- Is there a good independent web site that I can use to
research the legal aspects of living in Crete (Greece)?
There are a few good internet sites available,
the best is probably europa which is
the portal site of the European Union. It provides up-to-date
coverage of European Union affairs and essential information on
European integration. Users can also consult all legislation
currently in force or under discussion, access the websites of each
of the EU institutions and find out about the policies administered
by the European Union under the powers devolved to it by the
Treaties. 'Europa' links to another web site called citizens which
gives extensive information on various social and legal aspects
within the European Union.
Are non Greek nationals able to
purchase property in Greece?
It is not a problem for 'foreigners' to purchase property in
Greece as long as you are a European National, although there
may be a restriction based on purchase of property or land based
near a sensitive area, say an airfield or military base. If you are
a none European National then you can still purchase
property although the whole process would become protracted. The
rules governing this issue are not that clear but your solicitor
would almost certainly have to apply for a license on your behalf
to the Ministry of National Defence, submitting the title deeds to
the property. Your credentials will be checked and the purchase
either approved or not. This process could take 6 to 8 month, and
there will also be an issue of immigration to be addressed. The
question of the deposit could also be a problem for transactions
taking a long time, which you may loose if approval was not
given.
- Is there a proper land registration system in
Greece?
Yes, the Greeks are now getting to grips with land registry and
there are very detailed documents involved to establish correct
ownership and freehold title of all properties.
- Is buying property in Greece protracted and
difficult?

Not now the system of registration has been introduced. Having
decided on your property and appointed a lawyer, the deal
can be finalised usually in 4 weeks. You will have to decide if you
wish to give your lawyer or representative complete power of
attorney or you may decide to return to Greece to finalise the
transaction yourself. A non-refundable 10% deposit is required to
start the process on the payment of which the property is
immediately taken off the market pending finalisation of the
purchase. Ensure however that a full search is completed and the
property is 'clean', because the new owner is liable for any debts
of any previous owners.
- We wish to view one of the properties listed on your site.
What is the next step?
Email property@crete-connections.com
and we will go over the details with you and arrange any
appointments.
Are there any additional costs
involved in purchasing a property in Crete?
Total expenses including Taxes are between 12% and 15% of purchase
price. It is difficult to be precise because the amount of tax will
be assessed at purchase stage. Normally the tax assessment is a lot
less than the purchase price although the 'objective tax' has new
been currently reviewed. Please see our "General Information"
section below.
- Why do estate agents charge a commission fee to the
purchaser when they purchasing property in Crete?
Estate agents in most EU countries charge a
commission fee to the purchaser, agents in Greece aren't an
exception to this. What you get for this fee differs from country
to country and agency to agency, some only levy it as a basic
introduction fee to show you the property and provide no other
services. In Greece the 'agency fee' varies from 2.5% to 4% of the
purchase price, ours being at the lower end of the scale at
2.5%. Unlike some other agents in Crete we look after your
interest during the purchasing process, introducing you to an
independent lawyer, sorting out the registration paperwork, the
connection of local utility services, make contact with the local
authorities and general officialdom in Crete. Because we have
purchased property in Crete ourselves from a 'foreigners
perspective' we found that one may require help long after the
final contact is signed and in this regard we are unique.
- What is cost of living on Crete?
The cost of living in Greece is substantially less than that of
the UK according to recently announced information by the Greek
Consumer Centre (ELKEKE). The cost of living for a family of four
to the end of January 2006 was €2,515 euros (£1,734) per
month, an amount that includes average mortgage payments. The
figures are average ones taken for the country of Greece as a
whole, Crete being an essentially a rural community the cost of
living will be substantially lower that that of one of the major
cities such as Athens. The cheaper living cost make it a very
attractive place to retire to, or for those just seeking a gentler
pace of life. A number of people are considering renting out their
UK property and using the income to fund a new life in a sunnier
warmer climate.
