10 things to know before buying a house in Greece

10 things to know before buying a house in Greece

When it comes to buying property in Greece, thorough research of the location is essential. Greece offers a plethora of options, from vibrant cities to tranquil islands, each with its unique charm and appeal. By conducting comprehensive research and considering key factors, you can make an informed decision that aligns with your lifestyle and investment goals. In this article, we will explore the 10 essential things to know before buying a house in Greece.

1. Firstly is the importance of researching the location 

• Consider the accessibility of the location you are interested in. Evaluate the proximity to major transportation hubs, such as airports, seaports, and highways. Accessibility is particularly important if you plan to visit frequently or if you intend to rent out the property to tourists. Easy access to transportation options will enhance convenience and potentially increase rental demand.
• Also, you have to take into account the availability of amenities in the area. Seek for shopping centers, supermarkets, restaurants, and recreational facilities in close proximity.
• If you have children or plan to start a family, researching the availability and quality of schools in the area is crucial. Examine the proximity and reputation of schools, including both local and international educational institutions. 
• Consider the availability and proximity of healthcare facilities, such as hospitals, clinics, and pharmacies. Access to quality healthcare is vital for residents, especially in emergencies or for those with specific medical requirements. 
• Evaluate the transportation infrastructure in the area. Look into the availability of public transportation options like buses, trams, and trains. Additionally, assess the condition of the road network and connectivity to nearby towns and cities. 
• Research any future development plans in the area. This information can provide valuable insights into potential infrastructure improvements, urbanization projects, or tourism initiatives. It is important to consider how these plans may impact the value and desirability of the property in the long run.

2. The importance of engaging a local real estate agent

• One of the primary advantages of working with a local real estate agent is their deep understanding of the Greek property market. They possess comprehensive knowledge of current market trends, pricing dynamics, and the availability of properties in different regions. Their insights and expertise will help you identify the best opportunities that align with your budget and requirements.
• Local real estate agents often have access to a wide range of exclusive listings that may not be readily available to the general public. These listings can include properties that are not widely advertised or are part of off-market opportunities. 
• Navigating the legal and procedural aspects of buying property in Greece can be complex, especially for foreigners. A local real estate agent is well-versed in the Greek legal system, property laws, and the intricacies of the buying process. 
• Determining the fair market value of a property in Greece can be challenging, particularly for international buyers. Local real estate agents have a keen understanding of property valuations in their respective regions. They will analyze comparable sales data, assess property condition, and consider market conditions to help you make informed decisions.
• Established local real estate agents have extensive networks and connections within the industry. They can leverage these relationships to facilitate the buying process, including connecting you with reputable lawyers, notaries, surveyors, and other professionals. 
• A local real estate agent can arrange property inspections and due diligence on your behalf. They will coordinate with certified surveyors and inspectors to assess the condition of the property, identify any potential issues or structural concerns, and ensure that all necessary permits and documentation are in order. Their attention to detail will protect you from unexpected surprises.

3. The importance of understanding the legal framework 

• Begin by researching the property laws specific to Greece. Gain a comprehensive understanding of the legal framework governing property ownership, transfers, and rights. This includes familiarizing yourself with the Greek civil code, the land registry, and any relevant legislation or regulations pertaining to real estate transactions. 
• Before proceeding with a property purchase, it is essential to verify the ownership and title of the property. Engage the services of a Greek lawyer who specializes in real estate to conduct a thorough due diligence process. They will investigate the property’s history, ensuring that the title is clean and free of any encumbrances, liens, or legal disputes. 
• Working with a reputable Greek lawyer specializing in real estate is highly recommended. They will guide you through the entire legal process, ensuring compliance with Greek property laws and regulations. A lawyer will review contracts, assist with negotiations, and provide legal advice specific to your situation. 
• If any legal issues or concerns arise during the due diligence process, consult with your lawyer to assess the risks and explore possible solutions. They will provide advice on how to proceed and negotiate with the seller or other parties involved to resolve any legal hurdles. 
• Ensure that your payments are conducted through secure channels and in compliance with legal requirements. It is advisable to use a designated escrow account or seek legal advice on the appropriate payment methods to protect your funds and ensure a transparent financial transaction.

4. The importance of obtaining a Greek Tax Registry Number and the process involved

• The Greek Tax Registry umber (AFM) is a vital identification number used by individuals and entities in Greece for tax-related matters. It is a legal requirement for engaging in various financial activities, such as property purchases, opening bank accounts, conducting business transactions, and filing tax returns. The AFM ensures compliance with Greek tax regulations and facilitates the efficient administration of tax-related processes.

• The application process for obtaining a Greek Tax Registry Number typically involves submitting specific documents and completing an application form. Once you have gathered the required documents, your agent or lawyer will submit the application on your behalf to the competent tax authority in Greece. The processing time can vary, but typically it takes a few weeks to receive your Greek Tax Registry Number. Your agent or lawyer will track the progress of your application and keep you informed throughout the process.

5. The importance of keeping in mind all financial considerations

• Evaluating your financial situation and determining a realistic budget is the first step towards making a sound investment. To ensure a smooth and well-planned buying process, it’s crucial to consider not only the purchase price, but also additional costs that may arise.
• One key aspect to factor into your budget is property taxes. In Greece, property taxes are an essential component of homeownership. Familiarize yourself with the local tax regulations and consult with a financial advisor or tax professional to estimate the potential tax obligations associated with your desired property. 
• Another consideration is the cost of notary fees. In Greece, a notary is involved in the property transfer process to ensure its legality. Notary fees can vary depending on the value of the property, so it’s advisable to research the average costs and include them in your budget calculations. 
• Additionally, it’s essential to consider potential renovation or maintenance expenses when setting your budget. Evaluate the condition of the property and estimate the costs associated with any necessary work. 
• If you plan to obtain a mortgage or loan to finance your property purchase, it’s recommended to start the process early. Research various financial institutions and compare their terms and interest rates to find the most suitable option for your needs. 

