For a real estate project in LEROS to buy a nice two-three-room holiday home (i.e. between 80 and 100 m2) on an “average” island of the Cyclades, you must have a budget between 200,000 and 400,000 euros. In ATHENS, it is still possible to buy a studio to rent it from 30,000 euros, or even 20,000 euros. It should be remembered, however, that the average salary at ATHENS is now 300 euros per month. In view of the amounts shown below, real estate remains for some families the only way to “redo” so don’t be surprised to see some delirious extra prices !!!
The Greek economy is doing better
After ten years of austerity, the real estate market is back in colour. It comes back from afar: in a decade, house prices would have collapsed by 46 according to the Bank of Greece. Fortunately, theGreek economy is doing better:
the country emerged from the third memorandum imposed by the European Union in August, GDP growth is expected to reach 2% this year and the unemployment rate is starting to fall, although it remains the highest in the euro area (18.2%).
During the sovereign debt crisis, house prices fell everywhere except MYKONOS and TINOS, north of the Cyclades, where it takes between 6,000 and 7,000 euros per sq m to become a homeowner, with peaks above 10,000 euros, and in Paros, where prices hover around 3,000 euros, but can rise to 7,000 euros for the most luxurious properties.
TIGHTENING OF RULES
Since the 2010 crisis, fiscal pressure has increased markedly in Greece. Income from renting a property is taxed at 15 up to 12,000 euros, 35 between 12,000 euros and 35,000 euros, and 45 beyond. As the top bracket (45 ) of income tax is reached as early as 40,000 euros, some foreign buyers prefer to set up a company to house their real estate in Greece. Considered profits, rents are then taxed at “only” 29 with the most favourable scheme for high earners.
The rules for short-term rentals have also been tightened: you must now register and the duration of the rental must not exceed 90 days per year (60 days on islands with less than 10,000 inhabitants). However, it is possible to rent longer as long as the sum of the rents collected does not exceed 12,000 euros per year. If this is the case, rents are then taxed like other income, i.e. taxed on a progressive scale ranging from 15 to 45 .
VAT and transfer duties
In addition, the transfer fee is 3 , with a VAT to 24 in the new. “Any individual with a home in Greece must also pay a property tax every year,”adds Constantin Karagounis, a lawyer at the Bars of Athens and Paris and Secretary General of the French Greece Chamber of Commerce and Industry (CCIFG). This tax is 0.10 for a property worth more than 200,000 euros, 0.15 when it exceeds 300,000 euros, and it increases from 0.10 per 100,000 euros to 1.10 for a property of 2 million euros. Beyond this amount, the tax is 1.15 .
If there is currently no real estate capital gains tax in Greece, it is expected to come into force in 2020. The bill provides for a rate of 15 at the seller’s expense, with a reduction of 25,000 euros if the property has been held for more than 5 years. Those who acquired their property before 1995 should be exempt.
GREECE is the only country in the European Union that still does not have a land registry, except in Athens, and in part of its region. That’s why we have to be very careful, especially when checking that the films advertised correspond to reality. This involves the use of a lawyer and a civil engineer, or even a topographer.
Indeed, some Greeks have long had the unfortunate habit of building dwellings larger than the area provided for in their building permit and it is not the responsibility of the notary to carry out these checks in Greece, unlike the France. A national regularization did take place in 2011, but caution remains the order of the day. There is still a register of property that the lawyer can consult.
The amounts vary by region, but for an acquisition of 200,000 euros, you have to count on average 3 transfer rights, 2,000 euros in registration fees at the mortgage office, 3000 euros for the notary, 500 euros for the registration fee at the land registry and about 4,000 euros in legal fees.
One last detail: in Greece, the commission of the real estate agency is paid by both the seller and the purchaser. It usually revolves around 2 of the amount of the sale for each. The addition of all these expenses weighs heavily. If it continues to seduce the French, Greece has undoubtedly become a more difficult country for foreign customers to access.
The specialist to consult
In Greece, one should not consult a specialist but several.
Of course, the notary will play an important role in your acquisition but it is necessary to call on the services of a lawyer as soon as the property exceeds a certain value (12,000 euros in rural areas and 30,000 euros in urban areas), which will be practically always the case.
Both will share the various audits concerning the property and the parties involved. Taking a lawyer is absolutely necessary in order to be well defended and avoid any unpleasant surprises.
It is also common to use a surveyor and/or a construction engineer. Indeed, the delineation of properties is sometimes random so that a survey is necessary. As for the foundations of certain assets, they may prove too fragile.
Finally, it may be advisable to call on an accountant to fulfill the various tax obligations; remember that Greek writing is different from ours…
Access to the real estate market and administrative peculiarities
As Greece is part of the European Union, Belgian nationals have direct access to the real estate market, unlike nationals of countries outside the European Union.
Like other countries, a tax identification number is required (called AFMfor Arithmo Forologiko Mitro) to carry out a real estate transaction and open a bank account.
The buying process is as follows:
Once the offer to buy has been accepted by the seller it is possible, without this to be mandatory, to sign a compromise of sale with the notary. A first sum, defined by the parties, will be paid at that time. This compromise is binding and does not offer a retraction period. On the other hand, suspensive conditions, such as obtaining credit, are possible.
The notary, in collaboration with the lawyer, prepares the authentic act which constitutes the last step. Above all, the notary carries out a validity and legality check. Its mission is smaller than at home, which is why it is important to have a lawyer for good advice.
