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SATURDAY – SUNDAY, MARCH 31 – APRIL 1, 2018 KATHIMERINI l S1

SPONSORED SECTION REAL ESTATE Greek properties attract many foreigners High-end resorts and villas catering to needs of high-net-worth individuals put market on new footing

By ILIAS BELLOS from their pre-crisis peak, and with booming summer tourism buoying After a deep correction in the first half short-term rentals, Greek property of the decade, the Greek real estate mar- prices now offer a highly attractive yield ket has returned to stability, and tourism on investment, industry experts say. sector properties and office spaces are That has drawn investors from China, even seeing an appreciation. At the same who now account for almost half of all time, investor interest is proliferating Golden Visa holders. But another rea- and sentiment is improving. Neverthe- son is ’s EU membership. In the less the prospect of a further recovery past year, nationals from several neigh- of the real estate market hinges, inter boring Mediterranean countries – most alia, on the strengthening of the Greek notably – have also been buying economy's outlook, improved business up Greek real estate, lured both by the and household confidence, an easing of access to the EU that a Golden Visa of- bank financing conditions, a reduction fers, as well as to diversify their hold- of red tape, the completion of the na- ings away from an uncertain climate in tional cadaster and the consolidation of their home country. a stable tax framework, according to the In the meantime, the rapid growth Bank of Greece. of short-term rental websites such as The decline of the Greek real estate Airbnb, Homeaway, Booking and others market began in 2009, mainly driven by in Greece since 2010 has created a new the contraction in GDP per capita, the player in the hospitality market. The rise drop in mortgage loans and the rise in in the number of world travelers in com- taxation, dragging investments and res- bination with high hotel rates and de- idential property prices lower, Pricewa- mand for low-cost travel has made these online platforms very popular and boost- <<<<<< ed apartment prices in prime locations The special residence pro- and most certainly villas on Greece's Aegean and Ionian islands and coasts. gram for foreign investors Furthermore a new real estate mar- has taken off, reflecting in- ket segment is emerging in Greece, tar- geting high-net-worth individuals. The creasingly bright growth leader in this field is TEMES, a premier prospects as the country developer of luxury mixed-use resorts. Its Navarino Residences at Costa Navari- emerges from economic no in Messenia in the Peloponnese was crisis, while it remains an awarded as the “Best International Res- important gateway to the idential Development” and “Best Euro- Greece’s Golden Visa program grants a permanent residence permit – and access to 26 Schengen-area countries – to individuals and their families who invest a minimum pean Residential Development” for European Union of 250,000 euros in Greece, for example in real estate or other productive investment 2017-18. Such developments present a unique opportunity to acquire luxury freehold real estate in Greece in privi- terhouseCoopers calculates. A loss of ap- was twice that recorded in 2016, accord- driver for participants, while, for the first emerges from economic crisis and its Golden Visa has become still more at- leged Mediterranean beachfront loca- proximately 18 billion euros (8.2 percent ing to a study by NAI Hellas, a leading time, the completion of the second re- growing importance as a gateway to the tractive to foreign investors, comparing tions. of GDP) in construction investments was firm of commercial property consult- view of the country’s program with the European Union, according to Enter- favorably