EXPENSES FOR BUYING PROPERTY
Except of the price of the property, there are several
other expenses you have to take into account when buying property. They
are:
- Property Purchase Tax. Based on the
estimated (by the tax office) value of the property - this is also
the price that will be stated in the contracts.For the first 15.000
Euro the tax is 7% for properties
outside of the city plan (except in some restricted areas). For the value over
15.000 Euro, the tax is 9% (11% in
restricted areas).
- Municipality Tax. On the total amount
of purchase tax you have to pay, there is an additional 3% of taxes
for the municipality the property in question is located.
- Expenses for the Notary Public.
The expenses for the notary public are up to 1,5% of the value
stated in the contract.
- Expenses for Legal Representation.
About 1.5% of the real value or
according to agreement.
- Commission for the Real Estate Agent.
According to agreement.
NECESSARY DOCUMENTS FOR PROPERTY SALES
The vendor needs from the tax office:
- The existing
property titles and the certificate from the Mortgage Registry
Office
- Recent
topographic plan of the land, signed and stamped by the
engineer and according to the laws 651/1977 and 1337/1983 [only if
the property is a plot with or without a dwelling or agricultural
land within the controlled urban zone (Z.O.E.)]
- Declaration of
the vendor, verified by the tax office were the tax declaration is
submitted, that the property in question has not given the
owners any income within the last five years. If the property has
given some kind of income to the owners, another certificate is
necessary, stating that the income has been declared in the tax
declaration, according to the Greek law 2238/94, article 81.
- Declaration of
the vendor, verified by the tax office were the tax declaration is
submitted, that the property in question has been declared in
the special form for real estate E9 and that the vendor is not
afflicted by the law for owners of big estates, or, if the owner is
afflicted by this law, another certificate is necessary stating that
the necessary declarations have been made and the taxes have been
paid, according to the Greek law 2459/97, article 32.
- If the existing
property title shows that the property has been acquired by the
current owners by ways of inheritance, donation or as dowry,
the following documents are necessary: a) If the transaction has
taken place before 31.12.1984, for donations and dowries a copy of
the family contract or a confirmation from the notary public who
signed the contract is needed, confirming that the contract was
signed before the 31.12.1984 and that the tax declarations made are
valid; in cases of inheritance a copy of the death certificate
confirming that the death occurred before 31.12.1984 and a liability
declaration of the heir that the tax declarations have been made and
are valid. b) if the current owner acquired the property after
the1.1.1985, a certificate from the responsible tax office is
required, stating that all taxes for inheritance, donation or dowry
have been paid, according to the Greek Law 118/1973 and with the
alterations according to the Greek Law 2892/2001.
- Certificate from
the city council that the property in question does not owe
council taxes or duties according to the Greek Law 2130/1993 (to
obtain this certificate, a copy of the property title and the last
bill from the electricity company is required).
- Certificate from
the city council the property is located in, that the
property owner has declared the ownership to the council, if the
property is located in an area that has joined the town planning
schedule according to the Greek law 1337/1983 and the realization of
the town planning has taken place after 25/11/1994 or has not yet
taken place. In any case where a property has joined the town
planning schedule according to the law 1337/1983 and the realization
of the town planning has taken place, another certificate from the
city council is necessary to clarify the situation, as to weather or
not the property owes money or land to the city (The above are
necessary if the property is a piece of land with or without
dwellings).
- Liability
Declaration of the vendor according to Greek Law 1599/84,
that the law 2084/92 and the decision of the Ministry of Employment
F21/116/FEK 839/10-7-00 are not applicable, or, if they are
applicable, a certificate to show that no taxes are owed. If the
vendor has a business or is shareholder in a company, or if he has
another building under construction on his name at the time of the
transaction, a certificate from IKA (National Health Insurance
Organization) is necessary to show that he does not owe any fees to
them.
- Certificate from
the Land Registry Office and from the Ordnance Survey,
confirming that the property has been registered there according to
the Greek Law 2308/85.
- Liability
Declaration of the vendor according to the Greek Law
1337/1983 that the construction of the buildings has taken place
before 14/3/1983, or otherwise a copy of the building permit if it
is issued after 14/3/1983 and a liability declaration of the vendor
according to the law 1577/85.
- Written
Permission of the Prefect according to the Greek Law
1892/1990 art. 2, if the property is located in a classified area,
e.g. close to the frontiers.
- If the property is a piece of agricultural land in a special zone for
the development and the improvement of land property (TOEB), a certificate from the local
office of TOEB is necessary to confirm that the owners do not owe to
this office.
The purchaser needs:
- Before the undersigning of the final
contract at the office of the Notary Public and having ensured the
signature of the vendor, the
purchaser has to pay the transfer tax in the local tax office. A
special declaration (in 3 copies)
has to be filled in stating the exact amount of the taxes being
paid. Together with this, a special form showing the assessed value of the property in
question, has to be presented. The Notary Public assists with the
declarations!
- If the purchaser is buying the first real estate on his/her name,
under certain circumstances he/she can be freed from the purchase
tax. In this case, while filing the declarations for the transfer
tax, he has to file as well a liability declaration according to the
greek law 1599/86 stating that he/she has no other real estate
registered on his/her name and attached to this a copy from the
family register and a confirmation from the town planning office
that the land is a building plot according to current building
regulation, together with the topographic plan of the land. The transfer tax is calculated based on the
price stated on the contract and is due on filing of the
declarations.
- Finally, on signing of the contract, you will be asked to sign several other
declarations, e.g. to confirm that the property is not too
close to the sea shore, a stream, etc. After the contract has been
signed, the purchaser (or the notary public) takes a copy of the contract to the Mortgage Registry
Office to obtain a certificate of
the new entry there.
|
