Piraeus Bank offers valuable advice to UK investors looking to buy property in Greece.
One of Greece's largest financial institutions, the Piraeus Bank, which was founded in 1916 and boasts an international network of over 500 branches, recently offered-up their essential tips for UK investors who are looking to buy property in Greece:
- Do not sign a contract committing you to purchasing a property until you have checked that you can arrange finance, and have also taken advice from an independent lawyer.
- Budget carefully before you commit yourself. In addition to the purchase price of the property in Greece, you will also need to allow for the notary fees, taxes, transfer tax or VAT if you are purchasing a new property, and other costs - which typically average 10% of the commercial value of the property.
- Always obtain independent advice from an English speaking lawyer.
- Ensure that the agent you work with (whether in the UK or in Greece) is regulated or subscribes to the code of an established regulating body, such as the Real Estate Agents Register in Greece.
- Compare prices, and take your time to consider the marketability of the property. For example, would you be able to sell it easily should the need arise in the future?
- Be led by your head, not your heart – what looks fabulous in the summer may lose its appeal in the winter. Think about the infrastructure. Do ask questions such as: do the local shops and restaurants close in the winter?
- Once you have chosen your property, be aware that no deposit should be paid before the legal search of the property is carried out by a qualified lawyer.
- You will need to apply for a tax registration number in Greece. Your lawyer can help you with this.
- It is advisable to open a local bank account so that you firstly transfer funds into it from your UK account and then proceed to make payments out of this as and when necessary. An account will also be useful for setting up standing orders, direct debits, etc. in order to pay for utilities.
- When transferring money for the purchase take time to check out the exchange rates offered by banks – it can save you a lot of money!
- Make a will in Greece.
- Check the costs of taking your UK car to Greece. It may cost you less to buy a new car there.
- Adapt to the local way of life – try to learn the language… and the culture.
For further information about Piraeus Bank's Greek mortgages for UK buyers, log onto www.piraeusbank.co.uk