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Question: Is it possible to recover debts owed in a foreign country?

Answer:The answer is yes, since lawmakers have provided for international debt collection, a series of international laws and regulations. Globalization and the resulting large number of cross-border transactions, brings with it problems if the debtor, based abroad, refuses to pay.For this reason, those who are  making purchases and sales with referrers allocated in foreign countries, take care to protect themselves already at the contracting stage by clearly indicating the court with jurisdiction in case of insolvency or dispute, the law applicable to the contractual relationship and any arbitration clauses.

Question: Do you have information about Real estate purchase in Greece?

Answer: In case that one party of a property transaction is not a Greek citizen, the following actions should be performed:

  • Drawing of a Power of Attorney. It is done by a Greek notary in the presence of an accredited translator (compulsory). This Power of Attorney authorizes the lawyer whose name is stated in this document to act on the foreigner’s behalf. It also contains the powers granted to the lawyer for the purposes of the Principal Property Purchase Agreement drawing and execution. Thus, the buyer doesn’t have to deal with long and complicated legal formalities and procedures.
  • The authorized lawyer, acting in the name and on behalf of his principal (buyer), registers him as a tax payer in Greece and opens a bank account in a state bank (in the buyer’s name).
  • The authorized lawyer thoroughly checks the state Property registry for the property history and for other details (such as existing or previous mortgages, encumbrances or other charges, existing and previous contracts and agreements concerning the property etc). After he finishes the property checkup, he draws a report, signs and certifies it and delivers it to the prospective buyer.
  • The authorized lawyer draws a Title Transition Tax statement and submits it to the local tax body. The tax rate amounts to 3,09% if the property Construction permission was issued prior to 01.01.2006, and to 24%, if it was issued after this date. Payment of tax 24% is suspended until 31/12/2024 (article 6, VAT Code, L.2859/2000)
  • Both parties (Buyer and Seller) sign the Principal Property Purchase agreement in the presence of a notary and an accredited translator. After the agreement is signed, the lawyer registers it in the State Property Registry which is the final, integral and compulsory stage of the property purchase transaction.
  • After the Principal agreement is signed, the Buyer receives the full package of documents mentioned above which are duly notarized and translated into their native language, along with the Construction Permission, Power Consumption Certificate, Property layout plan and its topographical plan.

Property Purchase Contract: fees and additional expenses in Greece

Property sale tax

Starting from 1 January 2014, the property sale tax equals 3%. When purchasing a new real estate object from a legal entity, the building permit for which was obtained after 2006, the real estate is not subject to property transfer tax, but VAT at the rate of 24%.

Notary costs

The notary fees usually amount to approximately 2% of the sum specified in the purchase and sale agreement.

Registration fee

It is 0.5% + VAT (24%) of the sum indicated in the purchase and sale agreement.

Lawyer costs

The lawyer costs usually equal 1-1.5% of the real estate object’s actual cost.

Real estate company services

2% of real value + VAT (24%)