The Process

The method of transferring house and land ownership in Greece is similar to the UK and other Northern European countries. However, it is rather more bureaucratic.

Any EU citizen can own a property on mainland Greece, or any of the Islands including Corfu, (readers from countries outside of the EU need to apply for special permission from the Hellenic Government, which is not normally withheld).

To purchase a house you need a Greek tax number, residents permit and a bank account. These can all be organised for you by any reputable Greek Lawyer or Accountant. The whole thing takes 3 or 4 days and involves no more than filling in a few forms (with the help of your chosen Greek speaking professional) and providing seemingly countless notarised copies of your passport!

The requirement to take a Greek tax number frightens some people but it is simply the Greek authorities way of ensuring they can collect the relatively low taxes related to your property. It does not effect your tax status elsewhere.

Your Lawyer will also check and clear any other ownership claims, endowments or liens over the property and, that the building (and any subsequent modernisation or extensions) were legal.

The title deed transfer process requires a number of documents that will be handled by your Lawyer. These include: A topographic survey (paid for by the vendor). This is compared to the local government land registry to ensure that there are no border disputes (and, that you are buying exactly what you think you are!). The topographic survey should also come with any building permissions relating to the property.

A tax clearance document is also required from the vendor. In Greece, you cannot dispose of personal assets if you owe the government money.

Once these have been ratified both sides Lawyers agree and pen a sales contract. This is taken to a Notary Public for all parties to sign. This is a big day. Everyone attends and it is normally a jovial conclusion to the process with much ceremony made of passing the signature pen from person to person.

A quick note about house prices: There are two elements to be considered - The Objective Valuation, which is the number used by local government to establish the level of purchase tax to be paid by the purchaser (similar to stamp duty in the UK). And, the Market Price - Which is the sum you actually agree to pay to the vendor. There will be a difference!

Objective Valuations are generally lower than Market Prices. This is good for purchasers as they pay less purchase tax. There are plans to close the gap between the two by raising Objective Valuations.

Purchasing a Blue Sky property offers a number of benefits in terms of ease, speed and confidence.

The title deeds to all of our properties have already been cleared (remember, we actually own the properties). This instantly removes the time consuming process of gathering together all of the required members of a far flung Greek family to sign at the Notary Public's office. Also, we will already have obtained building permits for the works we will have completed at the property.

We have established links with reputable Lawyers in Greece, if you do not have your own, who will walk you through the whole process in as little as two weeks.

Property Corfu

We always have property for sale in Corfu. Our contacts on the island are extensive and we can ensure a smooth and fast transfer of ownership. (Back to top)

Costs and Taxes

The costs associated with purchasing a home in Greece are as follows:

The ongoing costs of owning a property in Greece are very low. You will only receive three bills: Water (paid every six months), electricity (paid every two months and including a very low council tax element, and your TV licence), a phone bill (every two months).

As a rough guide, a 130 sq.m property in Greece will cost you approximately 200 euros a month excluding phone and building maintenance costs. (Back to top)

Re-sales

Of course, you can sell your property anytime you wish. Real estate agencies here in Greece charge between 1% and 2.5% commission on the selling price of the property. Prior to placing your property on the market you should ensure that any outstanding taxes are paid and that an up-to-date, topographic survey is undertaken. The cost for this is approximately 600 euros. There is also a small disposal tax to be paid at the conclusion of the sale. If you own more than one property in Greece the charge rises.

Please note, any property that you own in Greece does not effect your rights in your primary country of residence. (Back to top)

Rentals

Corfu is well established as a holiday destination throughout the summer, however most people probably do not realise that houses in Corfu, are often let on a long term basis (6 months) throughout winter months due to generally nice weather in September, October, November and December. It is true to say that January and February are somewhat wet, but the overall ability to obtain a decent return from a property investment in Corfu is well established.

Rental Income

We have discussed the matter with local rental agents who believe that the average rental for the type of properties we have would be as follows:

Total estimated average income per annum, assuming 12 months of the year, is €18,360 (£12,668).

Our properties very much lend themselves to being let over the winter months to writers, artists, ramblers or those just looking for a retreat, as they are situated within picturesque villages where the indigenous population live all year round. Community life continues as normal and the shops are open.

Corfu is only 56 kilometres long and 13 kilometres wide, therefore you are never too far from one of the island's beautiful beaches.

In fact, a large number of the properties right on the coast, with their own swimming pools, tend not to be let out very much in the winter months as the appeal is not quite the same and the cost of staying there is far higher.

Realistic rents have to be accepted for the period of time between October and April, but then these may be taken on much longer leases.

Borrowing Facilities

Borrowing facilities in the UK and Greece are similar. We suggest that you to log on to the Alpha Bank website (www.alpha.gr) for current rates and lending levels. The rates are pretty much the same as you would expect when borrowing in the UK. By way of example, taking a 2 year fixed rate in the UK, for a re-mortgage or further advance, the monthly interest in relation to £100,000 (€145,000) would be £395 per month i.e. £4,740 per annum.

Illustration of Gross Annual Return

Note:- Figures provided for illustration purposes only, rental returns could be higher or lower.

Purchasing a Property to Let

It is evident that it is feasible for purchasers to make a decent return on their investment and there are certainly many established rental agencies that will be happy to assist in obtaining holiday or long term lets. We anticipate that many of our purchasers will probably retain the number of weeks they require to visit the property themselves and then endeavour to rent the property out for the remainder of the year. (Back to top)

We offer property management and rental services as a support service to our clients. For further information click here.