How to Buy A House In Greece?

12 minutes read

To buy a house in Greece, here are some guidelines and steps you can follow:

  1. Research: Begin by familiarizing yourself with the Greek property market. Understand the current market trends, areas of interest, and property prices to get an idea of what you can expect.
  2. Engage professionals: It is recommended to hire a real estate agent who specializes in Greek properties. They can help you navigate the market, identify suitable properties, negotiate on your behalf, and assist with legal procedures.
  3. Budget: Determine your budget and secure your finances before starting the house hunting process. Consider factors such as property price, taxes, legal fees, and any additional costs for renovation or maintenance.
  4. Property selection: Work closely with your real estate agent to identify properties that meet your requirements. Consider the location, amenities, transportation, and future development plans in the area. Take time to visit potential properties to assess their condition.
  5. Legal assistance: Engage a lawyer who specializes in Greek property law to handle the legal aspects of buying a house. They will conduct the necessary searches, verify property ownership, and ensure all legal obligations are met.
  6. Preliminary contract: Once you have found a suitable property, a preliminary contract (known as a "Compromise Agreement") is drawn up between the buyer and seller. This contract outlines the sale conditions, deposit, and completion date.
  7. Due diligence: Conduct a thorough inspection of the property. Check for any structural issues, including the presence of necessary permits, compliance with building regulations, and potential liabilities.
  8. Financing: Explore mortgage options if required. Contact Greek banks or international lenders to assess their terms and conditions for non-residents.
  9. Final contract: Upon completing all necessary checks, sign the final purchase contract, commonly known as the "Deed of Sale." This contract specifies the agreed-upon purchase price, terms, and payment method. It must be signed before a public notary.
  10. Payment and taxes: Transfer the funds to the seller's bank account as per the agreed terms and pay the applicable taxes and fees. Ensure you have obtained the necessary tax identification number and opened a Greek bank account for future payments.
  11. Registration: File the final contract with the Greek Land Registry to officially register as the property's new owner and pay the required registration fees. Your lawyer can handle this process.
  12. Ongoing responsibilities: After buying the house, be prepared for ongoing expenses such as property taxes, maintenance costs, utilities, and insurance. Stay updated with legal and tax obligations as a property owner in Greece.

Remember, the above steps serve as a general guide, and it is advisable to seek professional advice from real estate experts and legal professionals throughout the buying process.

How to determine your budget when buying a house in Greece?

Determining your budget when buying a house in Greece involves several factors that you need to consider. Here are some steps to help you determine your budget:

  1. Assess your finances: Take a thorough look at your financial situation, including your income, savings, and current debt obligations. Analyze your monthly income and expenses to figure out the amount you can comfortably allocate towards housing expenses.
  2. Determine your down payment: In Greece, a 20-30% down payment is generally required when buying a house. Calculate this amount based on the price range you are targeting and prepare accordingly. Keep in mind that having a higher down payment can lower your monthly mortgage payments.
  3. Consider additional costs: Aside from the down payment, there are other costs associated with buying a house in Greece. These may include legal fees, taxes, notary fees, property assessment fees, and agent fees. Research and estimate these costs to get a realistic idea of the additional expenses.
  4. Get pre-approved for a mortgage: Contact banks or lenders to get pre-approved for a mortgage. This will provide you with a clearer understanding of the loan amount you qualify for, which will help you determine your budget more precisely.
  5. Set a realistic budget: Evaluate the information you have gathered, considering your monthly income, savings, down payment, and pre-approved mortgage. Based on these factors, establish a realistic budget that you can comfortably afford without stretching your finances too thin. Remember to account for living expenses, maintenance costs, and potential future financial changes.
  6. Research property prices: Conduct thorough research on property prices in the locations you are interested in. Look at real estate listings, consult local real estate agents, and compare prices to ensure your budget aligns with the current market rates.
  7. Seek professional advice: Consider consulting with a financial advisor or a real estate professional familiar with the Greek housing market. They can provide valuable guidance to help you make an informed decision and determine a suitable budget for buying a house in Greece.
  8. Flexibility: Be prepared to adjust your budget based on market conditions and availability. It is important to have some flexibility to accommodate potential changes or unexpected costs that may arise during the buying process.

Remember that finding the right house within your budget is crucial for a stress-free home-buying experience.

