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Illegal constructions – amnesty laws

In Greece, construction of buildings in excess of structural requirements and constraints provided by law, is quite widespread and common. For instance, it is very common that a flat is built in excess of the building permission and, for example, it has an actual surface of 200 sq.m. although the building permission is for 150 sq.m. Also, it is very common that houses or other buildings are constructed with no permission at all. This ubnormality is so common, that on the one hand the State looses income related to property ownership and use and on the other hand, if the...

01 Feb 2012

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Procedure of property transfer

The procedure of a property acquisition usually has the following steps: 1.Finding of the property, with the possible contribution of an estate agent. The estate agent's fee is not specified by law, but is subject to an agreement. Usually a fee of a percentage of 2% of actual price paid for the property is agreed in writing, but this may vary, depending on property value and other factors. 2.Legal due diligence (title search) of the property. After finding the property of his choice and before signing any contract, the buyer should assign to a lawyer the complete legal due diligence of the property. It...

01 Feb 2012

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Recordation of ownership rights

The recordation, i.e. the inclusion in public records, kept by public officials, of acts of any change of the real property ownership rights, ensures the compliance with the publicity of the property relations, as well as the protection of transactions. According to article 1192 of Civil Code, the acts that must be recorded are the following: 1) the inter vivos transactions, including donations causa mortis, by which a real right on a property is established, transferred or abolished, 2) the adjudications or the annexations by the authorities or the award of ownership or other real rights on the property, 3) the...

01 Feb 2012

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City-planning & environmental limitations

The Constitution of Greece in Article 24 provides for special preventive or repressive measures, in order to preserve the natural and cultural environment. In particular, special reference is made to the protection of forests, the master planning of the country, the arrangement, the development, the urbanization and the expansion of towns and residential areas, as well as at the protection of traditional sites and monuments. Within the above mentioned protection, transfer of ownership and granting of limited real rights in real estate property may be prohibited, limited or subject to a special permit of the Authorities, under special laws. Such restrictions and prohibitions...

01 Feb 2012

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Ways of acquiring ownership of property in Greece

The following ways of acquiring property are the most common under Greek Law: 1) acquisition by contract, i.e. a written agreement between the owner and the buyer on the transfer of ownership from a legitimate source, that must be made before a notary and be recorded (or registered). 2) acquisition by virtue of succession, whether testate or intestate, 3)acquisition by gift or by parental grant, 4) acquisition of property by auction, i.e. by act of compulsory enforcement, brought against the debtor's property, where the ownership of property is finally acquired by the highest-bidder. 5) acquisition by the person who, in good faith, is in possession...

18 Jan 2012

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Company limited by shares (S.A. or “A.E.”) – formation procedure

in Company Law, Special topics

Basic characteristics A company limited by shares (SA or A.E.) is a company with share capital and legal personality, liable for its debts only with the company assets. According to article 1 of Greek Law 2190/1920, a company limited by shares (SA) is a trade company, even if it is not a commercial enterprise i.e. its business scope is not related to trade. S.A. designates a particular type of corporation in various countries, mostly those employing the civil law. The concept is roughly equivalent to that of the public limited company in the UK. It can be differentiated from partnerships and...

09 Jan 2012

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Special tax on real estate property (15%)

in Tax Law, Special topics

In order to combat tax evasion through the use of offshore entities the Greek legislator, by virtue of law 3091/2002 introduced an annual tax on the value of real estate, initially @3% and recently, by virtue of law 3943/2011 @15%. The tax is imposed on the value of real estate situated in Greece and which are held by the taxpayer on the 1st of January of each year. The law provides for such a wide range of exceptions, that the payment of tax may be seen as the exception rather than the rule. The exceptions may be classified as i) “objective” exemptions...

05 Dec 2011

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Tax on inheritance-gifts inter vivos

in Tax Law, Special topics

According to article 1 of Law 2961/2001 (The Code on taxation of inheritance, gifts inter vivos and lottery gains), tax is imposed to any asset acquired by inheritance, gift inter vivos and winnings in lotteries, whether acquired by an individual or a corporate entity. 1) Inheritance tax In article 3 of the Code, the legislator provides for a list of assets that are subject to inheritance tax. These are: 1) property of any kind situated in Greece which belongs to Greek citizens or foreigners. 2) moveable property situated abroad which belongs to a Greek resident or (under conditions) to a foreigner residing in Greece. Liable...

06 Jun 2010

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How can an employer pay the salary to an employee who is on a sick leave and receives sickness allowance ?