6) Remote Properties - Water & Electricity. If you are buying a Greek property off plan from a developer the costs for connecting to mains electricity and water supplies are usually included in the purchase price, but this is not always the case. Check your contract if buying or building a property in a remote area as you may have to pay thousands of Euros for connection to utilities and telephone. If extra pylons or a transformer need to be erected to take electricity to your property you could be burdened with the cost. The same goes for telegraph poles for your telephone line - if there are no poles nearby you will pay for the connection and erection of telegraph poles, and for a water supply you could end up paying for pipes to connect you to the nearest mains.
7) Keeping track of the construction. A number of people have their plans drawn up, sign a contract and return a buying a shortsale year later expecting to find their house completed, only to find that it is way behind schedule or that things are not built to plan, have been omitted or the wrong fixtures and fittings have been installed. Keep in touch with your agent or project manager and request photographs at all stages of the build if you are not on site.
8) Buying to Let. Don't rely on rental returns from your Greece property to payi for your investment. There is much competition for holiday rentals and oversupply in some areas, so there are no guarantees of rental income. In order to legally rent your Greek property to holidaymakers you must obtain a licence from the Greek National Tourist Organisation (EOT).
9) Tax. At the outset of a property purchase in Greece the buyer must register for a Greek tax number (A.F.M.). Once the tax number has been issued you are required to submit a tax return yearly in Greece, regardless of income or residency. If you are non-resident and / or have no income in Greece this may be a nil return, but it must still be declared. Import slips (the 'pink slip') must be obtained for any cash transfers to prove that cash has originated elsewhere and has already been taxed. Employing a local accountant to give real estate commercial advice on your personal circumstances and obligations is essential.
10) Capital Gains. The property market in Greece saw property costs rise steeply between 2002 and 2006, but has now started to slow down. If you are buying property as a short term investment don't expect to make a quick profit. Remember that you will also need to recoup the high purchase costs of around 12 % (lawyers, estate agents, notary fees & taxes) and pay capital gains tax.
Copyright 2008 - 2016 Carol Palioudaki
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