Buying a property in Messinia is one of life's most exciting experiences - and one of the most challenging. There are many facts you should know before you purchase a Greek property. It is important to note that property purchasing laws are normally very different from that of your own country. Although purchasing property in Greece is generally safe, it is wise to obtain legal and technical advice as well as following the rules provided for your protection.  People that choose to ignore such procedures often do so at a financial cost.

The Greek Messinian property market does not move as quickly as that of the property markets of Northern Europe, therefore, potential buyers are likely to see many properties that have been on the market for over a year or more. However, this does not mean that there is anything wrong with the properties that you see nor does it mean that you might be able to purchase a particular property at a bargain price. There are no chains in the buying and selling of property in Greece, as a result, property purchase is generally completed in a short period.  It can take as little as 48 hour to 2 weeks.  On the other hand, if the seller has not collected all the necessary documents for the transaction, it can take up to 3 months.

It is also advisable to have your finances in place before you view properties in Messinia. If you see a property that you wish to purchase you will be able to make an offer and consult a lawyer about the purchase procedure, thus using your time efficiently. This way you will avoid disappointment and unnecessary expense.

General Information

APPOINTING A CIVIL ENGINEER ('POLITIKOS MICHANIKOS'): It is highly advisable to go to the additional expense of employing a civil engineer to check a specific plot and to ensure the property's boundaries are within the description in a title document. If you want to build a house on the land they will check that the land is constructable and how many square metres are allowed. They can also be consulted regarding specific building restrictions in place in your chosen area. If you are buying an older home they can make sure that it is structurally sound and if you wish to make improvements to the property they can advise you accordingly. In this way you will avoid unpleasant and expensive surprises in the future.

APPOINTING A LAWYER ('DIKIGOROS'): It is essential to get an English-speaking lawyer. The British Consul's provides a list of recommended lawyers, Tel 0030 210 369 2333. Firstly, a lawyer must be present, by law, when you go to the public notary for the signing of the purchase contract. Secondly, the lawyer will undertake the task to search the property titles and find out if they are ‘clean' (i.e. Does the property belong to the man that claims to own it? Is the property free of financial and legal burdens? Is there any kind of contest? etc). If the property should have any legal problems your lawyer will be able to advise you and then you can decide whether you wish to abandon the purchase of the property or wait until the problems have been resolved by the owner.

REPRESENTATION BY PROXY: If you are unable to travel to and from Messinia for all the necessary paperwork you can sign a proxy in order for your lawyer to represent you; obtain your tax number (AFM), ensure there are no problems, and to sign the contract on your behalf.  Your lawyer can also deal with the Public Notary for you. 

PUBLIC NOTARY (SYMVOLEOGRAPHOS):  The public notary represents the government and is independent of either the seller or the purchaser. He or she draws up the contract for transfer of property and the various terms and conditions contained therein. The Notary also ensures that the state taxes are paid. He or she makes certain that purchase price is paid to the vendor, identifies the parties, witnesses the signing of the title deeds and arranges for the property to be registered in the new owner's name. If you do not speak fluent Greek an official translator must be present for the reading and signing of the contracts and a small fee will be paid by you. When this process is complete the lawyer will provide you with a copy of the deeds.  The original is placed with the land registry department making you the legal owner of the property.

OBTAINING A TAX ROLL NUMBER (A.F.M): All buyers of property in Greece must have a Greek tax roll number (A.F.M) which is issued by the tax offices. It's free of charge and issued on the spot. Greek and EU citizens must show their ID card or passport. Foreigners living in Greece are required to present their passport or another valid document of identification and their residence permit. Greek and foreigners who permanently reside abroad can also apply for an AFM. They must submit the application to a special tax office located at 18 Lykourgou St, Omonia, Athens. Your lawyer or Accountant can obtain your A.F.M on your behalf if you do not wish to do so in person.

MORTGAGES AND HOME LOANS: These are available from most banks in Greece. Greek banks are also willing to finance the building of a house, though you will need to pay for the land out of you own resources. Financial experts recommend using large reputable banks rather than small ones. If you raise a mortgage outside of Greece you should be aware of any impact this may have on your British or Greek tax liabilities. It is unwise to over-stretch your finances when taking out a mortgage, as there will inevitably be added costs for which you have not bargained.

SETTING UP A BANK ACCOUNT: All transactions are in Euros. You will also need to set up a Greek bank account to pay for your legal advice, transfer money and pay bills. There are foreign exchange brokers that can transfer large amounts to Greece according to the business rate. Payment of utility bills can be set up very easily by direct debit via the bank, and money can be transferred online. To open a bank account you will need your passport and a utility bill with your address on it. The Leki Bank is connected to the HSBC and accounts may be opened in the UK.

THE "PINK SLIP": The all important ‘pink slip' for wire transfers of money from abroad. When you import funds of over €10,000 (in any currency) into Greece it must be declared to the tax authorities. To buy a property, you should transfer the money to a Greek bank who will issue the corresponding ‘exchange certificate', or ‘pink slip'. You should present this certificate with your first tax return otherwise you may be liable for income tax on the imported funds.

DEPOSITS: When you have found the right property and you have decided to buy it, it is normal to pay a deposit of 10 - 20 % of the agreed purchase price. This seals the contact between the seller and buyer. The seller will take the property off the market and provide your lawyer with the necessary paperwork to start work.

If the seller pulls out (which is unlikely) he must return the money plus the same amount again. If the buyer pulls out the deposit is forfeit. However, if previously unknown problems are revealed the deposit will automatically be return.

THE COST OF BUYING PROPERTY IN GREECE: When buying a property in Greece add approximately 15 per cent of the purchase price for fees and taxes. Purchase tax is based on the declared price. In Greece there are two prices for property: the declared price or objective government price (OGP) and the actual buying price (ABP). In city the OGP is based on official valuation rates according to the location, quality, size, construction and amenities. For rural properties, the OGP is assessed by the local tax office and is based on tables issued by the Ministry of Finance. The OGP amounts to around two-thirds of the ABP. The property taxes are paid by the buyer (9% for the first €15,000 of the property value and 11% for the remaining value), before the signing of the final contract. Lawyers fees 1-2% of the OGP. Other expenses include approximately 1% for notary fees and land registry also of the OGP. Union fees 1% of the taxable price of the property up to €44,000 and then 0.5% on the remaining taxable property price. Local municipal tax or community tax is currently calculated at 3% of the property purchase tax and is paid together with the property purchase tax.

To the above cost of purchasing your property you should make an allowance for either buying furniture or appliances in Greece or transporting your furniture and household effects from the UK.

REAL ESTATE AGENT: The Real Estate Agent's fees are usually paid by the seller and the buyer.  The exact amount of commission is a matter between the agent and the client. All expenses for the conclusion of the final contract, including the tax on property transfer will be borne by the buyer. Each party will pay the fees of their legal representative who must be present at the signing of the contract; this is required by Greek Law.

FURTHER READING

Buying a home in Greece by Joanna Styles

Going to live in Greece: Your practical guide to living and working in Greece.