The Tailored Home Property Buying Guide to Greece

Overview
TailoredHome.co.uk’s Property Buying Guide to Greece can help you choose your ideal home in Greece. It has established itself as a firm favourite with British holidaymakers thanks to its abundance of sunshine, relaxed lifestyle and relatively low cost of living. Those same qualities have also attracted significant numbers of Greek property being bought by British homebuyers.

While Greek property prices have increased dramatically in the past ten years or so, homes in Greece are still good value for money relative to the UK and other popular second-home and retirement destinations. There are both modern homes and traditional property available and even very modest budgets can be accommodated by plentiful rural property in need of renovation.
 
Many visitors head for one of the Greek Islands, dotted around the Mediterranean, Aegean and Ionian Seas. Crete, Rhodes and Corfu are among the most renowned, though there are dozens more that holidaymakers and residents pronounce their own personal favourite. On the mainland, historic Athens has been tipped as an investment destination by some. Wherever you choose to buy, Greece is well served by airlines from many UK airports.
 
As a member of the EU, Property Ownership in Greece has few restrictions that apply to UK residents. The legal process is well established and quite straightforward, though you’re advised to seek out reputable professional help to guide you. British passport holders are free to visit or work in Greece and, for those considering emigration, even move there permanently with minimal limitations.
 
Whatever type of property you’re looking for, the property finders at TailoredHome.co.uk can source a home in Greece that fits your budget and requirements.
 
Property hotspots

Crete
The largest Greek island is already an enormously popular tourist destination with an established British expat community lured by the fantastic weather, low cost of living and the opportunities provided by tourism. With three major airports and a number of sea routes to the mainland, the island is very easy to reach from anywhere is Europe. There are good road connection around and plenty of things to do for visitors.
 
The eastern part of the island is more developed than the west and has generally higher rental yields. However, many British buyers have been drawn to the quieter western part of the island, around the ancient Venetian port of Chania. Though property prices have spiralled upwards as a result, they are still very reasonable by UK standards.

Athens
The capital continues to be a magnet for tourists fascinated by the treasures of Ancient Greece. It is also the country’s commercial and political capital and has a large student population. This multitude of potential rental audiences has made Athens a highly regarded “jet-to-let” destination in recent years.
 
It has benefited from enormous infrastructure improvements ahead of hosting the Olympic Games in 2004, expanding the transport network and the international airport, which is well connected to the rest of Europe via numerous scheduled and charter airlines.

Rhodes
Rhodes is one of the Dodecanese Island group and is reputed to have the sunniest climate in the whole of Greece. Consequently, it is one of the country’s top tourist hotspots, where property prices are towards the top end of the market in Greece, particularly for modern homes.
 
They still offer good value compared with the UK and some other Mediterranean destinations. There are, however, still opportunities for the intrepid investor to find an inexpensive rural ruin to renovate. Though there are currently no direct scheduled flights from the UK to Rhodes, you can find direct charter flights during the tourist season. 

Tourism
Tourism is one of the cornerstones of the Greek economy, contributing some 15% of the country’s total Gross Domestic Product (GDP). The two main strands of tourism derive from Greece’s rich history as the “cradle of European civilisation” and from its numerous inexpensive, sunny coastal holiday resorts.
 
2005 – 13.3 million visitors
2006 – 14.5 million visitors
2007 – 15.3 million visitors
 
Climate
The climate is certainly one of the major factors in the popularity of Greek holiday destinations, with almost guaranteed sunshine during the tourist season. In fact, the arid heat can sometimes be overpowering, reaching over 40ºC in places at the height of summer.
 
Location Summer (Jun-Sep) Min/Max Winter (Dec-Feb) Min/Max
Crete 18ºC/28ºC 7ºC/15ºC
Athens 18ºC/32ºC 6ºC/14ºC
Rhodes 20ºC/31ºC 9ºC/17ºC

 
Fast facts

Currency
Euro (EUR). GBP1.00=EUR1.07 (Jan 2009).

