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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.
