Preparation before buying in Greece.

Understand the System.

The system of buying and selling property in Greece bears similarities to the French system and that of other continental countries. Furthermore , although the core ingredients of the system are the same all over Greece , there are regional variations to consider. For example , in certain areas close to Turkey such as Rhodes , a non-Greek national must first obtain a residence permit for Rhodes before he can purchase property on the island.Non-EU nationals are not allowed to purchase property on the island.

See a Lawyer.

Consulting a lawyer before you find a property or at least before agreeing the price will save you a lot of time and trouble in the long run . A number of preliminary but important issues can be discussed and considered before you find yourself under pressure to sign the contract. These issues include :

• Whether to consider mortgage finance and , if so, in which country.
• What to do about converting the money to buy the property in Euros ( if necessary ).
• Who should own the property , bearing in mind Greek inheritance rules ( which apply to Greeks or dual nationals ) , inheritance tax provisions and the Greek and your home country tax consequences of ownership.
• Advance tax planning , especially as regards possibly avoiding transfer tax for first-time buyers and a potentially large income tax liability the year following the purchase.

Only lawyers who specialize in Greek Real Estate will be able to assist you adequately. Your standard solicitor will know little or nothing of the issues involved , in the same way that a Greek lawyer is unlikely to have a great deal of knowledge about your country's tax system and all relevant issues concerning the way the transaction is to be carried out. In any case contact your embassy in Greece . They keep directories of lawyers and they will help you through all phases of the transaction.

Get an Offer of Mortgage/Finance.

At present , interest rates in Greece are lower or equivalent rates in most EU countries and more and more people borrow at least part of the money needed to buy their home in Greece. In some cases , it is possible to get clearance from a lending institution before you start looking at property. The basic concept of a mortgage in Greece is a loan secured against land or buildings. If you do not keep the payments , the Bank will repossess your property. In Greece , if they do so this, they will obtain a judicial order for the forced sale of the property at public auction. All the major Greek Banks offer various types of mortgages. In most cases the basis is a capital and interest payment taken out over a number of years.The purpose of the loan is the purchase , building , extension, or repair of a residence, as well as the purchase of a plot of land that is viable for building. The loan may be at a variable rate of interest or a fixed rate for a number of years. The term of the loan varies from Bank to Bank , and whether the loan is at variable or fixed rate of interest , and may be offered for terms up to 30 years with the proviso that the borrower has not reached the age of 70 by that time. The amount of the loan can be 100% of the value that is declared on the purchase contract and/or the cost of the building or repairs etc. Furthermore the amount of the loan can reach 100% of the commercial value of the property involved. In all cases , the loan depends on the personal or family income and credit-worthiness of the applicant. The repayment of the loan is by monthly payments.

Think about How You Will Pay the Deposit.

It is not unusual to be asked to put down a preliminary deposit of between 5% and 10% of the agreed price of the property. The usual way of paying a deposit is by cash or bankers draft issued from a Greek Bank in Euros. Once you have found the right property, your lawyer must be engaged in order to check a draft of a contract  and be able to advice you that its terms appear reasonable and that any necessary special clauses have been included.Your lawyer will be able to inform you about the nature of the contract that you are signing and briefly explain its legal consequences. After completion of this stage you will be confident enough to pay the agreed amount of the deposit.

Inspect the Property.

One of your main concerns before buying a property not only in Greece but anywhere, is to inspect the property usually with the help of an Architect or a Civil Engineer. Your lawyer will be able to assist you by finding a trusted Greek Professional who will inspect the building on your behalf .In any case you could at least try to make a thorough check using this Checklist