Advantages of buying real estate in Greece: how to choose and formalize the deal?

General description

The other day Greece made an important announcement that there will no longer be entry restrictions for foreign tourists, including Russians. Travelers can now safely visit this attractive country without having to undergo quarantine measures. To enter, it is enough to have a negative PCR test for coronavirus, which must be done no later than 72 hours before departure. An alternative to this is a certificate in English confirming vaccination or illness.

Also, all travelers will have to fill out a special passenger form (PLF), which must be sent through the official Greek website before travel. An increase in the number of flights between Greece and Russia is also expected soon.

Interest in real estate

With all these innovations, Greece is ready to restore the level of interest in real estate among foreign buyers, among whom Russians and citizens of the former CIS countries occupy a special place. During the pandemic and to this day it is still possible to buy homes remotely, but many potential buyers prefer to visit the country in person to formalize transactions.

Advantages of buying real estate

One of the main advantages of buying real estate in Greece is the program“golden visa”Greece is a country that allows foreigners to obtain a residence permit if they invest a certain amount of money in real estate. Although in some European countries the investment requirements can be quite high, Greece offers more democratic conditions with a minimum amount of250,000 eurosThis makes it attractive to foreign investors.

Moreover, real estate prices in Greece are still noticeably lower than in other European Union countries.

Factors of choosing a real estate object

There are many aspects to consider when choosing a property:

• Requirements Definition:It is important to accurately outline the requirements and expectations of your future home.
• Working with realtors:Realtors can suggest the most suitable options based on predetermined criteria.
• Logistics:It is necessary to assess how convenient it will be to get to the chosen location, especially if the accommodation is on one of the many Greek islands.

Operating costs

When buying a house, you should also take into account that maintenance costs can vary considerably and it is not uncommon that they can exceed the costs of maintaining an apartment. This is an aspect that should be taken into account when budgeting for the maintenance of your newly acquired property.

Signing a preliminary contract

In addition, it is necessary to realize that signing a preliminary contract takes an important place in the buying process. It is necessary to carefully study all the conditions to avoid possible problems in the future. By booking an object, the buyer can be sure of its availability.

The final stage includes all the necessary formalities and registration, ensuring that the buyer is fully compliant with legal regulations.

Conclusion

Thus, Greece creates favorable conditions for all those wishing to invest in their future life, thanks to an affordable and easy shopping process, as well as providing excellent living conditions in this picturesque and environmentally friendly country.

Infrastructure analysis

One of the key points when buying real estate is to carefully analyze the infrastructure in the area you are interested in. It is important to understand what social facilities are located in the immediate vicinity. If you are planning to buy a home for a family with children, it is critical to pay attention to the location of educational institutions such as schools and kindergartens.

If you are considering a facility for a student, however, you need to find out how close the universities they are going to enroll in are and how they will be able to get to the institution.

Services for the elderly

If seniors will be living in the apartment or house, it's worth exploring:

• Ability to access health care facilities;
• noise level in the evening (this is essential for large cities and popular tourist destinations);
• availability of stores within walking distance.

All these aspects may be unique to each case. It is therefore advisable to refer toexperienced realtorswho know the real estate market in Greece at a high level.

Transaction process

How does the transaction process work? First, the object you are interested in is reserved. Once the buyer finds a suitable property, the transaction begins. At the reservation stage, the sum insured is transferred to the developer or the current owner (in the case of buying a secondary home), and then a deposit receipt is signed. Typically, the preliminary deposit is5-10%of the transaction amount. Then the process of preparing the preliminary contract begins.

Legal review

The subject is exposeddue diligencewhich is carried out by a qualified lawyer. The specialist contacts the cadastral archive of the region to find out a few critical points:

• whether the seller is entitled to the property;
• whether there is legal cleanliness of the object (for example, whether there are encumbrances, court proceedings, arrests and so on).

At the end of the inspection, the lawyer provides the buyer with a document with a certified report.

Signing a preliminary contract

Once the due diligence has been successfully completed, it is crucial to sign a preliminary contract between the buyer and the seller. This document specifies:

• object price;
• payment terms;
• possible sanctions in case of refusal to sign the final notarized contract of sale.

The contract shall be drawn up in two languages. Based on this preliminary agreement, the buyer can make a bank transfer to pay for the property.

Conclusion of the deal

This stage is key to ensuring a safe and legal transaction. It should be remembered that the home buying process can be quite complex and requires careful attention.Consultation with experienced professionalswill help you avoid mistakes and avoid reaching financial losses.

Closing the deal is just the tip of the iceberg, it is important to consider many nuances that can significantly affect the final outcome of the transaction.