How to complete the final transaction when buying a house in Greece?

Completing the final transaction when buying a house in Greece generally involves several steps. Here is a step-by-step guide to help you through the process:

  1. Hire a Greek lawyer: It is advisable to hire a Greek lawyer to guide you through the entire process, especially during the final transaction. They will ensure that all legal requirements are met and protect your interests.
  2. Conduct a final property inspection: Prior to completing the transaction, it is important to conduct a final inspection of the property to ensure that it is in the agreed-upon condition.
  3. Obtain necessary documentation: Gather all the necessary documents required for the final transaction, including the property title deed, building permits, tax certificates, energy performance certificates, and any other relevant paperwork.
  4. Coordinate with the notary: The notary public plays a crucial role in the final transaction. Coordinate with them and provide all the required documentation. They will review the paperwork, verify its authenticity, and prepare the final contract.
  5. Sign the final contract: Once the notary has prepared the final contract, both the buyer and seller need to sign it in the presence of the notary. This contract outlines the terms and conditions of the sale, purchase price, payment details, and any other legal agreements.
  6. Pay property transfer tax: As the buyer, you are responsible for paying the property transfer tax in Greece. The tax amount is determined based on the property value and is typically paid to the tax office before the final transaction is completed.
  7. Secure funding: If you require financing to complete the purchase, ensure that all necessary loan agreements are finalized, and funds are secured before the final transaction.
  8. Transfer ownership: After signing the final contract and paying the property transfer tax, the notary will register the transfer of ownership with the relevant Land Registry Office. This step officially transfers the property from the seller to the buyer.
  9. Pay the final payment: Coordinate with your lawyer and the seller's representative to arrange the final payment. Ensure that all financial transactions are conducted in a secure and transparent manner.
  10. Obtain the property title deed: Once the ownership transfer is registered, you can request the property's new title deed from the Land Registry Office. This official document serves as proof of your ownership.
  11. Update utility contracts: After completing the final transaction, update the utility contracts (electricity, water, etc.) by transferring them to your name and arranging for future bill payments.

Remember, it is crucial to work closely with a reputable Greek lawyer who specializes in real estate to ensure a smooth and legally compliant final transaction when buying a house in Greece.

How to ensure the property has all necessary permits and certificates in Greece?

To ensure that a property in Greece has all the necessary permits and certificates, follow these steps:

  1. Preliminary Research: Before purchasing a property, conduct preliminary research to understand the specific permits and certificates required in the specific location or municipality. These can vary depending on factors such as property type, location, age, and intended use.
  2. Seek Legal Assistance: Engage a lawyer or a legal professional who specializes in Greek property law. They will guide you through the process, ensure compliance with local regulations, and assist in securing all necessary permits and certifications.
  3. Obtain Title Deeds: Verify the property's ownership by obtaining official title deeds (in Greek, "dSYMEdqTES").
  4. Conduct Due Diligence: Undertake thorough due diligence on the property by obtaining a Legal Technical Report ("KTIMATOLOGIO") from the local Land Registry Office. This report outlines important property details, legal status, any existing mortgages, and potential disputes or restrictions.
  5. Check Building Permits: Ensure that the property has all the necessary building permits ("ΑΔΕΙΑ ΚΤΙΡΙΑΣ") and Planning Permission ("ΠΡΟΟΡΙΣΜΟΣ ΧΩΡΟΥ") from the municipality. These documents confirm that the property's construction adheres to local building regulations.
  6. Confirm Usage Permits: Depending on the property type, such as residential, commercial, or tourist accommodation, verify that the necessary usage permits and certificates are in place. For example, a hotel or short-term rental property may require an EOT (Greek National Tourism Organization) license.
  7. Validate Energy Performance Certificate: Ensure that the property has an Energy Performance Certificate ("ΠΙΣΤΟΠΟΙΗΤΙΚΟ ΕΝΕΡΓΕΙΑΚΗΣ ΑΠΟΔΟΣΗΣ"). This certificate rates the property's energy efficiency and is required for all properties being sold or rented in Greece.
  8. Research Zoning Laws: Confirm that the property adheres to local zoning regulations ("ΝΟΜΟΘΕΣΙΑ ΧΩΡΟΤΑΞΙΚΩΝ ΔΙΑΤΑΞΕΩΝ"). This ensures that the property's intended use aligns with the area's zoning classification.
  9. Adhere to Environmental Regulations: Determine if the property is subject to any specific environmental regulations or permits, particularly if it is near protected natural areas or archaeological sites.
  10. Collaborate with Professionals: Throughout the process, it is advisable to work alongside professionals such as architects, engineers, or surveyors who possess local knowledge and experience in navigating the Greek property regulations.

