Top 10 Tips for Buying a Home in Greece

Buying a house anywhere can be a daunting task but particularly so in a country like Greece where laws constantly change and the economy experiences large swings.

Sotheby’s has put together a list of Q and A’s for those interested in getting a place under the Greek sun, providing some basic information on what buyers need to be aware of. 

We have picked the top ten points from the list to help buyers make decisions with more confidence. The full list from Sotheby’s can be seen here. 

1. Do I need a lawyer/solicitor to buy a property in Greece?

No, not anymore as a legal requirement. However it is highly advisable as solicitors carry out legal due diligence and conduct a property title check going back over 20 years; they ensure the property is free of any mortgage notes, claims, expropriations, rights-of-way, and, in general, any legal encumbrances. In addition, solicitors ensure that all property taxes burdening the vendor have been paid.

2. Do I need a notary to buy a property in Greece?

Yes. A notary public is a government-appointed lawyer who processes and certifies all real estate transactions, including drawing up and reviewing all official documents, to ensure the legal transfer of the property.

3. Do I need an accountant when buying a property in Greece?

Yes. It is essential to hire an accountant early on to help you with tax returns and explain property taxation.

4. Do I need a land surveyor when buying a property in Greece?

Yes. Property Surveyors ensure that all acts associated with the building licensing of the property are based on lawful planning permissions. They are usually outsourced by the appointed Greek Law Firm.

5. Do I need a Tax Registry Number (AFM) in order to buy a property in Greece?

Yes. This tax number (AFM) is mandatory for all property buyers, including foreigners and permanent residents abroad. It is issued on the spot at tax offices, free of charge.

6. What is a property’s Tax Assessed Value?

The Tax Assessed Value is the estimated monetary value of a property according to the Greek tax authorities. As a general rule, a property’s Tax Assessed value is significantly lower than its purchase price. The property’s tax assessed value bears no relation to taxes paid. Transfer taxes are paid on the purchase price.

7. Do I need a Greek bank account?

It is not necessary but it is convenient. All Greek banks have very efficient web banking systems in the English language.

8. Can you walk me through the buying process?

The process is fairly quick and uncomplicated. As a general rule, you must: – Appoint a Greek Lawyer (Your Greek lawyer will outsource the Notary Public and the Surveyor) – Sign a Letter of Intent which outlines the deal in principle and allows sufficient time for the purchase due diligence to take place, usually between 2 to 4 weeks. – Sign the pre-contract detailing terms of sale and payment schedule or the Final Notarial Purchase Contract.

9. How much are closing costs?

Closing costs, including all fees and taxes, are an estimated 10% on top of the purchase price.

10. Do I have to file tax returns in Greece once I’ve become a property owner?

Yes. The Greek state has mandated that all property ownership in Greece must be declared by filling out a form called E9 and submitting it to the Greek Tax Authorities. This is mandatory for every property owner in Greece, even for those who live abroad and have never filed tax returns in Greece or do not have an income in Greece. It will be taken care of by your Greek accountant or your Greek lawyer.

This article was first published here. 

For more Real Estate News & Views on Greece and Europe’s South, head to The Greek Guru.

*Image courtesy of Sotheby’s 

Housing Prices Set to Keep Rising in Greece

Housing prices in Greece are expected to rise by more than 3.5 percent this year boosted by the country’s recovering economy and limited supply levels, senior bank officials tell GreekGuru.net. 

Momentum has been building up in the Greek real estate market where prices kept rising last year, despite the country’s severe recession brought on by the pandemic. The trend is in line with strong property markets seen in others parts of Europe and the world, where concerns about the emergence of bubble markets in some countries are rising.

In Greece, the economy this year is seen rebounding by 3.6 percent, according to Greek government forecasts that are widely expected to be soon revised higher. Many economists have projected a GDP growth figure of between 4-5 percent for 2021.

Improved economic conditions are helping boost confidence among property investors amidst increased lending from banks. In some parts of Greece, particularly in areas popular with foreign buyers, house prices have already shot up by 26 percent, though real estate brokers report few deals being signed and sealed.  

“We see residential housing rising roughly in line with nominal GDP,” said one senior bank official.

“On our books, we have penciled price growth of 3.5 percent for the whole of 2021 though we realize this number is conservative,” the official added.

Looking further ahead, house prices are seen climbing by about 4.5 percent in 2022, another official said.

