You know you want to purchase a property in God’s own city which is surrounding by beautiful buildings, pleasant climatic conditions, centralized geographical position and relaxing beaches, and you might even be looking to buy property in Chania, the city at the northwest coast of Crete.
But do you know how to buy a home in Greece or what legal formalities you need to adhere to in order to acquire property for sale Crete? Though most of the properties in all the cities of Greece are freehold, the process can still be a bit daunting. From prices of the properties, acquiring fees to taxes and legal procedures required, it is always good to do the homework before you go on to purchase a property.
Here are a few tips and basic knowledge you need to know about all the fees and regulations involved so that you can protect your investment as well as rights.
Legal Structure
A. Real Estate Rights
In Greece, the real estate owners can have the right in a property in three forms (full ownership, bare ownership and usufruct ownership). It is imperative that you are aware of what kind of property rights are being transferred to you as a buyer.
B. Real Estate Acquisition
There could be various means of acquiring property in Greece. However, the two primary methods include:
Acquisition by Contract – The seller and buyer both appear in front of a notary public and sign a deed stating the terms and price of transfer of property rights. The deed is also registered in the land registry for government records.
Acquisition through Public Auction – Greek state holds lots of auctions through the electronic medium for the general public. Thus, UN and non-UN residents can register online to participate in the auctions of the properties offered.
The Process of Acquiring Property
1. Once you have finalized a property you want to purchase, you will be required to hire a lawyer to perform all the legal procedures.
2.There is a necessary requirement to get a tax number issued by the Greek State before acquiring the property.
3.Though not a compulsory step, it is always recommended to get the technical survey conducted for the property.
4.You will have to pay the transfer tax (stamp duty), which is currently valued at 3% of the total transaction amount.
5.The completion of the acquisition contract will take place only in front of a notary public. This will be your first step towards the acquisition of property.
6.You will be required to register the title deed at the local Land Registry. It will serve as absolute proof of your property ownership.
7.As the final step, you will be required to register the property online with the tax authorities.
Taxation
A. You will have to pay an annual tax for all kinds of properties you own in Greece. It is calculated on the basis of the total value of the property and value of assets that you will have on your portfolio. You can pay this tax in 5 installments.
B. All the property-based incomes that you will earn, including long term leases, Airbnb, short as well as long term rentals are subject to taxation. As an owner of the property benefiting from the rentals, the tax will be charged at various rates depending on the total revenue that will be produced.
Looking to Buy Property in Chania?
If you are still looking for a perfect property within your budget in Greece then Dreamcatchers can be your property hunting partner. With more than 10 years of experience in the business and successful associations with all the customers, Dreamcatchers is an independent estate agent that would ensure legal and complete acquisition of property for sale Crete.
