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Frequently Asked Question

 

Is it easy to obtain local financing in Greece?

The answer is yes not only is it simple but in some cases more affordable and more economically beneficial for you to arrange your finance here in Greece.

Greek Banking Institutions offer loans to International Investors of up to 100% of the Property Value this is secured only against your Greek property not your UK one.

Mortgage lengths are extended from 10 - 40 years or to a maximum age of 75. There are many types of mortgages available from variable and fixed to Swiss franc, your chosen lender will help you to determine the most suitable mortgage tailored for your individual needs.

If you are buying an Off Plan property why not take advantage of an interest only mortgage ensuring you keep your costs as low as possible during the construction period bearing in mind that any rental incomes will not start until the property is completed. Most lenders will pre-approve your loan within 24 hours during your trip so that you can be sure you qualify for financing before you secure and proceed with a purchase, as most security / reservation fees are non-refundable.

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What documents do I need to bring with me to apply for a Greek mortgage?

The process is similar to most European Countries. To apply for a mortgage you will need your passport and proof of income for the last two/three years (P-60's, payment stubs, or annual tax returns if you are self-employed).

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I am an EU Citizen can I buy a property in Greece?

Yes.

Rhodes is an area near a national border: A temporary residence permit known as a Blue Card is required to purchase a property in Greece. You must apply for it in person at the local, closest Police Station to the property you are buying. It takes approximately two to four weeks for your Blue Card to be issued times vary according to the volume of applications being made at that time. If you have granted “POA” to your Lawyer they will be able to collect the Blue Card on your behalf. This permit is a necessary formality for all EU Nationals whishing to purchase property in Greece.

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Can I buy a property in Greece if I am not an EU Citizen?

If you plan to purchase a property in an area near National Borders (including some Islands such as Crete, Rhodes and Islands of the Eastern Aegean) in these circumstances you must apply for a special permit issued by the Ministry of Defence in Athens. An alternative more timely and efficient way to purchase property in these areas is through an Offshore Company registered in your name (the Purchaser) and based in an EU Country. This is a fairly common procedure; setting up such a company costs approximately 2,000 Euros and 1,500-2,000 Euros to maintain annually.

A tip for anyone purchasing that is a Non-EU National, these two procedures can be timely to complete it is worth making this your first priority when beginning the buying process, in some cases even before you have selected the property you intend to purchase.

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How can I find a good English speaking local Lawyer?

Lindian Trust fully assists you in finding a good English speaking local Greek Lawyer. Your Lawyer will guide you through the entire buying process and will in most circumstances advise you to grant to him/her Power of Attorney leaving you free to depart Rhodes Island with the assurance and peace of mind that your purchase will continue to proceed in your absence.


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What is a Notary?

It is necessary here in Greece to appoint a Notary Public; a Notary Public is an official representative of the Government (Government-appointed Lawyer) their role is to Certify Real Estate transactions. Upon completion the Greek Contract will be signed in the Notary’s office, by the Seller and Buyer or their legal representatives if either party have granted “POA” to their Lawyer. The Notary witnesses the signing of the Greek Contract.

The original is kept at the Notary’s office, a second is given to the Purchaser and the third copy is sent to the Land Registry whereby the official transfer of ownership is registered.

Cost for “POA” is payable direct to the Notary in cash and varies between 33 Euros to 75 Euros depending on the participating Notary's office and their respective charges.

For peace of mind you should also be aware that a POA can be revoked by you at any time.


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Greek Bank Account?

Yes.

Opening a bank account here in Rhodes takes only a few minutes and in most cases requires no minimum opening deposit. It is worth checking what different accounts are available to you as some accounts may require you to deposit between 300 and 500 Euros to open the account.

Whilst opening your account be sure to apply for internet and telephone banking facilities as they don’t usually issue you with these extras without you asking for them.

All transactions and payments should be made through your account. By transferring funds rather than bringing cash into Greece you will receive what is known as a “Pink Slip” from your chosen Greek Bank this will act as proof that the funds you have used to purchase property in Rhodes have come into Greece from another Country and are therefore not taxable in Greece.

All you need to take with you to open your account is your passport and Greek Tax Number (AFM).


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What is a Residency Permit (Blue Card)?

A temporary residence permit known as a Blue Card is a necessary formality for all EU Nationals intending on purchasing a property in Greece.

This you must apply for at the closest Police Station to your intended purchase.

At Lindian Trust we assign a dedicated member of our team to take you to the Police Station in order for you to complete the application form for a temporary residency if the purchase is to be in two or more names all parties involved must obtain their own individual Blue Card’s.

The Blue Card is usually issued within two to four week’s; you do not need to collect your Blue Card in person if you have granted “POA” to your Lawyer they will be able to collect it on your behalf.

Don’t forget to take 5 Passport photos and a photocopy of your Passport with you as they are required to support your application.

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Why do I need a Tax Registry Number (AFM)?

A Greek Tax Number “AFM” (pronounced Ah-Fi-Me) is a mandatory requirement for all buyers, including International and Greek permanent or temporary residents of Greece. Your Lindian Trust dedicated assistant will accompany you to the Tax Office to complete this process.

Ensure you take with you a photocopy of your Passport, Birth and if married your Marriage Certificates.

The application process is very straightforward, you are required to complete a single sided A4 application form hand this straight in and you will be issued with a Greek Tax Number on the spot.


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What are Closing/Purchase Costs?
How much should I expect them to be?

If you are buying a Lindian Trust built property then there are no additional costs for you to pay, we cover within the purchase price the costs involved for Lawyer’s, Notary’s and Property Taxes.

