When it comes to looking for Kefalonia real estate and buying a property in Kefalonia, all EU citizens have the same rights as Greek nationals.
Here are some basic steps on how to complete your purchase:
CHOOSING A REAL ESTATE AGENT
In the quest for your perfect property, you may choose to find a reputable and efficient estate agent. Any person performing real estate activities within Greece must hold a valid real estate licence and they have a duty of care to ensure the conclusion of a property purchase, exchange or lease.
TAX NUMBER
In order to purchase property and land here in Kefalonia, Greece you will need to obtain a tax number (AFM). This process is undertaken at a local tax office and the AFM functions as a tax identity for each individual, once issued it never changes. This is a free of charge application.
OPEN A BANK ACCOUNT
The most common practice for purchasing here is to open a bank account in euros since most legal purchase contracts are written using this currency. Your tax number and passport are normally required for this simple application. EU citizens are offered facilities such as cash debit cards, internet banking, telephone banking, cheque books and additional services such as savings accounts, mortgage & insurance services.
PRE-CONTRACT
Once a sale price is agreed by both the vendor and the purchaser a pre-contract is normally signed to secure the property. The contract will state the agreed sale price and the amount of deposit that has been paid by the purchaser.
DEPOSIT
The deposit is typically 10% of the purchase price and is non-refundable unless the lawyer advises of any problems with the title or other issues.
FINAL CONTRACT
Before the final contract is signed and the remaining purchase price is paid, the lawyer appointed will have undertaken a title search on the property and checked that the property is free of any burdens or debts. Transfer tax is then due to the government. The amount of this tax is calculated on the value of the property as assessed by the Tax Office, which is normally lower than the actual purchase price agreed.
The signing of the Final Contract then takes place in the office of a public notary and the buyer needs to be present unless someone is appointed with a power of attorney.
If the buyer is unable to be present to make the application for a tax number, the property purchase or for any other necessary requirements, it is necessary to appoint an individual with power of attorney to act. Typically this would be either the lawyer or estate agent, acting on the buyer’s behalf.
TYPICAL FEES TO CONSIDER
Notary: 2.5% based on the value stated in the contract municipal value plus registration fees and any miscellaneous expenses.
Lawyer: 1.5% based on the value stated in the contract plus any other miscellaneous expenses.
Transfer Tax: 7 – 13% based on the value stated in the contract paid to the government, if the municipal tax value is stated this value is normally lower than the actual purchase price.
Estate Agent: 2% based on the sale price.
Exodus Abroad are a leading property development consultancy in Kefalonia with proven experience in providing buyers with professional guidance and access to the following services:
- Excellent quality homes at realistic prices with no commission fees
- Unrivalled construction quality
- Property is offered with full mortgage approval from major banks
- We offer you peace of mind with a completely secure buying process
For more information visit the website http://www.exodusabroad.com