with similar programs in coun- More are following suit. Amanzoe observed within 2008-15, resulting in a ants, valuers and managers based in institutions [European Central Bank, Eu- prise Greece. In the last year, the number tries including Cyprus and Portugal. A and One & Only are creating luxury villas further slowdown in economic activity. , which provides a wide range of ropean Stability Mechanism, Interna- of foreigners awarded a Greek Golden stepped-up promotion program has also in Argolida and Kea respectively, while “For the rapid recovery of the real estate real estate consultancy services. tional Monetary Fund, European Com- Visa has soared, rising by more than 40 helped. on the so-called Athens Riviera more market, a new regulatory framework, Investors’ prospects for Greece in the mission] appears to have impacted in- percent from a year earlier. Greece’s Golden Visa program grants high-end properties are being built by along with measures to facilitate trans- next five years are significantly higher vestors' intentions. On the other hand, Launched five years ago, at the height a permanent residence permit – and ac- Astir Pallas at Vouliagmeni and Grivalia actions (creation of a land bank) and re- now compared to 2016, with 48 percent the county’s taxation on real estate re- of the country’s economic crisis, the cess to 26 Schengen-area countries – to at Glyfada. duce oversupply (massive redevelop- of respondents in the NAI Hellas poll mains the biggest barrier for the major- Golden Visa program is now coming of individuals and their families who invest The wider market for Greek villas is ment) are needed,” a relevant PWC paper stating that the potential of the country’s ity of respondents, followed by the lack age amid a new wave of investor inter- a minimum of 250,000 euros in Greece, concentrated in some of the most pop- stresses. RE market was good or very good. “The of quality investment product. While est, particularly from countries such as for example in real estate or other pro- ular Greek tourist destinations, such as However, prime properties in each turning point of the Greek economy is the political risk factor has decreased China, and Turkey. There are sev- ductive investment. According to the Myconos, Santorini, Rhodes, Corfu, sector are already staging a strong come- the main driver for investors that is ex- since 2016, public sector intervention in eral reasons for this, from Greece’s sun- latest data from end-November, a total Paros, and the islands of the Sa- back, with five-star hospitality assets at pected to consequently lead to capital the completion of transactions is a major ny Mediterranean climate and high qual- of 2,170 Golden Visas have been issued ronic Gulf. the forefront. appreciations. The high number of dis- concern from investors' point of view.” ity of life, to its low property prices. A directly to foreign investors – and more The villa rental market in Greece, In a clear sign of the improvement in tressed properties remains one of the In the meantime Greece’s special res- budding economic recovery plays a role than 5,000 when family members are which appeals to the buy-to-rent in- investors' perception of Greece, the num- most important drivers although it still idence program for foreign investors has for some investors, while for others it's included – up from 1,522 at the end of vestors, is relatively new and still quite ber of investors willing to consider in- ranks lower than in 2016. The continuing taken off, reflecting increasingly bright political uncertainty abroad. And since 2016. immature, but this also provides oppor- vesting in real estate in Greece in 2017 growth of Greek tourism is again a main growth prospects as the country the law was revised in 2015, Greece’s After falling by as much as 50 percent tunities for the smart investor

