|
The process of buying property in Crete,
is relatively simple and straightforward. The first step is to find the right property. Once you settle on the property that fits your requirements and wish to proceed with the purchase, there are several steps that should be taken as part of the buying procedure, as outlined below. Here at Euroland Crete Homes we will support and assist you
through the whole process from start to finish, giving you all of the advice that you may need along the way.
Purchase agreement
Once you have decided to proceed with a property purchase, we will prepare for you a full written purchase agreement that identifies the buyer and seller and will clearly state all relevant details of your chosen property, such as location, the agreed property price plus estimates for the property transfer tax and legal fees. In addition, a deposit amount to secure the property purchase (10% of the purchase price) is specified and timescales agreed.
Appoint a Lawyer and Public Notary
An attorney must be appointed in order to represent and assist you throughout the buying process. Their responsibility includes ensuring the seller owns clear title to the land or property, carry out searches and prepare all necessary documents for the contract. Power of attorney must be signed over to the lawyer to give them the authority to legally sign for you and act on your behalf, if you don’t plan to be in Crete throughout the buying process. If required, we can introduce you to a number of independent, English speaking lawyers experienced in local property law.
Your lawyer will arrange for you to visit a public notary (a government appointed lawyer) who based on Greek property law, must be present in the signing of the contract. When all is in order, the Notary drafts the contract and is present when it is read to both buyers & sellers or their legal representatives. The Notary is there to ensure that all is understood by both parties and then the contract is signed. The Notary is also responsible for the verification and registration of the transaction in the public records, so that the buyer acquires the official title of the property.
Obtain a copy of the title deed
Your lawyer will assist with obtaining the contract deed from the vendor, which is held at the Registry of Mortgages. The lawyer is then obliged to investigate the title deed to ensure that:
- The vendor holds the absolute deed of the property
- The property is unencumbered
- There is no property tax owed by the vendor
- The property complies with planning and building permissions
If you are buying a property that has been built by Euroland Crete Homes you can rest assured that the property is 100% clear from all legal aspects, as we have already completed all necessary checks and followed legal procedures.
Open a local bank account and arrange mortgage (if applicable)
Greek banks offer a wide variety of financial services. It is advisable for the buyer to open a bank account with one of the major banks here in Crete. This can be done with the help of the buyer's lawyer. Subsequently money for the property purchase can be transferred from abroad into this bank account. You can save large amounts of money when transferring funds from another currency by using specialist currency exchange companies. We can
recommend the best companies in this field that can save you a great deal of money.
The bank will issue you with "pink slips" for funds that originate from abroad. These pink slips must be kept as they prove that the funds were transferred from abroad and not earned in Greece. The pink slips are required for the buyer's yearly tax declaration and should cover the "assessed value" of the property.
Issue a tax registry number (AFM)
A tax number must be issued for the buyer (your lawyer can obtain this on your behalf) in order to be able to proceed with any transaction. The tax registry number is applied for and issued by the Inland Revenue Service. This is required by Greek law and is needed for all owners of any assets such as a plot of land, a house or a vehicle.
Payment of taxes
Transfer taxes relating to the purchase must be paid to the local Tax office by the buyer or their lawyer prior to signing the contract. The previous tiered transfer tax has been replaced by VAT on newly constructed properties, which by law now amounts to 21%. As part of the tax is absorbed by us, we offer a guarantee to our clients that VAT will not exceed a maximum of 13%. A receipt is obtained and this, together with the remaining title and permission documents, will enable the property transfer to take place.
Signing of the contract
Only when all the necessary checks have been successfully completed by the lawyer and the Notary, can we proceed with the signing of the contract. At this stage the balance of the agreed purchase price (after deposit has been deducted) is required and the deed is transferred and registered in the name of the buyer. At this time the legal expenses are also due.
Effect transfer at the Registry of Mortgages and Land Registry
The buyer's attorney makes sure that the title is transferred to the buyer's name by obtaining the relevant certificate from the Registry of Mortgages. A copy of the title, and the certificate from the Registry of Mortgages is needed to register the property under the buyer's name at the Land registry.
Annual tax declaration
As a property owner in Greece, you will be required to complete an annual tax declaration.
We are linked with all of the major banks in Greece which can offer the best possible mortgage terms to our clients when buying property in Crete.
Fees
In addition to the purchase price of your property, you will be required to pay certain other necessary expenses. These include taxes and various legal fees.
We will advise you of these amounts in clear detail before you decide to buy a property, so that you know the full costs of buying your home in Crete.
If you have any further questions relating to property buying procedures in Greece, one of our property advisors will be glad to help.
|
