Buying Regulations in Crete
BUILDING AND PERMISSION
Firstly if you decide to buy a property in Crete, you will need a valid passport and a Greek Tax Number (AΦΜ). The latter we can help you obtain, as it does involve a certain amount of paper work and visiting tax offices.
If you decide to build your own home, there are definite rules to building.
If you are building your own home, you must appoint an architect to organise a building license/permit. This can take time and the costs will depend on the size and location of the property.
We also have our own group of architects, builders, plumbers, carpenters, electricians and masters, who work very competitively, and If you wish us to help you undertake the building and construction of your house, there are additional fees to be considered. We are happy to advise you on costing structures, so please account for this expenditure in your initial budget.
If you decided to undertake the building of the property yourself, you should be aware of the National Insurance costs of builders and workers and confirm that VAT is included in the contract, before you start.
WITHIN THE TOWN PLAN
If your land is within the town plan you are generally granted permission to build anywhere on the land. This can change in exceptional cases.
OUTSIDE THE TOWN PLAN
If your land is outside the town plan, you will need over 4000 square metres to be able to build a house of approximately 200 square metres. There are also rules pertaining to roads and rights of way that need to be discussed. Outside the town plan there isn't a land registry in our area. However the prices vary from 40 € per square metre up to 90 € per square metre depending on the location and size of the land. For large plots of land, like hotels and businesses, the prices may be a lot lower than 40 €.
LAND PRICES IN CRETE
Like any country, these vary from place to place. This is all dependent on the position of the piece of land or property.
WITHIN THE TOWN PLAN
If your land or property is within the town plan, there will be a record at the land registry with a value attached. This does not mean that that is necessarily the asking price, but it does offer a guideline.
TAXES AND CHARGES
This is the biggest question area. Now, property purchase tax is 3%, which has been lowered from 10%.
The cost is made up in the following way:
3% "property transfer tax" on the evaluated tax value of the property, payable when buying only. The declared contract price cannot be less than the published government value which is usually far below the real cost. Furthermore, the Council charges 3% within the 3% property purchase tax.
So, in a property of 100.000 €, the property purchase tax is 3.000 € and the council tax is 90 €. In total that is 3.090 € in tax.
The Notary cost varies from 2-3% depending on the property.
We also suggest that you get a lawyer who does a search to make sure that the property is clear of debt and charges and this costs about 100-300€, depending on the complexity of the property.
The Hellenic Realtor Association states;
‘All expenses for the conclusion of the final contract, including the relative tax of property transfer will be borne by the buyer. However, each contracting party will pay the fees of his legal representative who will be present at the signing of the contract, as is required by Greek Law.’
Sometimes a new topographical plan is deemed necessary and they cost 210€ to 425€ dependant on size and area. However, this is usually paid by the seller.
If you have limited time and cannot sign the contract immediately, you can arrange for someone else to sign in your place. This is managed with a power of attorney and costs 60€-70€. The benefits are that you save considerable travelling expenses, telephone bills and time away. Another alternative is organising the power of attorney through the Greek Embassy in your country. (0207 734 5997)
The estate agents commission is a matter of agreement between the real estate agent and his clients. It is understood that the agents commission for his services, is due only in the event of a conclusive transaction.
When signing the contract to buy the property or land, usually a 10 % deposit is required.
LOCAL TAXES AND CHARGES
A small tax has to be paid every year on the objective value of the property, which is usually lower than the real price.
This is the cost set down by the tax office. It is an important point to note, as most costs are calculated using this value.