TAXES AND FEES
The transfer fee is 3.09. In case of new property, this right is replaced by a VAT of 24 (only on the first sale).
In addition, the notary’s fees and authentication fees carried out by him of about 1.4. Registration fees for the transfer of ownership to the land registry are also due. About 0.7.
Other taxes and fees
Other stakeholders such as real estate agent, lawyer, surveyor and accountant will also have to be paid.
Taking into account all the fees and fees, we usually have to rely on a range between 9 and 12, which is a slightly lower amount than what we know in France.
The houses and architecture in the DODEKANISOS, some islands take up the Greek cliché of whitewashed houses with blue shutters but this is not the most common architecture. However, blue remains thedominant color: the sky, the sea, the chapels with azure domes… The Aegean Sea and the Dodekanisos Islands have nothing to envy to the Cyclades in this area.
More ITALIAN INFLUENCE,the official colors of the islands are yellow for the facades and brown for the shutters in LEROS
Rich in its history and geography, Greece has inherited various architectural influences on the continent. RODOS and Dodekanisos are no exception. The classical style of the temples has amazed us since antiquity, the BYZANTINE churches have lost none of their eastern charm, the fortresses of the KNIGHTS OF St-JOHN, the Orthodox sites, the Ottoman buildings and the Italian rationalism have finely marked the dodecanese islands.
Successive civilizations have each left their mark on the medieval city of RHODES to such an extent that it is now classified as a World Cultural Heritage Site by UNESCO. But when you visit the other islands of the Dodecanese, you will find that each of them has real architectural treasures that make these islands unique places.
The arrival of the Italians in 1912 marked a crucial moment in the architecture of the Dodecanese. Already because Italian archaeologists rehabilitate and renovate the ancient and medieval quarters of the islands. Thanks in part to the Italian School of Archaeology, the beauty of the old town of RHODES today can be admired. But, beyond the renovation, the Italians left their mark on the modern architecture of the region with the construction of Art Deco and then rationalist buildings, in the Fascist period. Among the best examples visible today: the city of LAKKI in LEROS, or some official buildings of the new city of RODOS.
The Italian style found in the port of SYMI has nothing to do with the arrival of the Italiansbut with the neoclassical style in vogue in the 19th century in Europe.
Leros is a special case in the Greek islands that do not give it an extraordinary reputation in the other islands of the archipelago. For several decades, the former psychiatric hospital of Lepida of sinister reputation in Greece and then in Europe offered comfortable income to the inhabitants of the island. Almost income of European civil servants for very questionable qualifications. In the 90s, the island was only a zone of consumerism with several cars per household to such an extent that it was necessary to cut the tree of Platanos to cope with traffic jams.
Many ergotes then go to the constructions of several properties on the island often oriented towards tourism with rooms more than real houses. After the crisis and the new rules (and several years to enjoy the pensions generated by the hospital), now the whole island or not far is on sale. But with real estate that generally does not correspond to the desires of Western tourists (usually the rooms are very small and the architectures very basic). However, prices remain pharaonic since they generally higher than those of the Côte d’Azur in France. And the sometimes very very large fluctuations between the months and the aspirations of the owners….
You will agree on a price with an owner but you are not at the end of your emotions since often until the signature at the lawyer additional requests are commonplace.
Building a house
Then you are in the great sport. Everything that tells is true and we could write a real novel ourselves. You will be alone and global emanations do not trust anyone including among the representatives of the law (lawyer, notaries, mechanics, etc ..)
The island has benefited from an extension to finish the cadastre and even if it is now closed, many property titles remain folkloric and many owners think that it is still possible to operate in the old way. Many do not really know the law and indivision remains a mystery to many.
Appeals for parcel boundaries in the cadastre give rise to procedures that will at least take about fifteen years.
Among the great classics check that your land has a municipal access with a real declared road.
The rules for constructions are quite rigorous but many derogations, special cases, and interpretations of the law. Overall, if a dispute arises, the procedures in Greece last a very long time, the lawyers usually agree among themselves to raise the grievances and you will always be only a… stranger.
The architect is not fundamental in the construction process since it is the Mechanikos (equivalent to the surveyor) who makes the plan of the house, realizes the building permit file and measures the amount of concrete necessary for the construction. The plan may also be offered to you “free of charge” by the manufacturer. The main problem is a lack of creativity and often a design that does not correspond to your aspirations especially on the progress and surfaces of the parts. You can also have a plan made in your country and provide it to the Mechanikos (even if it is necessarily not appreciated)
In a global way is it is often poorly addressed by real estate agencies in the choice of land the criteria of exposure to the sun and especially to the wind are fundamental points. The latter can make your home almost unlivable.
In Leros, there are paradoxically three manufacturers who only work with foreigners and other companies that they only work with Greeks. Greeks who approach a construction site consider it provider by provider (concrete, electricity, tiles, etc …) while builders for foreigners offer a global service that is generally poorly quantified. Significant overruns are quite frequent, such as figures that do not take into account VAT or IKA social charges that will be requested from you later !!! If you choose a global service, we would only advise you to come regularly to the site throughout the year and to make a financial update on the progress of the work.
Even with an accurate architect’s plan, builders, workers will not fail to choose to do as they want, as they think it is better. paradoxically if you are not satisfied with their work, they will ask you to pay for the work they have done, the destruction and construction faithful to the plan. Payment for satisfaction is not customary and you will inevitably be stuck by the fact that they will no longer want to come to your site, as an odious blackmail …