INVESTMENT IN GREECE THE NEW ERA Presented By George Gaganas Advocate & Legal Consultant

GREECE IS EXITING THE CRISIS “The signs of stabilization of the Greek economy are now apparent, while the prospects for the Greek economy is very positive for the coming year” according to the Center of Planning and Economic Research “Greece is the word for investors with eyes on making money from Europe” Barry Norris, manager of the Argonaut Absolute Return

OPPORTUNITIES ARISING FROM THE CRISIS Great opportunities in the real estate market and tourism sector. During the last five years prices of real estate have fallen significantly. Transfer tax has fallen from 8-10% to 3% Benefits for non EU nationals when buying property in Greece – 5 year residence permit Tourist’s turnout is high and constantly increasing

WHY BYING PROPERTY IN GREECE Greece is and will always be a very attractive destination.

WHY BYING PROPERTY IN GREECE Considering the low prices of the real estate market at the moment, it is easier than ever before to enjoy the gifts that this country has to offer. Greece offers a variety of houses, hotels, resorts and all kinds of real estate property, able to satisfy all kinds tastes and pursuits

From a house in the Greek Islands

or an urban house in Athens

..to a hotel for profit making

Hotels and Resorts Investing in a hotel business in Greece is the certain way to make profit.s Tourism always has and will always be the cornerstone of the Greek Economy. According to the government’s estimations, approximately tourist are visiting Greece this year. With the fall of real estate prices more and more investors are buying hotels in Greece. Fallen prices in combination with the continuous and increasing turnout of tourists make the purchase of a hotel one of the most profitable investments.

PROCEDURE OF BUYING REAL ESTATE IN GREECE

FIRST STEPS Find a reliable real estate agent A reliable real estate agent will help you find a property which corresponds to your needs. Obtain legal help Legal assistance is necessary from the beginning of the procedure, in order to avoid any possible complications and have a clear view of all legal aspects related to the purchase or sale of the property

DUE DILIGENCE Once the desirable real estate is found, the buyer’s lawyer must perform a due diligence investigation on the ownership title of the property and its current legal status. Chain Of Transfers True OwnerLegal Burdens Real Burdens Civil Engineer Examination (for plots)

Conclusion of the sale-purchase agreement The contract of sale is drawn up by a notary public and signed before him. After the signing, the contract has to be registered to the local land registry The notary public is responsible for drafting of the contract and verifying that all the requirements of the law for the transaction are met. The notary public is chosen by the buyer. The buyer pays the notary public’s fees. Both the buyer and the seller are obliged to have a Tax Registry Number in Greece, issued by the competent Tax Authority.

THE PROCEDURE IN BRIEF REGISTRATION OF CONTRACT TO THE LAND REGISTRY CONCLUTION OF CONTRACT BEFORE A NOTARY PUBLIC DUE DILIGENCE FIND A REAL ESTATE AGENT AND LEGAL HELP

FEES AND TAXES Notary Public Fees Lawyer’s Fees Land Registry Registration Fees Property Transfer Tax or VAT As from May 2010, the tax system related to the transfer of immovable property in Greece has been amended. There are two different kinds of taxes imposed in different situations, i.e. either the buyer has to pay V.A.T. or the Transfer Tax.

FEES AND TAXES Notary public’s fees Are calculated based on the price of the contract as follows: % ,70% ,65% ,55% ,50% ,40% ,000,30% ,10% > Freely agreed

FEES AND TAXES Lawyer’s fees This is the subject of an agreement between the lawyer and his client and it depends on the circumstances of each case and the complexities that may arise. Land Registry Registration Fees The registration fees for the land registry immovable are estimated at 0,475% of the property’s value appeared in the contract.

FEES AND TAXES V.A.T. 23% Only charged in the situation where a developer sells a newly built property for the first time. Newly built property = built in the last 5 years and has never been sold or used. Building permit issued after Transfer Tax Imposed on purchases of - Plots of land - Buildings that their building permits were issued before Buildings not sold by professional developers. The transfer tax rate as from has been set at 3%.

5 YEAR RESIDENCE PERMIT IN GREECE Third country nationals and their family members have the right to issue a five-year residence permit for owing or buying immovable property in Greece(Law 3386/2005).

5 YEAR RESIDENCE PERMIT IN GREECE Once the non-EU citizen is granted a residence permit in Greece, then, he is allowed to live in Greece exit and re-enter Greece without a visa travel to all Schengen countries without further documentation other than his passport and his Greek residence permit.

BASIC REQUIREMENTS TYPE C OR D VISA OWNERSHIP OF IMMOVABLE PROPERTY OF A MINIMUM VALUE OF € ,00 5 YEAR RESIDENCE PERMIT IN GREECE

BASIC DOCUMENTATION REGARDING THE PROPERTY Copy of the contract for the purchase of immovable property or properties, of minimum value of ,00. Certificate issued by a Greek Notary Public that the purchase contract meets the requirements of art. 36A of law 3386/2005 Certificate of Registration of the contract, issued by the competent Land Registry

5 YEAR RESIDENCE PERMIT IN GREECE Family Members The third-country national, who owns or intends to purchase immovable property in Greece, may be accompanied by his family members, according to article 54 par.1 of Law 3386/2005. The family members obtain an individual residence permit which expires together with the residence permit of the person who supports them. Renewal The above residence permit shall be renewed for the same duration (five years), provided that the immovable property remains as above to the applicant’s full ownership, use and possession

Thank you for attending our conference. We have provided you with general information, but this should not be taken as legal advice. Our law firm will be pleased to provide you further analysis and advice specific to your business needs. Please contact our office for a personal meeting.

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