Buyer FAQ

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Cost associated with property purchase on Ithaca are:

·       Transfer tax: 3%
·       Lawyers fee – dependent on work done.
·       Notary fee - 2.5% approx
·       Council tax - 3% of tax amount only
·       Agent fee - 2% of sale price, plus 24% FPA (VAT tax)
(In Greece, the buyer and the vendor both pay an agent fee)

As a general rule, the supply and lease of immovable property are exempt from VAT. However, effective from 1 January 2023 VAT will be charged if a new building is sold before its first occupation. In such a case, the applicable tax rate will be 24%.
Transfer tax applies to the acquisition of the legal or economic ownership of Greek real estate and is payable by the purchaser. The tax value of real estate will be taxed against a tax rate of 3%. Where VAT is charged on the sale of a new building the 3% transfer tax will not payable. (As with many new real estate laws, this too may be deferred past the current initiation date)

Terms and Conditions: Please note that properties viewed through ithacagreece.com Real Estate either online or in person,  have an agent  fee of 2% plus VAT tax (24%) payable if you purchase the property, irregardless of time passed between viewing and purchase.  In contacting ithacagreece.com Real Estate you agree to these terms and conditions.

The procedure to purchase property on Ithaca is uncomplicated and straight forward. Ithacagreece.com Real Estate works with a Lawyer and various engineers 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.

Whether an EU national or from outside the EU, with land registry now set up property purchase is now more secure than ever.

See below for some important information when you are buying property on Ithaca.

  1. It is advisable to make a lawyer your Power of Attorney for the purchase so as not to default on completion date should you, as the buyer, be delayed or hindered from coming to Ithaca for completion. The cost is approx 85 euro.
  1. Buyer pays 10% - 20% deposit of sale price, balance to be paid no later than 3 months after deposit unless otherwise agreed to with the Vendor of the property.
  1. 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 (Power of Attorney), he/she will organize all the necessary paperwork).
  1. 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 legally obligated to reimburse the Buyer double the deposit amount.
  1. 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 2 banks on Ithaca: National Bank of Greece and the Pireaus Bank. Both banks are located in Vathy and have internet banking facilities.

  2. In the year following any purchase, the buyer must submit a Tax Return. No tax will be paid on the purchase of the property 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 your choice. The pink slip proves the money was not earned in Greece and is therefore exempt from income tax.

  3. When transferring money into either your account or your Ithacan lawyers account you must always clarify the reason for ie: property purchase, notary fee etc.

  4. All property owners in Greece will need to lodge an annual tax return.

  5. The purchase contract is also a receipt for your Tax, Notary and Registration payments.

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Vendor FAQ

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FAQ Sheet for 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.

In order to be able to sell your property, you must have the below:

  • Land Registry will be implemented on Ithaca on 18th June 2019. Local Property owners must register their property/properties within 3 months of this date or incur a fine. Foreign property owners will have 6 months from this date to register or incur a fine. Land Registry will be located in the Technical Services Building of the Town Hall in Vathy Ithaca Greece. You will need to go along with your Title, a topography that corresponds exactly with the measurements of that Title and proof of identity ie passport. You can contact ithacagreece.com Real Estate for assistance.
  • 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 done by a certified Topographer. Each property must have legal insurances from engineer/topographer  that the property, be it land, ruin or house is legal with no illegal buildings or works. These assurances are done online by the engineer/topographer and will have a cost to the owner. Engineers/Topographers are legally liable for their work for 17 years.
  • Buildings for sale must have the building permit that corresponds exactly with the building.
  • Each house must also have an energy rating as required by the EU. This rating can be done by a verfied professional..
  • For land outside town zoning, the forestry maps online for Ithaca, will determine which properties can or can't be sold due to forestry restrictions. If you have proof that your property is not forestry, but has been added to the forestry map AS forestry, you will need to undertake a dispute resolution through your laywer or engineer. There is a cost involved.
  • 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 Vendor.
  • Details of encumbrances ie : Loans etc taken out on the property in question.
  • Written Permission from all Vendor parties to sell the land.
  • Proof of land and property taxes paid on the property.
  • Receipts for paid ENFIA

  • From April/May 2021 an engineer will need to electronically (online) register all the relevent documents and topographies of the property for sale. These will include a floor plan for both new and old buildings which previously did not have a floor plan.

  • Capital gains realised by individuals are generally taxable at a rate of 15%. By exception capital gains realised by individuals on the disposal of real estate is deferred until 31 December 2022. This exemption has been enacted every year since 2013 and is expected to continue until other taxes on real estate are rationalised.

 

Selling Options:

Other Services:

  • Evaluations : Cost - 80 euro plus 24% 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 24% 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.

Conditions:

  • Contract (written or verbal) between Vendor and Agent for minimum of 1 year.
  • The physical state of the property is the responsibility of the Vendor 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 and tindy state)
  • A Property that will knowingly be disputed by neighbours or other parties, will not be marketed for sale with ithacagreece.com Real Estate until the dispute is resolved.
  • Vendors must honour any offer accepted by said Vendor.
  • It is the Vendors responsibility to update the agent with new contact information or change of circumstances.

It is important you read the conditions when receiving the full list of Options for Buyers.