As Greece is a full member of the European Union every European citizen is free to purchase, to sell and to own land. You are also entitled to live and to work in Greece. View a step by step Kefalonia property buyers guide and contact us for any further information.
1. Before you can officially purchase any land there is a legal requirement to obtain an AFFIMI – this is a fiscal identification number and document issued by the Greek tax office. There is no cost to have this document issued and the Lawyer you appoint will do this on your behalf, but he will need a copy of your Passport to prove identification.
2. The lawyer you instruct to work on your behalf should of course speak fluent English! The next step will be to sign a power of attorney to allow your lawyer to act on your behalf whilst you are in the United Kingdom. This does not permit the lawyer to have to bank accounts etc merely to be your official representative in Greece and to negotiate on your behalf. To obtain a power of attorney you will need to visit a public notary with your lawyer, sign and have the formal agreement registered.
3. The role of your lawyer is similar to a solicitor in England, he will undertake the necessary legal checks to ensure that the land you are purchasing has planning permission, that the owner has the right to sell it, and that the land has the area and boundaries as described. It is also incumbent on your lawyer to instruct a surveyor to report that the land is free of any rights and free of any outstanding debts registered against it.
4. Only when all the legal due diligence has been completed, will the contracts be prepared and purchase of the land completed.
5. It is also necessary to instruct an accountant to act on your behalf. Greece and the United Kingdom have a reciprocal tax agreement. At this time Greece has no capital gains tax!
6. The Kefalonia local government has laid out rules as to the size of plots that will be granted planning permission. The basis behind the minimum sizing of these plots is as follows:
- If a plot is designated to be within the boundaries of the local town then it can be a minimum of 500 sqm.
- For plots that are not within the town boundaries but lay up to 500m away the minimum plot size grows to 2000 sqm.
- Plots that are further outside the town boundaries and also in rural villages the minimum size is now 4000 sqm. Basically what the government is doing is ensuring that the Island stays beautiful. They accept smaller plots within the town to enable dwellings to be built, but as you move further out of town, making the plots have a much larger size ensures that the plots are fewer and therefore stops housing estates springing up. Subdivision of any plot is rarely if ever permitted.
7. As soon as the official procedure of buying the land is completed , you can move to the following step which is the choice of investment that you are willing to do. A private residence for you or perhaps a rent-able property that it could give you back some annual income ? A rent-able residence or villa needs to satisfies general standards and needs but it is undoubtedly a cost-effective way to maintain well your house during the period that you will be not be able to be here.