What are the most important steps when buying a house in Greece?

Although summer is still a long way off, it's never too early to buy a luxury villa by the Greek sea. Now is the moment to look for your second home by the azure beaches and turquoise waters of the Greek seas. For the purchase of an exclusive second home in Greece, you'll need some advance preparation. Start by researching the property market at this time, familiarise yourself with all the trends and upcoming developments, study the necessary documents, the fees you will owe to the institutions. Choose the locations for your future house to explore further. When you have gathered all the information and are aware of every step of a future transaction, you will be ready to buy your new property - holiday or permanent in sunny Greece. You can learn more about the whole process in our article.

The real estate market in Greece

The real estate market in Greece is currently very dynamic. Luxury property sales there reached record levels during the COVID-19 pandemic and made Greece one of the hottest property markets in the world. Wealthy people from all over the world want to acquire villas or properties in the inner cities, including with the aim of investing in short-term rental accommodation.
According to data from the Hellenic Association of Realtors, the average price per square meter for property in Halkidiki in 2021 was €1,936. Real prices range from around €50,000 to €500,000 for apartments on the peninsula, while houses can cost from around €100,000 to over €1,000,000.
In Thessaloniki the average price in the past year was 1672 €/sq.m., but in the developed areas of the city such as the center and the neighborhoods of Ladadika, Ano Poli and Neapoli the purchase of a prime real estate is more expensive.
Data for 2022 shows that the average price is rising, but foreign investment is still up 61% from 2021. In November 2022, the average price per square metre for residential properties was €2,225, an increase of 11.08% compared to November 2021 (€2003/sqm). The highest average price in the last two years was reached in October this year - 2283 €/sqm.

However, the analysis of the Central Bank of Greece should be taken into account, according to which the real estate market is vulnerable due to some macroeconomic factors. Uncertainty, mainly linked to the ongoing war in Ukraine, as well as the effects of the gradual increase in the cost of materials, energy, rising interest rates and inflationary pressures.

The past year has been extremely strong in terms of tourism for Greece. This is due to the Greek Government's decision to cancel the measures to contain the coronavirus pandemic. In addition, the government undertook programmes to stimulate the property market. Such a programme is, for example, the 'golden visa' for non-eurozone citizens, and also tax breaks.

7 steps when buying a property in Greece

Selection of properties

The process of buying a property in Greece does not differ significantly from that in Bulgaria. Of course, the first step in buying a property is selecting which properties to view - you need to submit as much information and search criteria as possible so that your broker can be as helpful as possible in making a selection tailored to your requirements.
The more you clarify for yourself what you're looking for, what you can compromise on and what you can't, the easier the process of finding the right property for you will be.
This way, your consultant will be able to present you with relevant offers that meet your exacting requirements. Then, of course, you should start going on viewings, where you will find out more about the advantages and disadvantages of the holiday properties on offer.
Ask for your consultant's expert opinion and don't forget to ask them about the additional costs involved in buying a prime beachfront property. A professional consultant will negotiate with the seller and work entirely in your favour to negotiate the best price on the best possible terms.

Property viewings – up to here

Once you've settled on a few properties by listing, it's time to organise and carry out viewings of each location. For this stage, you need to arm yourself with time and patience. Ask the estate agent to show you not only the properties, but also the nearest settlements and places of interest. This will give you a broader picture, not only of the property you want to buy, but also of the surrounding area, and help you navigate the entertainment options during your time in your luxury second home. All of this will help you make a more informed decision should you come to a deal. If you have clear search criteria, you will need no more than 1-2 days to view all your chosen properties and choose the best option for you. It is very important that before you make a final decision, you ask your realtor to give you detailed information about all the additional costs of buying the property. Sometimes a house may be offered at a lower price, but after calculating the additional costs it may turn out to be more expensive.
So our advice is if you are hesitating between 2-3 properties, ask for a detailed account of the additional costs.

