Selling a property in Greece

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RIFF
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Joined: Thu Jan 31, 2013 1:53 pm
Location: Apokoronas

Selling a property in Greece

Postby RIFF » Sun May 28, 2017 7:59 am

Hi good people-I have a query regarding the sale of a property. A friend has found a buyer for her house at long last, but she is worried that she won't be able to transfer the proceeds to her UK bank because of capital controls. Does anybody have any insight/wise words in this respect? Thanks guys.

YoMo2
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Location: Milatos, Lasithi

Re: Selling a property in Greece

Postby YoMo2 » Sun May 28, 2017 8:32 am

Not positive, but don't think there is any restriction on having the proceeds paid direct to her UK account. Avoids any isues.

Andrew
"It's all in the implementation"

bobscott
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Location: Kokkino Horio

Re: Selling a property in Greece

Postby bobscott » Sun May 28, 2017 4:49 pm

RIFF wrote:Hi good people-I have a query regarding the sale of a property. A friend has found a buyer for her house at long last, but she is worried that she won't be able to transfer the proceeds to her UK bank because of capital controls. Does anybody have any insight/wise words in this respect? Thanks guys.


As far as I know, the only problem will arise if the buyer is Greek and can't get the money released through his/her own Greek bank!

We have just sold to non-Greek and the money went straight into our UK bank account from another European country.

Bottom line, as always, wisely peddled on this forum - talk to your lawyer and accountant. You pay them to sort these things out! Also, if selling through an estate agent they will know the ropes (and the wrinkles). Bob.
Yesterday today was tomorrow. Don't dilly dally!

RIFF
Posts: 29
Joined: Thu Jan 31, 2013 1:53 pm
Location: Apokoronas

Re: Selling a property in Greece

Postby RIFF » Mon May 29, 2017 12:28 pm

Thanks for your input guys!

filippos
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Re: Selling a property in Greece

Postby filippos » Mon May 29, 2017 2:08 pm

I think there was a thread on here not long ago that gave some fairly specific info from a person/people who had recently gone through the process. Entering some keywords in the forum search facility should find it.

Kilkis
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Re: Selling a property in Greece

Postby Kilkis » Mon May 29, 2017 9:00 pm

An accountant told a friend recently that there was no real problem selling to a Greek buyer, receiving payment in Greece and then transferring the money to the UK PROVIDED that you can prove that the money to buy the proprty originally was brought into Greece, eg with pink slips. You have to apply to a committee for permission and it takes 2 or 3 months.

Warwick

bettyboo
Posts: 59
Joined: Wed Feb 20, 2008 11:48 am

Re: Selling a property in Greece

Postby bettyboo » Tue Jun 27, 2017 8:54 am

We recently sold a village house, thought I'd run through the process as it might be useful to sellers out there:

The legalisation process was started in 2013 and due to the changes in the law at the time which put everything to do with legalisation on hold for a while we didn't get a copy of the topography until 2014

Buyer made an offer which was accepted and estate agent took photos of our contract and legalisation paperwork to send to buyers lawyer to start ball rolling regarding the deposit

Deposit received a week after offer

While buyers lawyer was doing his bit regarding searches I had my accountant prepare the certificates to support fact there is no property tax due or personal tax outstanding against our tax numbers. The property tax certificate is valid til year end, the personal taxation certificate only valid for two months but I didn't know until he handed it over to me so maybe best to wait until further into the process because it can easily expire

After about 5 weeks after offer accepted we were told the buyer had now set up a bank account, it can take 4 or 5 weeks now, the buyer was French

2 months into process we were told there would be a delay as the topography wasn't done with GPS, that the architect will be out in couple of days to do whatever she had to do, no idea why it wasn't done at the time of original topograph

2 and a half months in and told papers nearly ready to sign but waiting for paper from the tax office showing tax to pay on the purchase

Nearly 3 months up and told ready to complete at Notary office, contract read through and signed

A bit of a delay but a smooth process really, we were lucky also to get a buyer as we didn't expect to sell after being on the market for only a month

Hope this helps for anyone thinking of putting house on market

bettyboo
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Re: Selling a property in Greece

Postby bettyboo » Tue Jun 27, 2017 9:03 am

Forgot to mention the Energy Certificate.. 500 euro!

Kilkis
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Location: Near Chania

Re: Selling a property in Greece

Postby Kilkis » Tue Jun 27, 2017 9:12 am

One thing you didn't mention, Bettyboo, is the financial side. I don't know if you intend to spend the proceeds of the sale on another house in Greece or take the money out of Greece. If the latter:

    1 Was the money for the house paid into a Greek bank account or directly from a French bank to an account outside Greece?
    2 If it was paid into a Greek bank did you have any problem getting the money out of Greece?

