Regulations in Crete

BUILDING AND PERMISSION

Firstly if you decide to buy a property in Crete, you will need a valid passport and a Greek Tax Number (AΦΜ). The latter we can help you obtain, as it does involve a certain amount of paper work and visiting tax offices.

If you decide to build your own home, there are definite rules to building, but they all depend on the position of the land.

If you are building your own home, you must appoint an architect to organise a building license/permit. This can take time and the costs will depend on the size and location of the property.

We also have our own group of architects, builders, plumbers, carpenters, electricians and masters, who work very competitively, and If you wish us to help you undertake the building and construction of your house, there are additional fees to be considered. We are happy to advise you on costing structures, so please account for this expenditure in your initial budget.

If you decided to undertake the building of the property yourself, you should be aware of the National Insurance costs of builders and workers and confirm that VAT is included in the contract, before you start. If not, this could lead to some nasty surprises.

WITHIN THE TOWN PLAN

If you land is within the town plan you are generally granted permission to build anywhere on the land. This can change in exceptional cases.

OUTSIDE THE TOWN PLAN

If your land is outside the town plan, you will need over 4000 square metres to be able to build a house of approximately 200 square metres. There are also rules pertaining to roads and rights of way that need to be discussed.

LAND PRICES IN CRETE

Like any country, these vary from place to place. A rough guide has been stated from about 10.71€, up to 57€ per square metre of land. This is all dependent on the position of the piece of land or property.

WITHIN THE TOWN PLAN

If your land or property is within the town plan, there will be a record at the land registry with a value attached. This does not mean that that is necessarily the asking price, but it does offer a guideline.

OUTSIDE THE TOWN PLAN

If the land or property is outside of the town plan, it is possible to make an application to the local tax office to have an assessment carried out. This will give a general price per square metre. Nevertheless generally speaking the seller will know the price of the land or property.

TAXES AND CHARGES

This is the biggest question area. Generally allow for 10 to 12% of the property value to cover all fees. These include, Purchase tax, Legal and all Notary costs. In some cases land registry fees can be an issue as well in some cases.

These costs are made up in the following way.

10% "property transfer tax" on the evaluated tax value of the property, payable when buying only. The declared contract price cannot be less than the published government value which is usually far below the real cost.

Usually Legal fees are 1-2 % of the evaluated tax value of the property, if it has a value of less than 44.020€. If the property costs more than 44.020€, another 0.5% will be added to the remaining amount. The Hellenic Realtor Association states;

‘All expenses for the conclusion of the final contract, including the relative tax of property transfer will be borne by the buyer. However, each contracting party will pay the fees of his legal representative who will be present at the signing of the contract, as is required by Greek Law.’

Notary and Land Registry are usually 2.5% of the evaluated tax value. The lawyer does a search to make sure that the property is clear of debt and charges and this costs about 100€. The Hellenic Realtors discuss this cost as

“ 1.5% on the contract value, for the completion of the contract, like notary fees, registry etc…”

Sometimes a new topographical plan is deemed necessary and they cost 210€ to 425€ dependant on size and area.

If you have limited time and cannot sign the contract immediately, you can arrange for someone else to sign in your place. This is managed with a power of attorney and costs 60€-70€. The benefits are that you save considerable travelling expenses, telephone bills and time away. Another alternative is organising the power of attorney through the Greek Embassy in London, although you will need to go twice. (0207 734 5997)

ESTATE AGENCY

The estate agents commission is a matter of agreement between the real estate agent and his clients. It is understood that the agents commission for his services, is due only in the event of a conclusive transaction.

When signing the contract to buy the property or land, usually a 10 % deposit is required.

LOCAL TAXES AND CHARGES

House owners are obliged to pay a small council tax every two months, which is included the electricity bill. We can also arrange for water and electricity bills to be put in your name. Please check costs with us.

If a property in Crete is valued at over 200.000€, there can be some tax applicable if the house is solely owned. If two people own the property the cost rises to 350.000€. This is a note to mention on larger properties. This is a rare occurrence as the valuation of properties is carried out by the government, but these can usually be far below the real cost.

This is the cost set down by the tax office. It is an important point to note, as most costs are calculated using this value.

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