6. The importance of due diligence 

• One of the first steps in performing due diligence on a property is hiring a certified surveyor. These professionals have the expertise and knowledge to thoroughly inspect the property and identify any structural issues or damages. They will assess the condition of the building, including its foundation, walls, roof, electrical systems, plumbing, and more. By conducting a detailed survey, they can provide valuable insights into the property’s overall condition and alert you to any potential problems that may require costly repairs in the future. 
• Another crucial aspect of due diligence is investigating the property’s utility connections. Ensure that all essential utilities, such as water, electricity, gas, and sewage systems, are properly connected and in good working order. 
• Before finalizing a property purchase, it is essential to confirm that all necessary building permits and approvals have been obtained. This is particularly important if you plan to renovate or make changes to the property. Request documentation and verify that the property complies with local building codes and regulations. Non-compliance can lead to legal complications and costly fines. 

7. Key considerations for informed decision making

• Keeping a close eye on property prices is a fundamental step in understanding the Greek real estate market. By monitoring how prices have fluctuated over time in the specific location you are interested in, you can gain insights into market trends and assess the overall affordability of properties. Look for patterns and changes in prices, taking into account factors such as location, property type, and condition. 
• Understanding the demand-supply ratios in the Greek real estate market is essential for gauging market dynamics. Analyze the balance between the number of available properties and the level of demand in your chosen location. A high demand coupled with limited supply often leads to increased property values and potential investment opportunities. Conversely, an oversupply of properties may result in more competitive pricing and negotiation power for buyers. 
• To make sound investment decisions in the Greek real estate market, it is crucial to grasp the local market conditions. Research economic factors such as GDP growth, employment rates, and industry trends. Additionally, consider the impact of tourism, as Greece is a popular destination for travelers. 

8. Consider various residency programs

• The Golden Visa Program has gained significant popularity among non-EU citizens seeking residency in Greece. Under this program, individuals and their families can obtain residency permits by investing a minimum amount in Greek real estate. The specific investment threshold may vary, but the program typically requires a minimum investment of €400,000 in residential properties. This program offers a streamlined path to residency, allowing investors to live and work in Greece while enjoying the benefits of EU residency.
• Obtaining residency through programs like the Golden Visa Program provides numerous advantages. First and foremost, it allows individuals and their families to reside legally in Greece, enjoying the country’s vibrant lifestyle, favorable climate, and renowned hospitality. Residency permits also grant access to the Greek education system and healthcare services, while opens doors to travel within the Schengen Area, facilitating ease of movement across 26 European countries for business or leisure purposes.
• After holding residency status for a certain period, typically 7 years, individuals may be eligible to apply for Greek citizenship. This can be a significant advantage for individuals seeking to establish long-term ties with Greece, whether for personal or business reasons. Greek citizenship provides the benefits of EU citizenship, including the right to live, work, and study in any EU member state.
• Greece’s residency programs not only offer the benefits of residency and potential citizenship but also present attractive investment opportunities. Investing in Greek real estate can provide a stable and potentially lucrative asset, as the country’s property market continues to recover and grow. 

9. Cultural and lifestyle factors

When considering buying property in Greece, it is crucial to take into account various factors that contribute to the overall experience and lifestyle in the region. This includes immersing oneself in the local traditions and customs, embracing the vibrant Greek culture through participation in festivals, dances, and culinary experiences. Understanding the climate and seasonal variations is also important, as it helps in choosing a location that aligns with preferred weather conditions and activities. Evaluating the availability of amenities and infrastructure, such as schools, healthcare facilities, and transportation options, ensures convenience and ease of daily living. Additionally, exploring the outdoor activities and recreational opportunities offered by Greece’s natural beauty adds to the overall lifestyle enrichment. 

 

10. The importance of seeking professional advice 

• One of the primary considerations when buying property is understanding the tax implications associated with the purchase. Tax laws and regulations can vary between countries and even within different regions. By consulting with tax experts who specialize in Greek property taxation, you can gain a comprehensive understanding of the tax obligations and benefits relevant to your specific situation. These professionals can provide guidance on property transfer taxes, annual property taxes, and any applicable capital gains taxes, ensuring that you fulfill your tax obligations and optimize your financial position.
• Inheritance laws play a crucial role in property ownership and succession planning. Understanding the legal framework surrounding inheritance in Greece is essential to protect your property investment and ensure that your assets are passed on according to your wishes. 
• Property acquisition is a long-term investment. Seeking the advice of financial advisors can help you develop a strategic investment plan that aligns with your financial goals and risk tolerance. These professionals can analyze market trends, assess potential returns on investment, and offer guidance on factors such as property appreciation, rental income potential, and portfolio diversification.
• These experts can review contracts, conduct due diligence on the property, and ensure that all legal requirements are met. They can also guide you through the necessary paperwork, registrations, and permits, ensuring a smooth and legally compliant property transaction.

Buying a house in Greece can be a rewarding experience, provided you approach it with careful planning and due diligence. By researching the location, engaging a local expert, understanding the legal framework, and considering financial and lifestyle factors, you’ll be well-prepared to make a confident investment decision. Embrace the beauty of Greece, its rich history, and warm hospitality as you embark on this exciting journey of purchasing your dream home.