Looking to buy a holiday home..

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td23
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Looking to buy a holiday home..

Postby td23 » Mon Apr 30, 2018 10:59 pm

Hi All.

Ive been on Holiday to Crete a few times and have to say I love the place. Beautiful Island. Love it so much that Im thinking of buying a small house on the island to use as a holiday home, and maybe to let out to close friends and family.

Im trying ti get an idea of the costs involved. Say I but a small house for around £50k, I understand I will pay a 10-15% tax on top of purchase?

And monthly costs, Ie Council tax equivelant, electric, water, phone and TV?

So Im guessing what Im asking is what are the monthly / yearly costs involved in owning a house in crete. NOT the upkeep of the property.

Are there any Hidden charges I will find? I am surprised at the beautiful houses on a beautiful island, which are available for fairly reasonable amounts! So Im thinking there must be a catch?

Any advice you could give would be great.

TIA.

bobscott
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Re: Looking to buy a holiday home..

Postby bobscott » Tue May 01, 2018 3:50 pm

£50.000 for a small house on Crete. Let me know if you find one! Bob.
Yesterday today was tomorrow. Don't dilly dally!

Tim
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Re: Looking to buy a holiday home..

Postby Tim » Tue May 01, 2018 4:14 pm

Hi Tia

I own a small house (70 sq m) and I pay about €180 per annum for ENFIA which is the Council Tax equivalent. If you're not living alone I believe I'm right in saying that the charge is per person.

I'd be careful about using the word 'let' in relation to other people using your property - there's lots of rules and regs about that sort of thing.

Hope this helps

Tim

Tim
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Re: Looking to buy a holiday home..

Postby Tim » Tue May 01, 2018 5:43 pm

bobscott wrote:£50.000 for a small house on Crete. Let me know if you find one! Bob.


Plenty of houses around for 50k, Bob, but probably not so many that wouldn't require some major refurbishing - rewire, replumb, new kitchen, new bathroom as a minimum.

Tim

Jeffstclair
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Re: Looking to buy a holiday home..

Postby Jeffstclair » Tue May 01, 2018 6:22 pm

Yes there are a lot of houses for that sort of money , they need a bit of work but if you have that sort of cash you can get a great little house,it's a buyers market ...

td23
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Joined: Sun Apr 29, 2018 10:10 pm

Re: Looking to buy a holiday home..

Postby td23 » Tue May 01, 2018 9:56 pm

Thanks for your replies. Ive seen a few potentials on the market at the mo, however it wont be for a little while before I even consider buying. Going to have to keep checking the house prices over there as I'd hate to be priced out of it.

Im not looking for anything fancy, or even too fussed about location. The whole island is amazing.

Im just trying to figure out much per year the upkeep would be, again minus repairs to the home etc, just any taxes you have to pay per year, council tax, utilities etc. Id expect if I bought it we would be visiting at least once every 2 months , so it wouldnt be high gas/electric.

So the initial outlay of buying the home is £50k plus 10/15% fee associated with the purchase....But then what?

A silly example, but and example nonetheless..... I buy a house seriously in need of tlc (not total renovation, ie. currently / recently lived in), for 50k inc fees.. Then I dont even visit it.. I just own it.. I decide not to do anything with it for a long while but decide to keep it...What costs would I have each year??

Thanks again for your responses..

Guy M
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Location: Kalamitsi Alexandrou

Re: Looking to buy a holiday home..

Postby Guy M » Tue May 01, 2018 10:17 pm

Hi. This is a bit off topic, but related. My advice to anyone buying in Crete, above everything else, is to get a good lawyer to help with the purchase. As a byproduct they can get you a decent accountant for all that property tax stuff.

We have a 200 year old house with a good sized garden and olive trees so our costs are a bit different - lots of repair/maintenance and we pay someone local to check the house as it is out of the way. Somewhere more modern without much land will I guess be cheaper.

Renting a house does require lots of permits and Greek bureaucracy is very well developed.

Finally, selling a house in Crete isn’t as easy as in the U.K.- the market is quite illiquid, so don’t necessarily assume you can sell quickly if you ever want to do that - we’ve always assumed the house is for life.

td23
Posts: 6
Joined: Sun Apr 29, 2018 10:10 pm

Re: Looking to buy a holiday home..

Postby td23 » Tue May 01, 2018 11:37 pm

Thanks for the reply..I agree with the laywer / accountant advice. Im quite, well very, cautious when it comes to buying anything let alone a house so I will be researching thouroughly and hiring the right people.

Im just tring to get an idea of minimum cost per annum of owning a home in Crete, excluding maintenence. SO bills basically and any other hidden taxes/fees I may not know of.

As in if I had £50k cash now and bought a house outright on Crete today. What further costs would they be. Could I basically pay the council tax each month/year, and that home would be mine forever?

Ive read a little regarding property tax, does this come in with the 10-15% fees when purchasing a place? Or is it an on going tax?

Thanks again fpor response. Appreciate it.

td23
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Joined: Sun Apr 29, 2018 10:10 pm

Re: Looking to buy a holiday home..