Communication with brokers

Do your research on consulting agencies beforehand. Trust one that has experience in selling first class villas in Greece. It is best to have several conversations with different agencies so that you have a benchmark for supply and demand. Opt for agencies with a good image, an extensive portfolio and years of experience in the industry.
Established in 2006 as the first specialist luxury property consultancy in Bulgaria, Unique Estates is a leader in serving affluent and corporate clients. We provide the highest level of service to our clients with a personal, one-on-one approach in complete confidentiality. Whether you are looking for the excitement and sophistication of an urban setting, the tranquility and privacy of a beachfront estate, a property with history, or the quiet rural charm of a farm and ranch, our experienced real estate professionals are here to assist and guide you every step of the way to your dream home.
Our portfolio is extremely extensive, our properties meet international standards of luxury and satisfy our clients' requirements. When you choose Unique Estates, you trust experienced professionals to help you find the home that's right for you. Your personal consultant is fully committed to finding you the right home. You'll have an ongoing relationship with him or her to discuss various suggestions and make an informed and reasoned decision.

Detailed expenses account

As already mentioned, you can ask your agent to prepare a detailed estimate of your upcoming costs.
For example, some of the mandatory costs amount to around 10% (plus - minus) of the agreed sale price. The percentages can be optimized, but this is individual. It is important to know that as a buyer in Greece, all the costs listed below are at your own expense. Also, there is no practice of sharing the transaction costs.
In addition, you will have expenses under the following headings:

• Local property acquisition tax, the value of which is 3%;
• Notary fees of about 1.2% + VAT;
• Lawyer's fees approx. 1.2%, but not less than 1000 € + VAT. Please note that since 2014, the presence of a lawyer is not obligatory for the preparation of the deed and for the notarization of a property transaction. But it is advisable to use these services. This would only give you peace of mind that everything is done legally;
• Commission for the consulting agency, if you choose to work with one, is on average 3% but not less than 1200 €. If the agency is Greek, you will also have to pay 24% VAT;
• State fee for registering the property at the Registry Office is 0.475%;
• Addendum to the contract of sale, if the contract is conditional, the price is subject to the contract;
• Re-registration of the property in the relevant registers if the contract is sub-contingent; Interpretation at the time of notarization between 250 and 400 € or negotiable. Please note that it is a mandatory condition if the buyer is not fluent in Greek to appear with an interpreter. The translator's details are entered in the deed and he is criminally liable under Greek law if inaccuracies are found in the translation;
• Legal verification of the property is between 300 and 400 €, which is in addition to the lawyer's fee for the preparation of the deed and his presence during the notarization.

Legal verification

After agreeing the sale price with the seller, a legal inspection of the property should be carried out by a lawyer practicing in Greece. This lawyer can be chosen by you, as the buyer, or recommended by the agency you are working with.

Preliminary contract

Once the title search shows that the property is free of encumbrances and liens that prevent its sale, you must sign a purchase agreement. This is the equivalent of a Bulgarian pre-agreement. As in Bulgaria, it sets out the final sale price, which furniture and electrical appliances the seller is leaving in the property, a deadline for finalising the deal, penalties for breaching the agreement, payment methods, rights and obligations. Upon signing a preliminary contract, 10% of the agreed final sale price of the property is payable to the seller.

Final contract

The final steps are signing the final contract, notarization and registration of the property in the relevant registers in the name of the new owner. An important and mandatory condition is to get a Greek tax number AFM at least one week before the deed, ideally immediately after the legal inspection of the property or as soon as the Stop Deposit is given.

When is Stop Deposit used?

If you choose to work with an agency and once you have settled on a property, a Stop Deposit is left with the agency. The Stop Deposit means that you have a serious interest in the property. In addition, most agencies enter into negotiations with property sellers after receiving the Stop Deposit. If the agency representing you is unable to negotiate a final sale price that suits you, you must pay back the Stop Deposit.

What are the necessary documents when buying a property in Greece?

ID card or passport

When finalizing a property purchase, you must have a valid ID card or international passport. Identity documents for a mandatory element of the purchase transaction.

Greek tax number AFM

To open a bank account and acquire property in Greece, you need a Greek tax number. This procedure takes a maximum of 1-2 hours, depending on the workload of the local tax offices. The agency you are working with can take out this number for you once you provide a power of attorney for this purpose. Note that when your tax number is ready, you will need to visit Greece to open a personal account with a Greek bank. To open an account you will need a valid passport and the tax number already obtained from the tax office. However, in order to open an account you will also need additional documents which will need to be translated and certified with an apostille, for which we advise you to consult your broker.

Buying a prime property by the Greek sea can be a long process if you don't have a trusted ally by your side during every stage. Unique Estates consultants are always on hand to help you and will be happy to help you realise another one of your dreams - buying a luxury villa in a beautiful and exotic location. Do not hesitate, contact us!