Sun, sea and residence permit luring investors to snap up Greek properties

By LINA GIANNAROU also Swiss and Israelis. In Israel for exam- ple, it is rumored that wealth will be heav- The phrase “hen fangbian,” which means ily taxed so many people are deciding to “very convenient,” is one of the most com- diversify their risk. Besides, everyone ex- mon in China. It is used daily, as conven- pects prices in Greece to rise sharply, that ience has become the number one virtue soon one euro will cost two. At the same of everyday life. All transactions in the time, it is the best and cheapest program country are now made by mobile phone, in that allows many people to using the WeChat and Alipay applications, combine business with pleasure,” he something that is “very convenient.” So, adds. In addition to that, a large section what is it that makes someone from the of buyers don't just want to have a sum- other side of the world decide to up and mer house or to rent the property for extra move to this little corner of the map, income, but wish to relocate permanently where, among other things, nothing is to Greece. “They want to be fully integrat- easy or simple, but instead hassle is part ed into Greek society, they search for of everyday life – the opposite of the Chi- schools, universities. These are mostly nese saying? Perhaps we should ask our- wealthy people who want to change their selves this question, as the Chinese, Rus- lives,” Varnavas says. Anna Haughton, sians, Americans, Turks and others who an American with Greek roots, lives and decide to buy a home and settle here, seem works in Athens as an investment adviser. to see something in our country that we In the past few years, she has handled have become so accustomed to we don't dozens of cases of Americans who want to acquire property in Greece. <<<<<< “Greece sells itself. Athens is a lively “The Chinese city with an amazing expat community, a museum in every corner and great for love Greece. For some walking,” she said, adding that she it is a real life walked to our meeting in central Syntag- ma Square from Kypseli, a good half-hour dream to travel north. to Santorini and see “There are many Americans who the ‘sea of love,’ would like to buy a house here, others be- Many potential buyers feel a certain familiarity because of our food but also because they had grandparents who lived here, the Russians love the country because cause they claim ancestry in the country, as they call the Aegean.” of the weather, the Chinese admire it for its history. Nobody sees it merely as an investment – for everyone it is something more. others because they love Greece and al- ways wanted to have property here. Some of our customers are thinking about re- even notice it. Daphne Korombeli is a that when you wake up in Beijing, Shang- huge interest. “In 2013, when the law was businesspeople who have the money to press an interest have, one way or anoth- tirement, others want to rent the property lawyer who lives between Hong Kong, hai, Guangzhou or Chengdu, the first introduced, the real buyers were few and invest and already have companies out- er, an emotional connection with our through Airbnb for a while to cover ex- Shanghai and Athens, represents Chinese thing you do is open the application that far between. side of China. The Golden Visa is the num- country. Turks feel a certain familiarity penses and others for a combination of firms and offers services to Chinese in- reveals the daily pollution index and I remember when my first Chinese cus- ber one reason for their investment as because of our food but also because they those reasons,” she adds. There are also vestors who want to acquire a Greek res- whether you should or should not leave tomer came with me to Athens to sign a Greece's residence program is the cheap- had grandparents who lived here, the plenty of Americans who were already idence permit by buying property. the house, if you should or shouldn't open power of attorney in September and, est in Europe – and gradually also becom- Russians love the country because of the living in Greece and decided to buy a “The Chinese love Greece,” she tells the windows, if it's a particularly danger- when her property was bought, I went to ing the most popular. weather, the Chinese admire it for its his- house because the one they were living Kathimerini. “For some it is a real life ous day for vulnerable groups to be out- the relevant state service to submit her Investors are buying property mainly tory. Nobody sees it merely as an invest- in was rented out to Airbnb. The most dream to travel to Santorini and see the side,” she explains. application for a residence permit, the em- near the sea, “even thought they do not ment – for everyone it is something popular districts are those which have re- ‘sea of love,’ as they call the Aegean.” According to Korombeli, the prices in ployee didn't know what I was talking like swimming or sitting under the sun,” more,” he says. tained their value, such as Thiseio, Plaka, The investment opportunities in our Greece are a world away from those in about. The manager then told me that this Korombeli says. The political instability of previous Monastiraki, but also Pangrati, Kolonaki, country have brought this dream closer, China. A 100-square meter apartment in was the first residence permit that had Alexandros Varnavas is also a lawyer years had dented interest, but now most Ilissia and Petralona. As of late, interest and quite a few of them have decided to a compound in Shanghai's Jing’an District been issued under this law. Today things specializing in property investments by people believe the danger of Grexit has has also been expressed in neighborhoods move here permanently after buying or a refurbished lane house apartment in have completely changed. The increase foreign nationals. According to him, the passed, the economy has stabilized and such as Kypseli. their property. “They like the weather, the traditional Former French Concession in interest is gradual and apparent every Golden Visa program is only one reason the property market in central Athens is “I love Athens,” says Haughton. “If the clean air, the blue sky, the fruit and can cost close to a million euros. The Gold- year,” she says. pick Greece. starting to recover. “It's not just third- they also cleaned it up a bit, it would be vegetables bursting with flavor. Imagine en Visa program has gradually attracted Those who express interest are mainly “People of all nationalities who ex- country nationals who want to invest, but great.” EN0403_02_ 29/3/18 6:39 μμ Page 1 EN0403_03_.qxp3+ 29/3/18 6:39 μμ Page 1

SATURDAY – SUNDAY, MARCH 31 – APRIL 1, 2018 KATHIMERINI l S3 REAL ESTATE Opportunities in central Athens and other locations In addition to the interest of many to reside in Greece, a multitude of investors is wooed by the growth of the short-term rental market