Free
Inspection Trips: Matt (my husband) and I went to a Property Abroad
exhibition yesterday thinking that it would be several companies
selling homes abroad, however, there was one company [name
withheld] in particular who took our eye who have only recently
started dealing with properties in Crete. They were not too pushy
and offered a 4 night stay in Crete for £20 (!) to include
full board, flights and an inspection tour of properties we may be
interested in. However, Matt thinks this may be a hard in selling
visit and they will push us into buying a property whilst we are
there. Can you advise at all?
We do not know this company but having done some research they
are a large property company operating from several countries,
Crete being their latest venture. Nobody can finance trips to view
abroad without being fairly sure that the viewing trip will result
in a sale. It is therefore likely that you will be subject to hard
sell very similar to the time share operatives. Your accommodation
could well be miles from anywhere so you are trapped as it were.
Your only entertainment being the constant selling techniques aimed
at you, which can be exhausting to the point where a commitment is
made. We cannot say this is how this particular company works but
if an offer seems to good to be true, it usually is.
- Why don't internet sites publish many details of the
properties for sale in Crete?
This is a very good
question and is due to the very competitive nature of the property
market in Crete and between the various property agencies, each
being very protective of their clientele. It is our intention
however to be 'open and honest' with the description of the
properties that we list on our web site as we feel that not to do
so would waste everyone's time. It is said that "imitation is the
finest form of flattery" and we are now finding that some agencies
in Crete are now copying our editorial style and presentation, some
even these FAQ's. Our collated property news stories are also being
copied, without any attempt as least disguising the fact. Let's hope
that they all now also live up to our standard of customer care and
consideration!
- Is it safe to buy property in
Crete?
Yes, providing you go about it the correct way. We have direct
experience of purchasing property in Crete from a 'foreigners'
perspective and are well aware of the pitfalls in doing so. As well
as the time and worry aspect, one can spend a lot of money
unnecessary if one goes about it the incorrect way. You may also want to
consider using an agent that is affiliated to a member of a trade
association, thereby getting and extra level of assurance. As a member of
National Association of Estate Agents we, and other agent like us, adhered to a
strict code of conduct (ethics).
- Is property in Crete a good investment?
Properties of all types are very
much in demand due to the lower prices compared to much of Europe.
The variety in the types of property available and the Cretan
climate is attracting many people from Europe to take up residency
in Crete, which in turn is pushing up prices. However, like in the
UK it is always wise to treat property as a home rather than an
investment.
-
We are looking to purchase a property and would
like to find a specialist mortgage broker. We also like to get the
best possible deal on the currency exchange, can you offer any
suggestions?
Electronic cash transfers from your
own bank or building society can end up quite expensive. There are
however companies who specialise in the transfer of funds using the
commercial exchange rates instead of the more expensive standard
tourist rates. You may want to get a quotation from
Purefx who
specialize in currency transfers. Email
mailtoenquiries@purefx.co.uk : Web
www.purefx.co.uk
- Is it better to take out a mortgage with a UK or a European
Bank?
One option to find the cash to purchase a property
abroad is to unlock the capital in any existing UK property that
you may own. Your local bank or building society can help, your new
or second mortgage being against your UK property and not your
second home abroad. The other option would be to take out a
mortgage with a European bank, the advantage of this being that the
interest rate charged on such a mortgage will typically be 2% lower
than that ask by a UK institution. The downside is that you will be
reliant on the euro/pound exchange rate fluctuations which will be
outside of your own personal control. This can result in a bit of a
lottery that you may win or loose, it is therefore better to take
professional advise on such matters.
I am a builder by trade and would like to
purchase a piece of land and build my own property. What is the
maximum build size and would I have to engage an
architect?
The law in Crete will require you to use an architect if you are
going to be involved in the construction of the roofs and walls as
it now has to conform to strict building standards. The maximum
build size would be 400m² and then only if the land is within
the 'village boundary'. Outside the boundary 200m² would be the limit for a
private residence. Crete Connections would be happy to find some
land for you and put you in touch with the appropriate professional
bodies.
