Invest in Crete, Greece

A persistent issue in the Greek property market is dealing with fake real estate agents or agents operating without the necessary certifications.
These individuals can be especially problematic for foreign buyers unfamiliar with local regulations. In some cases, these agents may show you properties they don’t legally represent or even sell properties they don’t own. This can lead to buyers paying deposits on properties they will never actually own. For example, in tourist-heavy regions like the Greek islands, scam agents often target unsuspecting buyers, knowing that they are less familiar with local laws.
They may pressure buyers into quick deals, offering to bypass the formalities with “easy” paperwork, leading buyers into legal entanglements or financial loss.

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Beware of Property Sale Price Scams in Greece

One common real estate scam in Greece involves underreporting the official property sale price to reduce tax obligations. Sellers and agents may urge buyers to declare a lower price in the official sales contract while paying the balance “under the table.”

While this tactic may seem like an easy way to cut costs, it is illegal and can result in severe financial and leal consequences for the buyer.

Many buyers fall victim to this scheme due to a lack of awareness about its legal risks. Discrepancies between the declared price and the actual market value can lead to significant problems when reselling the property or filing tax returns.

If authorities uncover the mismatch, buyers may be subject to substantial fines. Additionally, the official contract price limits the buyer’s ability to pursue legal claims for defects or other issues, as it does not reflect the full amount paid.

Tips to Avoid Fraudulent Property Pricing

Always insist on full transparency in property transactions.

Hire a certified surveyor or appraiser to conduct an independent valuation.

Avoid agents or sellers who encourage under-the-table deals or suggest declaring a lower sale price to save on taxes—this shortcut is not worth the long-term risks.

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Hidden Costs When Buying Property in Greece: What to Watch Out For

One of the major challenges in purchasing property in Greece is the risk of unexpected fees that emerge during the transaction process.

These additional costs can take various forms, including extra legal fees, agent commissions, notary charges, and supplemental property taxes.

A common issue arises when sellers or agents fail to disclose the complete range of expenses early in negotiations, potentially inflating the overall purchase price significantly by the time the final contract is signed.

This practice is particularly common in competitive markets such as Athens, where some sellers and agents may understate costs to lure buyers.

It is not unusual for buyers to discover that the total property cost has increased by 10-15%, with certain charges revealed only in the final stages of the transaction.

How to Avoid Hidden Fees and Costs

To protect yourself from unwelcome surprises:

Request a comprehensive breakdown of all fees and charges upfront.

Hire a trusted lawyer and financial advisor to explain the expenses you’ll encounter, including legal, notary, registration, and transfer tax fees.

Avoid working with agents who are vague or reluctant to provide detailed cost information.

The problem of unregistered properties is widespread in Greece due to the ongoing modernization of the National Land Registry.
Many rural properties, especially those inherited or passed down through generations, may not be fully registered. This can result in legal disputes or the inability to prove ownership.
Properties in some areas may even still be documented using older systems, such as handwritten deeds, which can complicate the transaction.

For example, properties in remote areas like Peloponnese and Crete are more likely to be unregistered, and buyers who invest without verifying registration risk facing years of legal battles to assert ownership.

In some cases, unregistered properties can also be subject to expropriation, further complicating ownership claims.

How to Avoid Unregistered Properties:

Before proceeding with a purchase, ensure that the property is properly registered with the Greek Land Registry.
A qualified lawyer can check the property’s legal status and ensure that the property’s boundaries and ownership details are fully documented. Avoid purchasing properties with unresolved registration issues​.

Greece has seen a rise in properties being superficially renovated and marketed as new. These “new” properties often have cosmetic improvements such as fresh paint or modern appliances, but they may mask more serious underlying issues, such as old plumbing, wiring, or foundational problems.
The renovations are often done to increase the asking price without addressing major defects, leaving buyers with unexpected costs for structural repairs.

A common example involves properties in central Athens, where older apartments or homes have been superficially updated and marketed to foreign buyers as move-in ready.
In many cases, buyers discover after the sale that the renovation did not include updates to critical systems, such as heating or water, leading to significant repair costs.

How to Avoid Cheaply Renovated Single Units Marketed as New Properties:

Hire a professional to conduct a thorough inspection before committing to a purchase.
Ensure that the inspector checks for structural integrity, plumbing, electrical systems, and compliance with building codes. Look beyond cosmetic fixes and ask for detailed information about any recent renovations​.

