It is clear that in order for a real estate to be purchased, this happens to be a procedure that could be completed via electronic means, in other words via POS, or via a crossed/ two-lines cheque, or even via money transfer by using either a debit or a credit card.
In particular, the agreed price to be paid shall be completed:
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via a crossed/ two-lines cheque issued in the name of the beneficiary’s account by a banking institution operating in Greece; or
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via money transfer, according to Article 4 of law 4537/2018 (A ’84); or
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via an installed POS, by making use of the investor’s debit or credit card, in the account of the service provider, according to Article 4 of law 4537/2018 (A ’84)
All the aforementioned payments could be concluded either by the wife/ the spouse of the investor or by a relative by blood or, else, by relative by affinity
Further down you shall have a look at the expenses born by Assignors in order to have a Golden Visa issued, having a footnote clarifying that all relevant expenses shall be distinguished in five (5) different categories:
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Expenses fixed and compulsory to be paid to Authorities of the Hellenic [Greek] Republic, let alone third parties , which shall be paid directly, without any fluctuation regarding payment ability as such
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Expenses optional depending on the choices of the investor and proportional to the investment to be concluded
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Expenses related to the legal status of ownership deeds (contracts) of the real estate that is to be sold, as well as expenses regarding the legal representation by a lawyer, as this is compulsory by law in terms of purchase of such property [real estate]
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Fee expenses of our Law Firm and of our Associates to the end of obtaining a Golden Visa
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Follow-up expenses after the issuance of a Golden Visa, which are to be paid from time to time, however these are also to be considered permanent in essence
Furthermore there are two more kinds of expenses to be dealt with:
A. Expenses to be paid to the Greek State and third parties at the time of the signature of the sales contract, at the same time that the Application regarding the issuance of the Visa is to be submitted
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In case of the purchase of a real estate, the tax to be paid to the Greek State sums up to 3, 09% on the amount noted on the deed itself as the price of sales agreement
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The notary’s fee is to be established at 0,8% (plus a VAT burden of 24% on top of that) on the price noted on the deed itself as the price of sales agreement
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The land registry’s fee regarding the notification transfer of the deed is to be established at 4,75% (a VAT of 24% to be included on the emerging amount) on the price noted on the deed itself as the price of sales agreement
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Issuance fee regarding certificates from the land registry, estimated at about 60, 00€
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Submission application fee regarding residence permit: 2000, 00€ per applicant (adult)
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Medical insurance of the purchaser in Greece by a private insurance company, in case he/ she does not happen to have one from abroad (ranging from 100, 00€ to 200, 00€ minimum per person, depending on the type of insurance, the width of the insurance coverage as such, the age of the investor etc.)
B. Optional expenses linked to the choices of the investor and the way his/her investment is to be realized, expenses of that kind to be made at the time of the provision of the related thereto services
Regarding the research-for-real estate by a real estate agent, his/ her fee VAT inclusive (24%) rises up to 2% on the price of the property. This fee should by no means be related to our Firm or any other relevant fee towards us, while it should be related exclusively to the real estate agent who had been responsible for locating the real estate from the very beginning.
Please take into consideration that we do maintain partnership with many real estate agents in Greece, needless to say though it is very likely that some properties may be introduced to our Firm by some other agent with whom we had never done business before in the past.
Please take into consideration the following:
It has been noticed that in Greece real estate properties happen to be sold in unbelievable prices due to the existence of the Golden Visa Program, and in effect properties happen to be sold at about 250.000, 00€, while their actual price is actually much smaller, and this differentiation in price is attributed to the involvement of too many middlemen, be it professionals or not
Our Firm follows a strict protocol of legal standards, which in essence leads to a formation of prices not at all affected by such factors. Subsequently, this is why our fees remain unchangeable, without any further burden placed on top of them and in relation to the price of the property.
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Formation of a Company in Greece
If the purchaser wishes so, he/ she is also able to proceed with the purchase of a real estate property via a company/ legal entity which shall be established in Greece, keeping always in mind that he/ she might as well proceed to such an option as a natural person and solely in his/ her name. It is to be noted, that given the type of the company, the formation cost is to be estimated at about 800, 00€ to 2.000, 00€ (a VAT of 24% to be further included on top of that).
Definitely to be noted the fact the establishment of a company is not compulsory, even more so if the property as such is not to be used for business purposes. When a company is established, its owner bears also the cost of social insurance which is to be estimated at approximately 180, 00 – 200, 00€ per month.
Attention: the residence permit does not allow the investor as such to be employed or involved in any financial activity in Greece. However, any member of a Board of Directors or an acting Managing Director is allowed to get financially involved. Thus, any investor who wishes to be employed or establish a business in Greece in order to get a residence permit must be predispositioned to purchase a real estate property via this business which is to be established by him/ her either as [sole] shareholder or as Managing Partner.
C. Our Firm’s fee so as to conduct a legal research of the real estate property/ ownership deeds, and in order for a representing lawyer to appear before a notary (who is also to receive a different fee in the context of his/ her own provision of services)
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Conducting a research in the competent land registry in order to confirm the ownership deeds and verify their validity: fee which sums up to 0,5%, by adding a VAT of 24% on top of that as related to the price of the property.
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A lawyer’s fee in relation to his/ her presence before a notary so as for the proper signing of the contract to take place: a fee which rises up to 1% by adding a VAT of 24% on top of that as related to the price noted on the ownership deed.
D. Fee of our Law Firm in order to have the Golden Visa issued
Our Law Firm provides the following services:
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Issuance of a travel visa in order to visit Greece, something which presupposes and relates to the necessary and relevant preparation and research in order to have it [the Visa] issued
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Consideration regarding assistance by natural presence and even by our associates commuting on site accordingly, furthermore by providing services of interpreter/ translator [if needed]
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Issuance of Tax Number
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Opening a bank account in Greece
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Submission of applications regarding issuance of residence permits and follow-up of such procedures
Are you further interested in getting an idea of amounts of money possibly needed in order to have an investment forwarded and the issuance of a Golden Visa in Greece under way? Please contact us at: cashier@oikonomakislaw.com
E. POSSIBLE EXPENSES FOLLOWING THE ISSUANCE OF A GOLDEN VISA
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Accounting overview of the company which is to purchase the property, or arrangement of every accounting and tax issue on behalf of the owner/ natural person, for as long as he/ she owns it
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Arrangement of any issue where the Greek State is involved and any other related thereto Services:
depending on the investment as such and whether it has been made by a natural person or a legal entity and depending on the type of that entity, the expenses shall be rising up from 100, 00€ to 400, 00€ depending on the specifics of the entity, by also adding a VAT percentage of 24% per month. The aforementioned amounts of money shall be invoiced by the Accounting Firm responsible for the handling of these properties which might [or might not] be an associate of our Law Firm.
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Tax Relating to Real Estate Property (in Greek, called “ENFIA”), which derives as a percentage of 1/1.000 on the property’s value as such, on an annual basis
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Lease to be received by third parties, in case the property as such has been purchased by a natural person and has been further leased, which is to be taxed regardless of the size of the property, according to the scale below:
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Annual income due to property lease of 0 – 12.000, 00€ , tax on a scale of 15%
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Annual income due to property lease of 12.001, 00€ – 35.000, 00€, tax on a scale of 35%
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Annual income due to property lease of 35.001, 00€ onwards, tax on a scale of 45%
