F.A.Q.s

Frequently Asked Questions
Show All Answers | Hide All Answers What legalities are involved in the purchase of a property? Buying a house, apartment or a building plot on Corfu is subject to similar legalities to those applying in most other EU countries. It is necessary to appoint a lawyer, who will check the title of ownership and ensure that there are no mortgages outstanding or legal encumbrances attached to the property. CPA can, if requested, make recommendations for the appointment of an appropriate lawyer and subsequently liaise with him/her on your behalf. Your lawyer would be responsible for the appointment of a notary public who prepares the necessary Final Contract in conjunction with him/her. Once the sale has been completed, it is the Notary who registers it with the Land Registry, and retains a copy of the Final Contract. The Notary, will also give you certified copies. In certain cases, it may be necessary to appoint a qualified surveyor to assist with enquiries. You are required to obtain a Greek tax number prior to the final contract being signed. Do I need a lawyer / solicitor? Yes, it is necessary to appoint a lawyer, who will check the title of ownership and ensure that there are no mortgages outstanding or legal encumbrances attached to the property. CPA can, if requested, make recommendations for the appointment of an appropriate lawyer and subsequently liaise with him/her on your behalf. Your lawyer would be responsible for the appointment of a notary public who prepares the necessary Final Contract in conjunction with him/her. Via a Power of Attorney, your Lawyer is also able to: - open a Greek Bank account for you. - obtain a Greek Tax number. - sign the final contract should you not be able to be present yourself. Do I need a notary? Yes. A notary public is a government-appointed lawyer who processes and certifies all real estate transactions, including drawing up and reviewing all official documents, to ensure the legal transfer of the property. Do I need a Greek Tax Number (AFM)? Yes. This tax number (AFM) is mandatory for all buyers, including foreigners and permanent residents abroad. It is issued on the spot at tax offices, free of charge. All applicants must present their passport and their birth certificate. If you have granted your Lawyer full Power of Attorney, he/she can apply for an AFM on your behalf. Do I need a Greek bank account? Yes. All necessary payments will be made through this account; also, this account will prove that funds used for property purchase have come into Greece from another country and are, therefore, not taxable in Greece. Opening a bank account in Greece only takes a few minutes. Some banks will ask for a minimum opening deposit and you will also need your ID or passport and your AFM (see above). Again, if you have granted your solicitor full Power of Attorney, he/she can open a bank account on your behalf. Do I need a residence permit in order to purchase property in Corfu? A residence permit is not required for the purchase of a property in Corfu. You would however need one if you want to purchase a car, moped or any motor vehicle. I am not an EU citizen, can I purchase a property on Corfu? Yes although the procedure differs from that of EU citizens. There are two options and lawyers on Corfu are well versed in the procedures to assist: 1 - You can form either an EU registered company in whose name the property becomes registered. 2- Via a lawyer, you can apply to the Greek Ministry of Defence for permission to own/purchase a property. Can you walk me through the buying process? The process is fairly quick and uncomplicated. As a general rule, you must: - Select your property. - Make sure financing for the purchase is secured. - Appoint your solicitor. - Sign a pre-contract (private agreement) detailing terms of sale and payment schedule. - Pay a 10% deposit to secure the property by removing it from the market. This deposit is held in a trust account until your lawyer is satisfied that you can proceed with the purchase and it is not released until the signature of the final contract. - Apply for your Tax Registry Number (AFM). - Open a Greek bank account. - Return to Greece to sign the final contract, after all legal work is completed (6-8 weeks, usually). Alternatively, your solicitor may sign for you if he/she has been granted full Power of Attorney. - Upon completion of final contract, all fees and taxes must be paid. What other expenses would I be expected to pay? Closing costs are an estimated at around 13% to15% on top of the purchase price and include: a. Transfer Tax (Stamp Duty) payable to the Government b. Notary Public Fees c. Your lawyers fees d. Agency fees a) Transfer Tax (Stamp Duty) - The day before signature, the Transfer tax becomes payable to the government. Please note - this Transfer Tax (stamp duty): is NOT calculated on the actual purchase price, but on the value of the property as assessed by the Tax Office (this