Guide to Buying Property in Greece
The Greek Property Market
Perhaps it was the attention drawn to Greece when the Olympic Games were held
there in 2004. Perhaps it was the entry of Greece into the European Union. No matter
what the primary reason, Greece has begun to attract an ever growing number of foreign
nationals who are investing in real estate in that country since the turn of the
century. Indeed, to utilize an overused term -- when it comes to real estate, Greece
is hot.
The greatest deal of real estate activity in Greece involves property that is used
for vacation or holiday purposes. In point of fact, some of the fastest moving real
estate markets in all of Europe are those that are located in Grecian resort communities.
Literally thousands of people from a wide range of different countries can be found
snatching up real estate in one or another of the various Grecian resort areas.
Foreign nationals have also invested heavily in commercial
properties in Greece, particularly in the larger cities in the country.
This includes investment in properties that house retail operations and enterprises
as well as office buildings. The demand for office space within Greece -- again,
particularly in the major cities -- has increased dramatically since Greece became
a part of the European Union.
Investment Property in Greece
Again, in the aftermath of the Olympic Games, many real estate analysts maintain
that the country -- particularly in and around Athens -- has been overbuilt, at
least to some degree. This is a natural result in the aftermath of the Olympic Games
and other large scale events such as the World's Fair.
In any event, this renders Greece an ideal locale for investment in real estate
of all sorts -- industrial, commercial, residential, holiday property. This factor,
coupled with Greece's admission into the EU, renders it a prime spot for realty
investment. A significant number of foreign nationals have been attracted to the
profitable Grecian real estate market at the present time.
Residential Real Estate in Greece - Single Family Properties
Low cost single family dwellings are rather difficult to find in the Athens metro-plex.
If a person is interested in residential housing in that part of the country, the
best bet at this point in time is apartments (which will be discussed in more detail
shortly).
Understanding the functionality of the Athens residential market, there are a number
of different areas beyond Athens in which single family residences can be purchased
for a reasonable amount of money.
In addition, in different resort areas around the country there are some splendid
(and pricy) villas and other properties that are attractive to well heeled foreign
nationals who want second homes and holiday properties. With little difficulty on
the hunt, a person with a bankroll to spend, can locate and purchase these types
of homes.
Finally, there are farmsteads in different parts of Greece that are on the market.
Some foreign nationals have taken to purchasing these types of properties which
they then renovate and turn into magnificent second or holiday homes. Oftentimes,
these properties can be purchased on the cheap and improved with only a moderate
investment and expenditure. There are some foreign nationals who have taken to buying
and then improving these properties after which they put them on the market and
turn a tidy profit.
Apartments in Greece
With the return of the Olympic Games to Greece, there was a boom in the number of
apartments that were being constructed in that country, particularly in and around
Athens -- the site of the games. Once the games concluded, there was a general consensus
that developers had overbuilt apartments
in Greece, again particularly in and around the capital city.
With this said and understood the apartment market in Greece (most especially in
and around Athens) truly has become one that favours buyers at this point in time.
Consequently, many foreign investors have been active in purchasing
property for sale in Greece. Many such foreign property buyers have realized
outstanding deals in the apartment market in Athens and in surrounding communities
at the present time.
Holiday Property in Greece
As has been mentioned previously, the vacation or holiday real estate market in Greece
is "hot." Indeed, the demand for vacation real estate has continued to increase
each and every year since the turn of the century.
The country of Greece is dotted with some of the most extraordinary resort, vacation
and holiday destinations to be found anywhere in the world. Tourists from around
the globe can be found flocking to Greece each and every year.
An ever growing number of foreign nationals have turned to purchasing vacation or
holiday properties in different locations around Greece for two primary reasons.
First of all, and as was noted, Greece is a very popular travel and tourist destination.
Thus, many of these people are making the purchase of this type of real estate for
their own, personal purposes. Through the ownership of this type of real estate,
people -- including extended families -- can enjoy extended holidays in Greece.
