GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
• Legal Proceedings: If disputes arise, land - owners can appeal the compensation amount in court if they believe it is insufficient. 2.10 Taxes Applicable to a Transaction Real estate transactions are subject to several taxes, most notably a 3.09% transfer tax on the property’s assessed value or the purchase price, whichever is higher. The transfer tax is paid by the buyer just before signing the notarial deed, along with the submission of the tax declaration. In share deals, any income derived from the cap - ital gain on the transfer of the shares is subject to capital gains tax borne by the transferor. Partial ownership transfers also incur taxes. Specific categories of individuals are eligible for a tax exemption, provided that the property is solely used as their primary residence. 2.11 Legal Restrictions on Foreign Investors Foreign investors can acquire real estate, but certain restrictions apply: • Non-EU nationals (individuals or legal enti - ties) are prohibited from purchasing land or acquiring any real property rights in areas of Greek territory designated as border regions or military zones, without prior approval from the Greek State (Articles 25 and 26 of Law 1892/1990, as amended and in force). • The issuance of a Greek tax identification number is required to complete an asset transaction.
due diligence, including environmental assess - ments, is essential. Due to varying legal circum - stances, buyers should consult legal and envi - ronmental professionals before proceeding with transactions. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law To determine permitted uses of a parcel of real estate, buyers should review local zoning ordi - nances, consult the zoning map, and contact the planning or zoning department. Obtaining a title report and consulting a real estate attorney can clarify restrictions. Additionally, entering into development agreements with public authori - ties can facilitate projects by outlining terms for collaboration and resource allocation, ensuring regulatory compliance, and addressing public interests to streamline the development process. 2.9 Condemnation, Expropriation or Compulsory Purchase In Greece, expropriation or compulsory pur - chase (Law 2882/2001, as amended and in force) is classified into compulsory expropria - tion, which is done for specific projects such as schools or churches, and urban planning expropriation, which occurs as part of broader urban development, such as creating city plans or opening roads. The procedure aims to pro - mote public interest and typically involves the following steps: • Declaration of Public Interest: The govern - ment must declare the project as serving a public interest. • Notification: Affected landowners are notified of the intention to expropriate their property. • Valuation: An assessment of the land’s value is conducted to determine compensation. • Compensation Offer: The government offers compensation based on the valuation.
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