There are a number of steps and statutory checks that have to be carried out before a property purchase can be successfully completed. Your lawyer should be conversant with these, and only advise you to go ahead when they are satisfied with the checks. A further safeguard exists in the form of the Notary Public, who will not proceed unless they too are satisfied that all is satisfactory.

Pay deposit
Under Greek law, it is normal to pay a deposit of 10% to secure the property. You should ensure you obtain a receipt and written confirmation that your deposit is refundable if problems are discovered with the property or the vendor's family, and that the property has been taken off the market pending completion. The deposit is not refundable if you simply change your mind!

Appoint lawyer
Once a client has decided to purchase a property, we recommend that they employ a local Greek lawyer to act on their behalf. They are able to make the necessary searches to confirm clear title to the property, and have good knowledge of local laws and planning rules. Being on the spot, they also tend to be less expensive and faster than lawyers in the client's country.

Power of Attorney
While you are in Crete, it is a simple and cheap procedure to grant Power of Attorney (PoA) to a Greek lawyer, who can then complete the buying process on your behalf. Once you have returned to your home country, it is possible to grant this in the local Greek Consulate, however it is time-consuming, slow and expensive.

Granting PoA also means that there is no need to return to Crete to sign the various papers - so clients don't incur the costs of return flights and accommodation, loss of holiday entitlement, etc. It also means that the tight deadlines imposed by having to catch a return flight are removed, so if there are any last-minute delays it really doesn't matter.

PoA can be granted for all the steps in the property purchase. If you believe it will be difficult or too costly to return at various stages during the purchase, we suggest you consider using this method. The standard PoA allows the lawyer to:

Open bank account
Realistically, you will need a Greek bank account to buy a house: for receiving the completion funds from your home country; to obtain proof you have legally imported the funds; and for paying locally at completion of purchase. It will also prove useful for day-to-day expenses later.

Obtain tax code
Under Greek law, you need to have a Greek tax code (AFM) to purchase a house, because it is entered into the purchase contract and is later used for your Greek tax purposes. This process is fairly tortuous - you need to provide:

You will then need to have the birth certificate translated into Greek, complete tax application forms, and apply in person with your passport to the local tax office. You will receive a document showing your details and the tax code, which you should note and store in a safe place.

Legal and professional fees
Translations and lawyer or accountant - usually about €120.

Our services
Obtaining a Greek tax code is a bureaucratic process, but necessary for purchasing a house. We can assist you with this process in one of two ways:

Obtain topographic plan
Under Greek law, a topographic plan ("topo") of the property is required, which shows the exact location, boundaries and measurements of the land, together with details of any buildings, community limits and permitted building rights.

Greek law also states that the topo should be provided and paid for by the vendor. However, because of the expense of the survey on larger plots, this is sometimes not carried out until a potential buyer is found or when the legal checks have completed, and in practice it is common for the buyer to pay for this. We also strongly recommend that the buyer commissions a separate complete/check survey, even if the vendor has an existing topo (which may be out of date, or incorrect, or falsified).

Your lawyer must check that the measurements in the topo agree with the previous title documents, and are cross-referenced in the new purchase contract. The Notary Public will also check this at time of purchase.

Check title/debts
The vendor must be able to prove they have "clean" title in order to sell the property. This means that anyone with an interest in the property under Greek inheritance laws, must also agree to sell. A typical situation is where a rich brother says "No", when the other brothers and sisters have agreed - in which case the property cannot be sold until negotiations change the situation.

The vendor may or may not have a formal title deed. Often with older properties, it is legally deemed that the vendor has title after using the property for a number of years. The vendor will need to provide documents to confirm this.

The property, vendor and the purchaser must be free of any tax debts, such as tax arrears due to previous under-declaration of property size. The vendor and the purchaser must be registered for Greek taxes before the purchase can proceed.

Tax value
Most of the taxes and legal fees are based on the "objective value" of the property. This is the tax authorities' assessment of the value of the property.

However, it is a long-standing tradition in Greece, to reduce the declared value of properties to minimise fees and taxes. The objective value is usually significantly less than the purchase price, and is finalised by negotiations between the tax authorities and the purchaser, or their lawyer or Notary Public.

Pay taxes
The Notary Public will calculate the VAT or transfer taxes required, based on the objective value of the property. These, together with any tax arrears due on the property, must be paid at the appropriate tax office before the purchase contract is signed. A tax receipt will be issued, which must be presented to the Notary public and is filed with the purchase contract.

Sign contract
Assuming that your lawyer is satisfied with all the checks, the draft purchase contract can be prepared.

The Notary Public will require "clean" title and the topographic plan before calculating the transfer taxes and drafting the purchase contract. From this stage up until final signing of the purchase contract, they may request further information at any time until they are satisfied all is in order.

The day of purchase is likely to prove a lively affair, with the following people present at the Notary public's office:

The Notary Public together with the lawyers, will read out the purchase contract, line by line, and cross-check various documents, including the title and topographical plan. The Notary Public may ask questions of the various people present, and may make telephone calls to check certain items.

Minor corrections to the draft contract are often made during this process, however if a major problem arises, the Notary Public will call a halt to the proceedings and ask for additional documents or signatures to be provided before re-convening on another day.

When the Notary public is satisfied that all is in order, the final purchase contract will be prepared, all necessary signatures made, and the relevant payments exchanged. At that point, the property is effectively yours.

You have cause to celebrate - you now own your perfect home in Crete!

Land Registry
Following signing of the purchase contract, the Notary public must make copies of the contract for the Land Registry which will now contain the title documents, topographic plan and tax receipts. In practice, this usually takes about a week after completion of the purchase contract.

Purchase costs
As a rule of thumb, we advise clients to allow around 15% of the actual purchase price for all purchase taxes and fees. The minimum cost is usually around €6,000.