Buying a property in Kythera
Looking for your dream property on Kythera? Kythera Properties is your dedicated partner, offering:
– In-depth Local Expertise: We possess a deep understanding of Kythira’s real estate market, ensuring you make informed decisions.
– Exclusive Access: Discover a wider range of properties, including hidden gems not publicly listed.
– Comprehensive Support: We guide you through legal, technical, and administrative processes, making your journey smooth and stress-free.
– Cultural Bridge: Our team bridges language and cultural barriers, ensuring clear communication and understanding.
– Peace of Mind: Rest assured, knowing your interests are our top priority throughout the entire process.
Tell us your vision, and we’ll leverage our knowledge and experience to curate a selection of properties that perfectly match your needs. We’ll also keep you informed about the latest listings as they become available.
Let Kythera Properties help you find your perfect Kythira property effortlessly and efficiently.
Steps in the process of buying a property
Understanding Your Budget and Financing Options
To help you find the perfect property, it’s essential to have a clear understanding of your budget. Keep in mind that purchasing an existing house typically incurs additional costs of approximately 10% and also take potential renovation costs into account.
If you require a mortgage, we recommend getting pre-approved early on. While it may be easier to secure financing in your home country, we can connect you with local mortgage advisors in Greece who can discuss financing options for up to 65% of the property value.
Choosing the right property
This depends on several factors:
Your Budget: As mentioned above.
Lifestyle: Consider how you’ll use the property. Will it be a vacation home, permanent residence, or investment?
Personal Taste: Do you prefer a traditional village home, a modern apartment with sea views, a renovation project, or maybe a building plot?
Location: Explore Kythira’s diverse regions and discover the areas that appeal most to you.
We recommend exploring the island before you start your property search. This will help you get a feel for the different areas and property types, making it easier to narrow down your options. Kythira offers a wide range of possibilities to suit various tastes and budgets.
Property viewings
Begin your search by browsing our online listings and selecting properties that catch your eye. We’ll then work with you to schedule viewings for those properties, and leverage our local knowledge to identify other unlisted options that might be a perfect fit.
While Kythira’s real estate market is dynamic, your dream home might not be available right now. But don’t worry, we’ll keep you updated on new listings as they come in, ensuring you’re the first to know when the perfect property appears.
Preliminary Contract
Once you’ve found your perfect property, you made an offer and it’s been accepted, it is common practice for parties to sign a preliminary contract, either as a notarial deed or private document, to establish a binding agreement until the final contract is executed. This document formalizes the buyer’s intention to purchase and the seller’s intention to sell. Your lawyer together with the notary will initiate the process of obtaining all necessary property documentation to prepare the pre-contract. This involves verifying clear title and ensuring no outstanding charges exist on the property, such as mortgages or unpaid taxes.
The preliminary contract includes essential details such as:
Parties: The names and information of the buyer(s) and seller(s).
Property Description: A clear description of the property being sold.
Price: The agreed-upon purchase price.
Deposit: The amount to be paid upfront by the buyer to secure the property.
Conditions: Any other conditions for the sale, such as inspections or financing contingencies.
Legal Status: The seller guarantees that the property has a clear title, meaning it’s free from any debts, restrictions, or legal problems. If this is not the case, the buyer can cancel the purchase and get their deposit back.
Timeline: Outlines the steps and deadlines leading up to the final sale.
Consequences: Outlines the specific remedies available to each party, potential for legal action, or compensation for damages, in the event that either party fails to fulfill their obligations.To prevent withdrawals after the preliminary contract is signed, it is customary to agree on penalties. If the buyer withdraws without a valid reason, they typically forfeit their deposit to the seller. Conversely, if the seller withdraws, they are usually required to return double the deposit amount to the buyer.
Greek tax number
Before finalizing the purchase contract, you’ll need to acquire a Tax Registration Number (AFM). Your lawyer or accountant can typically obtain this from the tax office within a few days. Along with your AFM, you’ll receive credentials for Taxisnet, the online tax service you’ll need in the future.