One pitfall specific to buying residential property in Greece, especially for foreigners, is the potential misinterpretation or misunderstanding of the “arxaiologia” (archaeological) laws and regulations.

Greece, with its rich ancient history, has numerous areas that are considered of archaeological interest. When purchasing property, particularly in areas close to historical sites or on islands like Crete or Santorini, you should be aware of any archaeological restrictions that might apply.

In Greece, if a land is deemed to have archaeological significance, any development or alteration can be severely restricted or even prohibited. This could include renovations, extensions, or building new structures on the property.

The challenge is that these restrictions aren’t always immediately apparent or clearly marked in property listings. The frequency of this issue is higher in regions with a dense concentration of historical sites.

It’s essential for you to conduct thorough due diligence before purchasing.

This means not only checking the standard property documents but also consulting with local authorities or a lawyer specialized in Greek property law to understand any archaeological restrictions that might apply.

Failure to do so could result in costly legal challenges or even the inability to develop or alter your property as planned.

This pitfall is quite unique to Greece due to its extensive ancient heritage and the government’s efforts to preserve it.

Another specific pitfall you should be aware of when buying residential property in Greece is the issue of “oikopedo” (plot) size irregularities. In Greece, especially in rural areas or on the islands, the actual size of a land plot may not always match the size recorded in the official documents, such as the “ktimatologio” (land registry).

This discrepancy can arise due to historical inaccuracies in land measurement, undocumented changes over time, or informal agreements between past owners that were never officially recorded.

When considering a property purchase, particularly in less urbanized areas, you must ensure that the land plot’s size is accurately represented in all legal documents.

An inconsistency in the recorded size can lead to legal complications, affect the property’s value, or even impede future sale or development.

To avoid this, you should commission an independent survey of the property by a qualified surveyor before finalizing the purchase. This step is crucial because relying solely on the seller’s or real estate agent’s information might not provide the full picture.

Additionally, engage with a local lawyer who understands the intricacies of Greek property law and can verify that all the documentation is accurate and up to date.

This issue is particularly prevalent in Greece due to the country’s complex property history and sometimes inconsistent record-keeping practices.

It’s a mistake easily overlooked by foreigners who might not be familiar with the local processes and historical context of Greek land ownership.

Another prevalent issue in the Greek property market is misrepresentation of the size of land plots. Sellers sometimes overstate the actual size of the land, either intentionally or due to outdated records.

For instance, properties in rural Crete or Naxos are often sold with inaccurate descriptions of plot size, which buyers discover only after conducting their own surveys.

In some cases, the property includes less usable land than advertised due to zoning regulations or terrain limitations (e.g., steep hillsides or rocky terrain).

Cadastre

An example is the Cadastre system – Greece’s attempt to create a comprehensive land registry. Initiated in 1995, it’s still an ongoing project, and not all properties are recorded, leading to potential title disputes.

Expropriation is a legal process in which the government takes private property for public use, often to build infrastructure such as roads, railways, or public facilities.

In Greece, certain properties, particularly those located in developing areas or near historically significant sites, face a risk of expropriation.

The Greek government has the authority to expropriate private land when it is deemed necessary for public projects, such as the expansion of transportation networks or archaeological preservation efforts.

Expropriation often affects properties located near major urban centers like Athens and Thessaloniki, as well as tourist-heavy islands like Crete and Santorini where infrastructure development is ongoing.

Foreign buyers may be unaware that the land they have purchased is part of a future expropriation plan, leading to the loss of their property. The expropriation process can take years, during which the property’s ownership and usage are frozen.

Furthermore, the compensation provided by the government is often well below the market value, leaving buyers financially disadvantaged.

This pitfall is more common in areas undergoing rapid development or revitalization, such as Athens’ western suburbs or parts of Rhodes, where urban planning authorities are expanding infrastructure to accommodate population growth and tourism.

The unpredictability of these expropriation decisions, coupled with insufficient communication from local authorities, leaves buyers vulnerable to sudden losses.

How to Avoid the Risk of Expropriation:

To avoid purchasing a property at risk of expropriation, it’s essential to consult with local authorities and verify if there are any public projects planned for the area.

A local lawyer can also check if the property is subject to potential expropriation or if there have been any public announcements that may affect the land’s ownership.

It’s crucial to have a legal expert involved to ensure that the property is free from such risks​.