Full Support Real Estate Services in Mykonos
Florios Real Estate will handle effectively with best results, everything regarding all necessary bureaucratic processes, even any technical needs that may occur during the project. We cooperate closely with trusted lawyers, notaries and consultants with a long experience in the real estate market, in order to provide you with an excellent support and avoid any delays due to bureaucracy. Additionally, teams of professionals are ready to offer you their skillful assistance on any technical or other related issues that may arise. No matter what you may need for your property –building, renovating or maintaining– we can provide you an excellent and professional full support with high skilled:
– Manufacturing Companies
– Specialized Tech Crews
Florios Mykonos Expert in Mykonos Island, Greece is a top choice for achieving your desired results and targets, with a fully committed personalized service, professionalism efficiency and consistency with providing only the best possible results to investors who choose Florios Mykonos Expert in Mykonos for their investment, rental, or legal & technical services for properties in Mykonos.
Α. The purchaser shall bear the following costs concerning the purchase and transfer of real estate:
- Tax on the transfer of the ownership of a real estate property (Law 1587/1950, art. 35 of Law 3220/2004)
- The purchaser of a property in Greece must, before drawing up the contract, pay the property transfer tax calculated at 3% of the property’s value. This tax is paid to the Public Tax Authority. This tax shall be calculated on the amount of the legal value provided that the purchase price, as referred to the contract, is lower that the legal value. Otherwise, in case that the legal value is lower than the purchase price as referred to the contract, the above tax shall be calculated on the amount of the higher purchase price.
- Additionally, the purchaser is liable to a municipal tax which currently amounts to 3% on the amount of the above tax on the transfer of the ownership which will finally result.
- In case that the purchase and transfer of the real estate property concerns a property which has been built from 2006 onwards and the seller is also a contractor, the above tax on the transfer of the ownership shall be calculated with V.A.T. 24% on the ex post construction cost which corresponds to the property to be transferred.
- Notarial fees
For the preparation of acts, the object of which is valued in money, the notary collects on the basis of the Common Ministerial Order 111376/2012:
a) a fixed fee
of twenty (20) euros and based on the total value declared in the contract or the highest value determined by the competent authority, temporarily or definitively, the notary also receives a proportional fee, the percentage of which, depending on the amount of the value of the subject of the transaction, ranges from 80% to 0.10%.
b) Five (5,00) euros for each additional sheet of notarial acts. The above scale is the basis for calculating the proportional fee for these acts.
c) Four (4,00) euros for each sheet of copies of the above-mentioned notarial acts, if these copies are issued immediately upon the drawing up of the act.
The purchaser shall be liable to cover the notarial costs as calculated and necessarily indicated by the notary at the end of the deed. It should be noted that in this way the tax authorities can prove to the competent tax authorities the fees paid to the notary.
The above costs shall be calculated plus VAT 24%.
- Registration fees charged by the competent Land Registry & the Cadastral Office (if any)
The fees concerning the registration of the title/contract of the transfer of the real estate property in the Land Registry of Mykonos amount to 4.75 per thousand unless the property is located in a cadastral region. In this case, the above registration fees amount to 5.75 per thousand.
The land registrar issues a receipt for the provision of services, in which he charges VAT 24%. The registration of the property to the Land Registry is particularly important since, according to article 1033 of the Greek Civil Code, the purchase and sale of the property is only completed after the registration of the property at the Land Registry.
- Lawyer’s remuneration for legal representation concerning the contract
- The minimum fee of the lawyer for legal representation in connection with the drafting of the contract is proportional and set by the Code of Lawyers based on the amount of the contract.
Indicatively: If the amount of the transaction is up to 44.000,00€, the lawyer’s remuneration amounts to 1%.
If the amount of the transaction is 44.000,01€ up to 1.400.000,00€, the lawyer’s remuneration amounts to 0,5%
If the amount of the transaction is 1.400.000,01€ up to 3.000.000,00€, the lawyer’s remuneration amounts to 0,4% and so on.
It shall be clarified that the above proportionate lawyer’s remuneration for the legal representation concerning the contract constitutes the minimum remuneration as provided for in Law. Therefore, a higher lawyer’s remuneration is allowed to be agreed between the parties. Besides, the above attorney’s remuneration shall be calculated plus V.A.T. 24%.
- With regard to the inspection of the property in order to purchase it for any encumbrances such as seizures, mortgages, liens, claims from third parties or the State, etc., the Law also provides for a lawyer’s fee. This fee relates to the checking of the titles of the property to be transferred at the competent Land Registry and the Land Registry Office (if exists). The amount of the above fee is freely determined between the parties.