By NIKOS ROUSSANOGLOU care of these things by themselves. Visa program that grants residence The company collects a commission permits to non-European Union cit- The rapid rise of the short-term rental ranging from 15 to 20 percent from izens who spend more than 250,000 phenomenon, whereby furnished the owners’ revenues. euros on property in Greece, we have rooms, houses and apartments are Currently Eazybnb manages 230 seen significant opportunities cre- advertised online on platforms such properties across the country, 140 ated for investment.” as Airbnb and HomeAway, as well as of which are in Athens, while by Homm recently acquired and is Booking and Trivago, is evolving into mid-2019 it estimates the total fig- leasing out an entire apartment a factor that is reshaping not only the ure will have risen to 500. According block in the capital's Attikis Square, housing market but also real estate to the company’s co-founder and near the metro station, and has two entrepreneurship in Greece. project manager Nasos Gavalas, the more buildings for utilization: one In 2016 and 2017 such rentals to aim for this year is the addition of on Mitropoleos Street in the city cen- foreign visitors started to soar, to the properties in more destinations and ter with five apartments of 100 extent that the annual turnover of popular tourism resorts, such as square meters each, and another it the home-sharing sector in Greece is Crete (Hania and Iraklio), Myconos, has prepared in nearby Plaka. The now estimated at 860 million euros Zakynthos, Porto Heli, Spetses and investments in these projects add based on guests’ accommodation ex- Epidavros, as well as expanding up to 1.5 million euros. penditure, and at 1.7 billion euros if abroad, beginning with Cyprus. In total the company manages 43 one adds the other expenses those Plans also include an increase in the properties it owns, and manages an- visitors make in the country. company’s presence in areas such other 100 or more properties belong- A recent study by Grant Thornton as Thessaloniki, Halkidiki, Paros, ing to third parties (shipowners, en- for the Hellenic Chamber of Hotels Galaxidi and Arachova. trepreneurs etc), in Athens, on My- showed that the total number of The growth of the short-term conos and in other areas of high properties registered for letting on rental market has attracted a multi- tourism interest. online platforms amounts to 42,155 tude of investors too. Gradually the Depending on demand, each of across Greece. Another 21,716 prop- entire ecosystem of people involved the properties that Homm man- erties are rented as tourism accom- in this domain will shift to a more ages – both its own and those be- modation (bearing the badge of the professional basis, as is already hap- longing to others – can also be sold, pening. Data show that over 50 per- as the aim is for every property to <<<<<< cent of the properties for lease turn into an investment product through the Airbnb platform in the that can fetch revenues for its own- The country's residence- center of Athens are owned by pro- ers through utilization or be sold for-investment scheme fessionals or investors who rent out on for capital gains. Homm's main is described as the best more than one unit. A significant target is foreign investors who share of them are foreigners who are wish to obtain a residence permit, in Europe The notion that prices have completed their downward cycle has prompted more acquisitions. looking forward to future capital while the company continues to gains when they sell the properties manage those properties even after they have acquired. There is consid- their sale. There is also demand for Greek National Tourism Organiza- from just six months ago, when an there is demand for more profes- home-sharing due to the lack of de- erable demand, which in turn cre- other services, which are con- tion), raising the total number of estimated 5,130 properties were be- sional property management serv- mand in the Greek market. There ates more opportunities in the mar- stantly expanding: A case in point houses and apartments leased out ing advertised on such platforms. ices, as competition among prop- are also companies such as ket. Homm is one company that has is the Syncbnb startup, set up a few to 63,871. This growth is leading to the emer- erty owners also keeps growing. Eazybnb, which have been created capitalized on this demand, as a months ago by Alexandros Karavi- These figures are constantly gence of new needs on the part of Today property management is exclusively due to the growth in property investment and construc- tis and Petros Ziogas, which helps growing, at least as far as Athens is owners as well as investors who are offered for this particular category short-term rentals. Eazybnb offers tion firm founded in 2000 has since short-term property owners list concerned. In the city center it is interested in positioning them- of assets by existing companies in the full range of property manage- 2004 developed a presence in the their properties on multiple plat- now estimated that there are some selves in this new market with ma- the property sector that predate the ment services to owners, from pro- sector of tourism and accommoda- forms in order to increase their 6,500 houses and apartments being jor growth prospects, given the rise of Airbnb etc, as well as estate motion to bookings and cleaning. It tion. Homm director Dimitris Rizos bookings, and synchronizes them rented out for short stays, which soaring tourism arrivals in Greece agencies and even construction is ideal for owners who are either explains that “with the increase of to avoid the problem of double constitutes a 27 percent increase in the last few years. In this context businesses that have turned to unable or not interested in taking short-term leasings and the Golden booking.

