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Buying Procedures

 

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Property ID

   
 

Property in Rhodes

 Rhodes Island - Town
 Rhodes Island - East
 Rhodes Island - West
 Rhodes Island - South

Property in the Dodecanese

 Other Islands

In Rhodes


Tel: +30 6936 656 126

Address


Ath Diakou, Afantou
85103 Rhodes
Greece

Email


interestatet@gmail.com

What you need to know:


The process of buying property in Rhodes is fairly quick and uncomplicated. As a general rule, you must:
  • Select your property.

  • Make sure financing for the purchase is secured.

  • Appoint your solicitor, notary public, surveyor, and accountant.

  • Apply for your Blue Card.

  • Apply for your Tax Registry Number (AFM).

  • Open a Greek bank account.

  • Sign the pre-contract detailing terms of sale and payment schedule.

  • Pay a 10% deposit to secure the property by removing it from the market; usual payment methods include cash, bank transfer or credit card.
We will guide you through the process, every step of the way.

• You will need a solicitor. He carries out necessary legal surveys and conducts a property title check for the past 20 years. They ensure the property is free of any mortgage notes, claims, expropriations, rights-of-way and, in general, any legal encumbrances. In addition, solicitors ensure that all property taxes burdening the vendor have been paid. Solicitor services are going to cost you 1% of the purchase price.

• You will need a notary public. He is a government-appointed lawyer who processes and certifies all real estate transactions, including drawing up and reviewing all official documents, to ensure the legal transfer of the property. All contracts must be drawn up and certified in the office of a Notary Public appointed by the buyer. According to the law, representatives of both parties must be present when the contracts are being signed. Greek revenue offices demand that buyers prove they have the means to buy, and that sellers show a tax declaration of the respective property. Without these documents any contract may be void. Notary Public services are going to cost you 2% of the purchase price.

• Surveyor is also needed to ensure that all acts associated with the construction of the property are based on lawful planning permissions.

• It is essential to hire an accountant early on to help you with tax returns and explain taxation laws to you.

• Tax number (AFM) is mandatory for all buyers, including foreigners and permanent residents abroad. It is issued at tax offices in one day, free of charge. All applicants must present their passport and their birth certificate. If you have granted your solicitor full Power of Attorney, he can apply for an AFM on your behalf.

• You will have to pay The Tax Assessed Value. It is the estimated monetary value of a property according to the Greek tax authorities. As a general rule, a property's Tax Assessed value is significantly lower than its purchase price.

• You will need to open a bank account. All necessary payments will be made through this account. Also, this account will prove that funds used for property purchase have come into Greece from another country and are, therefore, not taxable in Greece. Opening a bank account in Greece only takes a few minutes and requires no minimum opening deposit. All you need is your ID or passport and you’re tax number (AFM).

• For EU nationals a temporary residence permit called the Blue Card is required in order to purchase property in an area near national border such as Rhodes. You must apply for it in person at the local police station. Issuance takes approximately two weeks, but your solicitor can collect it on your behalf if granted Power of Attorney. This permit is a formality for EU nationals.

• For non-EU nationals you must apply for a special permit issued by the Ministry of Defense in Athens. An alternative and more efficient way to purchase property in these areas is through an offshore company in your name, based in an EU country. This is fairly commonplace. Setting up and maintaining such a company costs approximately 2.000 euros to establish and 1.500-2.000 euros annually. Both procedures are well known to the lawyers of Rhodes.
Return to Greece to sign the final contract, after all legal work is completed (6-8 weeks, usually). Alternatively, your solicitor may sign for you if he has been granted full Power of Attorney. Upon completion of final contract, all fees and taxes must be paid.

Closing costs, including all fees and taxes, are an estimated 13-15% on top of the purchase price. (10-12% fees, taxes etc, 1% solicitor and 2% notary public)

- For properties remaining in one’s ownership for 0-5 years: Capital Gains Tax 20%
- For properties remaining in one’s ownership for 5-15 years: Capital Gains Tax 10%
- For properties remaining in one’s ownership for 15-25 years: Capital Gains Tax 5%

You will have to pay an annual property tax if your property’s tax assessed value exceeds 243.600 euros. (Please bear in mind that Tax Assessed Values are lower than actual values)

Buildings in Greece are designed and constructed in accordance with European Regulations and standards, and they are in total compliance with stringent regulations for earthquake protection.

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