European Union citizens are permitted to purchase property on Corfu. Non EU citizens, as individuals, are not permitted to buy property on Corfu and for such individuals there are two options. One option is to form either a Greek or an EU registered company in whose name the property becomes registered. The second option is for the individual, via a lawyer, apply to the Greek Ministry of Defense for permission to own property. Both procedures are well known to lawyers on Corfu.

Buying a house or apartment on Corfu is subject to similar legalities to those applying in most other EU countries. It is necessary to appoint a lawyer, who will check the title of ownership and ensure that there are no mortgages outstanding. A notary public is also employed to record the contract into the Land Registry records.

Once the sale/purchase and price of a property has been agreed, the following is the usual procedures as recommended by us:

1.    A pre-contract: This is prepared by us and signed by both parties. This commits both buyer and seller to a price and a date for “completion”. Completion refers to the time frame within which the lawyer of the buyer must determine and be satisfied that clear title exists in the property and that no mortgage or tax liabilities exist. The completion period is usually a maximum of 30 to 60 days.

2.    At the time of signing the pre-contract, the buyer deposits with us a sum equivalent to 10% of the agreed purchase price. We hold this deposit in trust until “completion”. In the event that completion does not take place because the lawyer for the buyer has not been able to satisfy himself in accordance of item 1 above, the deposit is returned to the buyer less any bank charges. In the event that completion does not take place because the buyer no longer wishes to proceed for other reasons, the deposit is forfeited.

3.    A buyer is required to obtain a Greek tax number prior to the final contract being signed. We can assist you in obtaining this number and will require a Power of Attorney from the buyer to perform this task.

4.    The buyer is responsible for the appointment of a lawyer. We can, if requested, make recommendations for the appointment of an appropriate lawyer and subsequently liaise with him/her on behalf of the buyer. The lawyer is also responsible for the appointment of a notary public who prepares the necessary Final Contract in conjunction with him/her. In certain cases, it may be necessary to appoint a qualified surveyor to assist with enquiries.

Signature of the Final Contract takes place in the office of the notary public. The presence of the buyer is necessary, unless he has appointed someone with power of attorney to act on his/her behalf. We can arrange this, if required.

5.    The day before signature a tax declaration is signed and the amount of tax shown becomes payable. This is Transfer tax payable to the government. Either the buyer’s lawyer or the notary public effects this payment. It is therefore necessary to have funds easily available to make this payment at least a week before the date that the final contract is signed.

6.    Transfer Tax (stamp duty): The amount of this tax is NOT calculated on the actual purchase price, but on the value of the property as assessed by the Tax Office (this is often a lesser amount).

7.    For budgeting purposes, the purchaser should expect the following additional expenses over and above the agreed purchase price:

8. Transfer Tax: 7.21% of the first 14.700€ and 9.27% of the remainder (based on the Tax Office valuation). Where Objective Valuations apply these figures are increased by 2%.

9. Notary Public: Between 2.2% and 2.5% of the tax assessed value (depending on the value of the transaction (including subsequent registration fees).

10. Buyer’s Lawyer: Between 1% and 1.5% of the sale price (depending on the value of the transaction).

11. Our fee: 2% of the sale price plus VAT of 19%.

12.    Once the sale has been completed, the Notary registers it with the Land Registry, who retains copy of the Final Contact. The Notary, who will supply certified copies to the buyer, also retains a copy.

13.    Possible variations: If the completion of the purchase is likely to extend over a considerable period of time, the agency may advise that the Pre-contract referred to above should become a Notarized contract. In this event, however, it would be normal for a part of all of the deposit to be paid to the seller.

Special Note: When purchasing old houses for renovation, it is advisable to establish whether planning permission is required. If no exterior changes are to be made and the roof is intact, this is not normally necessary, but professional advice should still be sought. The advice of a state registered engineer should also be sought as to the safety and suitability of the existing structure for renovation.