- The purchaser’s «asset declaration»- Assets
According to the Greek Income Tax Code (Law 4172/2013 as amended by Law 4305/2014) the purchaser should be able to «justify» the money in terms of the tax legislation and on the basis of his/her income for the entire cost of the transaction, as it results from the contract of the transfer of the real estate property. More specifically, the purchaser should be able to «justify» on the basis of his/her income a) the purchase consideration b) the tax on the transfer of the ownership c) the notarial fees d) the lawyer’s fees, if there is a lawyer’s representation during the drafting of contract e) the real estate agent’s fees f) the registration fees charged by the appropriate Land Register & the Cadastral Office (if exists)
- The single immovable property tax (Law 4223/2013)
- In Greece, Law 4223/2012 is in force, according to which a Single Real Estate Ownership Tax (EN.F.I.A.) is imposed per year on the rights in rem of full ownership, bare ownership, the possession in usufruct, tenancy and surface of every property located in Greece and owned by a natural or legal person.
- The above real estate tax – E.N.F.I.A. is also imposed on rights in rem or rights associated with a personal obligation of exclusive use of parking spaces, ancillary spaces and swimming pools located in a common area of the property and are a corollary of the above rights in rem.
- Tax on the goodwill at a rate of 15% for the seller
- According to Article 1 of Law 41 and 43 of the Income Tax Code, it is provided that the seller is liable to a tax on the profit (goodwill) at a rate of 15% which results between the initial purchase price and the selling price of the real estate property, if the property came into the ownership of the seller from 1995 onwards. It is important to clarify that the application of the above provision has been suspended until 31.12.2016.
- The main tax on the relevant rights on buildings is calculated on the basis of the geographical location, the surface area, the type of use, the age, the floor, the number of facades of the building according to different rates provided for by law.
- In addition to the above main tax, another additional tax is imposed only if the seller is a legal person and if the total value of the above rights exceeds a certain amount.
Therefore, it is impossible for us to calculate in advance the amount of the above tax without having the necessary knowledge of the above essential elements.
- Tax on luxurious living (Law 4111/2013)
According to the article 44 of the Law 4111/2013, a tax on luxurious living is levied on the owners or possessors of swimming pools (internal or external) which is to be equal to the product of the annual legal expenditure multiplied by a rate 13%.
- Privileges for foreign purchasers – Granting of a 5-year residence permit to third country nationals (non – European members) who purchase or lease a real estate property in Greece.
- According to the article 20 of the Law 4251/2014, a 5-year residence permit with the right of renewing for an equal duration shall be granted to third country nationals (non – European members) who have purchased or leased a real estate property in Greece.
- The residence permit is granted by the Coordinator of the Decentralized Administration if a) He/she has legally entered the country or legally resides in the country, and b) He/she owns and possesses, in full ownership and possession, immovable property in Greece.
- The minimum value of the property should be 250.000,00 €. The value is proved by the price referred to the contract (or in the leasing contracts, as follows).
- The above minimum amount may refer to one single property or to more than one whose total value exceeds 250.000,00 €.
- In case of a joint ownership, the residence permit is granted only if the joint owners of the property are spouses. Otherwise, the right of residence is granted only if the percentage of the joint ownership of each owner is worth 250.000€.
- In case that the real estate property belongs to a legal person, the residence permit shall be granted only if the shares or the shareholdings of the legal person are wholly owned by the person who will apply for the issue of the residence permit.
- The of 250.000,00€ refers not only to the purchase of the property but also to other different alternatives via which a residence permit shall also be granted, namely, it refers to the right to use immovable properties on a timeshare basis for at least 10 years or to the leasing of hotel or tourist accommodation establishments for at least 10 years.
- The above third-country national may be accompanied by his/her family members, who are also granted an individual residence permit, upon their request. Their individual residence permit shall expire at the same time as the residence permit of the sponsor. The following may be considered as family members: (a) the other of the spouses or partners with whom the third-country national has concluded a cohabitation agreement in Greece (b) the unmarried joint children of the spouses or partners under the age of 21 (c) the unmarried children of the sponsor or of the other of the spouses or partners, where custody has been legally awarded to the children of the breadwinner for the children of the other spouse or partner under 21 years of age and to the children of the other spouse or partner under 21 years of age; d) the direct ascendants of the spouses or partners
- Additionally, the holder of a residence permit in Greece shall also enjoy the following privileges:
- He/She may live continuously in Greece for the period during which the residence permit is in force.
- He/She may travel to other countries of the zone Schengen for a maximum period of three months during a six – month period.
- He/She has access to healthcare and education services.
Finally, it shall be clarified that the holder of a residence permit does not have any right to work in Greece. However, he/she can be a shareholder, member of the board of directors or managing director of a company.