 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Buyer's Guide to purchasing Property on CreteAll EU citizens are entitled to buy property on Crete, and the procedure is well-regulated and relatively straightforward.
Separate lawyers act for vendor and buyer, and the sale is overseen and must be approved by a local public notary, a government official who ensures that the sale is legal and performed in accordance with all necessary regulations.
Your legal representation – your lawyer acts solely on your behalf, and is there primarily to search and confirm that the title deeds are clean of any outstanding debts or third party rights and the vendor is legally entitled to sell the property to you; to oversee the transfer of monies; and to change the ownership of the property into your name.
We can help you to find a lawyer but we recommend that you make an independent search for one - there are many lawyers operating in Sitia town who speak English and who are experienced in acting for foreign buyers purchasing property here. Pre-SaleIf you are planning to purchase property here, make sure you have not only your passport but also a copy of your full birth certificate with you, if possible. Your birth certificate is not always required but can be asked for, so it is useful to have.
Opening a local bank account – there are several banks in Sitia town and there will always be at least one member of staff who speaks English – you can open an account on the spot.
Obtaining a Greek tax (AFM) number – this can usually be obtained on the spot from the local tax office in Sitia town. Again, you will usually find at least one member of staff who speaks English, or we are happy to accompany you. Your lawyer can also obtain your tax number for you.
To transfer funds here from the UK, we recommend you use a specialist currency transfer service, rather than your local bank, in order to take advantage of the better exchange rates they often offer on large transfers. When you transfer monies for your purchase, make sure you keep a copy of the transfer slip which proves you brought money from outside Greece to pay for the property.
If you require a mortgage, many local banks here in Sitia will consider providing you with one. Alternatively, there are UK brokers who provide mortgages for purchasing property in Greece. See our Useful Links page for more info.
If you wish to reserve the property from the market while you make financial arrangements for the purchase, you can hold the property with a 10% deposit paid on a preliminary contract.
It is possible to give a power of attorney to your lawyer which enables them to complete the sale on your behalf. This is an option frequently used by foreign buyers who cannot remain here until, or return for, contract signatures. |
Purchase Taxes & Fees PayablePurchase or Property Transfer Tax: This is a one-off tax payable on purchase. For properties in areas classified as agricultural, this is set at 7% on the first 15,000 euros, and 11% on the remainder of the amount stated on the contract of sale*.
*The amount stated on the contract of sale is NOT the actual sale price but based on the ‘assessed’ or ‘objective’ value given to the property for tax valuation purposes during conveyance, and is set considerably lower. This is standard practice wherever you purchase property in Greece and works in the buyer's favour as it considerably reduces the amount of purchase taxes & fees payable.
Municipal Tax: 3% on the total purchase tax paid.
Public Notary fees: Usually 1.5-2% of the amount stated on the contract of sale.
Lawyer’s fees: Usually 0.5-1% of the amount stated on the contract of sale. Other TaxesThere is no council tax equivalent in Crete. A very nominal amount of Public Tax is levied on each property owner via the electricity bill (which arrives every two months). Very few properties are subject to any Annual Tax. Only property with an ‘assessed’ or ‘objective’ value (see explanation above) in excess of 175,000 euros for a single owner or 350,000 euros for joint-owners, is subject to a small amount of annual property tax (currently between 0.3-0.8%), and then only on the exceeded amount. Capital Gains Tax has been introduced since Jan 2006. It is only imposed on the difference between the acquisition cost of the property and its sale price, at the following rates: 0-5 years, 20% ; 5-15 years, 10% ; 15-25 years, 5% ; 25+ years, 0%. Post-SaleTransferring utilities into your name – This can be done on the spot at the local town offices – again, we can help you. You can also arrange to have your utility bills paid direct from your local bank account.
Managing your annual tax return - although very few properties are subject to any annual tax (see above), all property owners must go through the formality of completing a tax return every year. Your bank transfer slips are necessary for your first tax return, as they prove that you did not make your property purchase using income earned in Greece (which would then be viewed as taxable). We can help you find an English-speaking local accountant to manage your annual return for you.
Disclaimer: All the above information is currently correct to the best of our knowledge and own experience of buying property in Crete. We are not conveyance experts. Prior to any purchase please obtain independent legal advice and have verified the information provided on our site. |
|
Copyright © 2007 Crete Select Property Sitia. |
