Paying for Renovations

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tanisha34
Posts: 1
Joined: Sat Oct 28, 2017 7:36 am

Paying for Renovations

Postby tanisha34 » Sun Oct 29, 2017 8:11 am

Several years ago before money controls I just paid a builder in cash know its more dificult and the engineer who done all paperwork to get permit for some further work would charge several hundred euros to manage payments probably uisng a proxy, would a accountant do the payments or is even necessary.
Has anyone recently completed a project and just transfered money from a greek bank account or even english bank for things like IKA, concrete supplier and other suppliers for materials.


Tanisha34

Kilkis
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Location: Near Chania

Re: Paying for Renovations

Postby Kilkis » Sun Oct 29, 2017 11:45 am

I've not done any building projects but paying money to official organisations directly from a Greek bank account is very easy. The organisation gives you a bill for the amount you owe that contains an electronic payment code. You can use that code to make the payment, either using online banking or in the bank. I have made payments to both the tax authority and IKA using this method. I think you can also use it at an ATM but I haven't tried that.

I don't believe this would be possible directly from a UK bank account. Greek banks have payment processes set up for (virtually?) all official organisations that include the payment code while UK banks would not have that provision.

Professionals such as accountants, lawyers, engineers, architects will normally give you their bank account details, e.g. IBAN number, so you can make a transfer from your bank account to theirs, putting a reference to show what the payment is for. Technically this would also be possible from a UK bank account but you would need to think about where the currency exchange takes place and associated costs. You could also set up an account with a company like CurrencyFair or TransferWise, pay money into that account from a UK bank account, convert to Euro and transfer it directly to the professional's Greek bank account.

Whether your accountant would make the payments for you is down to your particular accountant. Mine certainly does for his clients if they want him to. Obviously you would probably need to transfer the money to the accountant's bank account first.

Warwick

Yin&Yang
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Joined: Thu May 24, 2012 6:03 pm
Location: Megala Horafia/Aptera

Re: Paying for Renovations

Postby Yin&Yang » Sun Oct 29, 2017 1:04 pm

As Kilkis says, bank transfers from a Greek bank account to anothers, i.e. Accountant, IKA, supplier is a straight forward process, either using internet banking or taking the invoice/details into your bank and asking the cashier to do it on your behalf. We paid for IKA and suppliers, etc. Via this method when we were building in 2014/15.
Someday is now : )

YoMo2
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Joined: Sat Mar 16, 2013 11:07 am
Location: Milatos, Lasithi

Re: Paying for Renovations

Postby YoMo2 » Mon Oct 30, 2017 9:10 am

The OP was also asking about paying for a building project.

Not so easy these days when many small builders want cash...... But then they also know that things have changed and will often accept payment in small doses. Most decent suppliers of materials have POS machines nowadays so you can just pay with plastic.

Andrew
"It's all in the implementation"

Al
Posts: 299
Joined: Mon Aug 02, 2010 7:26 pm
Location: Kalives

Re: Paying for Renovations

Postby Al » Mon Oct 30, 2017 4:21 pm

If you are living here, and have an income stream from another country coming to a bank here, I'm given to understand that, depending on the annual amount you bring to Greece, certified by your bank's pink slips, you can withdraw an amount of cash significantly larger than is allowed normally. I didn't ask for details because we had already "saved up" enough cash for our project in the months preceding the job. However we were told that 7000Euros in cash would not be a problem. Larger sums, we were told, could also be accommodated. This was in a small bank. Black money? No - absolutely legit, honest.

Yin&Yang
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Joined: Thu May 24, 2012 6:03 pm
Location: Megala Horafia/Aptera

Re: Paying for Renovations

Postby Yin&Yang » Mon Oct 30, 2017 5:33 pm

It would be interesting to know if one can still withdraw significant sums as mentined above. Certainly when we were building in 2014/15 we were able to. When was your project Al?

Lynn
Someday is now : )

Kilkis
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Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: Paying for Renovations

Postby Kilkis » Mon Oct 30, 2017 7:28 pm

Capital controls were introduced on 29 June 2015 so any work done in 2014/15 would probably precede them. Before that you could draw out whatever you wanted although there could be a short delay if the bank didn't have enough cash.

I can't remember the details but it was something like being able to draw out 30 % of money paid in from abroad in one go. Also I think this was increased when the possibility of drawing out €1,800 per month, rather than €840 every two weeks, was introduced a short time ago. I can't find the ekathimerini article that mentioned it so again I don't know the exact amounts. Any bank should be able to tell you.

Warwick

filippos
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Re: Paying for Renovations

Postby filippos » Tue Oct 31, 2017 8:41 am

Kilkis wrote:........... it was something like being able to draw out 30 % of money paid in from abroad in one go. Also I think this was increased when the possibility of drawing out €1,800 per month, rather than €840 every two weeks, was introduced a short time ago..............

Within two weeks (about two weeks ago) I withdrew €1,800 then, not at my regular branch, another €1,000. There was some discussion involved because the cashier looked at my account and said "Sorry, you've used up your full allowance". I pointed out that another branch had told me I could withdraw more from funds that had been transferred in from abroad. He continued to refuse until the cashier at the neighbouring desk assured him I was right. I got the cash.

I think she said that I could take the full amount that had been brought in from abroad but I may be wrong about that; she spoke quietly, my Greek isn't great and there was much background noise. I'll check next time I'm at my main branch.

It's worth remembering that with joint accounts all joint holders can each withdraw the full €1,800 allowance wherever the money originated.

Forsto
Posts: 15
Joined: Wed Feb 24, 2016 12:36 pm

Re: Paying for Renovations

Postby Forsto » Tue Oct 31, 2017 11:28 am

I have recently visited the NB of G with an Israeli who wanted to open an account. He was told he needed to import from a bank overseas €10,000 to activate the account but that he could then withdraw in cash 30% of the amount deposited.

Kilkis
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Location: Near Chania

Re: Paying for Renovations

Postby Kilkis » Tue Oct 31, 2017 11:35 am

How recent, Forsto? I think the changes that increased the amount came into force on 1 September or 1 October. If your recent was before 1 September then 30 % would be correct.

Government legislation, designed to stop people opening multiple accounts to get round the withdrawal limit, forces banks to take €10,000 deposit before opening a new account. Once open you can spend that money on whatever you want as far as I am aware.

Warwick

Forsto
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Joined: Wed Feb 24, 2016 12:36 pm

Re: Paying for Renovations

Postby Forsto » Tue Oct 31, 2017 5:11 pm

Beginning of September.

Kilkis
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Re: Paying for Renovations

Postby Kilkis » Tue Oct 31, 2017 5:25 pm

Then they should have been allowed to draw out 50 % according to this article. It may be that information had not filtered down to bank clerk level or perhaps the new law wasn't implemented on time since the article talks about it being "scheduled" for 1 September?

Warwick

Forsto
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Joined: Wed Feb 24, 2016 12:36 pm

Re: Paying for Renovations

Postby Forsto » Tue Oct 31, 2017 6:03 pm

Yep, definitely not what we were told!

Kilkis
Posts: 8833
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: Paying for Renovations

Postby Kilkis » Wed Nov 15, 2017 7:46 am

Further relaxation of the capital controls has been announced, see this ekathimerini article. The restrictions on opening a new bank account have been relaxed, provided the person does not already have an account with another bank, so that should help anybody coming here for the first time. Also you will be able to withdraw 100 % of money deposited from abroad instead of the current 50 %. The article doesn't say exactly when these new rules come into force.

Warwick


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