Greek bank account
Although not required, having a Greek bank account can be convenient for managing your property purchase and ongoing expenses. All Greek banks provide efficient online banking services in English for easy access and management.
Final contract
Prior to signing the final contract, a tax declaration is signed, establishing the Transfer Tax payable by the buyer to the Greek government. This tax amount must be settled before the final contract can be signed and the property transfer completed.
The notary public and the involved lawyers collaborate to prepare the final contract. This document will contain all the comprehensive details about the property being purchased.
On the day of the Final Contract, both parties, or their appointed lawyers, meet at the Notary Public’s office to sign the necessary paperwork. The buyer pays the remaining balance of the agreed-upon price, completing the transaction. The Notary then lodges the contracts at the Land Registry Offices, keeping a copy for their records and issuing certified copies to both the buyer and the seller.
Costs of buying a property
1. Transfer Tax: The buyer is responsible for a property transfer tax of 3.09% of either the purchase price or its taxable value, whichever is higher. This tax must be paid to the Greek Ministry of Finance before the purchase deed can be signed, as the notary requires proof of payment.
2. Notary Fees: The notary prepares the deed which is signed in the presence of the parties or their lawyers, if appointed. The minimum notaries’ fees are defined by the Greek Law. Notaries normally charge between 1 and 2% (plus 24% VAT) of the sales price, or the tax value of the property, whichever is higher.
3. Land Registry Fees: After the deed is signed, the notary submits an application and a summary of the deed to the land registry to officially complete the property transfer. The land registry fees for this registration are typically around 0.5% of the property’s sale price.
4. Lawyer’s fees: While not mandatory, it is strongly advised to engage a lawyer to review the property purchase and guide you through the process. Legal fees typically range from 1-2% of the purchase price (plus VAT), depending on the services provided.
5. Real Estate Agent’s fees:
The real estate agent commission is 2% (+ 24% VAT) on the purchase price.
Parties involved in real estate transactions
- Notary
In Greece, real estate purchases are finalized through a notarial deed, executed before a notary public who is typically chosen and paid for by the buyer. The contract is made only in Greek and must be verbally translated upon its conclusion. Also the preliminary contract can be executed before the notary public. For convenience and local expertise, we recommend using one of the two notaries available on Kythira for your property purchase.
Notaries normally charge between 1 and 2% (plus 24% VAT) of the sales price, or the tax value of the property, whichever is higher.
- Accountant
Whether you’re a resident or not, an accountant is a valuable asset when buying property in Greece. They can clarify tax rules, help you file returns, and ensure compliance. If you plan to rent your property, an accountant is essential as all rental income in Greece is taxable.
All property owners in Greece have to annually fill in an E9 form (Property Data Statement) in order to inform the tax authority about your property ownership. The ENFIA, the annual property tax is calculated on the properties you owned as of January 1st, regardless of any changes throughout the year.
If you rent out your property, you have to submit your rental agreement details online through the Taxisnet e-services. Your annual rental income, whether from long-term or short-term rentals, is subject to tax.
- Lawyer
While engaging a lawyer is not mandatory for real estate transactions, it’s strongly recommended for buyers. A lawyer can guide you through the entire process, verify ownership, ensure the property is free of legal issues, and collaborate with the notary to draft the preliminary and final contract.
You can authorize your lawyer to handle the entire property purchase process through a power of attorney. This document can be prepared and signed at a notary’s office or, if you live abroad, at the nearest Greek Consulate.
Lawyers’ fees typically range from 1% to 2% of the purchase price (plus 24% VAT), depending on the services provided.
We can refer you to trusted lawyers with a proven track record of success in real estate transactions.
- Engineer
Conducted by a civil engineer, technical due diligence can be crucial for properties that are undeveloped land or located outside urban planning zones. This process verifies that the land meets all legal requirements for construction. For existing buildings, it identifies any illegal constructions that need to be resolved in accordance with the law.