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S4 l KATHIMERINI SATURDAY – SUNDAY, MARCH 31 – APRIL 1, 2018 REAL ESTATE

Are you licensed to import goods Opportunities in Greece into Greece without paying VAT? wooing many Chinese By ANESTIS DOKAS, which accounts for 43.5 percent of all IOANNA FOTIADI such residence permits issued in that Benefits can lead to more competitive pricing schemes and increase of market share period, according to figures from En- The government is targeting the ex- terprise Greece. pansion of Chinese placements in Gre- Demand from China for Greek pro- By NICK KALOFONOS, clients apply the so-called “reverse- ece beyond property investments and perties has more than tripled within SENIOR MANAGER, TAX, KPMG charge mechanism,” based on which is considering granting Golden Visas a year. they do not encounter any cash out- to non-European Union citizens who The increased Chinese interest in Greek value-added tax flow from a Greek VAT perspective. invest significant sums in local secu- acquiring a holiday home in Greece legislation provides Third, there is a decreased admi- rities, with the country looking at- raises optimism not only among lu- for a number of ways nistrative burden in terms of EU cu- tractive to Chinese investors for a xury property owners in this country, to import goods into stoms formalities, since these are number of good reasons.Besides the but also a series of related professions, Greece without han- taken care of at one single point of provision of a five-year residence per- such as estate agents, notaries and ding VAT over to the entry into the EU, with goods being mit to those who invest at least translators as well as those in the customs authorities. subsequently forwarded to EU ju- 250,000 euros in the Greek real estate building trade. One option is to tem- risdictions without passing through market, Athens is examining exten- “The Chinese harbor great affection porarily place goods arriving from customs. The above benefits can ding the same incentive to non-EU for modern Greece and admiration non-European Union jurisdictions in lead to more competitive pricing citizens who spend 300,000 to 500,000 for the ancient Greek civilization,” a free zone (or similar setup), effecti- schemes, with license holders even- euros on investment products, who one estate agent commented. “Fur- vely suspending the payment of cu- tually increasing their market share. place 1 million euros in Greek state thermore the Greek program is the stoms duties and VAT until they are For this reason, the recent trend is repos or invest capital in domestic most beneficial in financial terms th- sold locally (if sold abroad, any such for businesses trading internatio- real estate investment companies. roughout the EU,” he added. payment obligations apply in the re- nally to consider altering their lo- The first moves to woo mainly The reasons behind the increased spective country of destination). Ano- gistics flows, rendering Greece a Chinese investors – who account for Chinese interest in Greece are more ther option is for Greek businesses hub where non-EU goods are cu- 50-55 percent of the international than meets the eye: “Many of them to apply for a special VAT exemption stoms cleared without VAT and then funds placed in investments – were want to secure a better level of edu- certificate, on the basis of which forwarded to destinations in or ou- made last August when officials of cation for their children,” the same goods imported into Greece can clear tside of the EU. At KPMG we have the Capital Markets Commission and source said. “They include their re- customs with the company paying long experience in assisting busi- the Athens Stock Exchange appro- sidence permit in Greece in their ap- only customs duties, as long as they nesses using the VAT exemption/su- ached the two main Chinese stock plications to leading US universities, then sell such goods abroad. spension regimes best suited to markets (Shanghai Stock Exchange as well as when seeking a place at In addition to the above, the most their particular needs. We can help and Shenzhen Stock Exchange) and one of the private international sch- favorable alternative allows large fo- your business monitor physical signed memorandums of understan- ools that are considered the best in reign businesses (or groups of foreign flows of goods imported into the ding with them. China.” businesses) importing high volumes EU and assess your eligibility, for Among the objectives of the MoUs A high number of Chinese people into the EU to apply for a license, wh- KPMG is a global network of professional services firms providing Audit, Tax example, to obtain the above license. is the effort to introduce exchange- apply for a Golden Visa to obtain a ereby they can import goods into and Advisory services. We operate in 154 countries and territories and have 200 Where eligible, we can further assist traded funds (ETFs) in both countries, home outside China, “just in case.” Oth- Greece and customs clear them by 000 people working in member firms around the world. The independent in the compilation of the required and mainly the introduction of a Greek ers are also worried about the financial paying only the applicable customs member firms of the KPMG network are affiliated with KPMG International documentation and submission to ETF in China and to a lesser extent situation: “There is concern about a duties. Required conditions include Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally the Greek authorities, ensuring its that of a Chinese ETF in Greece. bubble related to the bank loans that that the goods’ value exceeds 250 distinct and separate entity and describes itself as such. smooth audit until the license is Hundreds of Chinese have already until recently were very easy to obtain,” million euros per annum (100 million duly issued. obtained Golden Visas via property Alfieri added, further pointing to poli- euros for the first five years) and that The real question is whether you purchases, and also constitute the tical concerns that have increased the at least 90% of such goods are sold cense. Besides, although the benefits costs of financing, since they do not can afford to allow competitors gain best hope owners of local luxury pro- desire of some Chinese to leave their abroad. of the license may appear somewhat pay import VAT when goods enter a comparative advantage, or whether perties have for the concession of country. Therefore in the next couple Although the above conditions similar to those of the special VAT the EU. Second, permitted domestic you want to thrive and become a their assets. From June 2014, when of months a number of property tran- may seem heavy, they can be met exemption certificate, the license le- sales (i.e. less than 90% of the im- market leader instead. the Golden Visa program started, until sactions are expected to be completed more easily when foreign businesses ads to a significant threefold advan- ported goods’ value) do not include November 2017 Greece issued 945 in Greece involving Chinese people apply to jointly come under one li- tage. First, holders incur reduced Greek VAT; rather, Greek corporate For more information: kpmg.com/gr Golden Visas to Chinese investors, who are not necessarily wealthy.

