In Crete, property sales follow the same financial pattern as in every part of the European Union. As a potential buyer, you should note that all documents regarding the property purchase, regardless any Crete real estate agencies, including the purchase tax, Public Notary, legal fees, accountant fees and land registration fees, are always paid by you, the purchaser. These fees are usually calculated on the estimated price of the purchased property. In addition, the total expenses are forecast around 10%; the variation being dependent on the Tax Office assessment of the property for purchase tax purposes (normally substantially less than the purchase price.). The approx. 10% forecast includes usually all the above mentioned.
Taxreturn
Every year you will be required to do your tax return, which means that you will have to provide all your receipts of purchases such as houses, cars, boats and bikes etc, not including the receipts of small items purchases such as furniture or electrical appliances. The tax return is submitted every May and concerns the previous year (January to December). If you live abroad, it is highly recommended in authorizing an accountant to represent you in front of the Tax Office.
You will be advised by your lawyer to transfer all your money via bank transfer in order to have a proof of foreign currency transferred in Greece, therefore making you eligible of tax exemptions.
Loans
In order to finance your Crete property purchase, it is possible to take a loan – in fact, it is very common. Conditions are similar to those in the rest of the European Union (E.U.). Most banks will give of up to 80% for 30 years or more. They will not ask for overseas security, but they will ask for proof of earnings and tax returns of approximately the last two years.
Obtaining an acceptance for a mortgage, will give you the head start you need to purchase a property. This service can be arranged whether you have yet to visit Greece. Once an acceptance has been completed, you will know the range of property values you will be able to purchase at and place an offer, confidently knowing that you can raise the necessary finance to support this. Mortgage costs in Greece vary from the property type being brought to the purchase price being paid.
Stage payments
The majority of Crete real Estate agencies and construction companies apply general rules and follow similar procedures for Crete property purchase.
At the same time, you will receive a Sales Confirmation Letter from the Crete real estate you are dealing with, confirming all of the sales details and advising you of the Stage Payment Program. A copy of this is also forwarded to your lawyer.
Your Crete property sales person will also complete a specification sheet with you. This is a detailed document which will describe your choices of tiles, kitchen cupboards etc and list and price of any extras that you would like to have in your new home i.e. solar panel, central heating etc. They will also take you to select your tiles and fittings.
Copies of this specification sheet are passed to the builder of your Crete property site, to your Sales Person and attached to your Sales Confirmation Letter, so everyone is aware of your particular requirements.
After you have returned home
There will be the following stage payments on the dates you have mutually agreed with the Crete estate agency, completed on the Sales Confirmation Letter while you were in Crete.
The most common ways of payment stages Crete property agents employ are:
- Stage Payment 1 – 10% Deposit
- Stage Payment 2 – 30% Land Purchase
- Stage Payment 3 – 20% First Construction
- Stage Payment 4 – 20% Second Construction
- Stage Payment 5 – 20% Final Construction
Stage Payment 1: Deposit
This down payment is used to secure the purchase of your chosen Crete property and is required on signing per-contract agreement, which should contain the names and description of the parties, the description of the property, the price and any general conditions. Having received your Bank Account details, you should send 10% deposit to your joint account in Crete in order for your lawyer to carry the searches on the property and Register to ensure clear title. He/she will then pay the deposit to the construction-real estate agency and the Public Notary will prepare new deeds.
Stage Payment 2: Land Purchase
You will receive a request for 30% of the purchase price to complete the Crete property Land Purchase. On completion of Stage Payment 2, your land is then registered in the local Land Registry in your name and a copy of the deeds of your property is sent to you by your lawyer. Payment of the lawyer’s fees and purchase tax accounting of the purchase price is also required at this point. Your lawyer will advise you of the exact amount.
Note: Many customers combine Stage 1 & 2 payments into one transfer, reducing UK bank commission and charges and enabling earlier processing of their land purchase and therefore an earlier start to building.
Stage Payment 3: First Construction
Request for further Stage Payment will be sent to you before the required payment date, thus giving you time to make funds available for transfer. Stage Payment 3 is the first construction payment which includes your Crete property License fee, architect and civil drawings, building permits, excavations, and concrete foundations.
Stage Payment 4: Second Construction
Request for Stage Payment 4 will be sent to you before the required payment date. The second construction payment pays for the construction of floors, stairs, exterior and interior plastering, tiling, and bricking up.
Stage Payment 5: Final Construction
Request for Stage Payment 5 is the last and final payment of your Crete property. At this stage you will also be required to pay for any extras also. This payment pays for the purchase and installation of bathroom and kitchen fittings, doors and locks, painting and varnishing, roof, balcony or terrace, windows and shutters, ceilings and electrical and plumbing installations.
