The Greek Real Estate Market offers to foreign prospective buyers who are interested either in relocating to Greece, investing in real estate properties for the purpose of receiving revenue or in acquiring a vacation home in order to spend their holidays, a vast array of options.

However, the process can be overwhelming for those who are not familiar with the Greek language, legislation, bureaucracy, or culture.

It is thus very important to understand the basic steps, the possible risks and to hire well-qualified professionals, to ensure the smooth completion of your transaction.

First of all, it is worth noting that anyone can purchase real estate property in Greece, including foreigners, notwithstanding whether they live in Greece or not. However, certain restrictions may apply for non- EU nationals. More particularly in certain regions of Greece, situated close to the borders, a specific authorization must be obtained.

It is also important to note that the prospective buyer of the property is not required to travel to Greece or to remain in Greece throughout the procedure. They may arrange the completion of the purchase by granting a power of attorney to a trusted person, often a lawyer. This is particularly convenient when taking into consideration that the completion of the sale may take a few weeks or months, depending on the case.

Finding a property.

The search for the appropriate property depending on each prospective buyer’s needs and wants, usually starts by contacting one or several real estate agents. The real estate agent’s fees may vary, however in practice the usual fees are approximately 2% on the value of the property + VAT (which is currently at the rate of 24%). Prior to visiting properties, the agent will request the prospective buyer to sign a retainer, under which the prospective buyer undertakes to pay the fee and to not proceed to the purchase of the property shown without including the agent.

Prospective buyers of real estate in Greece should however be cautious not to sign any other binding documents (such as deposit agreements). It is also advised not to send over any funds, prior to getting a lawyer’s advice and confirmation on the status of the property titles.

Legal due diligence.

After finding a suitable property, the prospective buyer is advised to engage a qualified lawyer and instruct him/ her to carry out a legal due diligence search on the property titles. This is important as prior to signing any documents or paying any amount to the seller, the buyer must ensure that the seller is in fact the legal owner of the property being sold, that the property is registered correctly at the appropriate land registry and that it is clear of any encumbrances. In addition to the due diligence report, the lawyer will undertake to engage a trusted notary, handle all the paperwork and review any documents sent over by the seller. The lawyer shall coordinate the procedure and liaise with all parties involved with the aim to secure the buyer’s rights.

Payment of a deposit and deposit agreement.

Once the parties are in agreement on the property and the price and the titles have been checked by the lawyer, it is customary that the seller request the payment of a deposit by the buyer, in order to start the process of collecting the documents. It is important here that the seller not pay any amount prior to signing a deposit agreement.

This agreement should be drafted, or at the very least reviewed by the buyer’s lawyer, and it should contain all the particular terms and conditions which have been agreed between the parties orally.  Although the safest solution is to enter into a notarial deposit agreement, more often the parties to select to enter into a private deposit agreement, for expediency and costs reasons.

Greek Tax Number.

Another important thing that foreigners wishing to purchase properties in Greece should know, is that it is essential for the buyer to register with the Greek tax authorities and receive a Greek tax number. The Greek tax number is essential as no purchase agreement may be entered into by the parties without it.

If the buyer is not a Greek tax resident, he / she will receive a special Greek Tax Number for non- tax residents. Again, this process may be effected through a trusted professional (lawyer or accountant) with the use of a power of attorney. Where the buyer is not a Greek tax resident, he/she will need to appoint a Greek tax resident as his/ her tax representative in Greece. This person is appointed for communication purposes with the tax authorities.

Along with the Greek Tax Number, it is important to receive online access codes for the electronic services of the tax authorities. This will allow the taxpayer and/ or his/ her accountant to have access to their tax information, file tax declarations and be informed of any pending tax liabilities.

Inspection of the property by a civil engineer.

Notwithstanding that among the paperwork provided by the seller to the notary for the preparation of the purchase agreement, there are a number of civil engineer’s documents, it is advised that the buyer engages a civil engineer to inspect the property from a structural and technical point of view and to ensure that the property may be used in the way intended by the buyer (e.g. in case the buyer wishes to build on the property, that a relevant building permit may be issued and/ or that there are no relevant restrictions).

