Cost associated with property purchase on Ithaca are:
· Transfer tax: 3%
· Lawyers fee – dependent on work done.
· Notary fee - 3.5 - 4% of sale price
· Council tax - 3% of tax amount only
· Agent fee - 2% of sale price, plus 23% FPA (VAT tax)
(In Greece, the buyer and the vendor pay 2% agent fee each)
By contacting ithacagreece.com Real Estate in regard to purchase of property, you agree to use Erika (Bell) Bach from ithacagreece.com as your agent for the purchase of any property listed with ithacagreece.com.
The procedure to purchase property on Ithaca is uncomplicated and straight forward. Ithacagreece.com Real Estate works with a Lawyer and Notary for the security of the buyer. The buyer will be informed every step of the way in regard to the procedure of purchasing property in Greece. See below for some important information when you are buying property on Ithaca.
- To buy property in Greece, the Buyer must first secure a Tax File Number. This can be obtained by either him/herself or a lawyer on his/her behalf. (if you choose the lawyer to be your POA, he/she will organize all the necessary paperwork)
- Buyer pays 10% - 20% deposit of sale price, balance to be paid no later than 3 months after deposit unless otherwise agreed to with owner of property.
- It is advisable to make a lawyer the Power of Attorney for the purchase so as not to default on completion date should the buyer be delayed or hindered from coming to Ithaca for completion. The cost is approx 70 euro.
- To secure the deposit a Pre-Contract is signed and notarized at the Public Notary Office. Should the Buyer reneg, the buyer loses his deposit. Should the Vendor reneg, the Vendor is obligated by law to reimburse the Buyer double the deposit amount. The pre-contract has a Notary fee of 3.5% – 4% of the pre-contract deposit amount.
- Buyer will need to open a bank account on the island and transfer funds through his/her bank account from the country of residence to this bank account on Ithaca. There are 3 banks on Ithaca: National Bank of Greece, Alpha Bank and Agrotiki Bank. All banks are located in Vathy and have internet banking facilities.
- In the year following any purchase, the buyer must submit a Tax Return. No tax will be paid if the buyer can prove that the money which paid for the property was a taxed income from another country, therefore it is important to collect the pink slip for the transfer from the Ithacan bank of their choice. The pink slip proves the money was not earned in Greece and is therefore exempt from income tax.
- All property owners in Greece will need to lodge an annual tax return.
FAQ Sheet for Owner-Vendors
ithacagreece.com Real Estate gets many enquiries and premature proposals to sell property. Before ithacagreece.com Real Estate agrees to put any property or land parcels on the market, ithacagreece.com Real Estate engages a lawyer to do a Title and Registry check on the property to be certain it is completely Clear Title and an engineer/Topographer to check the property map is correct.
Before you approach ithacagreece.com Real Estate, please make sure you have the following:
- Proof of ownership – Title Deed and/or inheritance papers (if applicable) The further back the Title Deeds go, the safer the purchase for the buyer. All paperwork, tax slips that prove ownership.
- Current and accurate Topographic Map (Within 5 years, mapped (preferably with GPS) by a qualified Topographer)
- Buildings for sale must have the building permit that corresponds with the building and have or be eligible for full electricity.
- For land outside town zoning – Forestry clearance to build and copies of the 2 government Gazettes in which this decision was published for 2 months, archaeological clearance (if applicable), Coastline Search clearance (If applicable. Only needed for land plots on seaside)
- If you are selling the property on behalf of a relative, friend or associate you will need a current Power Of Attorney which gives you permission to sell on behalf of the owner.
- Details of encumbrances ie : Loans etc taken out on the property in question.
- Written Permission from all owner parties to sell the land.
Please contact us for list of options firstname.lastname@example.org
- Evaluations : Cost - 80 euro plus 23% FPA tax. For Evaluations you will need to supply a current and accurate topographic map which will be taken on site for the evaluation. You will receive a written evaluation of the property with copies. ( If the property is being valued due to the imminent sale of that property through ithacagreece.com Real Estate,, then of course there is no cost )
- Consultations : Call out fee of 20 euro plus 23% FPA tax. Although I would like to help in any way I can, I can no longer offer this as a free service. Unfortunately too many have taken advantage over the years and have substituted a paid chat with a lawyer or engineer for a free chat with me. During the Summer Season on Ithaca , my entire day would be spent advising on legalities and procedure to the many descendants and ex-pats who return to the island to see to the properties they own, may own, may want to sell or may want to value. (If your property is clear to sell and you wish to sell it through ithacagreece.com Real Estate, or you proceed with an evaluation, then of course there is no call out fee payable.)
Note: Call out fees do not apply to ithacagreece.com Real Estate Vendor clients or Buyers.
- Contract (written or verbal) between Owner and Agent for minimum of 1 year.
- The physical state of the property is the responsibility of the owner and should be thus, that it does not impede the selling the property. (ie: Land should have enough clearing for buyer to view without impedance and houses should be kept in a sanitary state)
- A Property that will knowingly be disputed by neighbours or other parties, will not be marketed for sale with ithacagreece.com Real Estate.
- Vendors must honour any offer accepted by that Vendor.
- It is the Vendors responsibility to update the agent with new contact information or change of circumstances.