Transfer of Property Act at Greece
In Greece, the transfer of property is governed primarily by the Civil Code of Greece (specifically, the Greek Civil Code or Code of Civil Law), which includes provisions on property ownership, transfer, and related matters. Greece does not have a specific "Transfer of Property Act" like some other countries, but the relevant rules for transferring property, whether real estate or other forms of property, are embedded in the Greek legal framework.
Key Legal Framework for Property Transfer in Greece:
1. Greek Civil Code (Code of Civil Law)
The Greek Civil Code contains comprehensive provisions that govern property rights and the transfer of property. Some of the key provisions include:
General Property Rules: The Civil Code establishes the rules regarding the ownership and transfer of property, whether movable or immovable.
Contracts of Sale: Articles related to the sale and transfer of property are found within the contractual provisions of the Civil Code, which governs how contracts should be formed, executed, and enforced.
Formalities for Property Transfer: Specific rules are provided for the transfer of real estate, including the need for written contracts, notarial acts, and registration with the land registry.
2. Land Transfer and Real Estate
The transfer of immovable property (land and real estate) in Greece follows a formal process, which includes several key steps:
Sale Agreement: The transfer process typically begins with a written agreement between the buyer and the seller, outlining the terms of the sale (e.g., price, payment terms, property description).
Notarial Act: For the transfer of immovable property to be legally valid in Greece, the sale must be executed before a notary public. This notarial act is crucial, as it certifies the legitimacy of the agreement and ensures the authenticity of the transaction.
Registration: After the notarial deed is executed, the transaction must be registered with the Land Registry (or the Mortgage Registry in some cases). This ensures that the new ownership is formally recognized and recorded, providing legal protection against claims from third parties.
Taxes and Fees: Several taxes and fees must be paid during the transfer process. The property transfer tax is one of the most significant taxes, usually calculated based on the purchase price of the property or its market value.
3. Key Steps in Property Transfer in Greece
Contract of Sale: The buyer and seller must enter into a contract of sale. This contract must be in writing to be enforceable. The terms of the agreement include details about the property being sold, the agreed price, and the payment schedule.
Notarization: The contract must be executed before a notary public. The notary ensures that the transaction is valid and that both parties understand the terms of the agreement. The notarial deed is essential for the property's legal transfer.
Payment of Taxes: The buyer is responsible for paying the property transfer tax (approximately 3%–10% depending on the transaction value and type of property). Additionally, notary fees and registration fees must be settled.
Land Registry: The transfer of property is finalized once the transaction is registered with the Land Registry. This official registration protects the buyer’s ownership rights and makes the transfer public. The Land Registry Office ensures that the transfer is officially recorded in the public records.
Title Deed: Once the transaction is registered, the buyer receives a title deed, which serves as proof of ownership.
4. Property Taxes and Fees
Property Transfer Tax: A property transfer tax is levied on the buyer at the time of the transaction. The rate varies depending on the price of the property, but it is generally in the range of 3%–10%.
Value Added Tax (VAT): In some cases, a VAT of 24% may apply to the transfer of newly constructed properties (usually in cases involving developers).
Notary Fees: Notary fees are also a standard cost in the process of transferring real estate, and they are typically based on the price of the property.
Registration Fees: Fees are payable for registering the property transaction with the Land Registry and may vary depending on the region and the property’s value.
5. Foreign Ownership of Property in Greece
Eligibility: Foreign nationals can buy property in Greece, but there are certain restrictions and conditions. Generally, foreigners can purchase property on the same terms as Greek citizens, with the exception of certain areas (e.g., near borders or military zones) where additional restrictions may apply.
Foreigners and Rural Land: If a foreigner seeks to purchase property in rural areas, the property must be located within a specific distance from the border, and additional government approval is often required.
Permission Requirement: Foreign buyers must apply for permission from the Greek Ministry of Defense if the property is located near a border area, as certain restrictions are placed on foreign ownership in such zones.
6. Inheritance and Succession
Inheritance: When property is passed on through inheritance, the Greek Civil Code provides detailed rules for the transfer of property to heirs. The heirs are entitled to the property in accordance with the rules of intestacy (if there is no will) or testamentary succession (if a will is present).
Transfer of Title: Upon the death of an owner, property can be transferred to heirs either through a will or according to Greek inheritance laws. If the property is part of a joint ownership or family property, specific provisions must be followed to transfer the property rights to heirs.
7. Dispute Resolution
Court System: Property disputes in Greece, such as issues related to ownership, boundaries, or the validity of property transfers, can be resolved through the Greek courts. Property-related claims are typically heard in civil courts.
Mediation and Arbitration: Alternative dispute resolution methods, such as mediation or arbitration, may be used to resolve conflicts before resorting to formal legal proceedings.
Conclusion
In Greece, property transfers are governed by the Greek Civil Code, which provides the legal foundation for the sale, transfer, and ownership of both movable and immovable property. For real estate transactions, the process includes a written sale agreement, notarization, payment of taxes and fees, and registration with the Land Registry. Foreign nationals can buy property in Greece, though there are restrictions in certain areas.
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