is often a lesser amount). Transfer Tax: 7.21% of the first 14.700 Euros and 9.27% of the remainder (based on the Tax Office valuation). b) Notary Public fees: These are between 2.2% and 2.5% depending on the value of the transaction (including subsequent registration fees). c) Your Lawyer's fees: These are between 1% and 1.5% of the sale price (depending on the value of the transaction). Do I have to pay annual property taxes? There is currently no 'annual property tax' in Greece. However, as a property owner you would need to complete an annual tax return. If your property is less than 150sqm in size, this is a one off 'tax declaration' submitted in April/May in the year following the purchase. Provided you have proof that your properety purchase was made with funds coming in from abroad, you are not employed or otherwise receiving an income in Greece, you will not be liable to pay tax. If your property is over 150sqm in size then you need to complete a tax declaration every year, however this does not necessarily indicate that you would be liable to pay any further tax. How do I complete the annual tax return? CPA can, if requested, recommend you to an accountant who can submit the appropriate forms on your behalf every year. Alternatively, you could use the services of our Property Management Services department. How do I prove that I purchased a property with money brought into Greece? Your bank will issue you with what are commonly known as a ‘pink slip’ or other verification that the money for the purchase was brought in from abroad. This verification will be needed on completing your tax return. Is there Council Tax in Greece? There is no council tax. There are small charges for ‘community services’ which include such things as rubbish collection and street lighting. These are added onto to your electricity bill. Can I get help with financing to buy a property? Mortgages can be arranged relatively easily on most properties through a Greek bank. You would be able to raise a maximum of 60% of the market value of the property. There are certain documents you would need to produce, such as proof of income and tax declarations. As part of our commitment to provide full service to our customers, CPA can act as a broker on your behalf to obtain financing for the purchase of your new property, at no cost to you. By beginning the mortgage process with us prior to your visit to Corfu, you can ensure that your financing is available, before you start to shop for your dream property, without the headaches involved in visiting a local Greek bank. For more information, or to complete a mortgage pre-approval application, please contact us. Further information is also available on our home page by clicking the link to: Financing Made Easy *** please note that all mortgage applications are subject to bank approval and that their lending guidelines are subject to change without prior notice. In addition, market valuations of the property as performed by the bank's engineer may not entirely correspond with the purchase price and true market value. What if I want to buy a plot of land and build my own home? The planning regulations on Corfu are complicated and at the moment subject to a number of changes. In all cases a building permit must be obtained and this service is normally carried out by a state registered engineer who, in conjunction with you, will complete the plans of the proposed house and submit these together with the other information required to the building permit office for approval. The engineer would also make an application on your behalf for connection to the electricity and water supplies. Outside the town, most sewage is dealt with by onsite septic tanks. Once the building permit is obtained, the normal practice is for you to enter into a fixed price building contract with the engineer to build the house. The process of obtaining the building permit normally takes between 3 and 6 months and depending on the site, the building process itself can then take a further 9 to 15 months. What happens if the legal searches highlight any problems with the property? If your lawyer finds any legal problems with tht e property you wish to buy, then you will receive your deposit back. It if for this reason that the deposit is held in Trust until the final contract signing and not paid directly to the seller. What happens if I change my mind? If you have signed a pre-contract and paid a deposit for a property, this is considered to be an official intent to purchase. It is important that you are absolutely certain that this is the property you want, and that you feel you are under no pressure to sign a contract and pay a deposit. Should you subsequently decide to withdraw from the purchase, you will lose your deposit. Can I purchase property in somebody else’s name? Yes. You may purchase property jointly with your spouse and/or other co-purchasers, in names of children or legal heirs, or in the name of a company.