BARNES is developing in the Greek market as BARNES Greece by a team with strong presence in the real estate, in order to manage a large property portfolio in Greece as well as unique locations abroad. BARNES International has got a very strong network across the globe, making BARNES Greece the best choice for finding properties not only in Greece but also abroad, providing a whole set of services according to the needs of the customer.

Tinos Cyclades, Greece

A stunning villa of 352sq.m. on a 6.400sq.m. plot with a breathtaking view over the Aegean Sea.

Verbier Switzerland

Incredibly located at the foot of the ski slopes in Les Esserts in Verbier, this superb penthouse duplex of approximately 150sq.m. enjoys absolute tranquility.

BARNES Greece 18, Kanari Str. | 106 74 | Athens 210 36 40 100, 210 36 40 108 [email protected] | www.barnes-greece.com EN0403_05_ 29/3/18 6:47 μμ Page 1

SATURDAY – SUNDAY, MARCH 31 – APRIL 1, 2018 KATHIMERINI l S5 REAL ESTATE Acquisition and ownership of Real estate in Greece Basic legal framework, property rights, procedural issues of acquisition, and restrictions

By MARCEL CREMER • Technical survey of the property. tain restrictions apply investors de- This is not a compulsory stage, but it cide to buy real estate in Greece: 1. Introduction is highly recommended as planning Acquisition in forest areas. Sub- Greece has become a and or structural issues may occur ject to the Hellenic Constitution, favourable invest- that could render the sale invalid or land uses in areas regarded as forest ment destination in the investment poor. cannot be changed. the last few years, • Payment of stamp duty (transfer Acquisition of real estate in re- mainly because of its tax). Currently at 3% of the value of gions close to the border. There are natural beauty, mild the transaction. specific prerequisites for acquisi- climate and geographical position, • Completion of the acquisition con- tions in areas close to the borders. but also because of a significant drop tract before a notary public. The buyer In these areas, foreign investors can in prices following the financial crisis gest a title deed which is the first step acquire real estate following special that emerged after 2010. to ownership of the real estate. permission by joint ministerial ap- Investors from all over the world • The registration of the title deed proval. A specific list that is publicly are now looking at Greece as the new takes place at the local Land Registry available names which are such ar- ‘hot’ investment destination and and is the absolute proof of ownership. eas. Strict restrictions apply and in- rush to benefit from the abundance • Registration of the property online vestors should examine thoroughly of quality real estate available at af- with the tax authorities. such plots prior to a purchase. fordable pricing. Many buy as end Acquisitions outside urban zon- users and others for buy-to-let. 4. Taxation ing. Special attention must be paid Greece is a European Union Ownership of real estate in Greece is to plots which happen to be outside Member State abiding by the rule subject to annual tax (ENFIA) which is city or major housing estates as they of law. It is also a member of the Eu- calculated based on the value of each often have limitations with regards ropean Monetary Union enjoying property and in conjunction with the to the development capacity they of- all the benefits that derive from the total value of the assets one may have fer and in most cases plots cannot Euro as a common currency with- in their portfolio. Currently the annual be divided in smaller segments. out risks of devaluation or inflation tax is payable in 5 instalments and it is Acquisitions on the coastline. De- volatility. applicable in all types of real estate as- velopment of real estate that is sit- The laws pertaining the acquisi- sets – including cases of rights on prop- uated close to the beach or generally tion and ownership of real property erties (as mentioned in 1. above). This the shore may be prohibited or al- are provided by the Hellenic Consti- kind of tax applies to both natural per- lowed under very specific terms set tution and the Civil Code. Most prop- Development of real estate that is situated close to the coast may be