Population
10.7 million (2008 estimate)

Time zone
GMT 1

Visas
As an EU citizen you are free to visit Greece without a visa for up to 90 days. Those planning to stay longer or work need to apply for a Residence Permit from the Alien’s Bureau.

Buying process
Ownership restrictions
There are few restrictions on visiting and owning property in Greece: you may require a Temporary Residence Permit (“Blue Card”) to buy in certain areas close to a national border. This will take around a fortnight to process. There are no restrictions on letting your property, though the rental income is subject to tax and you are required to submit a tax return declaring your rental income.

Financial
A Greek bank account is undoubtedly helpful when buying a home in Greece. There are a number of banks there that provide accounts for residents and non-residents alike. Shop around to establish which bank offers the best fees and facilities (e.g. internet banking, to suit you. You’ll need to have a Tax Registry Number (known as an “AFM”) from the Greek government in order to apply for the account, as well as many other transactions such as buying a car.
 
Greek banks are unlikely to offer loans (other than mortgages) to non-residents and if you apply for a credit card they will most likely require a reference from your UK credit card company.

Mortgage availability
A Loan-to-Value (LTV) of up to 80% is typically available, subject to a minimum advance of EUR35,000 (£32,700). The amount offered is usually calculated on the applicant’s net pay (your other monthly outgoings should not exceed 35% of total net pay) and any proposed rental income is disregarded in the calculation.

Legal
The property buying process in Greece is quite different from the system in the UK:
- Apply for a Tax Registry Number (AFM). You’ll need to be issued with one of these by the Greek authorities before embarking on your property purchase. 
- Appoint a notary to oversee the transaction. As a government official he will be impartial in the transaction, only ensuring that it meets all the legal requirements. Employ your own lawyer to look after your interests.
- If the property you want is in a restricted zone, apply for the “Blue Card” (a Temporary Residence Permit).
Though surveys are not commonplace in Greece, you may want to employ the services of an architect or a “mechanikos politikos” to conduct a structural survey of your property. 
- Get your lawyer to prepare a preliminary sales agreement outlining the terms and conditions of the purchase and then conduct the title search to ensure the seller is permitted to sell the property. Pay a 10% deposit at this point.
Completion takes place around six to eight weeks after the preliminary sales agreement is prepared. Prior to signing the final contract you’ll need to pay the transfer tax and provide a “pink slip” from your Greek bank showing that the money has been transferred legally to Greece and correctly declared. 

- The final contract is signed by both buyer and seller in the presence of the notary. If you attend in person, you should take an interpreter to explain what the document says or get your lawyer to translate. Alternatively, grant your lawyer power of attorney so that he can sign the documents for you in your absence. The balance of monies due is paid now. 

Transaction costs
The costs involved in purchasing a home in Greece are:
- Transfer tax – For properties constructed prior to 1 January 2006, transfer tax is charged at around 9% of the property price in areas without a fire protection service or 11% in areas with a fire protection service. The transfer tax is itself subject to Municipal tax at 3% of the transfer tax amount.
- Value Added Tax (VAT) – For new properties constructed on or after 1 January 2006, VAT at 19% is charged on the first sale instead of transfer tax.
- Notary fees – The fee for the services of this government official is fixed at 1.2% of the property value.
- Registration fees – A flat fee of EUR15 (£14) is charged for the cadastral extract and 0.475% of the property value is paid to the registrar.
- Legal fees – These are usually shared between buyer and seller and total around 1% of the property price.
- Agent’s fee – The estate agent’s fee is usually shared between buyer and seller, who will each pay between 1% and 2.5% of the property’s value.
 
Also allow costs for UK lawyers’ fees, mortgage arrangement fees, survey fees, translation fees and foreign exchange transfer charges.

Emigration
EU citizens are able to visit Greece for up to 90 days without a visa, though if you wish to remain there for longer, or work there, it will be necessary to obtain a Residence Permit from your local police station or from the Alien’s Bureau.
 
You’ll need to provide proof of income or sufficient funds to live on as well as proof of private medical insurance. The permits are free of charge and should be issues on the spot if you have the correct supporting documentation

Click here to view property for sale in Greece.