On the 11th of October 2020, the final form of the notarial certificate that foreign investors applying for a residence permit need to submit along with the rest of the necessary supporting documents was published in the Government Gazette No 4483.

Among other things, this certificate needs to include information about the parties of the contract, information regarding the real estate, the price of the real estate, the means of payment (crossed bank cheque, credit transfer, POS transaction, credit card or debit card) and payment details. This certificate must also specify whether or not the contract is subject to a resolutory condition and whether or not the property was previously used by the seller to acquire a residence permit.

This certificate must be provided by the same notary who wrote the real estate purchase contract. According to Article 20B of Law 4251/2014, in the event that the applicant fails to provide this certificate, their application to be granted a residence permit through the purchase of real estate will be rejected.

Taking the abovementioned into consideration, it is evident that notaries have now a very important role in the issuance of Golden Visas to foreign investors as the approval of their application depends on the validity of this certificate.

Law No 4714/2020 brought important changes favoring donations made by Greek residents who used to reside abroad, as well as parental or monetary donations made by parents, Greek or foreign nationals, to their child for the purpose of buying a property that will be used by the child as their main residence. Those new favorable provisions reflect the numerous efforts made over the years by the Greek government to create a favorable environment for investments and main residence purchases as well as drive the Greek Real Estate market forward. This is all part of a greater effort to increase the country’s economic growth.

Το be more precise:

1. Donations regarding movable assets located abroad, made by Greek nationals who used to reside abroad for more than ten consecutive years, are exempted from taxation. In that case, the donor has to provide specific proof regarding the amount of time they resided abroad, the amount of time that has passed since their relocation to Greece as well as the time and place those assets were acquired.
2. Parental donations as well as monetary donations made from parents to children for the sole purpose of being used by the child to purchase real estate that will be used as their main residence will be exempted from taxation as well. This kind of tax exemption is only valid up to a certain sum. In the event the donation exceeds this sum tax will be imposed according to the amount of money donated.

In order for this tax exemption to be applied it is an essential prerequisite for the parents to prove their donation will be used by the child to purchase property that will be used as the child’s main residence.

It should be noted that the aforementioned provisions do not apply retroactively but take effect after the date the aforementioned law was published in the Government Gazette (FEK).

For more information regarding the supporting documents and written evidence required by the applicants, the monetary sums on which tax exemption is applied as well as the specific dates the aforementioned provisions take effect, please do not hesitate to contact us.

For the first time in May 2013, third-country nationals who purchased real estate in Greece, for the minimum price of 250.000 euros, were given the chance to acquire a residence permit for themselves and their family members.

Since 2013, the law concerning the acquisition of “Golden Visa” was amended several times. The purpose of those amendments was to make the whole process easier for investors and prevent criminal acts, such as money laundering. For example, the law provides that payment must be made by means of crossed cheque or any other kind of bank transaction. In any case, all transaction details must be stated in the presence of a notary.

What should an investor in Greece take into account:

For any real estate purchase in Greece, buyers have to hire a lawyer and a notary to protect their legal interests. This applies to anyone buying real estate in Greece, Greeks or foreigner nationals.

After the Golden Visa law was enacted, the role of both notaries and lawyers became even greater, because in order to avoid criminal acts, such as money laundering, notaries now have to verify in the contract that the payment was made by means of crossed cheque or bank transaction. After several amendments to the law, payment by bank transfer was permitted as well. The law also states that all payment details need to be included in the contract. The parties of the contract also need to provide a statement regarding whether or not the real estate was previously used for the acquisition of a Golden Visa.

Starting from 2019, new specific regulations permitted payment by POS, debit or credit card. Payment can now be made by the investor’s spouse as well as their relatives by blood or by marriage up to the second degree. If a third party pays the amount for the acquisition of real estate, their relationship with the investor must also be verified in the contract.

Starting from 2020, notaries have to issue a certificate containing the personal information of the parties of the real estate purchase contract, information concerning the real estate, means of payment, the specific details of the transaction and whether or not the real estate was previously used for the acquisition of a Golden Visa by the seller.

Generally speaking, multiple amendments over the years have made the Golden Visa law quite complex. A sensible course of action for an investor is to find a lawyer and a notary who are already familiar with each other and are used to working together. That way, they will be able to communicate more easily and cooperate harmoniously.

 It is obvious, that the successful completion of purchase of real estate and the subsequent acquisition of Golden Visa would not be possible without involving a lawyer, specialized in real estate transactions and the close cooperation between the notary and the lawyer, who always strive to protect the legal interests of the buyer.

KCH Law Office respecting the guidelines and advice of the Greek government and the WHO during the global COVID-19 outbreak, has taken all necessary measures to ensure the safety of its staff and esteemed clients. 

In view of the current situation, we are now working on a full or partial remote basis and no meeting can take place at any of our offices, though we remain fully operational to the extent that the Greek public system allows us. 
Tax Bureaus, Land registries, Immigration Bureaus etc around the country have shut down their operations or are not fully operational, until further notice. 

In KCH Law Office we continue to monitor closely the situation to ensure that we are ready to adapt to the latest guidance and we are always available to support our clients in the best way that we can. For any issue, please contact us by phone, email or through our contact form. 

While the Golden Visa program is the prime motivator for some investors, for others the desire to own property in the country goes deeper.

