Your dream is a property in Greece, facing the sea on the Riviera, perfect!!
But what about all the legal procedures, taxes, banking, administrative and endless bureaucracies that a potential buyer might encounter? So, prepare yourselves for the journey, I'll try to guide you, and point out some 'red flags'!
DO
A LAWYER
A reliable lawyer specializing in real estate, experienced in assisting Greeks living outside Greece or foreign citizens. It's essential to request that your communication, title searches, board meetings, and progress reports be in writing. Agree on fees and out-of-pocket expenses; demand a detailed cost disclosure agreement before work begins and be extremely cautious about conflicts of interest. In small, closed companies/cities in Greece, many local professionals may be known or related to your seller.
The Tax Accountant
To buy property in Greece, you must first obtain a Greek tax file number (AFM). As you are foreign tax residents, you need to appoint a local accountant. The Greek Tax Authority will never contact you outside Greece; they need a name and address in Greece to correspond with you. My suggestion to our clients is always to appoint a certified tax accountant, computer-savvy and fluent in English as your accountant/tax agent. They will issue you the access codes to TAXINET taxes online and can file tax returns on your behalf.
The Civil Engineer
Hire an independent civil engineer to closely inspect the property you're purchasing, all technical documentation produced by the seller and their civil engineer. Greece has many earthquakes. If there's a crack in the building structure, nicely painted and disguised, maybe I won't see it, maybe you won't either, but the civil engineer will. When purchasing land, your engineer/topographer must closely examine the archaeological/forest or other restricted building regulations.
The Bank
Although you don't need to have a Greek bank account to buy property, it will be required at some point and quickly, in order to pay for your utility bills, pay energy and water corporations, taxes, etc. Opening a bank account is not a simple or quick project. Greek banks require extensive documentation, including your tax assessment notice in your country of residence, certificate of residency, address verification, utility and phone bills, etc. Ask the bank to provide you with internet access and transactions and issue a debit card (ATM card).
The Property
Try to buy a building constructed after 1985 when static building regulations became stricter, hence buildings are more stable. Be up to date regarding monthly committee fees, utility connections, withheld amounts owed, etc.
DO NOT
The Real Estate Agent
The buyer usually pays the agent a commission of about 2% - plus an additional 24% VAT on top of that - on the property value. Be cautious with local real estate agents. Don't sign anything for them, and don't deposit money with them, before you receive specific approval from your lawyer/legal counsel in writing.
The Purchase Price
Don't immediately accept asking prices. Since Greek banks are very cautious about approving home loans, cash is a strong bargaining leverage. Make counter offers. There are countries where it's not customary to make a counter offer 25% lower; in Greece, it's totally acceptable.
Funds for Purchase
The funds for the purchase should come from your Israeli (foreign) account to your Greek bank account, or to the seller's bank account, or to your power of attorney's account. Keep copies of the relevant bank transactions proving this. You'll need to attach them to your first tax return in Greece. Anything outside the above source is considered imputed income or assessment and will be heavily taxed. Cash or money from third-party accounts cannot be used.
Third-Party Assistance
Don't rely on relatives, friends, and various advisors (who are not certified professionals) to do the legal, tax, or other professional work just because it's "free". Stick to authorized professionals and make sure everything is in writing. Those dealing with law and taxation have professional qualifications, knowledge, and responsibility; your relatives usually don't.
Fees and Expenses
The buyer is burdened with purchase tax and fees for the land registry/cadastre, public notary (and relevant expenses), lawyer, accountant, civil engineer, broker, and additional professionals they employ. Don't pay anything beyond this unless explicitly approved by your lawyer. Request an estimate/quote for everything before proceeding.
Final point: All the above procedures in Greece can be implemented through a limited power of attorney to your reliable certified Greek lawyer.
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