing (ˆ 5000 included), - 10% - after foundation laying,
- 20% - after construction of house frame,- 30% - after erection of external and internal walls,
- 20% - after internal finishing, installation of doors and windows,
- 10% - after total finishing and end of construction.
Terms of payment for houses (finished construction):
Minimal sum of downpayment amounts to ˆ 5 000. The rest of the sum is paid depending on the stage of construction completion.
Lump-sum expenses include:
Fee of a notary amounts to 1% of cadastral values of real estate in case if the cost does not exceed ˆ44020. If it exceeds this sum then an additional 0.5% of the sum exceeding ˆ 44020 is paid.
Services on actual and legal search, analysis and other legal aspects of the bargain depending on its specific characteristics and difficulty are approved and paid additionally.
To determine the sum of notary expenses a complicated calculation is required though on the whole they amount to approximately 1% of cadastral values and in addition a fixed sum (notary fee) of ˆ 500 is paid for contract preparation.
Tax for transfer of property right amounts to approximately 9 -11 % of cadastral values though if commercial value of property exceed the cadastral value then possibly tax administration will appoint tax payment from commercial value.
If construction license is issued after 31/12/2005 then the tax for property right transfer is substituted by 19% VAT from stated and approved by tax administration value.
Municipal taxes amount to 3% of tax sum for property right transfer.
Registration in mortgage register amounts to 0.5 % of cadastral values.
For example: If cadastral values of real estate amount to ˆ 50 000 and its commercial value is ˆ 200 000 then expenses of the buyer will be as follows:
Lawyer fee (44 020 * 1%) + [(50 000 - 44 020) * 0,5%] = 470 ˆ
Documents should be translated into English or Greek and also officially attested.
In our site you can also look up additional materials on Greece, for full information on the topic: How to buy real estate (a house, a flat, an apartment, a land plot) in Greece. You can also buy real estate (a house, a flat, an apartment, a land plot) in Greece having chosen an appropriate proposal in our site in the section Real estate in Greece.