Not wishing to be nosey but it is an issue that has concerned many people. Some practical experience could be useful.

Warwick

bettyboo
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Joined: Wed Feb 20, 2008 11:48 am

Re: Selling a property in Greece

Postby bettyboo » Tue Jun 27, 2017 9:36 am

I asked the buyer to transfer the deposit to a Lloyds Off shore account as the exchange rate was better than my UK bank accounts, I don't use online banking so I didn't get involved with companies like MoneyCorp or anything like that. 2 amounts were paid in probably to do with charges the buyer would have had to pay if it had been one payment

The balance was 2 bank drafts which I paid into my Greek account, I was allowed to transfer to the UK the amount of money that I had transferred into Greece for the last 2 years, in my case that worked out about a third of the sale. The rest can be transferred at 1000 euros a month per person. I'm not buying another property but possibly a car so I need to keep some cash. I also waited to see what was happening with Greece and the July payment that is due and the situation seems ok at the moment.

Kilkis
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Location: Near Chania

Re: Selling a property in Greece

Postby Kilkis » Tue Jun 27, 2017 10:46 am

Thanks for the additional information. I am sure it will be useful to some people contemplating, or in the process of, selling.

Warwick

YoMo2
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Re: Selling a property in Greece

Postby YoMo2 » Sun Jul 02, 2017 6:04 pm

bettyboo wrote:...... I was allowed to transfer to the UK the amount of money that I had transferred into Greece for the last 2 years, in my case that worked out about a third of the sale. The rest can be transferred at 1000 euros a month per person.


This doesn't tally with what my bank manager tells me, at Piraeus Bank. As long as the money for the house sale was transferred into your Greek account from a foreign bank account, you should be able to transfer that whole amount back out of the country. I have confirmed this on the Piraeus Bank website, and by calling their help desk.

Andrew
"It's all in the implementation"

Kilkis
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Location: Near Chania

Re: Selling a property in Greece

Postby Kilkis » Mon Jul 03, 2017 10:11 am

YoMo2 wrote:...As long as the money for the house sale was transferred into your Greek account from a foreign bank account, you should be able to transfer that whole amount back out of the country...


It is not clear from Bettyboo's post that this was what happened. She mentions "bank drafts" but doesn't say where those bank drafts were from, i.e. a foreign bank or a Greek bank. While it is perfectly legal for the payment to be made from a foreign bank if I was the buyer I wouldn't do it that way. I would want to transfer the money from MY foreign bank account to MY Greek bank account so that I can prove to the Greek tax authority where the money had come from. I would then transfer it from my Greek bank account to the sellers Greek bank account. The seller would then not be able to prove that the money had come from abroad.

I could be wrong but I don't think the tax authority would accept this sort indirect transfer as "coming from abroad". I was told that they would only accept proof of money coming directly from abroad into my account. I mistakenly transferred the purchase price for the land I bought directly to the agent. He provided the pink slip for the transfer into his account from my UK account and was prepared to sign an affidavit that the transfer was for the purpose of buying the land but I was told the tax authority wouldn't accept that as proof. Fortunately the contract carried the objective value for the land, which was lower than the purchase price, and I had been working in Greece on a decent salary for 7 years so I didn't need proof. The tax authority judged that I could have saved that sum from my salary. I made sure all further payments for the build came directly to my Greek bank account. I was never asked to produce the pink slips for these transfers but they are there if I am ever challenged.

Warwick

bettyboo
Posts: 59
Joined: Wed Feb 20, 2008 11:48 am

Re: Selling a property in Greece

Postby bettyboo » Mon Jul 03, 2017 3:00 pm

We had assumed that the buyer would transfer money direct from her French bank account to our Greek account but shortly before completing we were told her lawyer would be presenting us with 2 drafts/cheques each one half of the purchase price, he signed the back of the drafts. When we paid them into our greek bank account the teller had to go to another member of staff, there was a minute or so of chat between them then the other staff member made a quick phone call where we heard the buyers name mentioned.. Tbh I'm still not sure if the drafts were from the buyers overseas or greek bank.. I'm blonde so that's my excuse! :)

filippos
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Re: Selling a property in Greece

Postby filippos » Mon Jul 03, 2017 5:16 pm

Surely, the name of the bank issuing the drafts would have been printed on them, much the same as with a simple cheque? Did you not look at them when they were handed to you?


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