Buying Procedure

How To Buy Property In Crete

Buying property in Crete is a relatively straight forward procedure. The steps that need to be followed are quite basic and are outlined below.

• Appoint A Greek Lawyer

In Greece the buyer must have his own independent lawyer based in Crete who will assist him during the house purchase procedure and represent him in all legal matters pertaining to the purchase of his house in Crete. To this end it is recommended that the buyer gives Power of Attorney to his chosen lawyer enabling him to act on his behalf when the purchaser is not himself in Crete. If the buyer doesn't know a local lawyer Action Constructing can recommend a selection of reputable lawyers who have experience in matters of real estate conveyancing in Crete and are fluent in foreign languages.

• Appoint A Greek Public Notary

In order for a property purchase agreement to be valid here in Crete a public notary must be appointed. The public notary drafts the official purchase contract and it must then be read, understood and signed in his or her presence by the buyer and seller or their legal representatives. The public notary does not represent the interests of the Buyer as this is the role of the buyer's lawyer, but the notary public is responsible for the verification and registration of the purchase transaction in the public records, known as the Registry Of Mortgages, so that the buyer acquires the official title deed of the property. Action Constructing can either recommend a number of notaries for the buyer to select or immediately assign the one responsible for the drafting of the official purchase contracts of a specific project subject to the buyer's approval.

• Property Title Deeds In Crete

Title deeds of ownership in Crete are held at the Registry of Mortgages. The vendor must supply the buyer with a copy of the title deeds of the property in question. This is often done with the help of the buyer's lawyer who is then obliged to investigate the title deed to ensure that:

1. The vendor holds the absolute deed of the property
2. There are no claims against the property or encumberances
3. The vendor has paid his property tax
4. The property was built strictly according to planning and building permissions

Only if the title deed is found to be clear will the buyer's lawyer recommend that he proceed with signing of the official purchase contract.

• Greek Tax Role Registry No. (ΑΦM)

A tax role registry number (pronounced "a-fee-mee") must be issued for the buyer to be able to proceed with any transaction including the buying of a house in Crete. The tax role number can be applied for by the buyer's lawyer in their absence as long as the lawyer has power of attorney for their client. The tax role number is issued by the Inland Revenue.

• Transfer Tax in Greece

The previous tiered transfer tax paid by anyone buying property in Crete has been replaced by a VAT payment of 19% of the value of the property. NOTE the prices on this website include the VAT payment.

• Transfer Of Title Deeds At The Registry Of Mortgages

The buyer's attorney makes sure that the title deed is transferred to the buyer's name by obtaining the relevant certificate from the Registry of Mortgages.

• Opening A Bank Account In Crete

Greek banks offer a wide variety of financial services. It is advisable for the buyer to open a bank account with one of the major banks here in Crete. This can be done with the help of the buyer's lawyer. Subsequently money for the property purchase can be transferred from abroad into this bank account. Withdrawals from the bank account can be made by the buyer's lawyer on the buyer's order. Cretan banks issue "pink slips" for funds that originate from abroad. These pink slips must be requested from the bank by the buyer or his Greek attorney and allow him to prove that the property has been paid for using money transferred from abroad and not earned here in Crete. The pink slips are essential for the buyer's yearly tax declaration and should cover the "assessed value" of the property (see below for details).

• Crete Property Insurance

Property in Crete can be insured through insurance companies. Property insurance contracts cover all types of possible damages i.e. fires, earthquakes, natural disasters, storms, theft, third party liability etc. Insurance costs are normally billed bi-annually though annual payments are also acceptable. Property insurance is not obligatory, but if you have taken a mortgage for your home in Crete from a local bank they normally require that you use an insurance company stipulated by them for your Crete property insurance.

• Yearly Costs Related To Your Property In Crete 

Yearly property taxation in Greece is limited to the following:

• 1. Local municipal tax:

  The council tax ranges from 0,025% - 0,035% on the "assessed value" of the property and is incorporated in the electricity bill.

• 2. Yearly property tax:

  Owners of property pay a yearly property tax only if the "assessed value" of their ownership exceeds the amount of 243.000 €. The amounts are between 0,3% - 0,8% of the assessed rate of the property.

• "Assessed or Objective Value" Of The Property

The "assessed" or "objective" value of a property is the minimum accepted value of the property in Crete for transaction and tax purposes. The assessed value is calculated by the Public Notary and the Inland Revenue Service for each individual property and the calculations are based on public data supplied by the state relating to prices per square meter as well as other location or specific property characteristics. Assessed values, as mentioned above, are used for the yearly tax declaration.

• Security Of Property In Greece

The ownership of property in Greece is secured by the state authority called the Registry of Mortgages. Titles to your property are kept there, where all encumbrances on properties are stored. Property is filed under the names of the owners and lawyers are entitled to check the property belonging to any individual or company. A title search is performed in order to find out if there are any claims, bonds or encumbrances on the property. A title search will also show you if the property was properly transferred.

Building The Home Of Your Dreams In Crete!