The sale and purchase agreement.

The sale and purchase of immovable properties must be effected through a notarial act. Therefore, once the parties agree on the terms of the transaction, a notary is appointed to collect a certain number of documents and draft a notarial sale and purchase agreement. This is usually the most time- consuming part of the process. It requires from the seller to collect and provide documents, which are reviewed by the notary and the buyer’s consultants, who may require amendments and corrections in case any discrepancies are found throughout these documents.

The notarial agreement is always executed in Greek, and the parties may be represented through Power of Attorney, in case they are not able to attend in person. The attendance of each party’s legal counsel is strongly advised at this point, in order to ensure that all the terms and conditions agreed between the parties are correctly transcribed in the agreement, and also to ensure that each party’s rights are safeguarded.

The buyer usually chooses the notary and is also burdened with the notarial costs, as well as the transfer tax.

Payment of the price.

Payment of the purchase price is usually effected at the time of signing the notarial agreement, and, provided that the receipt of the funds by the seller is immediate (e.g. where the transfer is effected through bank wire from the same bank), no particular provisions are included in the agreement.

If however the price is not paid on the same day, either in whole or in part, then it is customary to include in the agreement particular provisions in order to safeguard the rights of the seller. This may include the right to register a mortgage or the inclusion of a condition precedent or a resolutive condition, and often a second deed is signed once the full price has been paid.

Depending on the case, other particularities may apply in connection with the method of payment of the price (e.g. in case of purchase of a property for Golden Visa purposes) or where a loan is involved.

Registration of property rights.

Once the agreement is signed, the notary issues copies of the agreement for each of the parties involved. The buyer must then ensure that a copy of the agreement is filed with the local land registry or cadastral office (depending on the case), which will ensure that his/ her ownership rights are recorded and made public.

Registration with the tax authorities.

Both seller and buyer must also register the transaction with the tax authorities. For the seller it entails deleting the property sold from his/her assets declared with the tax authorities, while for the purchaser this means declaring it to the tax authorities as his/her asset.

Annual property tax.

Once the property is registered under the buyer’s name from a fiscal point of view, the buyer will be required to pay annual property tax (ENFIA).

The annual property tax burdens the person who is the owner of a property on the 1^st of January of each year. It is usually calculated and required to be paid during the second quarter of the year, in one or several installments. 

Other useful information:

• Bank account: it is not required to have a bank account in Greece in order to purchase or own property in Greece. The opening of a bank account in Greece usually may take some time and requires to provide a large number of documents to the bank. However it may become necessary or convenient to open one, either for the swift payment of the purchase price, the payment of the various costs, taxes and bills associated with the property or for receiving the rents (where the property is leased out).
• Costs of transaction: prospective buyers are burdened with the transfer tax, the lawyer’s,  notary’s, civil engineer’s and accountant’s fees, the land registry fees, and the real estate agent’s fees. It is advised to ask for an estimate of those fees upon finding a property, as most of the fees and expenses are calculated based on the price or value of the property.
• Golden Visa: non- European nationals who are owners of real estate in Greece, the value of which is 250 000 euros (or 400 000 or 800 000 euros in certain specific areas) are eligible to apply for a Greek residence permit valid for 5 years. You may find more information in connection with the Greek Golden Visa here.
• Lease: owners of real estate (including owners benefiting of the Golden Visa scheme) may lease their property and receive income. It is advised not to sign any document or lease prior to obtaining legal advice, in order to ensure that you have a good understanding of the applicable regime of leases and safeguard your rights.
• Taxes: as mentioned above, owners of real estate in Greece must pay an annual property tax. In case they receive income from rents, income tax must also be paid on the rents.

*This publication is for informational purposes only and it does not constitute legal advice. For additional information and advice on the above, please contact us.

The post REAL ESTATE IN GREECE:   A GUIDE FOR FOREIGN PURCHASERS appeared first on International Legal Advisors.

DIGITAL NOMADS: LIVING AND WORKING REMOTELY FROM GREECE

The Greek Digital Nomad Visa allows persons who work entirely remotely to live in Greece, along with their families.

