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Can I, as a non Greek,
buy property in Skiathos?
Yes, anyone who has a valid passport and sufficient funds :o) can
buy property in Skiathos.
Do I need to
import money to Greece?
You will always have to import sufficient money to cover the purchase
of the property, the notary's fee, lawyer's fee, Records Office
fee and the purchase tax.
For non Greeks to purchase property in Greece, it will be necessary
to open a bank account in Skiathos and acquire a Greek tax number.
This is so you can import all necessary funds into Greece thus not
incurring Greek income tax.
To get a Greek tax number you will need to give a limited Power
of Attorney to a Skiathos resident (we normally recommend an accountant)
who will apply for it and represent you to the tax office.
How do I open a bank
account Greece?
To open a bank account you will need your passport, an original
telephone or electricity bill stating your home address, an
official paper stating where you work and your job description
(usually from your employer) and finally an official copy of
your tax number or social security number or National Insurance
number in your country of residence. If you are married and will
be buying a property in joint names you must also bring a copy of your
marriage certificate.
It is would be best to have these documents with you when you come
to view property, otherwise you will need to return to Skiathos
solely to open a bank account.
If you intend to live here for long periods (or retire here) you
must import sufficient funds on a regular basis so that the tax
man is happy that you are not earning money in Greece.
If you are buying property in joint (or more) names, the bank account
should be opened in both (or all of these) names.
Do I need
to be resident in Greece?
No, unless you decide to live here on a more permanent basis.
You will need to get a resident's permit if you buy a car or motorbike
in Greece.
How long
will it take to buy property?
How long is a piece of string? A minimum of 2 months from the time
a verbal agreement has been made between purchaser and vendor. This
can stretch to several months if there are issues such as road access,
unclear title to the property, etc.
Will I need
a lawyer?
You are obliged by Greek law to have a lawyer as a witness to the
signing of the contract. The fee is around 1% of the contract
price of the property (not necessarily the actual amount
you will be paying which will be more). Included in this will be
a search through the public records to make sure that the property
is free and clear of any debts, mortgages, and other potential problems.
Do I need the
services of a real estate agent?
You would be well advised to use the services of a reputable agent.
(Who is reputable? Ask around...Skiathos is a small island and it
will become very quickly apparent who can be trusted and who not).
An agent is there to protect your rights, to help make an agreement
between purchaser and vendor (often involving translation as many
Greeks do not speak another language and most purchaser's Greek is
not sufficient) and smooth the bureaucratic process. If he is good
at his job, he will have earned his commission many times over
What percentage
does an agent receive?
Between 2 and 3% (including 13% VAT) of the actual
purchase price. Usually 3% if you are a non Greek as extra paperwork
and organization will then be involved.
How many
extra expenses will I have?
In total, anything between 10 & 13% of the actual
purchase price.
This includes purchase tax, notary's fee, lawyer's fee, Records
Office fee and agents commission.
Will I
need an accountant?
Yes, once you have acquired property, you will need to declare
it to the tax authorities and you will have many difficulties if
you do not use an accountant. As long as you can prove that you
didn't earn the money to purchase the property in Greece, you will
not be liable for income tax. Your tax declaration is made the year
after the year you purchase your property.
What are my tax
obligations?
On 28/1/2008 the president of Greece signed into law the new tax law No.
3634 for the year 2008
within which, in article 5, the government replaces the existing property
tax with a new, yearly, single
property tax.
This tax will be 0,1% on the objective value (tax valuation, usually less
than market value) of houses
and building plots (land in towns and villages) that belongs to individual
persons and 0,6% for company
owners. The land outside of town building plans is not taxable and also
storage spaces and
garages are exempt.
First time home buyers who are registered as permanent residents of Greece
and use their property as main residency are
exempted from this tax for residences up to 200 square meters, increased by
10% for each child.
If a part of this residence is used for base of their personal business,
this part will be taxed.
The properties of couples will be taxed separately.
The amount of tax cannot be less than 1,00 Euro per square meter and can be
paid immediately or in three parts, after the
submission of the tax declaration.
In case of differences between the amount of size of the properties that
have been declared in the 2005 E9 then you will incur a fine between 50-100%
on top of the tax.
False, late or not submitted E9 tax declarations will be fined with
300,00 Euros.
If you have never made a tax declaration that you own property in Greece YOU
MUST do so now.
As a matter of urgency all our clients
who have bought property here should come in contact with their
accounting office with details of their properties, purchase
contracts, land registration papers and receipt of registry at the new Land
Registry (Ktimatologio), because if the measurements
are not the same as the E9 of 2005 you must submit a new tax form with a new
E9.
Please note that, in case you wish to sell your property, the notary public
will not be able ratify any contract without clearance
from the tax office that all your taxes are in order.
Laws
change and we are not necessarily 100% up to date, so please contact you
accountant.
Can I build
a house myself or do I need a builder?
You will need the services of a civil engineer to make the plans
and apply for building permission. Building permission can be fairly
costly as the Greek Government is anxious to get its hands on as
much money as possible. Whilst building, care must be taken to keep
all receipts for materials and labour (to prove that VAT has been
paid), and social insurance for the labour must also be paid. You
would be well advised to take a reputable builder for this as otherwise
you could end up in a nightmare of Greek bureaucracy.
What
are building costs?
It depends very much on the location, difficulty of access of your
site and whether you want standard materials, tiles, etc. or are
prepared to pay (or import) top quality materials. A rough average
(including building permission) is 1,400 Euros per square metre
(approximately 10 square feet) for good quality, standard building
materials.
What yearly
local taxes and rates are due?
It depends on the size and location of your building but the local
taxes are very light and an average would be around 200 to 400 Euros
per year depending on the size and location of your property. Local rates are light too and are paid through your electricity
bill so you don't really notice them. This bill also includes your
TV and Radio license.
Do
I need a representative in Skiathos?
If you are not here for much of the year or will be absent during
the building of your villa or house, you would be advised to have
someone in Skiathos who can look after your interests, keep an eye
on construction work and pay bills as necessary.
If you cannot be in Skiathos for the signing of the contract of
sale, you will need to give a Power of Attorney to someone here
to act for you. This can be your lawyer, the real estate agent or
someone resident here who has your trust.
This is a fairly simple document and can usually be drawn up by
the notary within 24 hours. |