If you are buying one of our many third party properties currently listed on our portfolio then the following applies:

Purchase costs include fees for the Lawyer, Notary and relevant Property Taxes. The fees are calculated on the following basis 2.5% Notary, 1% Lawyer and 7 to 13% Property Taxes.

Additional costs to make allowances for in your budget that are not usually included within the purchase costs are the fees payable in accordance with obtaining a Greek mortgage, this is known as a pre-notation fee and will be explained to you in detail by your Lindian Trust dedicated assistant, Lender and or Lawyer. The cost is dependent on your mortgage amount, for guidance on borrowings of 150,000 to 500,000 Euros you can expect to pay between 1,500 to 5,000 Euros, your lender will calculate the payable pre-notation amount for you at the time of your mortgage pre-approval allowing you to include into your budget before you commit to a purchase.

There is also a fee payable to set up your local Greek mortgage, the mortgage set up fee is usually in the region of 1,500 to 1,800 Euros.

Its worth shopping around as some Banks are now offering free mortgage set up here on the Island.

The fees for pre-notation and mortgage set up (if any) are payable direct to your chosen Financial Institution.



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Do I have to pay Annual Property Taxes?
You will have to pay an Annual Property Tax if your Property’s Tax Assessed Value exceeds 243.600 euros. (Don’t forget that Tax Assessed Values are normally somewhat lower than the actual Property Value)



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Capital Gains Tax

New property Taxation Laws came into effect on the 1st of January 2006. The Laws include a Tax payable for properties purchased after 1st January 2006, Capital Gains Tax.

The percentage of tax owed will vary depending on the length of time a property remains in one's ownership. Specifically:
- For properties purchased after January 1st 2006 and remaining in ones ownership for 0-5 years: Capital Gains Tax 20%
- For properties purchased after January 1st 2006 and remaining in ones ownership for 5-15 years: Capital Gains Tax 10%
- For properties purchased after January 1st 2006 and remaining in ones ownership for 15-25 years: Capital Gains Tax 5%

If you only own one property and the property is located within the “City Planning Areas” no capital gains tax is payable.

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Do I need Property Insurance, is it essential?

Although no market standards exist as to the forms of Insurance that can be taken out, it is recommended that your property should be insured against the following risks: earthquake, fire, water damage, broken glass, storm, theft from a third party.


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Accountant

It is very important to appoint an Accountant. At Lindian Trust we will provide you with a list of good English speaking local Greek Accountants.

The Taxation system in Greece is different to that of the UK and needs explaining fully by a qualified Greek Accountant. Penalties are imposed for non submission of returns by the mandatory dates, to avoid complications it is recommended that you appoint an Accountant early in the buying process.


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Will I need to file a Tax Return at the end of the Year?

Yes.

The Greek State has mandated that all property ownership in Greece must be declared by filling out a form known as E9 and subsequently submitting it to the appropriate Greek Tax Authority

With effect from 2006 the E9 form must be submitted only by those who either: obtain, sell or dispose of any kind of right over immovable property in Greece. This is mandatory for everyone irrespective of your Country of Origin, even those who have never filed tax returns in Greece or do not have an income in Greece.

Please note: If you own immovable property in Greece but your assets the year following your first Tax Declaration have not changed from the previous year then you are permitted to resubmit the original E9 form for up to four years. (Your chosen Accountant will explain the procedures in more detail).


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EOT

With affect from the 1st of May 2008 the Greek National Tourist Board will be re-enforcing existing laws for EOT Licensing, previous years have seen a relaxed approach to these Laws but from the 1st of May 2008 all properties that are intended for short term lets the Owner is therefore obliged to hold an EOT License for the property.

If the property is intended for the use solely of family or friends of the Owner then no License is required provided also that the guests are staying free of charge.

It is recommended for Off Plan purchasers to begin the application for an EOT License in the early stages of construction as the process requires the cooperation of an Architect / Civil Engineer, there is also a long list of documents required for the application you might prefer to involve your lawyer who will act on your behalf or assist you in getting your EOT License.
Greek Authorities have been known to check advertisements regularly. Laws in Greece are strict Owners without Licenses if caught renting out their property could face hefty penalties.
The License is usually issued for a maximum of a five year period and a cost is involved to collate and submit the application ask your Lawyer to check with the Architect / Civil Engineer as to the fee payable, prices can vary depending on which Architect / Civil Engineer you use.
The requirements for obtaining a license from the Greek National Tourist Board (EOT) are:
Application form
Declaration by applicant. 
Rental agreement. 
Certificate form the Fire Service. 
Statement of suitability of the property. 
Certificate stating that both water and cesspit arrangements attain the required criteria. 
Criminal record of the applicant. 
Health certificate of the applicant. 
Receipts of payments of local taxes required. 
Latest tax return of applicant. 
Verified photocopy of planning permission of the building. 
Verification that the building is anti earthquake proof etc, signed by qualified architect. 
Plans of house plumbing etc signed by qualified architect.   


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Transferring Funds

It is highly recommended when transferring funds that you use a Registered Money Transfer Company to ensure you get the best rates available to you at the time of transfer, the difference you save can make a huge difference on any transfers over 30,000 pounds sterling.

We at Lindian Trust can assist you with this process when the time comes.


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What documents do I need to take with me?

Documents to bring with you if you intend on purchasing while you are visiting Rhodes:

Originals of the following:
Birth Certificate
Marriage Certificate (if intending on a joint purchase).
Passport
P60 / Tax Return (if you intend on financing with a local Greek mortgage) for previous 2/3 years.

Photocopies of the following:
Passport
Marriage
Birth Certificate
8 passport size photos
P60 / Tax Return (if you intend on financing with a local Greek mortgage) for previous 2/3 years.



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