More specifically, the Greek Immigration Law allows Non- European Union citizens working remotely with the use of digital technology to apply for a visa and subsequently a Greek residence permit for Digital Nomads.

What are “Digital Nomads”?

Digital Nomads are citizens of non- EU countries who are self- employed, freelancers or employees, who work remotely with the use of information and communication technologies, with employers or clients established outside Greece.

How to apply for a Greek visa for digital nomads?

Digital Nomads desiring to work remotely from Greece may apply for an entry visa, valid for a duration up to 12 months, provided that:

• The applicant states that he/ she does not intend to work or provide services in any way in Greece.
• The applicant provides proof (agreement(s), proof of capacity, etc) showing his/her occupation or employment for a duration covering the validity of the visa.
• The applicant provides proof that he/ she disposes of sufficient funds in order to cover his/ her living expenses and those of his/ her family members.

The Digital Nomads (main applicants) may be accompanied by their family members. This includes their spouse and children under the age of 18 years old.

What is considered “sufficient funds”?

The minimum amount of income required is 3500 euros per month. This income may be proved either through employment or service agreements or through the applicant’s bank statements.

Where the applicant is accompanied by his/her family, the minimum income required is increased by 20% for the spouse and 15% for each child.

How to get a Greek Residence permit for digital nomads?

Provided that the conditions for the digital nomad’s visa continue to be fulfilled, the Digital Nomad (and his/ her family members) may apply for a residence permit for Greece, valid for a duration of 2 years.

Long periods of absence from Greece do not affect the validity of the Residence Permit, provided that they do not exceed six months per year.

Our services:

Our office provides a full range of services to digital nomads wishing to relocate to Greece. We provide assistance both in the process of obtaining the visa, by providing legal advice in connection with the preparation of the application file and documents and communicating with the Consulate, as well as with the application in Greece for the residence permit at the competent Migration Department.

In addition, we may assist our clients with finding and renting a property in Greece (if required) and opening a bank account. Generally we provide support in connection with any legal or administrative procedure in Greece in connection with Digital Nomads.

*This publication is for informational purposes only and it does not constitute legal advice. For additional information and advice on the above, please contact us.

The post DIGITAL NOMADS : HOW TO WORK REMOTELY FROM GREECE appeared first on International Legal Advisors.

Law 4825/2021 introduced among other things the concept of Digital Nomads in the Greek immigration legislation. It aims to attract in Greece Non- European Union citizens working remotely and utilizing the new digital era.

Digital Nomads definition:

The Law refers to citizens of third countries (i.e. non- EU countries) who are self- employed, freelancers or employees, who work remotely with the use of information and communication technologies, with employers or clients established outside Greece.

Greek visa for digital nomads

Digital Nomads desiring to work remotely from Greece may apply for a relevant entry visa, valid for a duration up to 12 months, provided that:

a) The applicant states that he/ she does not intend to work in any way in Greece.

b) The applicant provides proof (agreement, proof of capacity, etc) showing his occupation or employment for remote work for a duration covering the validity of the visa.

c) The applicant provides proof of sufficient income (currently set at €3,500 per month). For each additional family member the applicant should have additional income.

Digital nomads may be accompanied by the members of their families (i.e. spouses and children under the age of 18 years old).

Greek Residence permit for digital nomads

The Digital Nomad (and his/ her family members) may apply for a relevant residence permit. It is valid for a duration of 2 years, which may be renewed every 2 years, under the condition of 6months minimum stay in Greece.

It must also be noted that, these persons and their family members who have entered Greece with a similar visa or by exemption of visa, have the possibility to apply for the residence permit, during its validity.

Tax incentives

In addition to the foregoing, Greece offers certain tax incentives to Greeks living abroad, and foreigners, such as digital nomads, in order to transfer their residence (and tax residence) in Greece.

Such tax incentives include a 50% tax exemption for the first 7 years as of the transfer of tax residence in Greece. As such, the persons intending to benefit from the immigration law provisions for Digital Nomads, may be interested to examine whether they may benefit from the relevant tax provisions as well.

Should you have any questions in connection with the foregoing, please do not hesitate to contact us.

The post Digital nomads in Greece: appeared first on International Legal Advisors.