Regarding buying a property in Greece, European Union (E.U.) citizens have the same rights and obligations as any Greek citizen does. All E.U. citizens can buy and own properties in every E.U. country. The rules and procedures applied for property purchase is pretty much the same across E.U.
Since 1981, when Greece became a member of the European Union (called European Community back at the time), European citizens are free buying any kind of property they wish in Greece, the only possible exclusions being various areas that are considered to be “sensitive“, like an airfield or a piece of land that belongs to the military. In these cases, a special permission from the Greek government must be issued first.
Although Greek law does authorize foreigners to own property in most areas, restrictions do apply for non-E.U. citizens who are interested in buying property in Greece. If this is the case and you are a non-European National, you can surely still purchase property, just keep in mind that the whole process could become more delayed than that of an E.U. citizen.
Before buying property in Greece, you have to apply for a license on your behalf to the Ministry of National Defense, submitting the title deeds to the property, and getting prior authorization, otherwise your contract will be void and not legal. Your credentials will be checked and the purchase will either be approved or not. This process could take 6 to 8 months, and there will also be an issue of immigration to be addressed. In short, the law breaks down into two basic procedures, one for European citizens, and the other for non-European citizens. As a result the applications and required documents vary.
As the first legal step in the process of buying a property in Greece, it is highly recommended to appoint a lawyer to handle all the legal work for you. You should do that just after you have chosen the property you wish to buy in Crete. We advise you to appoint an English speaking lawyer, preferably one who is a local, as they will be on the spot to do searches and will know local laws and regulations. You will need to sign power of attorney over and who will in turn explain the legal aspects of your purchase and will undertake to act on your behalf throughout the proceedings.
Your lawyer’s role is to act in your interest. Most buyers prefer to give power of attorney to their lawyer; this allows them to carry out all the necessary checks, paperwork and payments in your absence. This document must be drawn up by a government appointed solicitor (This can be done in your home country but it is easier, quicker and cheaper to have it prepared while you are in Crete). The whole process takes about an hour.
He/she opens a joint bank account, thus enabling you to transfer funds to finance your purchase and obtains you a Greek tax number, known as an AFM number in Greece, which is required by law for everyone buying a property in Greece. However, please note that the public notary will not authorize any sale, if the appropriate tax papers and deeds are not in order. Also note that the property purchase contract is always executed before a notary and in the presence of lawyers representing the seller and the purchaser.
It is important to know a few facts regarding the building permission before buying a property in Greece. According to Greek laws, there are 3 types of planning permissions granted to plots:
- Not within the village permit: If a plot of land is not within the town plan and if there are no forestry or archaeological restrictions, permission to build can be granted for any plot of minimum of 4.000 m² for every 200 m² building permit.
- Within the village permit: If a plot of land is located within a planning zone, it is usually classified in the “perimeter”, meaning having frontage to a principal municipal road. In this case, permission can be granted for plots of land of 2.000 m² for every 200 m² of building.
- Inside the village permit: If a plot of land is located inside villages, towns and cities, permission to build can be generally granted for any plot.
Note: Most architects are aware of plots that are situated in considered archaeological areas and should notify potential customers beforehand, in order to get authorized permission from the archaeological service. This procedure usually does not take long.
To sum up, buying property in Greece is not much more complicated that buying property in your home country. Just use the same common sense, apply the same type of methods, and make the same legal checks.
