Greece

Economy 

The Greek economy is notably one of the fastest-growing in the euro zone; and thanks to the country’s stable and predictable economic growth the real estate market can be relied upon to grow at a realistic pace as  well, rather than in extreme upswings and drastic downturns all too often seen in up-and-coming markets.  Greece homes available in abundance  are still an excellent value for overseas buyers in search of that ray of sunshine and the down-tempo lifestyle that goes with it.  Greece is the perfect alternative to the traditional Mediterranean “favorites”, safe, beautiful, loaded with character,  and prices in comparison 50% lower than its European counterparts.

Applicable Real Estate Taxes

The purchaser is liable to pay purchase tax on the property he buys. As per applicable law, in the areas where there exists a fire department, the tax rate is set at nine percent for a value of up to 15,000 euros and at 11 percent for values above this amount. The lawyer should inform you at the start of the process what the figure will be. This may depend on a number of things. If you are a Greek first-time buyer then the property is effectively tax-free because of the allowances permitted. This can also vary depending on family circumstances. The tax you pay will also depend on whether the purchase price in the contract is entered as the actual price (the amount of cash that changes hands) or the taxable price (the amount that the local authority says it is worth).

There can be a major difference between these two prices, which must both be entered on the contract. It has become standard practice to enter the taxable price as the actual price: whether this is tax avoidance or tax evasion is a grey area in the law and purchasers who want to enter the lower price may find that their lawyer declines to sign the contract on their behalf. In which case, they have to sign themselves. The government announced that VAT would be applied to new build properties from. 1 January 2006. Other tax changes are in the air so purchasers are advised to clarify the tax situation with their lawyer as early as possible in the process as it will considerably affect the final financial outlay.

There is no Capital Gains Tax in Greece now so profit made on the property stays with the vendor. Bottom Line: The key to a comfortable passage is a good, reliable, experience, Real Estate Agent (specialized with foreign buyers) and independent lawyer who will work hard for you thorough in chasing up the paperwork and in protecting you every step of the way.  Have something on your mind? For comments, suggestions, or technical difficulties, please email wilson@greekrivirarealestate.co/.  

Commision Structure

Obstacles to Buying

Places to Find Homes for Sale

• Riviera Real Estate