The legal requirements of buying property in Greece
Discover the legal requirements when buying property in Greece. This includes necessary documentation, the role of notaries and compliance with Greek regulations.
The documentation you’ll need to buy in Greece
To legally buy in Greece you will need several documents:
- Valid passport
- AFM number (Arithmos Forologikou Mitroou), which is similar to a national insurance number in the UK
- Proof of residence
- Copies of recent tax returns
- While not essential, it can also be useful to have a Greek bank account.
Non-EU citizens may also have to prove their connection to Greece and explain how they intend to use the property. Although this may sound daunting, your estate agent and/or lawyer will help you, and it is intended as a protection for Greece and for bona fide international buyers there.
Legal restrictions on property purchases
Overseas buyers are not able to purchase property around Greece’s military bases or its borders.
Local zoning regulations in Greece can be quite complex, and it’s best to ask your lawyer for insight, especially if you are planning to build or renovate a property. They are determined by the population density, the plot type (agricultural or residential) and the coverage ratio. There are also restrictions on the type of property types; for example, plots on the front line of the sea cannot exceed three levels.
The role of the notary
A Greek simvoliographo (notary) must be a party to the sale contract. The buyer (or more normally their lawyer) has responsibility to hire the notary, who will prepare the sales contract and make sure all details are right.
You sign the sale contract, which legally transfers ownership between the seller and buyer. before the notary, who ensures this process is legal. Your lawyer must also be present, as they’ll sign the document when the contract’s signed.
The notary’s main function is to certify Greek documents and agreements to ensure that they meet all legal criteria. They work on behalf of the government and cannot advise or protect the interests of either the buyer or the seller. It is their responsibility to collate all the information on the property and the area to calculate the tax value of the property.
Greece’s Seismic Code
Greece is an earthquake zone, so your lawyer should check that the property complies with Greece’s Seismic Code, as laid down by the Earthquake Planning and Protection Organisation (EPPO).
Even so, for this and other matters it can make sense to get a survey done. UK-based organisation the Royal Institution of Chartered Surveyors (RICS) has members in Greece, and you can find registered members using their RICS Firms search for Greece.
[h2] The legal process of buying Greece
The legal process of buying in Greece might be quite different from your home country. However, it can be broken down into simple steps:
Reservation contract
When you have found the property you wish to buy and have agreed a price, the agent will usually ask you to sign a reservation agreement to take the property off the market at the agreed price.
Your lawyer will check all the legalities of the property. They will also ensure that the owner (or developer if it is a new-build or off-plan property) is correctly registered to sell the property. Your lawyer will verify that there are no pending charges on the property or land.
Preliminary contract
The next step is the preliminary contract — a private contract of sale between the buyer and seller agreeing the price, the payment method and any other conditions. When this contract is signed, it is binding and a deposit of around 10% of the agreed purchase price must be paid by the buyer. The deposit should be kept in a separate account controlled by lawyers and not passed to the seller until the final agreement. This protects the buyer’s interests in the purchasing process.
Greece has strict planning laws, thankfully, which have protected it from over-development. This does mean, however, that an important part of the buying system in Greece is for your lawyer to ensure your property complies. For example, they’ll make sure the swimming pool and any extensions — including covered balconies — are legal. Closing of the sale from the preliminary contract to the sales contract will usually take around four to six weeks.
Completion
At this signing, the notary will read out all contents of the sale contract, and will sign and complete this, providing they are satisfied that both parties understand this. The seller will need to pay the property transfer tax before the contract is signed, but, once these documents have been completed, the balance of the purchase price will be paid. The notary then registers the property with the National Cadastre (Land Registry).