Everyone knows about the deep economic turmoil that Greece finds itself in. 2015 was perhaps the worst year in Greek history – the country was literally at the edge of a cliff and anything could have happened. Fortunately, as we approach 2016, things have stabilized a bit in Greece.
If you are looking to buy a villa in Greece, then there are bargains available everywhere you look. The Greek Islands of Mykonos, Samos, Rhodes, Kos, Crete and the Cycladic isles were insulated from what was happening in Athens and the rest of Greece. Tourism was as strong as ever in the Greek Islands – as a matter of fact – 2015 saw a record number of tourists visit Greece.
Interest in Greek properties for sale has not been affected by the crisis. There are a lot of wealthy individuals from the US, China, Russia and the Middle East – especially from Egypt, Israel and Lebanon – who have shown a strong interest in buying luxurious Greek villas for sale. There are a plenty of Brits who have been attracted by the low prices in the Greek Islands and have bought second homes here.
Buyers from non-EU countries are attracted by Greece’s Golden Visa, which promises residency rights and travel permits across EU nations subject to the Schengen Treaty to anyone who invests over 250,000 EUR in Greek properties.
Buying Property in Greece – How It Works
The Greek government has made it a lot easier for foreigners to buy property in Greece. They have, for example, reduced the property purchase tax from 10 percent to 3 percent, which is a historic low for Greece.
EU nationals who buy property in Greece are treated as citizens and have all the rights enjoyed by the locals. However, there are restrictions around areas that have military bases, so this is something to be kept in mind.
The Value Added Tax on newly built properties is set at 23%. Notary fees range from 1 to 2% of the purchase price. Land registry fees are set at 0.3 to 0.5% of the assessed tax value of the property. You will be required to pay a small amount for stamp duty.
The local municipal tax or community tax is set at 3% of the property transfer tax and is paid to the local municipality. This money is used for public services such as road maintenance.
Lawyers in Greece are paid 1 to 2% of the purchase price and estate agents charge 2 to 5% of the property price upon the completion of the purchase. This price is usually split between the seller and the buyer.
Finally, for those who are looking to sell property in Greece (which you may want to do in the future), the capital gains tax is set at 15%.
It is important to hire a reputable lawyer to handle your property transactions in Greece. A list of lawyers is always available with your embassy in Greece; you can always look for that, or you could ask the local expat community to help you hire one.
Greece Property Market Outlook 2016
The Greek Islands are as beautiful as ever and as stable as ever. As a buyer, you would probably find them very attractive, especially when you consider that the property market in the Greek islands have stabilized for the most part. While growth remains flat, there is no risk of any fall in property prices in the Greek Islands from this point on. Growth expected to return in 2017 and beyond, but we expect 2016 to be the year of stability for Greece, especially in the Greek Islands.
Contact us today to source any property in any region of Greece.