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How to purchase a property in Crete, Greece
Having found just the property you are looking for, are you left with the nightmare of having to cope with all the necessary official and legal rigmarole? Not when you are buying your home from us.
There are a number of points you should always be clear about when purchasing in Crete and for which points you do not need to worry because, if you wish, we simply take care of everything through our associates network!:
 The Lawyer
It is highly recommended to have a Lawyer to handle all the legal work for you. The simplest way is to grant him Power of Attorney to buy any property you like in Crete on your behalf.
With a Power of Attorney the Lawyer can arrange all the necessary steps to purchase your chosen property on your behalf during your absence. The Power of Attorney can be cancelled at any time. The contract to give/cancel Power of Attorney to a Lawyer has to be made by a Notary Public. Or, when you are not in Crete, it can be made via the Greek Consulate in your country.
Since Greece joined the EU it is possible for other EU citizens to purchase property in Greece. As an EU-citizen you have the same rights and obligations as any Greek and therefore it is possible to buy. Non EU-citizens, on the other hand, should apply to the Council of the Local Prefecture, who grant permission.
The legal procedure to purchase property in Crete basically consists of the following:
Tax Number
The local tax office can give a Tax Number, which is required to purchase a property in Greece. To obtain this Tax number you will need to provide your passport and a full birth certificate. The full birth certificate must show the names of both your parents.
Legal Search
It is necessary to do a legal search to assure that the property has a clean property title. A Lawyer will have to do this search at the Land Registry Bureau.
Technical Survey
In addition there is an option to ask a Civil Engineer to complete a technical survey to check the construction and condition of the property.
Pre-contract
It is recommended to make a pre-contract. The deposit stays on the customer account of the Lawyer until the legal search, the technical survey and the topographical plan is done with a positive result. Only then will the deposit be given to the vendor.
Contract
A Notary Public always executes the contract for the property transaction. The Notary Public calculates the officially estimated price of the property. This "officially estimated price" (the Tax value) is assessed by the tax office and is usually lower than the true purchase price.
The vendor and the purchaser can sign only contracts with a very low assessed tax value. Otherwise they need the signature of a Lawyer. One Lawyer signs for the purchaser, another one for the vendor.
Labd Registry
Immediately after exchange of contracts the new owner will be registered in the Land Registry Bureau. This is the definite and irrevocable proof that the purchaser now owns the property!
Expenses
A total of 10%-13% of the property value should cover all expenses. Purchaser pays the Purchase tax, the fee for the Notary Public and the legal fees. These are calculated on the tax value of the property (NOTE: the tax value of a property is much less than the commercial value of the property and is issued by the Greek Ministry of Finance). The purchase tax is between 7%-11%.The fees for the Notary Public and the Lawyer are estimated at 3.5% of the purchasing price. KM Real Estate charges 2% on the net purchasing value as commission for our professional services.
Additional information that might be useful when you want to purchase property in Crete, Greece
Property Managment Services
During your absence from the property, to give you peace of mind our Property Management services can provide all your maintenance requirements ensuring they are carried out according to your specific instructions. This includes a regular inspection of your property, cleaning services, gardening, payment of bills and other services upon request.
Bank Accounts
To purchase property in Greece it is not necessary to have a local Bank Account. Normally the money transfers through the customer account from your Lawyer.
However, once you have purchased a property it is useful to have a Bank Account and the best way is to go to a local branch, which co-operates with your local bank in your own country.
Tax Declaration
As a property owner in Greece, you will be required to complete a Tax Declaration Form at the end of each tax year, and you will have to employ an accountant to do this.
This does not mean that you will have to pay tax to the Greek Government.
All transfers of monies from abroad are supported by a document of Bank Transfers ("pink slip") issued by the local bank in Greece. This pink slip acts as a receipt and will be required to be shown to the tax office as proof that income was not derived in Greece.
Local Taxes
Owners of properties are subject to a very small Public Tax which is payable with the Electricity bill. The electricity bill is issued every two months and the Tax is such a small amount it is not a significant consideration.
Property Insurance
If you want to insure your property against damage, theft, fire etc you can do this through any Bank, Post Office or you can ask any local insurance company.
Water
In most places there is mains supply and it is very easy and cheap to get water.
Electricity
If the property already has its own meter, we can easily get the electricity (re-) connected. To grant electricity to a property (to get a new meter) a certificate is required that the property meets all the regulations. An electrical plan of the building has to be presented. We can arrange this in co-operation with an Electrician.
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