Frequently Asked Questions
How do I find a good local Solicitor?
Aegean Homes has an appointed Solicitor. Our Solicitor will guide you through the entire process and assist you to complete a Power of Attorney this leaves you free to depart Rhodes Island with assurance that Aegean Homes will continue your relevant applications and property purchase in your absence.
Why do I need a Notary?
A notary public is a government-appointed lawyer who processes and certifies all real estate transactions, including drawing up and reviewing all official documents, to ensure the legal transfer of the property.
Do I need to have a Residency Permit?
Yes. A temporary residence permit called a Blue Card is required. This is obtained from a local Police Station on Rhodes Island . Aegean Homes will provide a staff member to take you to the Police Station to complete your application for residency (the blue card is usually granted within two weeks). This permit is a formality for EU nationals.
Do I need a Tax Registry Number (AFM)?
Yes. A tax number (AFM) is mandatory for all buyers, including foreigners and permanent residents abroad. Your Aegean Homes dedicated sales executive will accompany you to the Tax Office to obtain your Tax Number.
Can I have a Greek mortgage?
Yes, it is possible to get a mortgage in Greece . Aegean Homes has an appointed Mortgage Broker and we have excellent relationships Greek Banks. We will do all the ground work for you. The process is similar to most European countries. To apply for a mortgage you will need your passport and proof of income for the last 2 years (P-60's, payment stubs, or tax returns if self-employed).
Property Insurance, is it essential?
Although no market standards exist as to the forms of insurance that can be taken out, it is reasonable to suggest that property be insured against the following risks: fire, earthquake, water damage, breaking glass, storm, theft, and third party.
Will I need to file a Tax Return at the end of the Year?
Yes. The Greek State has mandated that all property ownership in Greece must be declared by filling out a form called E9 and submitting it to the Greek Tax Authorities. This is mandatory for every property owner in Greece , even those who live abroad and have never filed tax returns in Greece or do not have an income in Greece . As of 2006, the E9 form will be submitted only by those who either: obtain or sell / dispose of any kind of right over immovable property in Greece . If you own immovable property in Greece but your assets next year have not changed from what they were the year before, you do not have to submit the E9 form again.
Capital Gains Tax
New property taxation laws came into affect January 1 st 2006. These include a Capital Gains Tax for properties purchased after January 1 st 2006. The percentage of tax owed will vary depending on the length of time a property remains in one's ownership. Specifically:
- For properties purchased after January 1 st 2006 and remaining in ones ownership for 0-5 years: Capital Gains Tax 20%
- For properties purchased after January 1 st 2006 and remaining in ones ownership for 5-15 years: Capital Gains Tax 10%
- For properties purchased after January 1 st 2006 and remaining in ones ownership for 15-25 years: Capital Gains Tax 5%
I am a Non-EU Citizen, what do I need to know or do in order to purchase a property on Rhodes ?
If you plan to purchase a property in an area near national borders (including some Islands such as Crete and Rhodes, and Islands of the Eastern Aegean ). In these circumstances, you must apply for a special permit issued by the Ministry of Defence in Athens .
An alternative and more efficient way to purchase property in these areas is through an offshore company in your name, based in an EU country. This is a fairly commonplace; setting up and maintaining such a company costs approximately 2,000 euros to establish and 1,500-2,000 euros annually
