Buying Guide

As soon as you have found the property of your dreams, you can make an offer. Once the vendor accepts your offer, you pay a 10% deposit as a down payment. To secure this deposit you will sign a pre-contract with the vendor. This pre-contract will detail the conditions of the sale and the purchase price. The buyer will lose the deposit if he withdraws from the deal, if the vendor withdraws, he will have to pay the deposit back plus a sum equal to the deposit, as an indemnity to the buyer. The pre-contract has to be made by a Notary Public.

LAWYER

It is highly recommended to have a lawyer to handle all the legal work for you. The simplest way is to grant him/her Power of Attorney to buy any property you like in Zakynthos on your behalf. With Power of Attorney, the Lawyer can arrange all the necessary steps to purchase your chosen property on your behalf during your absence. The Power of Attorney can be cancelled at any time. The contract to grant/cancel Power of Attorney to a Lawyer has to be made by a Notary Public. From outside Greece, it can be made via the Greek Consulate in your country.

As part of the services we provide, we will introduce you to a Lawyer who is recommended by the British Embassy in Greece. Prior to Greece joining the European Union, it was not possible for foreign nationals to purchase properties in Greece . However, since joining the EU it is possible for other EU citizens to purchase property in Zakynthos. If you are an EUcitizen, you have the same rights and obligations as any Greek citizen and therefore it is possible to buy. Non EU-citizens on the other hand, should apply to the Council of the Local Prefecture, who grant permission.

TAX

You will only be required to pay annual property tax on a property if the assessed tax value is higher than 175,000 Euros or 350,000 Euros for couples.

LEGAL

It is necessary to do a legal search to ensure the property has a clean property title. A Lawyer will do this search at the Land Registry Bureau.

TECHNICAL

In addition, there is an option to ask a Civil Engineer to complete a technical survey to check the construction and condition of the property.

TOPOGRAPHICAL

It is necessary to have a topographical plan made of the property in case an updated one is absent at present. A Civil Engineer generates this topographical plan.

ENERGY

This certificate shows how much energy a property consumes, and how much carbon dioxide it emits into the atmosphere, grading the property from A to G (similar to the way in which household appliances are categorised with A the most efficient rating). The certificate is valid for 10 years. A Civil Engineer generates this certificate.

PRE-CONTRACT

It is recommended to make a pre-contract (see above). The aforementioned deposit remains in the customer account with the Lawyer until the legal search, the technical survey and the topographical plan is completed with a positive result. Only then will the deposit be given to the vendor.

CONTRACT

A Notary Public always executes the contract for the property transaction. The Notary Public calculates the officially estimated price of the property. This “officially estimated price” (the Tax value) is assessed by the tax office and is usually lower than the true purchase price. The vendor and the buyer can only sign contracts with a very low assessed tax value. Otherwise they need the signature of a Lawyer. One Lawyer signs for the buyer, another for the vendor.

LAND

Immediately after exchange of contracts, the new owner will be registered in the Land Registry Bureau. This is the definite and irrevocable proof that the buyer now owns the property.

EXPENSES

The buyer pays the purchase tax, the fee for the Notary Public and the legal fees. These are calculated on the tax value of the property. The transfer tax is charged at 3,09% of the property price.The fee for the Notary Public is about 0.8 % plus 24% VAT. Land registry fees include registrar’s rights, certificates, and stamp duty. They are calculated at 0.475-0.575 % of the sale price in the contract, plus 24 % VAT. The fee for the Notary Public is about 2.5%. The legal fee is about 1.5%. There is also a small fee to register the new owner at the Land Registry Bureau. As a guide, you can expect the total expenses cost of purchasing a property in Zakynthos to be about 7.5% on top of the purchase price.

PROPERTY-MANAGEMENT

During your absence from the property, our Property Management services can provide all your maintenance requirements ensuring they are carried out according to your specific instructions to give you peace of mind. This includes a regular inspection of your property, leaning services, gardening, paying bills and other services upon request.

BANK

It is not necessary to have a local bank account to purchase property in Greece. Normally, the money is transferred through the customer account from your Lawyer.However, once you have purchased a property it is useful to have a Bank Account and the best way is to go to a local branch, which co-operates with your local bank in your own country.

TAX

As a property owner in Greece, you will be required to complete a Tax Declaration Form at the end of each tax year, and you will have to employ an accountant to do it. This does not mean you will be required to pay tax to the Greek Government. All transfers of monies from abroad are supported by a document of Bank Transfers (“pink slip”) issued by the local bank in Greece. This pink slip acts as a receipt and is required to be shown to the tax office as proof that income was not derived in Greece.

TAX

You will only be required to pay annual property tax on a property if the assessed tax value is higher than 175,000 Euros or 350,000 Euros for couples.

LOCAL-TAX

Owners of properties are subject to a very small Public Tax which is payable with the Electricity bill. The electricity bill is issued every two months and the Tax is such a small amount it is not a significant consideration.

PROPERTY-INSURANCE

If you want to insure your property against damage, theft, fire etc you can do this through any Bank, Post Office or you can ask any local insurance company.

TESTAMENT

As a property owner in Greece, it is advisable to make a Greek will.

WATER

In most places there is mains supply and it is very easy and cheap to get water.

ELECTRICITY

If the property already has its own meter, your Lawyer can easily get the electricity (re-)connected. To grant electricity to a property (to get a new meter) a certificate is required that the property meets all the regulations. An electrical plan of the building has to be presented. Your Lawyer can arrange this in co-operation with an Electrician.

PLANNING-PERMISSION

Planning permission is not required if the property is habitable, unless there are going to be significant extensions. Inside villages and towns planning permissions can usually be granted for any plot. It is normally permitted to build on 70% of the ground area. Usually you can build a two-storey house with a maximum of 400 square metres. Outside the town-planning zone you will require permission from the Forestry Department and the Archaeological Department and there has to be frontage to a principle municipal road. If the plot is within 750 metres distance from the town-planning zone permission can be granted for plots of 2,000 square metres or more. In this case it is normally allowed to build a two-storey house with a maximum of 200 square metres. Otherwise, the plot has to have a minimum size of 4,000 square metres. Permission would be granted for a two-storey house with a maximum of 200 square metres. Other rules apply for commercial properties. Planning permission will only be granted if detailed plans are presented. As part of our service we can introduce you to experienced local English-speaking architects who will give you advice, complete the drawings and obtain planning permission, and complete the whole process for you. The cost of the work of the architect and the planning permission depends on the size and the type of the property.

BUILDING-COSTS

Building costs will vary according to the specifications of the materials, the size and the location. Renovating an old stone house or ruin is often less expensive than a new build. A guide to the cost of the renovations is about 700 Euros per square metre excluding the purchase price and the cost of planning permission. This is comparable to the cost of a new build, which will normally come in at approximately 1,300 Euros per square metre excluding the land and planning permission. In addition to being able to offer Architects services we can also introduce you to experienced official builders who can do the work for you in your absence. They work with specified contracts and payment can be made by instalments at the different stages of the build, with the final payment only being due on the satisfactory completion of the work.