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Acquisition & Occupation Of Real Estate: Basic Legal Framework, Property Rights, Procedural Issues Of Acquisition, Restrictions

in Real Estate, Special topics

The basic legal framework governing real rights in immovable property The right to property, as a fundamental right, is under the protection of the State, as provided in the Greek Constitution, Article 17, whereas it is stipulated that property rights cannot be exercised against the public interest. Within this context, the Constitution imposes a restriction or deprivation of property (expropriation) for the sake of public interest, always under the prerequisite of a prior compensation of the owner. Furthermore, the most significant source of property law lies in the third book of the Civil Code (articles 947-1345). Other provisions and property law rules exist...

25 Jan 2016

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Transfer of tax residence abroad

A natural person is a tax resident of Greece, as long as: a) it has its permanent or main residence or habitual residence or the center of its vital interests, which is to say its personal or economical or social links in Greece...

16 Nov 2015

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Greek CFCs rules

The New Income Tax Code (Law 4172/2013 hereinafter “ITC”) introduced in Greek Tax legislation provisions pertinent to Controlled Foreign Corporation Rules (“CFCs rules”). Controlled Foreign Corporation are legal persons or legal entities which are tax residents in different countries with such links between them, leading to effective control of one company (“Foreign Company”) over the other (“Controlled Company”). The CFC rules are features of an income tax system designed to limit artificial deferral of tax by using offshore low taxed entities. Pursuant to Article 66 ITC, taxable income shall include the non-distributed income of a legal person or legal entity (which...

04 Nov 2015

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Supporting documents for real estate purchase agreements (2015)

in Real Estate, Special topics

1. Real property acquisition title. 2. Copy of construction permit for the real property, validated by the relevant town planning authority, where the permit has been issued after 17 March 1983. 3. Engineer certificate under Law 4178/2013 “on addressing illegal construction”. Where the real property is located in land not zoned, the certificate should also be accompanied by a surveyor’s plan dependent on the Hellenic Geodetic Reference System 1987 (HGRS87), unless it falls under the exceptions provided for in Article 2 of Law 4178/2013 (for example, real property on a beach zone, forest land, historical site, etc.). 4. Surveyor’s plan for the real...

02 Nov 2015

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Tax treatment of the tax paid abroadfor the tax years before the 1st of January 2014

Pursuant to Article 109 par. 4 and 5 of the previously in force Income Tax Code (Law.2238/1994 - hereinafter "ITC"), the tax paid in advance, the withholding tax and the tax which “demonstrably” paid abroad regarding the income obtained abroad, are considered to be deductable from the total due income tax amount (including the additional tax) in Greece. In no case, the tax paid abroad can be higher than the tax amount which is attributable to such income in Greece. To prove the amount of tax paid abroad, a certification of the state's competent Tax Authority in accordance with Double...

09 Oct 2015

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Due diligence for the acquisition of a Greek company

in Company Law, Special topics

The due diligence checklist below is a general (non-restrictive) list of issues that ought to be explored as part of the due diligence process. Certain points may need to be added depending on the area of business activity. Issues relevant exclusively to financial auditing have been omitted. Financials – Tax Obligations • Cash restrictions. Is cash restricted from use in any way? For example, the local bank may have issued a performance bond on behalf of the company, and has restricted a corresponding amount of the company’s cash. • Audit of compliance with tax obligations for all types of tax up to...

31 Jul 2015

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Granting of residence permit to owners of property in Greece

in Immigration Law, Special topics

Pursuant to the applicable legislation, a five-year residence permit may be granted to third country nationals who own property with minimum value of €250,000. Such a permit may be renewed and these persons may be accompanied by members of their family. The same applies to third country nationals having entered into timeshare for ten years minimum under Law 1652/1986 or a ten-year lease of hotel accommodation or furnished tourist residences in tourist accommodation complexes referred to in Article 8(2) of Law 4002/2011, the lease charges for which amount to €250,000 minimum. Please note that third country nationals shall be any person who...

29 Jul 2015

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Procedure – supporting documents required for transferring a Greek trademark

in Commercial Law, Special topics

To transfer a Greek trademark, the following supporting documents should be submitted to the Department for Trademarks of the Ministry of Economy, Infrastructure, Maritime Affairs and Tourism: (1) Private (or notarial) agreement signed by the contracting parties. Where the contracting parties are legal persons, the agreement should be signed by their legal representatives or other persons duly authorised to this effect. The signatures in a private agreement should be authenticated by a Citizens’ Service Centre (KEP) or a public authority. (2) Where the contracting parties are legal persons, the following should also be submitted:(a) for sociétés anonyme and limited liability companies, the...

29 Jul 2015

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“Permanent establishment” of foreign undertakings in Greece