- a) Prior Actions
- Issuing an entry Visa for Greek territory, for all family members who will issue a Permanent Residence Card.
- All family members who will issue a Permanent Residence Card must travel to Greece in person.
- Issuing a Greek Tax ID Number for the buyer. A visit to the tax authorities is required, together with the Client and his passport with a valid Visa.
- Opening a Bank Account for the Client in a Greek Bank. It usually takes one business day to open the account. The following original documents stamped by the Greek Consulate (also, recent and translated in English or Greek) are required for the buyer:
Passport with a current and valid Visa
- A document proving the residence of the client in his country (i.e. Electricity Bill)
- A document proving the Telephone number of the Client (i.e. Mobile phone statement)
- A document proving the Tax ID No. in the Client’s country and his income (i.e. Tax Declaration)
- A recent Bank Statement related to an existing account belonging to the Client; preferably, from the Bank from which the funds for the purchase will come
- A document proving the professional address of the Client (if applicable)
The Client shall also submit the Engagement Letter which describes his relationship to us, in order for the bank to accept the remittance from abroad for the Purchase Contract.
The above mentioned services, namely
A) Drafting the Invitation Letter towards the Client and his family
B) Issuance of a Greek Tax ID Number for the Client
C) Opening the Bank Account for the Client
are provided free of charge.
- b) Signing a Power of Attorney
In order for us to undertake and/or assist the Client in the whole procedure regarding the purchase of the property and the issuance of the Permanent Residence Cards for the buyer and his family, a Power of Attorney (PoA) is required. It is signed by the Client before a Notary Public and a Translator (to translate the content from Greek to the Client’s native language). It is used in order for the Client to be fully represented in Greece, on every step required; by this PoA, we are acting in the name and on behalf of the Client, without the physical presence of the Client in Greece. Through this, the Client authorizes us for the following:
- To have access to the Client’s bank account in order to deposit and withdraw money, issue checks, make and receive payments, and in general to manage the said account. We can order for a second, separate account in the Client’s name, in which all fees and costs before and after the transaction can be deposited, so as this will be used for the sole purpose of handling the fees, costs and other charges. Alternatively, the Client may authorize us to access and manage his main account in Greece, after the transaction of the property has been made.
- To submit and receive all the documents required for the pre-contractual actions (payments of taxes etc.).
- To sign the contract for and on behalf of the Client and represent the Client before any authority in Greece, including the Notary Public, which is a prerequisite under the Greek legislation.
- To submit the application towards the State Authorities for the issuance of the Permanent Residence Card.
A separate PoA must be signed for every family member who wants to acquire a Permanent Residence Card (the buyer, his/her spouse, his/her parents and his/her children, if they are above 18 yr. old. If the children are under 18 years of age, no PoA is required and their parents’ PoA’s are used).
Despite the signature of the PoA, and for security reasons, for every action taking place on behalf of the client, we require – by way of a side agreement – explicit authorization and/or consent, provided to us by e-mail.
For the above mentioned, no fees and costs are applied by our side, there are however the fees and costs related to the Notary Public (and the translator) for issuing the PoA.
Charge: € 300 for Notary fees plus €200 for translator fees
- c) Title Deeds Research
A double research on the title deeds of the building is required before signing the purchase contract, to ascertain whether the building is free of burdens (mortgage, confiscation etc.). The preliminary research is conducted in a first stage and a last check is being made the day of the signature of the contracts, to avoid any last-minute changes of the title deeds. The Title Deeds Research Fee is standard and according to the Greek Bar Association Code.
Charge: From 1% of the value of the property (for amounts up to €250.000) to 0.10% of the value of the property (for amounts above €5.000.000)
- d) Signature of the Purchase Contract
Based on the PoA, we are authorized to sign the contract in the name and on behalf of the Client. Even if the Client is present during the signature, he has to be represented by a Greek Lawyer, according to the Greek legislation. The contract is signed before a Notary Public.
State Transfer Tax: 3.09% of the value of the property (3% State Tax plus 0.09% Municipality Tax)
Notary Public Fees: 1.2% to 1.7% of the value of the property (depending on the number of contracts and the number of pages of each contract)
Bar Association Charges: From 1% of the value of the property (for amounts up to €250.000) to 0.10% of the value of the property (for amounts above €5.000.000)
- e) Recording the New Property to the Local Land Registry and the National Land Registry
The new contract/title deed needs to be registered to both the Local Land Registry (where the building is located) and the National Land Registry. Both registries issue a relevant certificate in the name of the new buyer.
