Real Estate

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The factors that will determine the Greek real estate market

In the Greek real estate market, rents continue their upward trend, inflation in construction materials is running faster than the average index, construction activity is shrinking due to pending issues in the New Building Regulation, and sales prices are reaching new historic highs. Critical parameters include the government's efforts to stimulate the supply of real estate, the course of interest rates, and the prospect of utilizing more European funds to cover housing needs. Investors are cautious at this stage, as sales prices and construction costs are at their highest level ever, increasing the risk. Below are presented the main parameters, according...

08 Dec 2023

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Property transfer Expenses

The transfer of real estate property involves a series of steps and procedures, which require the assistance of certain persons. The notary plays a primary role, as they coordinate and execute the process in substance, while the engineer conducts the necessary technical inspection and proceeds to the issuance of the required documents. Although not mandatory, the role of the lawyer is considered particularly important, in the case of a real estate purchase, as they assure the buyer of the legal status of the property. The final stage of each transfer is the registration at the competent local cadastral office, something...

06 Jul 2023

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Legal restrictions on the purchase of real estate due to its designation as forest land

Forests and forest areas in Greece are protected and defined by the provisions of the Constitution and by the current Forest Law, including but not limited to: a) Law 998/79, as amended and in force today, according to the provisions that this law replaced the Decree Law 86/1969 (Forest Code), b) Law 3208 /2003, c) Law 3818/2010, d) Law 3889/2010, e) Law 4280/2014, f) Law 4315/2014, g) Law 4351/2015, h) Law 4389/2016, i) Law 4409/2016 [amendment of No. 45], j) Law 4462/2017, k) Law 4467/2017, l) Law 4483/2017 (Article 142), m) Law 4546/2018 (Article 44) and n) Presidential Decree 32/2016....

30 May 2023

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The duration and termination of a lease contract

Renting a house may be the most common way of satisfying one’s residence needs, however there are some details lurking in the contract or in the law that both the lessor and the lessee should watch out to avoid any unpleasant disputes. For this reason, some basic principles are set out below, specified on the termination of the lease. The most likely scenario is that the tenants use the leased premises as their main residence. In this case, the provisions of Greek Law 1703/1987 are applied, in conjunction with the articles of the Greek Civil Code. More specifically, the parties are...

10 Feb 2023

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Real estate company ownership in Greece : individual ownership VS company – a comparative table

Legal entity Advantages Disadvantages 1. Income from property is taxed as profit from business activity at the flat tax rate of 22%. Apart from the flat tax rate for the income from property, the further distribution of dividends by the company to the shareholders is taxed as well at the tax rate of 5%. However, in case there are also other sources of income except from the property income, there may be a flexibility in arranging when to receive the dividends and pay the dividend tax. 2. Α legal entity which acquires real estate income in Greece has the right to deduct the total of its business...

12 Jan 2023

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Special tax on real estate the treatment of the existence of a trust in the structure

Greek Special Real Estate Tax (SRET): the implications of a trust in the structure Conceptual elements of the institution of foreign trust - Imposition of Special Real Estate Tax A trust - an institution originating in Anglo-Saxon law - is a special regime for the administration and liquidation of property, which lacks legal personality and is created either by declaration of the owner of the property or by transfer of the property, either during life or by will. The settlor (settlor or trustor) enters into a settlement agreement with the trustee and transfers assets to the trustee, which the trustee manages for...

21 Nov 2022

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Requirements for the exercise of the profession of Real Estate Agent (Greek Law 4072/2012 – Article 198)

In order to exercise the profession of real estate agent, the following conditions must be met by the person concerned or, in the case of a legal entity, by at least one of the persons representing it, and more specifically: a) He/She must be a Greek citizen or a citizen of a Member State of the European Union or a Member State of the European Economic Area (EEA). The citizen of a third country is required to have a residence and work permit in Greece, or a residence permit for independent economic activity. b) He/She must not have been convicted of a...

04 Mar 2022

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Municipal Real Estate Tax

What is the Municipal Real Estate Tax ? The Municipal Real Estate Tax (in Greek “Telos Akinitis Periousias” or TAP) is a municipal obligation, a fixed small amount which is paid to the municipality that the real estate is located. Every real estate owner owes this amount to the Local Authority to which his/her real estate is located. However, in practice these fees are collected by the municipalities through the electricity bills, together with the Municipal Fees and the remaining Municipal Taxes. Real estate ownership is further subject to (national) real estate tax. How is the Municipal Real Estate Tax...

05 May 2019

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The procedure of correction of the Initial registrations before the Cadastre Office