For the first time buyer, it is important to understand the property buying process, the people that are involved, and the pitfalls that may occur. To avoid disappointment, it is important to be assertive and open-minded, and not to be blinkered too much by visions of your dream home.
Firstly, you need to run a search on our website and select some island properties for sale which interest you. Then, after you have arranged your trip to Corfu, you need to inform us as soon as possible of the dates, where you are staying, and your contact details. This is important as things become booked up very quickly, especially in the summer. We will then agree dates and times to show you around all the properties of interest, and answer all of your questions.
Should you decide to proceed, it’s a good idea of you to have your finances ready before you make your viewing trip, as otherwise, by the time you return home and arrange things, your dream home may be sold.
To secure your property, a 10% deposit on the purchase price is normally required on signing the preliminary sale agreement.
We advise you to appoint an English speaking lawyer, preferably one who is reasonably local as they will be on the spot to do searches and will know local laws and regulations. They can check for clean title, help to fix the “assessed value”, and ensure that the property is free from outstanding taxes which the new owner would otherwise inherit. Property transactions in Greece always take place in the presence of lawyers representing both parties, and the notary, who will not authorise the sale without the appropriate tax papers and deeds being in order. At this stage, if the vendor backs out after a pre-contract has been signed, you get your deposit back, plus they will pay you an equal sum as penalty. If you back out, you would lose your deposit.
Once all the papers are ready and in order, completion can quickly take place. The Notary will have prepared an official contract which is then signed at their offices, in the presence of the lawyers representing both sides. If the customer decides not to be present, they can agree to a Power of Attorney, for their lawyer to act on their behalf.
The purchase tax, legal and notary fees are paid for by the purchaser in Greece. These are calculated against the “officially assessed price” of the property and not the actual selling price. In order to keep costs down, the “officially assessed price” can be as much as a third cheaper than the actual selling price. Overall Purchasers should expect to pay 2.38% (v.a.t its included) in the property value for the real estate agent. 7.21% purchase tax on the first 15000.00 euros and 9.21% on the remainder .The Notary will also ask you to pay another 2% of the the tax assessed value, including subsquent registration fees. Finally a 2% for the lower.
Obtaining a mortgage in Corfu
If you are a european citizen, you can get a mortgage, from any bank in Corfu as far as you can prove, your income its good enough to pay the trance. You can borrow 100% of the property cost, as long as you can pay the monthly payments, related to your income. The normal time, from when first apply untill you actually get the money its about one month. The period of your mortgage, can last from 10-30 years, as the last payment is made before you are 70 years old.