Real Estate on Santorini - What Buyers Should Know

For generations, the pearl of the Cyclades has been a symbol of Mediterranean lightness. Anyone who has experienced the white-blue architecture of Santorini at sunset will always remember this moment. Climate, culture and nature are reasons why more and more Germans feel compelled to purchase a domicile on the Aegean. But there are a few things you should consider before buying a property!

After years of strong depreciation, property prices on the Greek volcanic island have stabilised again. Compared to other holiday regions, properties on Santorini are still cheap. Often, the market value is far below the European average. For example, since the economic crisis in 2008, experts see a 50 percent drop in prices for primary residences. Holiday homes are affected by a 20 percent decrease in value.

Foreign buyers in particular benefit from an interesting selection of affordable houses, flats and plots of land that can be found in every location and size. For Germans, a holiday home directly by the sea is particularly sought after. A special feature on the charming island are semi-finished buildings for sale. Whoever buys a building shell at a reasonable price can finish the property according to his or her personal ideas. For some customers, this option proves to be quite sensible.

A well-kept holiday home on Santorini costs around 100,000 euros. More comfortable offers await you from 150,000 euros. The price of a house is between 200,000 and 300,000 euros. For a villa with a sea view, you have to spend more than 300,000 euros. With the gradual recovery of the Greek economy, the price of a property is not expected to fall any further in the near future.

Before buying a property, it is essential to visit the property in Santorini. If you have decided on a property, lawyers will draw up a preliminary agreement. After signing the agreement, a deposit is due. Locally, 5 to 10 percent of the purchase price is customary. Within a quarter of a year, the contract of sale is signed and notarised in the presence of a notary on Santorini.

The remaining amount of the purchase price including tax has to be paid afterwards. As soon as the amount is paid, the new owner is recorded in the land register. As a rule, the estate agent receives 2-5 percent of the purchase price. The buyer and seller pay for the fee in equal shares. While the notary is entitled to 1-2 percent of the purchase price, the lawyer is paid up to 1.0 percent of the sales price for his services.

To buy a property, you need a so-called A-Fi-Mi tax number from the competent tax office. This is because legally, buyers from abroad are on an equal footing with locals. If the property is sold again within 5 years, a value appreciation tax is due. In order to prevent speculation, the state demands up to 25 per cent tax in this case, which is calculated from the difference between the acquisition value and the sales price.

Still missing is the land transfer tax, which is determined from the appraised value of the local tax office. Since 2014, this fee has been 3 per cent. A further 3 per cent of the land transfer tax must be paid to the municipality. A land registry tax of 0.3 to 0.5 per cent of the assessed value is levied.

A legalisation law prevents illegally built properties from being sold. Thus, buying real estate in Greece is attractive, because before each purchase, 2 independent appraisers convince themselves of the legality of the transaction. German-speaking estate agents, lawyers and notaries ensure a smooth process. Only one lawyer is allowed to look at the local land register to check the ownership of the property over the past 20 years.