prohibited or allowed under very specific terms set by the State. sons and legal entities regardless if they by the State. erties in Greece are freehold. are resident and/or have their registered Acquisitions in areas where an- seat in Greece or not. tiquities are found. Development 2. Legal framework of the real estate is reflected in the Acquisition of property through pub- es. The title search takes place at the Property based income (short or long may be prohibited or allowed under rights that come along with the sale. lic auction. As of 2017 the Greek State Land Registry and ensures that the term rentals, Airbnb, long term leases very specific terms in areas where B.Rights in real estate has implemented electronic auctions. asset in request indeed belongs to the etc) are subject to taxation. Natural per- historic monuments may be located. B. Acquisition of real estate in Greeks and foreigners (whether natural vendor and that it is clear of any en- sons who benefit from rental income are In most cases, a special permission Real estate owners in Greece may Greece persons or legal entities) can subscribe cumbrances (such as mortgages, taxed at various rates (thresholds are in is required by the Ministry of Cul- have different rights. There are various ways of acquisi- online. The procedure is open to the liens, foreclosures etc). The lawyer al- place depending on the amount of rev- ture’s competent directorate. •Full ownership (absolute or joint) tion of real estate in Greece. The ones public and the properties offered are so checks the suitability of the asset enue produced). Legal entities owning Acquisitions in areas of outstand- •Bare ownership (absolute or joint) that mainly concern investors are the easily accessible via a weekly journal. and if this is situated in areas where real estate assets are taxed differently as ing natural beauty (Natura) or under •Usufruct (absolute or joint) two following: prohibitions or restrictions apply. the rental income is regarded as revenue a special environmental protection It is essential that the buyer es- Acquisition by contract, the buyer 3. The process of acquiring real • Issuance of a tax number. It is a re- and is subject to 29% corporate tax. regime. Both acquisition and devel- tablishes which (among the afore- and seller appear before a notary pub- estate in Greece: quirement of the Greek State that opment of real estate in such areas mentioned) is the right of the vendor lic and sign a deed which is subse- • After selection of the property, the every transacting party (natural per- 5. Important parameters for con- may be blocked by the Ministry of to be transferred in every transac- quently registered At the local cadas- buyer appoints a lawyer in order to son or legal entity) has its unique tax sideration prior to the acquisition Environment due to restrictions that tion, in order to ensure that the value tre or land registry. perform all the necessary legal search- number before acquiring real estate. As with every other country, cer- may apply. EN0403_06+ 29/3/18 6:49 μμ Page 1

S6 l KATHIMERINI SATURDAY – SUNDAY, MARCH 31 – APRIL 1, 2018 REAL ESTATE High level international education for foreigners Many choices for parents with schools that follow the curriculum of the reference country and not that of Greece

By APOSTOLOS LAKASAS List of international schools International schools have become an institution in Greece, offering lessons in According to Article 35 of the latest 2013 law (4186), the new list of English, French, German and other lan- international schools in the country is the following: guages. The first law concerning their 1. German School of Athens (Deutsche Schule Athen) operation was introduced almost nine 2. German School of Thessaloniki decades ago, in 1931. 3. Lycée Franco-Hellénique Eugène Delacroix According to Law 4186/2013, 29 pri- 4. Italian School of Athens (Scuola Italiana Statale di Atene) vate international schools are currently 5. American College Anatolia operating in Greece, mainly in Attica, 6. American College of Greece and primarily host pupils of foreign na- 7. École Franco-Hellénique du Pirée Saint Paul tionality whose parents live or wish to 8. Greek-French School Jeanne D' Arc live in Greece. However, the fact that 9. