Step-by-Step Guide to Purchasing Property in Greece. For Greek & EU Residents
Step 01: Property Search
From desire to actually finding and securing a property, there’s a long way to go.
What type of property do you want to buy?
Identifying the property will save you a lot of time and headache. Just looking around properties on listing websites can be very confusing and daunting if you don’t have a vision. We suggest specifying the reason for purchase: Is it a home for you? Is it an investment property? Then create a list of must-haves and must-avoids for the property that fits your requirements. This list can change in the future, but it’s a good starting point and will help you not lose sleep.
For buyers interested in heritage properties with unique cultural value, consider exploring Messinian Mani’s stone towers which offer distinctive investment opportunities from €200,000-€1,500,000 in UNESCO-consideration landscapes.
Where to find properties for sale?
You have two options:
Option 1: Do Your Own Research
a. Property listing websites such as Spitogatos.gr, xe.gr, spiti24.gr, and similar platforms
b. Through Google search or other search engines where you can find more specific listing websites or even dedicated properties for sale from owners or developers
c. Facebook Groups like “Σπίτι Χωρίς Μεσίτη / Spiti xwris mesiti” (Greek), “Living in Greece,” “SEA VIEW Properties & BEACHSIDE homes in Greece. Buy & Sell,” and similar groups where you can find posts/listings from individuals
This option is advisable for people who know exactly what they’re looking for, usually property investors or people who have purchased multiple properties. But also for people who don’t mind investing their time into research and want to avoid the cost of hiring a real estate agent.
Option 2: Hire a Real Estate Agent
Hire a real estate agent who will represent you as a buyer and will be responsible for finding a home to your specific requirements. A professional real estate agent can help you find the right location and will showcase all the available properties. The right professional can guide and help you make critical decisions that include the identification of your vision and the exact specifications that the property must have (a list of must-haves, nice-to-haves, and what is not acceptable) and also, through their experience, they should provide a comparison analysis of the market prices, making sure you’re not overpaying for a property.
A good professional will be responsible for all communication with listing agents or owners of the properties and will be constantly searching for new or off-market properties that match your criteria, saving you time and effort. Furthermore, the real estate agent should be able to guide you through the purchase process and facilitate any further communication with third parties, like hiring a lawyer, an engineer, a notary, an accountant, and a financial advisor (in case of a mortgage loan).
This option is advisable for people with limited time for research, those who have little to no insights into the Greek market and the property purchase procedure, those who don’t have a clear vision of the property they want, and/or first-time home buyers in Greece.
Pro Tip: How to Choose the Right Professional
Real estate agents have been subject to strong criticism, and the industry has a bad reputation. This is due to the fact that for most real estate agents, it’s just a job, while for the future buyer, it’s one of life’s most important decisions. Buyers are usually stressed and confused with the procedures and often impatient and skeptical toward agents. There have also been numerous bad practices from unprofessional agents who either had limited knowledge and skills or were pushing their own agenda.
On the other hand, there are a lot of very good professionals who respect their clients and their specific needs. An easy way to find out if you’ve reached a good professional is to have a meeting and ask them whatever concerns you about the services they provide. If the agent is a professional, they’ll be able to explain how they’re going to help you with real examples and showcase their expertise.
It’s very common for buyers to reach out to multiple agents and to do their own property research—this is a hybrid approach that can damage a relationship between a good agent and a good buyer. Give your agent a chance to work with you exclusively and prove they’re worth their commission. Tell them your schedule and the time that you’re willing to work with them exclusively.
Shortlisting and Viewing
Select the properties you like the most in a shortlist and arrange your viewings. Maybe a scoring system can help you decide which are worth your time.
If you’ve decided to hire a real estate agent, they’ll oversee and arrange the viewings for you. If you’re abroad, they might provide virtual live tours so you can choose the top three and view only those in person.
Pro tip: Don’t have more than three viewings in a day! Scientific research has shown that people exposed to multiple options at once will avoid making any decision because of the confusion called choice overload.
Selecting “The One”
Once you’ve found the property that best fits your specifications and you’re totally in love with it, you’re ready to make an offer. You know or feel you have to act swiftly, but it’s very important at this point not to rush this part of the process.
Think rationally and evaluate the price according to the real market value. This data can be provided by your real estate agent, or you’ll have to do a comparison price analysis yourself to determine if the property is overpriced or not.
Step 02: Securing the Property
Once you’re sure of the property, it’s highly advisable to make a written offer.
Before you go further, you must complete these very important steps:
Be sure you can afford the price you’re offering, including the extra fees that apply.
If you need a mortgage loan, you’ll have to check your credit availability in advance with your bank or a financial advisor. Ideally, do this before you’ve found a property you want to make an offer on.
In your offer, explain the reasons you’re buying and what made you conclude on this price offer.
A fair reasoning will make the negotiation more realistic.
Send your price offer and prepare for negotiation.
Verbally agree on the price and shake hands with the owner.
If the property is represented by a listing agent and you haven’t met the owner yet, this is the time to meet and shake hands directly with the owner(s) who hold 100% of the deeds. If the owners aren’t present, only agree to shake hands with their lawyer who can display a valid Power of Attorney.
After the verbal agreement, ask the seller to allow an engineering assessment.
This is a basic check where you appoint an engineer who will inspect the structure and make sure it doesn’t hide any damages from earthquakes or illegal constructions.
Pro Insight: Greece is a seismic country, and the new construction requirements are very strict. If you’re purchasing a property that’s more than 20 years old, keep in mind that the laws have changed dramatically since then. A common problem with properties being sold without inspection is damages from earthquakes that had affected the structure and were not noticeable. Most of the time, these cases were found very late in the purchase stage before signing the final contract, in which case lots of time was wasted and lots of deals fell through.
Appoint a lawyer who will represent you in the purchase procedures.
At this stage, the lawyer will perform a legal check of the property. They will: identify the legal owners of the property, inspect validity of the deeds by accessing the land registry and the Hellenic Cadastre, and perform background checks on the documents.
If everything is confirmed by both your engineer and lawyer, you can send your official price offer and finalize the price with the owner. If there are cases of damages and/or illegal issues, you can use those insights to re-evaluate your offer according to your findings or drop the deal altogether.
Private Agreement & Deposit
Once the final price offer is accepted, you can move forward to the deposit. For the deposit, it’s highly advisable for both parties to sign a private agreement that will include all the major details about the property, the agreed total price, the payment terms, and the delivery time.
The private agreement doesn’t need to be signed by a notary, but it’s advisable to have it as a more formal document that will bind both your and the seller’s responsibilities and commitment until the final contract is signed and the property is transferred.
Pro Tip: Always use a bank wire transfer (or similar) for the deposit. In Greece, it’s illegal even for individuals to pay in cash for sums higher than €500. Plus, the wire transfer is considered a valid receipt that’s hard to dispute.
Step 03: Preparation for Signing the Contract
Immediately after securing the property, the buyer—you—has the obligation by law to hire a notary who will manage all the formal actions and will prepare the purchase contract.
Pro Tip: Greek legislation doesn’t require the buyer to be represented by a lawyer or have an engineering assessment. We highly recommend using these professional services to ensure that you’re better safe than sorry. Don’t ask your real estate agent for such advice, they’re not licensed to give it. They won’t be held responsible for giving their opinion on a legal document or an engineering plan.
A property purchase contract is usually drafted in 45-60 days, if every document and requirement from both parties is ready.
Your Obligations for Successfully Signing the Contract
Have a valid passport or ID.
Hire an accountant. You’ll need them to file your taxes every year and issue your AFM. Some lawyers take the responsibility to issue the AFM number, but in any case, you’ll need an accountant for your Greek tax responsibilities, they’re complicated and change often.
Issue an AFM.
AFM (Arithmos Forologikou Mitroou) or TIN is a crucial tax identification number required for all individuals and legal entities planning to engage in economic activities within Greece. It’s issued at your nearest tax office, usually by your legal or accounting representative. The AFM is personal for every individual who has or will have an obligation to the Greek tax system.
If the buyers are multiple people (family members, partners, etc.), each of them must issue their own AFM number. The AFM number will be later used for all tax and multiple government-related needs.
Open a Bank Account.
If you don’t have a Greek bank account, you can ask your accountant or lawyer to open one for you. In some cases, you can use a foreign bank account if it’s in euros to facilitate the final transaction. Your lawyer or financial advisor will confirm these cases in advance.
Make sure your funds are available.
Get the final approval on your mortgage loan. While you can get pre-approval before securing a property, the final value of the loan will be calculated after the bank has assessed the chosen property. Keep in mind that this process can cause significant delays if not handled properly and on time. Greek banks might finance up to 80% (and in some cases up to 90%) of the value of the property based on the bank’s valuation. The rest of the money, including the fees and taxes, must be secured by your own capital.
If you’re not using a loan, make sure that the necessary funds are available in your bank account and that the bank is aware of the purchase for you to be able to make the payments. All funds used for the property purchase must be obtained through legal activity. In some cases, the Greek government might require a declaration of assets and income.
Fees
On average, the extra capital you’ll need ranges from 5 to 11% of the property’s value. These extra costs include tax (~3%), fees toward the government authorities such as the Hellenic Cadastre, lawyer fee (~1%-2.5%), notary (~1%), accountant, engineer, and real estate agent (~2-4% + VAT).