- We are about to purchase a development property and are
being ask to sign a contract in English. Is this ok?
You do not say where this development is but it is advisable to
ALWAYS get any contact checked by an
independent solicitor and not one that is appointed by the
development company. It is doubtful that signing a contact which is
written in English as a legally binding, because as far as we know
all documentation has to be translated into Greek and it is that
translated document that you will have to sign. This is why you
should instruct an independent solicitor, as you will need an
assurance that what you're signing is in fact what you are
expecting to sign. We have heard of one case where a person living
in a property for 3 years wanted to sell it, only to find that it
was not theirs to sell.
We are about to purchase a property
through a developer in Crete but are unsure and worried about the
possibility that things may go wrong. Are there any suggestions
that you can make?
By the sound of your email you do not appear that confident in
either the developer and / or the process involved; our advice
would be that unless you have full confidence then its best not to
proceed with the contract. It is very difficult to keep up with
building work so far from home especially where staged payments are
involved. If you are looking for an independent way of keeping
track of the 'work in progress' then we offer a monitoring service
and can inform you immediately if the building development is not
on schedule or going to plan. There is a minimal charge for this
service, but it may give you the peace of mind you require. See
Management Services
My wife and I purchased an
off-plan 2 bedroom property for our retirement through a large
development company in Crete [name withheld] about two years ago
and is yet to be completed. Despite many emails, letters and visits
to their offices none of their staff appear to be the least bit
interested in getting the house finished, indeed we are totally fed
up with the many accuses given. A while ago we decided to put the
matter in the hands of an independent solicitor, but progress is
very slow. Is there anything else we can do as we are desperate to
get our life savings returned? We have heard that this
large development company is having serious problems looking after
their clients and have many dissatisfied customers in such a
position as yourself. It is a real shame that one has to
undergo the stress of trying to get ones money refunded especially
as your life saving are involved. Unfortunately yours is not the
only email we have received on this subject and it is now best left
to an independent lawyer to pursue your case and get your money
returned. We are assuming that because you used the development
companies own lawyer when signing the building contract, and it is this
that this is making your own case for a full refund harder to
accomplish. There was an editorial published in the Mail on Sunday
on the 22nd April 2007 which may be of interest and may contain
additional information that will help pursue your own claim (click on
the image on the right to view a copy of this article).
We advise people purchasing property abroad (regardless of the
country) to ALWAYS use an independent lawyer when signing
contracts. If the development company is a genuine one then they
will not mind you doing this and should be somewhat supportive of
your decision. You can also have penalty clauses written in to the
contract should the building work be delayed or not completed to a
specific standard.
- We have just purchased a development property only to find
that we are on a shared water and electricity supply. Both
utilities are shared amongst each of the house holders which we
think is unfair as we are only in
residence 4 months of the year.
As the other properties are occupied all of the year around we feel
that therefore we shoulder more of the expense than is necessary.
Is there anything we can do about it?
This is something that a small number of developers do to save
themselves money and increase their profit, and is quite often
overlooked by people when purchasing a property. Unfortunately
while not impossible, it would normally be very difficulty to split
the utilities and to have individual electricity and water meters
installed. We very much doubt that there would be a way in getting
the development company to pay for this work as it will almost
certainly be described in the 'small print' of your contract. Alas
the only another way may be to come to an amicable agreement with
your neighbours to only pay a percentage of the annual costs.
- I would like to live in Crete but what are the medical
implications?
With regard to prescriptions, despite being part of the European
Union, Greece has not yet caught up with certain things. The local
pharmacies should be able to match any prescription or find a
suitable product if you show them a packet of your medicine. We
often find that prescription medicines are cheaper over in Crete
than the actual prescription charge in England.
