Loans

One of the first questions, that many potential purchasers ask us , is the availability of loans to finance their acquisition. This is especially so when they are looking at an investment and how best to maximize their returns

We work with a number of local banks . Contracts can be supplied in English, if you wish. Interest rates are based on the Euro and are generally less than a loan in Sterling.

In order to qualify for a loan

• You need to have cash equivalent to 30% of the purchase price - although in many cases much less is required, depending on the type of property you are buying and your income level
• You must supply your tax return for the previous two years, or otherwise demonstrate that you have sufficient income to service the repayments - for instance a two year employment contract would also be sufficient
• If you are taking up permanent residence in Greece then loans over this percentage of purchase price may be available
• If you are looking to buy a business ( for instance a small hotel or restaurant) then a business plan will be required, which we can help you prepare. Depending on your experience and the type of project loans up to are available for this , although you will need to demonstrate you have the necessary working capital ( for equipment, stock etc.) to run the business

The process is relatively similar to elsewhere. The only major difference is that, in order to protect you, the documents need to be signed at the local courthouse.

Paying a deposit

When you pay us a deposit for the purchase of a property , we hold it on your behalf in a separate account. Be very wary of paying a deposit to a vendor direct, unless you have already checked titles and permissions very carefully .

Often the paying of a deposit is much more strict , with the signing of a formal pre-contract, where, if you decide not to go ahead without good reason, you lose your deposit. On the vendor's side it will often be stated that he will need to repay twice the value of the deposit , if he withdraws.

Paying for construction or refurbishment of a building

Be very careful when asked to prepay anything during the construction of a villa . It is normal to prepay 50% of the architect's fees .

We normally ask our clients to make a series of stage payments which can either be separately certified by the client's representative here, or we send regular photographs of progress and payments are based on the achievement of certain stages ( ie completion of concrete, plastering etc.)

Transferring funds

It is easy to gain or lose 3 - 5% of your money simply by the way in which you transfer it to us from overseas. The high street banks are generally the most expensive way to transfer funds, although you can often get them to give you a quote from their foreign exchange office

Better is to use one of the Foreign exchange companies. You will see a number advertised in the property magazines.We use Currencies Direct and can recommend their service.

The Pink Slip

You may hear this when talking to agents or friends in Greece. This was the old certification of transfer of foreign currency written on pink paper, and is absolutely necessary for your tax return. It acts as a certificate that you have legally imported the funds for your purchase. Today banks simply provide you with a certificate of transfer.

We advise clients to open a local bank account to which they transfer funds. In this way you ensure that all transfers are completely trackable.