Postby td23 » Tue May 01, 2018 11:40 pm

Also, what are labour costs like on Crete in relation to UK? Ie if I suddenly need a new roof? or I need a plumber to install a shower? Ty

Tim
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Re: Looking to buy a holiday home..

Postby Tim » Tue May 01, 2018 11:55 pm

td23 wrote: Id expect if I bought it we would be visiting at least once every 2 months


Sorry to be a wet blanket, and there's nothing definitely decided yet, but it seems unlikely that post-brexit you'd be able to visit every few weeks. The current rules governing citizens of non-EU countries would only allow you to visit for three months in any six.

Tim

td23
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Re: Looking to buy a holiday home..

Postby td23 » Wed May 02, 2018 12:59 am

Thanks Tim, I hadnt realised that. So I take it thats not a total of 3 month within 6 month, How would they work . out the 3 months from 6? If that makes sense?

Tim
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Re: Looking to buy a holiday home..

Postby Tim » Wed May 02, 2018 9:39 am

Others on here will have a better grasp of the rules than I do, but yes, a total of 3 months in any six (whether that's a 13 week block or 3 trips of 4 weeks) - in the same way that the current rules allow 183 days in any year. And of course until brexit is finalised nobody knows for sure what the rules will be going forward.

Tim

Kilkis
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Re: Looking to buy a holiday home..

Postby Kilkis » Wed May 02, 2018 9:56 am

The 10 to 15 % you pay when you buy comprise:

1 Transfer of ownership tax.
2 Notary's fee.
3. Lawyer's fee
4. Estate agent's fee. Typically in Greece both buyer and seller pay this.

It is a one off cost. If you didn't use the house at all you would probably have the following annual costs:

1. Property tax. This is not the council tax. It goes to central government. It depends on a lot of factors so difficult to judge. Possibly €100 to €200 per year for 50 sqm. It is not per person. It is split between owners if there is more than one in proportion to their percentage ownership.
2 An electricity bill every two months. With no consumption charge it would just be the standing charge, €4.50 I think, plus possibly a small amount for green charges and the distribution network. There are several such charges, most of which are caculated from consumption, but I think a couple are caculated from the rating of your supply.
3 Council tax. Again several thing affect this but probably less than €100 per year for 50 sqm. Collected on the electricity bill.
4 TV licence. I can't remember what this is. Possibly around €80 per year. Also collected on the electricty bill.
5 Possibly a small fixed charge for water. Only a few Euro.
6 Accountants fee for submitting annual tax return. You have to have a tax number to buy the house and you need to submit an annual tax return if you have a tax number. Varies between €50 for a cheap accountant with no real experience of dealing wit foreigners' tax affairs to €150 for the best. I would recommend not spending less than €100 and to choose very carefully.

Greece operates a system of assumed income, i.e. based on things you own you are assumed to have a certain level of income and you are taxed on that income even if you have none. I am not sure what the current status is regarding assumed income for people who are not tax resident. It used to be necessary to transfer at least that amount into a Greek bank account each year and get proof from the bank. I don't know if that still applies. If it does it would probably be somewhere between €5,000 and €10,000 per year. Obviously it is yours to spend.

Hope that helps.

Warwick

Tim
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Re: Looking to buy a holiday home..

Postby Tim » Wed May 02, 2018 11:19 am

Kilkis wrote:
Greece operates a system of assumed income, i.e. based on things you own you are assumed to have a certain level of income and you are taxed on that income even if you have none. I am not sure what the current status is regarding assumed income for people who are not tax resident. It used to be necessary to transfer at least that amount into a Greek bank account each year and get proof from the bank. I don't know if that still applies. If it does it would probably be somewhere between €5,000 and €10,000 per year. Obviously it is yours to spend.


I don't think those rules apply anymore, Warwick. I'm not tax resident and only use the house for three holidays every year. I keep a couple of hundred euros in my Greek current account to pay the standing orders for electricity and water, and top it up while I'm out there so there's always enough in it to pay the bills. This seems to satisfy the authorities - I've never been asked to transfer any money in.

Tim

YoMo2
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Re: Looking to buy a holiday home..

Postby YoMo2 » Wed May 02, 2018 12:38 pm

Tim wrote:
Kilkis wrote:
Greece operates a system of assumed income, i.e. based on things you own you are assumed to have a certain level of income and you are taxed on that income even if you have none. I am not sure what the current status is regarding assumed income for people who are not tax resident. It used to be necessary to transfer at least that amount into a Greek bank account each year and get proof from the bank. I don't know if that still applies. If it does it would probably be somewhere between €5,000 and €10,000 per year. Obviously it is yours to spend.


I don't think those rules apply anymore, Warwick. I'm not tax resident and only use the house for three holidays every year. I keep a couple of hundred euros in my Greek current account to pay the standing orders for electricity and water, and top it up while I'm out there so there's always enough in it to pay the bills. This seems to satisfy the authorities - I've never been asked to transfer any money in.

Tim


Agreed, the assumed income thing doesn't apply if you are not tax resident in Greece.

Andrew


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