“This of course relies on how the pandemic goes though again we see prices rising. Demand has proved to be resilient,” the official added.

On the downside, low wage growth and weak labor market conditions are keeping a lid on demand, experts say.

Other factors that could also weigh on prices are that homes repossessed by banks as a result of the country’s ten-year economic crisis will start coming onto the market, creating downward price pressure. 

Later this month, forced property auctions held by banks will resume after a break brought on by the pandemic. Some 2,500 auctions are expected to be held by the end of the year.

This article was first published here. 

For more Real Estate News & Views on Greece and Europe’s South, head to The Greek Guru.

*Image courtesy of Sotheby’s International   

Expert Views: Where’s Athens Real Estate at Now?

Since he took a deep dive into the real estate world in 2003, working as a manager for what was at the time Greece’s biggest online network, Spitogatos.gr, Theodore Syrogiannopoulos changed course for a few years working with a major global business that bought and refurbished incredible homes and spaces worldwide.

Soon after he took the role of Sales Manager at the biggest portal of real estate in Greece before deciding to run his own agency, We Properties. Here he offers IN+SIGHTS GREECE a past-present-future perspective on real estate in Athens, sharing his know-how for the ultimate rental/buying experiences in the Greek capital.

During your almost two decades of working in Greek real estate, what are the major changes that you’ve seen happen?

First were the 2004 Olympic Games. That period the pushed prices up. Then was the announcement of the VAT on new building permits and the madness of the banks that were very generously giving mortgages out. All that came to a screeching halt with the arrival of the Greek financial crisis.

Insights Greece - Expert Views: Where’s Athens Real Estate at Now?

In 2015 things became chaotic, everyone seemed to be involved in real estate. I had a client who was working at a hospital as a nurse and at that time was running 38 properties! Of course, he then quit his job at the hospital. Also, one out of three phone calls for rentals was for Airbnb’s so you can imagine how this demand pushed up the prices.

Within the period of 12 months, in some areas, the prices almost doubled. Koukaki is a good example of this phenomenon. It’s one of my favourite neighbourhoods and was mostly an area filled with students and youths but now it is a big ‘hotel’. And all the students moved to other, more affordable neighbourhoods like Kipseli.

We witnessed some good changes too. Parts of Athens’ centre that was once neglected or abandoned have had new life breathed into them. Buildings that stood empty and neglected for years have now been renovated. Cool new cafes and restaurants, supermarkets and stores have popped up.

To what degree did the Gold Visa phenomenon from foreign buyers shopping Greek real estate impact the market?

It was around 2015 when a lot of foreigner investors flooded to Athens, buying houses and buildings. Most transactions in parts of the city’s centre were actually from foreigners. Some of them through the Golden Visa program and some for investments – lots were from Chinese and some good deals were also made from Israeli investors. In previous years, because of the Greek financial crisis, the market had gone down. New taxation on properties and lots of bad tenants had pressured owners to sell their properties so the prices had tumbled. From there emerged many new opportunities that are still being enjoyed now.

Since the early spring of 2020, lockdown and Covid-affected life have become a global reality… that means spending a lot more time at home. In Athens, what kind of properties are people interested in purchasing right now? 

Insights Greece - Expert Views: Where’s Athens Real Estate at Now?

Today, people are looking for bigger houses that are renovated or in great condition. More people want to have a garden, a big veranda or a rooftop as they are spending more time at home. Also, more people want to find homes with an extra room to be used as an office. Previously, Greeks would famously spend most of their free time outdoors going to restaurants, bars, theatres, and so on, while now with the “new” and “indefinite” situation, buyers and renters need more comforts in the place where they spend most of their day.

Along the same lines, more people are looking to move to areas where there is a park close by, greenery, or seaside suburbs so they can enjoy the scenery when they head outside.

What would be your number one tip for people looking to buy or rent in Athens?

Around the Acropolis and Koukaki areas, you can now find more properties on the market, whereas for several years everything had become an Airbnb. Owners now want to rent their properties out on a long-term basis and a big advantage is that most of them have been renovated in recent years.

I would also advise you to not be afraid to make an offer on a property you have your eye on, even if it’s lower than the asking price. With the right chemistry, you might be surprised to find there may be flexibility available and you can purchase the property of your choice.

Cover image @propertyinathens