Euro: Strong currency. Although conversion from the Drachma has meant the Cost of Living index has increased in the last 12 months, living costs are still much lower than Northern Europe.

Economic climate: The Greek stock index has fallen recently. New draft laws under ‘Tourism Education” have opened the door to a substantial number of new real estate projects. As a member of the EU, Greece is expected to attract a large amount of foreign investment and tourism

Taxes: There is no annual property tax in Greece on properties below an assessed value of 705.000 Euros. A property owner is obliged to submit an annual Greek tax return. Tax rates on rental income are moderate and depend on the level of income.
Popular areas: Rethymno is the most advertised coastal area; the districts of Sfakaki, Episkopi and Chania are very popular. Georgioupolis closer to Heraklion (the main Airport) is an alternative.

Price ranges: Property prices in Greece vary a good deal. Market price does not exist in rural areas and does not often follow the general real estate price guidelines.

Budgetary guide: Flats (studios) E’s 50,000+. Apartments: E’s 80,000-175,000. Village houses: E’s 59,000-85,000. Semi-detached houses: E’s 100,000 –175,000. Detached houses: E’s 120,000-325,000. Luxury houses/villas: E’s 450,000-1,000,000. Renovations: E’s 18,000-58,000.

Overseas Investors: Under Greek law both the vendor and the buyer must appoint a lawyer to complete a transfer of property ownership. A Notary Public processes the new title and deed of ownership. All buyers must also open a Greek bank account.

Service Fees: Overall 11-14% of the tax assessed price. Transfer tax 9%-11% (tax on off plan purchases is lower and is only based on the assessed value of the plot), Lawyer & Notary fees 3.5%. Plus Agents fees 2.5% (minimum 2,500 E’s) on the net purchase price.

Mortgages: Several leading Greek banks now offer mortgages to permanent non-Greek residents. Thought not as straightforward as other EU countries, investors can normally borrow up to 60% of the value of the property.


 Related site: http://www.interkriti.gr