Ελληνική έκδοσηEnglish versionDeutsche VersionVersion Française
Real Estate, Civil Engineering & Tourism in Greece

Usefull Subjects on Buying or Selling a Property

Expenses and Necessary Documents for Property Sale - Loupassis S.A.

EXPENSES FOR BUYING PROPERTY

Except of the price of the property, there are several other expenses you have to take into account when buying property. They are:

1.Property Purchase Tax. Based on the estimated (by the tax office) value of the property - this is also the price that will be stated in the contracts and normally is completely different from the actual price you pay for the property. For the first 15,000€, the tax is 7% for properties outside of the city plan (except in some restricted areas, e.g. inside city plan or close to a fire department, where the tax goes up to 9%). For the value over 5 million, the tax is 9% (11% in restricted areas).
2.Municipality Tax. On the total amount of purchase tax you have to pay, there is an additional 3% of taxes for the municipality the property in question is located.
3.Expenses for the Notary Public. The expenses for the notary public are from 1,5% to 2% of the value stated in the contract. There are some small extra payments for every set of contracts you get, and those being send out to register the property on your name. These expenses are about 0,5% of the value stated in the contract.
4.Expenses for Legal Representation. It is mandatory that a solicitor represents you in the transaction of buying property. The fee is about 1.5% of the real value or according to agreement.
5.Commission for the Real Estate Agent. According to agreement.
Top of Page

NECESSARY DOCUMENTS FOR PROPERTY SALES

The vendor needs from the tax office:

1.The existing property titles and the certificate from the Mortgage Registry Office
2.Recent topographic plan of the land, signed and stamped by the engineer and according to the laws 651/1977 and 1337/1983 [only if the property is a plot with or without a dwelling or agricultural land within the controlled urban zone (Z.O.E.)]
3.Declaration of the vendor, verified by the tax office were the tax declaration is submitted, that the property in question has not given the owners any income within the last five years. If the property has given some kind of income to the owners, another certificate is necessary, stating that the income has been declared in the tax declaration, according to the Greek law 2238/94, article 81.
4.Declaration of the vendor, verified by the tax office were the tax declaration is submitted, that the property in question has been declared in the special form for real estate E9 and that the vendor is not afflicted by the law for owners of big estates, or, if the owner is afflicted by this law, another certificate is necessary stating that the necessary declarations have been made and the taxes have been paid, according to the Greek law 2459/97, article 32.
5.If the existing property title shows that the property has been acquired by the current owners by ways of inheritance, donation or as dowry, the following documents are necessary: a) If the transaction has taken place before 31.12.1984, for donations and dowries a copy of the family contract or a confirmation from the notary public who signed the contract is needed, confirming that the contract was signed before the 31.12.1984 and that the tax declarations made are valid; in cases of inheritance a copy of the death certificate confirming that the death occurred before 31.12.1984 and a liability declaration of the heir that the tax declarations have been made and are valid. b) if the current owner acquired the property after the1.1.1985, a certificate from the responsible tax office is required, stating that all taxes for inheritance, donation or dowry have been paid, according to the Greek Law 118/1973 and with the alterations according to the Greek Law 2892/2001.
6.Certificate from the city council that the property in question does not owe council taxes or duties according to the Greek Law 2130/1993 (to obtain this certificate, a copy of the property title and the last bill from the electricity company is required).
7.Certificate from the city council the property is located in, that the property owner has declared the ownership to the council, if the property is located in an area that has joined the town planning schedule according to the Greek law 1337/1983 and the realization of the town planning has taken place after 25/11/1994 or has not yet taken place. In any case where a property has joined the town planning schedule according to the law 1337/1983 and the realization of the town planning has taken place, another certificate from the city council is necessary to clarify the situation, as to weather or not the property owes money or land to the city (The above are necessary if the property is a piece of land with or without dwellings).
8.Liability Declaration of the vendor according to Greek Law 1599/84, that the law 2084/92 and the decision of the Ministry of Employment F21/116/FEK 839/10-7-00 are not applicable, or, if they are applicable, a certificate to show that no taxes are owed. If the vendor has a business or is shareholder in a company, or if he has another building under construction on his name at the time of the transaction, a certificate from IKA (National Health Insurance Organization) is necessary to show that he does not owe any fees to them.
9.Certificate from the Land Registry Office and from the Ordnance Survey, confirming that the property has been registered there according to the Greek Law 2308/85.
10.Liability Declaration of the vendor according to the Greek Law 1337/1983 that the construction of the buildings has taken place before 14/3/1983, or otherwise a copy of the building permit if it is issued after 14/3/1983 and a liability declaration of the vendor according to the law 1577/85.
11.Written Permission of the Prefect according to the Greek Law 1892/1990 art. 2, if the property is located in a classified area, e.g. close to the frontiers.
12.If the property is a piece of agricultural land in a special zone for the development and the improvement of land property (TOEB), a certificate from the local office of TOEB is necessary to confirm that the owners do not owe to this office.
Top of Page

The purchaser needs:

1.Before the undersigning of the final contract at the office of the Notary Public and having ensured the signature of the vendor, the purchaser has to pay the transfer tax in the local tax office. A special declaration (in 3 copies) has to be filled in stating the exact amount of the taxes being paid. Together with this, a special form showing the assessed value of the property in question, has to be presented. The Notary Public assists with the declarations!
2.If the purchaser is buying the first real estate on his/her name, under certain circumstances he/she can be freed from the purchase tax. In this case, while filing the declarations for the transfer tax, he has to file as well a liability declaration according to the greek law 1599/86 stating that he/she has no other real estate registered on his/her name and attached to this a copy from the family register and a confirmation from the town planning office that the land is a building plot according to current building regulation, together with the topographic plan of the land. The transfer tax is calculated based on the price stated on the contract and is due on filing of the declarations.
3.Finally, on signing of the contract, you will be asked to sign several other declarations, e.g. to confirm that the property is not too close to the sea shore, a stream, etc. After the contract has been signed, the purchaser (or the notary public) takes a copy of the contract to the Mortgage Registry Office to obtain a certificate of the new entry there.

If you need more detailed information or have further questions, please contact LOUPASSIS S.A. (click)

Back to Interesting Subjects Page

LOUPASSIS GROUP     CRETE:  CHANIA   RETHIMNO   IRAKLIO   AG.NIKOLAOS       CYPRUS:  LARNAKA   LEMESSOS   PROTARAS   PAFOS   
© copyright LOUPASSIS SA 2000-2013 all rights reserved