The tax is payable a few days before the final contract is signed. Common practice is for the notary to prepare and file the tax documents and inform you when you should pay.
Greeks who purchase their first property might be excluded from the obligation of the 3% tax. Ask your accountant to find out if you fall into that category.
Seller’s Obligations for Successfully Signing the Contract
Even though the seller’s responsibilities are not your immediate concern, here’s what you should expect from the other party to prepare in time for the contract.
Property files
Deliver all documents of the property to the notary, such as construction permit, purchase or inheritance contract, cadastral extract, topographic plan, etc.
Hire an engineer.
A civil engineer should prepare all documents of the property, including a declaration that they officially sign that bears the electronic ID of the property, a declaration that confirms that the property has no illegal structures, a declaration of energy efficiency rating (PEA), etc.
Tax clearance certificate
This certificate confirms that the seller doesn’t have outstanding debts to the Greek State.
ENFIA Certificate
A declaration that the yearly property tax ENFIA is fully paid and that the seller has filed the correct property details for the past 5 years.
Fully pay all due utility bills, municipality fees, or common spaces bills (for apartment buildings).
BIG IFs
If the property has an illegal structure, the seller is obligated to legalize it and pay the respective penalty. No illegal structure or expansion can be transferred from one owner to another. Commonly, if the illegal structure was added prior to 2011, it’s possible to be legalized. Illegal structures after 2011 cannot be legalized. Alternatively, if the illegal structure/expansion cannot be legalized, it should be demolished so that the property bears only the legally permitted spaces before the contract is signed. In case any change in the property is required by law, the seller must complete the changes and then create a new set of documents (through the engineer) and deliver them to the notary for the contract to be signed.
If the property bears a mortgage loan from the current owner, this loan must be fully paid before it can be transferred to the new owner.
If the property has wrong identification (e.g., is registered under a wrong name/address by mistake or the road name has changed since registry), the seller is responsible for taking all the necessary actions to correct the data with the respective authority.
Step 04: Contract Day
On the day of the contract, both the seller and the buyer meet in front of the notary. If physical presence of each of the parties isn’t possible, they can be represented by their lawyers who must have an active Power of Attorney (official representation).
On the day of the contract, the notary reads out loud the full document of the contract, and if no changes occur, both parties sign the document.
Pro Tip: It’s a custom in Greece for the buyer to bring sweet treats for everyone to share.
Following the signing of the contract, the notary keeps the signed document and files it with the respective authorities.
By Greek law, the purchase date of the property is the date of signing the contract. That means that the obligations for the new owner toward the Greek government begin at that time.
If the full payment of the property isn’t conducted that same day due to a loan or other reason, the notary must also issue an additional document when the total amount is paid off.
Step 05: After the Contract
The notary will upload the contract to the property registry and cadastre.
You should receive both an electronic copy and an official paper copy of the contract and the relevant property documents. The official contract remains at the notary’s office, and copies are available if yours gets lost or damaged.
Utilities
The previous owner should deliver a copy of the old utility bills so that you’ll be able to visit the utility offices and transfer them to your name. Some, like the electricity bill, can be done online, and in some cases, all of them. The water might need your physical presence depending on your location.
Common Spaces Bills
If you’ve bought a property in a complex or in an apartment building, it most likely has monthly common spaces bills for cleaning the common areas, common electricity bills, gardener, elevator maintenance, etc.
Usually, a property management company undertakes such tasks for the whole complex or building. Make sure to ask the previous owner for a contact person so that you can receive the bills on time.
The common bills are calculated differently in every situation, but they’re all subject to the number of properties and the size of your property in relation to the rest.
Yearly Property Tax – ENFIA
If you own a property in Greece, you have to pay a yearly property tax that’s relative to the location and size of the property. The ENFIA tax is usually issued in February each year. You also must file taxes in Greece. Having a reliable accountant who takes care of these things is a must.
Also, make sure you inform them of any financial activity related to the property. For example: if you want to make extra income and rent out the property as an Airbnb or long term.
Renovation-Refurbishment
If you want to renovate your newly acquired property, you have to hire an engineer who will have to issue a small-scale permit, making sure your renovation is fully legal. Some will claim it’s not necessary, but we strongly advise being fully legal, especially when your renovation noise may annoy your new neighbors!
Best of Luck
Andreas and I have recently been through this whole process of selling and buying property ourselves, and we can advise you to stay calm and patient throughout. It’s quite stressful, especially if you’re going through this alone. Every sale and purchase is unique and has its own struggles and rewards. Sharing your experience can help others, and asking for help is always okay.
We wish you the best of luck, and may your new house become a home very soon!