The phrase “hen fangbian,” which means “very convenient,” is one of the most common in China. It is used daily, as convenience has become the number one virtue of everyday life. All transactions in the country are now made by mobile phone, using the WeChat and Alipay applications, something that is “very convenient.” So, what is it that makes someone from the other side of the world decide to up and move to this little corner of the map, where, among other things, nothing is easy or simple, but instead hassle is part of everyday life – the opposite of the Chinese saying? Perhaps we should ask ourselves this question, as the Chinese, Russians, Americans, Turks and others who decide tobuy a home and settle here, seem to see something in our country that we have become so accustomed to we don’t even notice it. Daphne Korombeli is a lawyer who lives between Hong Kong, Shanghai and Athens, represents Chinese firms and offers services to Chinese investors who want to acquire a Greek residence permit by buying property. “The Chinese love Greece,” she tells Kathimerini. “For some it is a real life dream to travel to Santorini and see the ‘sea of love,’ as they call the Aegean.” The investment opportunities in our country have brought this dream closer, and quite a few of them have decided to move here permanently after buying their property. “They like the weather, the clean air, the blue sky, the fruit and vegetables bursting with flavor. Imagine that when you wake up in Beijing, Shanghai, Guangzhou or Chengdu, the first thing you do is open the application that reveals the daily pollution index and whether you should or should not leave the house, if you should or shouldn’t open the windows, if it’s a particularly dangerous day for vulnerable groups to be outside,” she explains.

According to Korombeli, the prices in Greece are a world away from those in China. A 100-square meter apartment in a compound in Shanghai’s Jing’an District or a refurbished lane house apartment in the traditional Former French Concession can cost close to a million euros. The Golden Visa program has gradually attracted huge interest. “In 2013, when the law was introduced, the real buyers were few and far between. I remember when my first Chinese customer came with me to Athens to sign a power of attorney in September and, when her property was bought, I went to the relevant state service to submit her application for a residence permit and the employee didn’t know what I was talking about. The manager then told me that this was the first residence permit that had been issued under this law. Today things have completely changed. The increase in interest is gradual and apparent every year,” she says. Those who express interest are mainly businesspeople who have the money to invest and already have companies outside of China. The Golden Visa is the number one reason for their investment as Greece’s residence program is the cheapest in Europe – and gradually also becoming the most popular. Investors are buying property mainly near the sea, “even though they do not like swimming or sitting under the sun,” Korombeli says.

http://www.greece-is.com/news/sun-sea-residence-permits-luring-investors-greek-property-market

A growing appetite for Greek real estate among Chinese buyers is expected to continue as low property prices in Greece and progress Athens is making with creditors on bailout talks is helping fuel investor interest from the Asian country, said Daphni Korobeli, a Greek lawyer based in Shanghai.

The spike in interest comes as Greek Prime Minister Alexis Tsipras winds up Monday his four day visit to China, his second in the last year, hoping to add to Chinese investments that have been provided some relief to the crisis struck Greek economy.

Mandarin speaker Korobeli, who has been involved in tens of Greek real estate deals with Chinese buyers, told greekguru.net that growing bonds between the countries, more favorable coverage of Greece by Chinese media and a push by China to hook up and invest in countries of strategic interest are supporting the rising demand for Greece.

At the same time, the Chinese are becoming more tuned into what is happening outside of their country, seeking solutions to their everyday problems.

"They are very concerned about pollution, the food they are eating and where it comes from. They want to increase their quality of life by buying a home abroad," said Korobeli, a partner at KCH law firm.

Chinese have been investing big in Greece, a country struggling to draw foreign investors.

China's biggest shipping company, Cosco, bought a majority stake in the port of Piraeus last year just before China State Grid agreed to buy a 24 percent stake in Greek power grid operator ADMIE for 320 million euros.

Last week, Greece's Copelouzos group signed a deal with China's Shenhua Group to cooperate in green energy and power production in Greece in a deal worth 3 billion euros.

After meeting with Tsipras n Beijing on Saturday, Chinese President Xi Jinping said the two countries need to expand their cooperation in energy, infrastructure, oceanic and telecommunications sectors.

The biggest source of foreign buyers in Greece's residential property market comes from China. Since Greece launched its residency for investment Golden visa program in 2013, some 1,500 residency permits have been issued to non European Union nationals, with the majority going to Chinese buyers.

READ ALSO: EU Golden Visa programs - Take your pick

Korobeli said there are different categories of Chinese buyers in Greece: those who simply like Greece, those that just want an investment or buyers that want both.

"Chinese buyers prefer newly built homes. They usually want a sea view or to be close to a beach and close to shops, public transport, international schools," she said.

The Chinese are helping breathe life into Greek properties where prices have dropped some 45% in the last seven years but the amount of money being poured into local real estate is far less than that spent in other countries, such as Cyprus and Portugal.

https://www.greekguru.net/single-post/2017/05/14/Chinese-buyer-appetite-for-Greek-property-seen-rising

Korobeli said that Greece needs to become more transparent to gain the trust of Chinese investors. Trying to provide Chinese buyers with basic information about their investment's future costs can sometimes be a struggle.

“They (Chinese buyers) ask me how much ownership tax they should expect to pay for their Greek property every year and I can't answer them, as this tax is dependent on many different factors and it is very hard to be calculated accurately, or might even change,” she said.

"A steady tax framework would help increase trust in Greece."