Geographical aspects when buying real estate in Greece

In the process of purchasing real estate in Greece, specific geographical conditions are key aspects. First of all, you should realize that some regions of the country have their own unique requirements and features.

Border areas

This applies in particular to border areas such as:

• Dodecanese
• Evros
• Thespotias
• Kastoria
• Kilkis
• Lesbos
• Xanthi
• Rodopi
• Preveza
• Samos
• Chios
• Florina
• Neurocopi (re District Drama)
• Pogoniu and Konitsa (per Janina)
• Almopia and Edessa (pere Pella)
• Sidiki (pere Serres)
• Skyros
• Santorini

If your chosen property is located in these zones, foreigners who do not have Greek or EU citizenship will need to obtain a special permit from the Ministry of Defense of Greece. This requirement is due to the need to ensure public safety and order.

The process of obtaining a permit

To obtain this authorization, the lawyer representing the buyer must submit an application with all the necessary documents.

The costs of buying real estate in Greece can seem quite confusing, however, when you look at them in more detail, they are about 1.2% of the valuation shown in the cadastre, plus the added Value Added Tax (VAT). The preparation of the necessary documents requires the payment of notary fees, which on average costs about 500 euros. To this amount must be added the costs of drawing up the various deeds, as well as obtaining other documents and registration in the cadastral registry.

Taxes and fees

As for the transfer tax, for secondary housing it is 3% of the amount specified in the transaction. When buying new buildings, instead of the transfer tax, you will have to pay VAT, which is 24% of the price specified in the contract. In addition, there is a local tax which is equal to 3% of the transfer tax. Registration in the mortgage registry will cost 0.5% of the cadastral value of the property.

Additional expenses

It should be noted that if the contract specifies additional conditions, for example, when payment is made in installments, and payments are made only after signing a notarial deed and the official registration of ownership rights, then after the completion of settlements for obtaining a residence permit in Greece it will be necessary to prepare a deed confirming the removal of financial obligations. All these actions are also subject to registration and payment of a state fee.

Intermediaries' commissions

Intermediaries' commissions are paid according to the terms of the contract and, as a rule, do not exceed 2% of the market value of the real estate. However, they may vary depending on the complexity of the transaction and the total amount of the contract.

Example of expense calculation

For a more concrete example, we can consider the case where the market value of the apartment is 250,000 euros and all costs are being processed in full for the residence permit. In such a case, the following costs can be calculated:

• Legal services will be: (250,000 * 1.2%) = €3,000 + VAT 24% = €3,720.
• Notary costs will be: (250,000 * 1.2%) = €3,000.
• The transfer tax will be: (250,000 * 3%) = €7,500.
• The municipal tax will be: (7,500 * 3%) = 225 euros.
• Registration in the mortgage registry will amount to: (250,000 * 0.5%) + 24% (VAT) + €80 = €1,630.
• The commission of the intermediary will be: (250,000 * 2%) = 5,000 euros.

The total cost would therefore be approximately €22,415. However, it is important to realize that it cannot be considered as a percentage of the value of the property itself.

Additional services and costs

Additional costs for the services of a translator to translate necessary documentation such as contracts, as well as one-time costs for connection to the local electricity and water supply systems should also be considered. All taxes, fees, notary services and state fees are calculated based on the prices indicated in the notarial contracts, provided that they are not lower than the cadastral prices set by the tax authorities.

Conclusion

To conclude this article on buying real estate in Greece, I would like to once again emphasize the attractiveness of this process for foreign investors, especially for citizens of Russia and CIS countries. With the recent removal of entry restrictions and simplification of conditions for tourists, Greece is once again becoming accessible and promising for our compatriots.

As I noted earlier, the program“golden visa”Greece offers a unique opportunity for investors wishing to obtain a residence permit with a relatively small investment compared to other European countries. Greece with its beautiful landscapes, rich history and mild climate continues to attract many people who want to find a second home or spend part of their time here.

Key factors in selecting a facility

Creating a comfortable real estate experience is not only a matter of choosing the right property, but also the need to carefully consider individual needs. The most important factors are:

• Logistical parameters
• Financial component
• Local infrastructure

My recommendation is to always go with experienced realtors who can help simplify the process and avoid potential legal complications.

Stages of the deal

At every stage of the transaction - from the first steps to finalizing the purchase - it is worth paying attention to detail and trusting only professionals. The process may seem complicated, but with a competent approach it can bring not only financial benefits, but also peace of mind, creating ideal conditions for living or recreation.

Conclusion

Thus, the choice of Greece as a place to invest in real estate is certainly justified and reasonable. It is only important to approach this issue wisely and be ready for the new opportunities that life in this wonderful country brings.