In addition to purchasing holiday properties for their own usage, some farsighted
individuals are purchasing villas in
greece so that they can then, in turn, rent or lease these properties to
other individuals. Because of the large number of people who travel to Greece each
and every year, this type of property investment is proving to be very profitable
for a significant number of foreign nationals.
Specific steps to buying real estate property in Greece
On many levels, buying property in Greece
-- particularly if you are a foreign national -- can be a rather complicated and
sometimes confusing process. However, by understanding the process up front, and
by understanding the various requirements and regulations that apply to foreign
nationals seeking to buy real estate in Greece,
a foreign citizen can successfully acquire property in Greece.
As a general rule, a foreign national actually can purchase real estate in most
locations in Greece. However,
a foreign national who is not from a European Union nation must obtain the prior
approval from the local prefecture in certain areas in Greece: some regions of northern
Greece, Rhodes and Crete.
Many real estate agents aid foreign nationals in obtaining the necessary permission
in these areas. Obtaining this permission from a local prefecture generally does
not take a great deal of time and usually is granted without significant fuss.
Before anyone -- a citizen of Greece, the EU or another foreign national -- can
purchase real estate in Greece, that person must first obtain a tax role number,
known in Greece as AFM. This number is easy to get and can be obtained at any tax
office in the country. The tax number can be obtained from these offices on the
sport. Citizens of Greece or another EU nation need only show their government issued
ID card. Citizens of other countries must show a passport to obtain the AFM.
Grecian authorities are very concerned about where a foreign national is obtaining
money to purchase property in Greece.
As a consequence, a person from another country interested in buying property in
Greece will need to obtain what is known as a "pink slip" for wire transfers of
money from abroad. The purchaser has to be able to demonstrate where the money is
coming from and if he or she cannot, Grecian governmental authorities will consider
any money wired into the country as income and will tax it accordingly.
In addition, money to purchase real
estate in Greece must come directly from a Grecian bank and bank account.
Therefore, before a person can actually make a purchase of real
property in Greece, he or she will need to open a bank account. Provided
that a person has proper documentation, and provided that a person has the pink
slip to demonstrate the origin of the money involved, it is not difficult to open
a bank account in Greece.
A public notary -- who is an independent official -- oversees the real estate purchase
process. Once an offer is made on the property, a preliminary contract is drafted.
A deposit of up to about 10% is placed on the property at the time this agreement
is executed. (The deposit is not refundable unless the seller somehow disrupts or
ends the sales process or unless clear title to the real estate cannot be had in
the time allotted under the preliminary contract.) After the buyer obtains his or
her financing, and the seller satisfies his or her own obligations under the preliminary
agreement, a final contract is signed between the parties.
With the execution of the final contract, the ownership of the property will be
conveyed legally to the buyer. The final contract is signed before the public notary.
In addition, according to Greek law, the real estate agent or agents who have been
involved in effecting the sale must be present for the signing of the final contract.
Property Abroad always recommends using a
Solicitor or Lawyer
Further information on Greece
Greece Mortgages Options
When considering the options for a
Greece mortgage on your overseas property there are a couple of choices to consider:
- Do you consider raising finance on your existing property in the UK to cover the
whole cost of your purchase abroad? A good idea if the interest rate in the country
in question is a lot higher than it is here in the UK as you will pay a lot less
in monthly repayments.
- Do you secure a mortgage against the property from a local bank in the country of
purchase? This can be a wise option especially if the interest rate is lower than
our current UK interest rate. Most overseas mortgage / bank lenders will require
upto 30% deposit on mortgages. However, you will need to give some thought to how
you will service your mortgage payments each month especially if you are not living
or earning in that country as you may well lose out on exchanging money each time
to cover monthly expenses. Check out our
Foreign Currency page to see how you can save money in this example
- Some Builders and developers may well offer their own mortgage facilities on their
properties for sale. This can be beneficial to both parties depending on the logistics
of the mortgage or loan facility. Always check and compare with the two options
above before making your final descision.
For more details on Mortgages in
Greece visit our Mortgage page in Greece section.
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