Should you have a 'special' requirement then it may well be that
you will have to visit a doctor to get a prescription in order to
purchase drugs or medicines. I am afraid this can be expensive but
is subject to change. Most pharmacists speak English and can advise
you. At this moment in time a letter from your doctor would only
explain your condition and the required drugs but would not exempt
you from having to pay. If you are going to live permanently in
Crete then you should take up residency which would then enable you
to have certain advantages such as hospital treatment under the
Greek National Health System.
Please note this is just general advise and you should seek the
most up to date information regarding this matter if it is of a
great concern to you.
I would like to start my own small
business in Crete and so would like to purchase a property with
living accommodation and a retail outlet, perhaps you can help
me?
The problem with having living area over a business premises is
that most shops are leasehold and you can only lease them. It is
doubtful if you could find exactly what you are looking for, i.e.
purchase a liveable property with a business outlet, although we
now have such a option listed on our businesses for sale section. Another
option would be to purchase a house near town and perhaps rent a
lock up premises (or shop).
- Would it be possible to use my own (UK) registered car in
Crete
Yes is would be possible, but please be
aware that like the most of Europe, Crete drivers drive on the
right hand side of the road making driving a car that has right
hand steering a little tricky. Under the EU directive 83/182 of
1983 it is legal for a non-resident to keep and use a foreign
registered car in Greece over six months before having to pay that
country's car import taxes. Full information regarding the import of cars
is available from the Ministry of Transport and Communications,
Directorate General for Transport Athens Tel: 01-325-4515. More
information on this and other legal matters relating to non-Greek
national requesting residency in Greece (Crete) can be found at
http://ec.europa.eu/youreurope/nav/en/citizens/living/car/index.html

- If I purchased a plot of land on Crete would it be possible
to park a caravan on it for the summer season?
The law is not that clear on this matter, but from our enquiries it
seems unlikely that this will be allowed. There are few designated
caravan parks in Greece and the only instances where we have seen
caravans in use, is on land where a house is being built so
planning permits are covered.
- I am looking to purchase a property in Crete as an
investment with a view to letting it out to holiday makers, the
income from which will cover the mortgage repayments. When I retire
I plan to live permanently in Crete. Please can you give me
guidance as to whether this is a good idea?

Unfortunately one cannot guarantee income from holiday rental
property as this would depend to a large extent on world affairs.
Also the rental income one could command from a property would be
dependent upon its type and location, generally the closer to the
sea and the newer the property the greater the rental income.
Property with a swimming pool is also an asset and good sea views
are especially sort after. Browse our site to get some idea of the
weekly rates but just to give you a better idea if you look at our
private villas
section. These villas are usually booked for 7/8 months of the
year and normally well in advance of the season. We at
Crete-Connections can help you along this route if you wish to
proceed and unlike may companies will genuinely set your
expectations accordingly.
- There is a lot of talk in the press about the existing Greek
property tax, what information can you give me about
this?
This is a hot subject at the moment (January 2006)
and so have listed some news articles which we have found regarding
this subject. See our Greek
Property News Page for further details.
- OTE License (Greek Ministry of Tourism)
A OTE licence is required whenever you rent your
property for under 3 three months in any one period to a single
person or party, and would therefore cover most holiday rentals.
You will also be required to pay Greek income tax on any earnings.
Like in the UK, all holiday rental accommodation has to conform to
certain architectural, environmental and health and safety
standards which normally require several visits by the Greek
tourist authorities. An architect or civil engineer will get you
started with this process and we can certainly point you towards
the appropriate persons. In case of any accidents you can be sued
and possibly imprisoned if you have no license for your holiday
accommodation. Greek officialdom is neither easy or quick and if
one wishes to pursue letting out holiday accommodation as a
business in Crete then one must be prepared to follow the Greek
mentality of 'slowly slowly', as the authorisation process can take
a while. Once obtained the OTE licence lasts 5 years.
This is for information only and the guidelines are changing all of
the time, it is therefore always worth taking professional
advice.