Remember, it is essential to consult with legal experts to ensure compliance with the specific laws and regulations of the municipality or prefecture where the property is located.

What is the role of a real estate lawyer when buying a house in Greece?

A real estate lawyer plays a crucial role when buying a house in Greece. Some key responsibilities include:

  1. Due diligence and property research: The lawyer thoroughly examines the property to ensure its legitimacy and legality. This involves verifying property ownership, checking for any liens, mortgages, or encumbrances, assessing the property's legal and zoning status, and confirming its conformity with building regulations.
  2. Contract review and negotiation: The lawyer reviews all legal documents related to the property purchase, including the purchase agreement, contract terms, and conditions. They ensure that the agreement is fair, legal, and protects the buyer's interests. If necessary, they negotiate on behalf of the buyer for any amendments or additional clauses.
  3. Legal advice: A real estate lawyer provides legal advice to the buyer regarding the purchasing process, potential risks, and implications. They offer guidance on any legal obligations, tax concerns, or restrictions on foreign buyers in Greece.
  4. Document preparation and registration: The lawyer assists in preparing and completing all necessary documents for the property transfer. This includes drafting the purchase agreement, preparing or reviewing the deed of sale, and ensuring proper registration with the local land registry office.
  5. Escrow arrangements: In some cases, the lawyer may assist in setting up escrow arrangements to ensure a secure transaction. This involves holding funds in a designated escrow account until all required conditions are met, providing financial protection to both parties involved.
  6. Title search and verification: The lawyer conducts a title search to verify the property's legal ownership, ensuring that there are no disputes or discrepancies that could affect the buyer's rights to the property.
  7. Tax implications and advice: Real estate lawyers provide guidance on tax obligations related to the property purchase, including VAT, property transfer tax, and any tax incentives or exemptions applicable to the buyer.
  8. Representation at closing: Finally, the lawyer represents the buyer at the closing process to ensure a smooth transaction. They review the final settlement statement, accompany the buyer during the signing of documents, and oversee the distribution of funds.

Engaging a real estate lawyer is highly recommended when buying property in Greece to ensure legal compliance, protect your interests, and mitigate potential risks associated with the transaction.

What is the significance of the cadastral survey in Greece?

The cadastral survey in Greece holds great significance for several reasons:

  1. Land Ownership Rights: The cadastral survey is conducted to establish and record legally recognized land ownership rights. It helps in clearly defining boundaries, determining property sizes, and establishing ownership claims. This is crucial for property transactions, legal disputes, and protection of property rights.
  2. Property Taxation: The cadastral survey plays a vital role in the assessment and collection of property taxes. Accurate and up-to-date cadastral data helps determine the tax value of properties, ensuring a fair and efficient tax system.
  3. Urban Development and Planning: The cadastral survey provides essential information for urban development and planning initiatives. It helps in identifying available land for infrastructure development, housing projects, commercial zones, etc. Accurate cadastral data enables effective urban planning and growth management.
  4. Spatial Planning and Land Use Policies: Cadastral surveys contribute to the formulation and implementation of spatial planning policies. They provide valuable data on land use, land suitability, and land availability for various purposes such as agriculture, conservation, tourism, or industrial development.
  5. Economic Development and Investments: A reliable cadastral system is crucial for attracting investments and promoting economic development. Investors require accurate land information to assess the feasibility of projects, secure property rights, and make informed decisions regarding potential investments.
  6. Administrative Efficiency: The cadastral survey helps streamline administrative processes related to land management. It provides a comprehensive database of land parcels, facilitating efficient land registration, transaction processing, and issuance of official documents like title deeds.

Overall, the cadastral survey serves as a fundamental framework for land administration, property rights, taxation, urban planning, and economic development in Greece. It ensures legal security, supports informed decision-making, and enables effective governance of land resources.

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