Local Land Registry Fees: 0.475% of the value of the property plus 0.125% of the property’s value is imposed for the Bar Association Social Security Agency (total of 0.60% of the value of the property)
National Land Registry Fees: 0.25% of the value of the property,
plus approximately 100 Euros for the certificates (related to the pages of the contract)
- f) Collecting the necessary documentation for issuing the residence permit and submitting the application/ Reception of the Residence Permit/ Residence Permit Duration
Together with the application (in the name and on behalf of the buyer and each of his family members) the following have to be submitted:
- Three (3) recent passport photos
- Copy of Passport with a current and valid Visa for all family members who want to issue a Permanent Residence Card. Every family member must prove that has visited Greece – for that reason the relevant airplane tickets shall be kept.
- Certificate of the Local Land Registry in the name of the Client
- Notary Public statement for the validity of the contract
- Medical and hospital Insurance for the buyer and his family members in Greece; the insurance is proven by a certificate of a private Greek Insurance Company.
- Original Marriage Certificate issued by the competent authorities of the buyer’s country, in order to prove the relationship between the buyer and his/her spouse. This document must be certified and stamped by the Greek Embassy located in the buyer’s country.
- Original Family Certificate issued by the competent authorities of the buyer’s country, in order to prove the relationship between the buyer and the children and/or his parents. This document must be certified and stamped by the Greek Embassy located in the buyer’s country.
With the submission of the above documents, the authorities issue a Temporary Residence Card (so-called Blue Statement) which has the validity of the Permanent Residence Card. This Blue Statement can be used until the issuance of the Permanent Residence Card.
The Permanent Residence Card is issued after a while (15 to 45 days) in the form of a sticker that is attached to the passport of the client and each family member, or in the form of a separate card.
The passports of all family members who have filed an application for Residence Permit have to be sent to Greece, in order for the sticker to be attached thereto by the authorities before the passports or the separate cards are finally sent to the Client and any other beneficiaries (his/her spouse, his/her parents, his/her children under the age of 21).
The residence permit is valid for 5 years and is renewable for the same duration and as many times as the applicant requests, provided that the property remains in the ownership of the applicant. Please note that, for the children, the Permanent Residence Card is valid until they become 21 years old; after that they are not entitled to the residence permit.
Agent Fee: 2% on the value of the property
Private Insurance: €200 to €250 per person (depending on the Insurance Company)
Governmental Application Fees: €500 per adult
Our Fees: €500 per person
- g) Legal & Administrative handling of property rental – Property Management
We undertake the whole management of the property (Lease Contracts, Evictions of tenants, Bank Account Management etc.) after the Client’s purchase. Please take into consideration that minimum legal fees – according to the Greek Bar Association Code – amount to 100 Euros per chargeable hour (including VAT of 24%). However, an Annual Retainer can be signed with the Client, capping the fees according to the services provided. A typical Annual Retainer usually amounts to 600 Euros per year plus VAT 24%, total of 744 Euros.
- h) TAX SERVICES
As of today, taxes imposed on the real properties in Greece are:
- i) Real Estate Tax, imposed on every immovable property (land, flats, houses, commercial buildings etc.) in Greece, and calculated based on the commercial value of the property. Thus the Real Estate Tax is not calculated based on the transfer price that the buyer has paid, but on the price that the properties are deemed value, according to the Greek Ministry of Finance. Normally, the Real Estate Tax for a 250.000 Euro property can range from 1.000 to 2.000 Euros per year.
- ii) Income Tax, which is calculated based on the annual income made by renting out the property.
The Income Tax percentages are as follows:
- For rental income of up to 12.000 Euros per year, 15% of the income
- For rental income of 12.000 up to 35.000 Euros per year, 35% of the income imposed on the difference. For example, an annual income of 15.000 Euros will be taxed with 15% for the first 12.000 Euros (1.800 Euros) plus with 35% for the difference up to 15.000 (namely 15.000 – 12.000 = 3.000 Euros, taxed with 35% makes an extra 1.050 Euros of tax). Thus, the total tax paid for a 15.000 Euros annual rental income will be 2.850 Euros.
- For rental income above 35.000 Euros per year, 45% of the income imposed on the difference.
Both taxes are annual and payable through monthly installments, if necessary.
Charges: Please take into consideration that the following services are provided by our tax associates upon request and are not included in the fees and/or the aforementioned Annual Retainer:
- Drafting and submission of the E9 tax form (declaration of the immovable properties owned by an individual in Greece): 100 Euros per apartment
- Submission of lease agreements (new and amended) to the tax authorities: 100 Euros per contract
- Preparation and submission of the annual income tax declaration (E1 tax form): 150 Euros per year
- Submission of the list of leased apartments (E2 tax form): 50 Euros per year (if applicable)
- For any other tax service of any nature whatsoever, a flat fee of 50 Euros per hour is applicable
The above accountant charges do not include VAT 24%.