Where are the legal documents on my
property held? Regardless whether you live in Crete or
not, all legal documents and plans are held with the notary in
charge of the purchase of your property. Anyone can obtain a copy
of the plans of 'new build' property from the notary with or
without your consent. As the owner of the property you will receive
copies of all the relevant documentation.
- I'm a UK citizen and thinking of taking up residency in
Crete, can you advise me on any tax
implications?
Sorry but we do not run a tax advisory
services. Taxation requires a highly specialised area of knowledge
and you should seek advise from a qualified tax advisor who
specialises in helping overseas clients. We have however put
together some general information which is only relevant to
UK citizens seeking residency outside of the UK (see below).
I am considering living in Crete and
would like to take our pet with us. Is this possible?
If you currently reside in the UK you can obtain a "Pets Passport"
for your pet. Please contact the UK Department for Environment Food
and Rural Affairs (www.defra.gov.uk)
for further information or call 0870 421 1710 (08:30 to 17:00
Monday to Friday) and ask for a Pets Travel Scheme Information
pack. If you are non-uk residence a different schemes will apply,
in which case please contact your own local government offices.
- What is the attraction of purchasing property in
Greece?
We have a few pages dedicated to these questions - [Greece] or [Crete]
We
have just purchased a old property that is in need of renovation,
can you help us with builders and trades persons to bring it up to
a liveable standard?
We can help you with the organisation and auxiliary work
required to bring a property up to a liveable standard, then you
can do the rest. This service service is available even if you did
not purchase the property through us. For 15% of the cost of
the building work we will organise the various building inspectors,
surveyors and workmen. Normally because of our local knowledge and
close association with the various building trades we should not
only be able to save you the cost of our management fee but also
the aggravation and worry. Someone on hand as the work progress
will give you peace of mind that everything is being done to your
own specification, in addition to which we will send you regular
updates and photographs via email. See reports
- We own property in Crete and would like to know what Greek
laws apply which may effect passing on the inheritance to our loved
ones in the UK?
Always a delicate subject this and it is best to
take proper legal advise on such matters; Article 28 of the
Greek Civil Code states that "inheritance relations are governed by
the law of the citizenship which the deceased had when he died".
According to Christos Iliopoulos, an Athens attorney at the Supreme
Court, this means that if a French national dies and leaves
property in Greece, it is French law which will determine who
inherits and what share. Greek law will only determine how much
inheritance tax will be paid to the Greek state by the heirs. But
who are the heirs will be decided by French law. Another example: a
UK citizen residing in Greece may write his/her will (handwritten,
public or secret) in Greece. However, how the deceased's assets are
distributed will be based on British inheritance law rather than
Greek legislation. In England, you are free to dispose of your
estate as you wish. According to the European Commission - the
25-member bloc's executive arm - the growing mobility of people in
an area without internal borders and the increasing frequency of
unions between nationals of different member states, which often
entails the acquisition of property in the territory of several EU
member states, is "a major source of complication in succession of
estates". The commission is proposing the creation of a central
EU-wide register of wills.
- We have just heard of Self Investment Personal Pension
scheme and the possibility of purchasing property through it. Do
you know anything about it?
The chancellor Gordon Brown announced
today (8th December 2005) changes to planned reforms of Self
Invested Personal Pensions (SIPPs). From next April, people will be
able to use money invested in SIPPs to buy residential property.
But now - on the purchase - SIPPs will face a one-off tax charge
equivalent to 40% of the property's market value. more >>>
General
Information - (expected expenditure and the legal system)
For some years it has been possible for citizens
of the European community to purchase property in Crete. Many
people are taking advantage of the prices which are lower than in
their own country and purchasing, as either a holiday or retirement
home.
The Legal system
As in
your own country, buying a home is probably the largest investment
you will ever make and requires legal control to overcome
cut-throat practices one often reads about. Having chosen a
property that you wish to purchase the usual procedure is to pay a
non returnable deposit of 10% [sometimes less] which ensures that
no other prospective purchaser is allowed to offer to buy the same
property from under your nose. An agreement would be signed which
confirms all the details regarding price and description of the
property. You would appoint an English speaking lawyer to hold all
monies until the sale was completed. Should the vendor renege on
the deal then your 10% deposit would be returned plus a 10%
indemnity from the vendor. Assuming the title deeds are clean [or
you would not be going ahead] to finalise the transaction should
only take 3-4 weeks. The actual transaction will be overseen by a
Notary with the vendors and purchasers lawyers present. Land
registration is carried out following exchange of contracts and the
key is then yours. The Notary's function is to oversee the whole
transaction and to ensure that the title deeds are fully in order.
It is not unusual in Greece for 10 people in one family to own
parts of the title, hence the need to adhere to the system for your
own protection. The deeds should include ground plan
(topograph) of house together with any land that goes with the
property.
Having already visited Greece to chose your property, there is no
need for both husband and wife to return for the transaction.
Providing one or the other partner has full power of attorney a
bank account can be opened in one partners name and monies
transferred from home ready for the final transaction. This way
there is a saving on air fares, accommodation etc. [Note; retain
the 'pink slip' which will be given to you by your bank after
transfer of funds. This will ensure exemption from local taxes].
Alternatively you can arrange power of attorney through the Greek
consulate in your home country and if purchasing through a
development company then stage payments will be required as the new
house reaches various stages of completion. This is quite
straightforward providing you use the services of a lawyer from the
beginning.
Costs (These are rule of thumb but fairly
reliable)
| Notary's fee |
2% of purchase price |
| Lawyers fee |
2% of purchase price |
| Agency fee |
2.5% of purchase price - assistance in all
aspects of your property purchase in Crete |
The notary and lawyer will agree on a figure for tax purposes
that is usually lower than the actual purchase price, quite an
advantage to the purchaser. The 'objective value' assessment is
sent to the tax office for approval. This is likely to change in
the future due to EEC regulations. Tax is currently 9% on the first
26,500 euros. then between 11% and 13% on the balance, depending on
the assessment agreed by the tax office.
General
Information - (tax advise for UK citizens) tax years
2003/4/5/6/7/8
Before you leave the UK
- Complete Inland Revenue form P85 (see
www.hmrc.gov.uk/cnr/p85_p85s.htm)
to apply for non-resident status. To retain this status you can not
remain in the UK for more then 90 days a given tax year
- Complete Inland Revenue form R105 (see
www.hmrc.gov.uk/pdfs/r105pr.pdf)
so that interest on UK bank and savings accounts can be paid gross.
This is known as a "not ordinarily resident declaration"
- [Continue to] pay voluntary National Insurance contributions
if you wish to maintain your UK government pension
- Seek tax advise specific to your new country of residence.
Tax such as in Spain are run in a calendar year and may be soon
regionalised
- Consider utilising British tax breaks - such as an
individual savings account - which non residents are not allowed to
invest in
- Use an agent to manage any rental income from UK
property
- It is worth setting up an internet bank account the funds
through which can be managed from abroad
Before you return to the UK
- Close all bank and building society accounts and open new
ones immediately before you return to void income tax and capital
gains tax in the UK
- Where bonuses or other payments can be received before
returning to the UK, it may be beneficial to negotiate to bring
payment forward
- Consider selling or putting in a trust assets which have
appreciated in value to void UK capital gains tax (CGT)
- Assets bought after leaving the UK should be sold in the tax
year before your return to the UK to avoid tax in the UK
- Where you do not wish to sell assets and have been
non-resident in the UK for more than five years, consider setting
up an offshore trust
- Seek professional advise specific to your individual and
family circumstances before you return
- Complete form P86 (see
www.hmrc.gov.uk/cnr/p86.pdf)
to register your return to the UK with the Inland Revenue
THIS IS ONLY GENERAL
INFORMATION
PLEASE SEEK PROFESSIONAL ADVICE PARTICULAR TO YOUR OWN
CIRCUMSTANCES
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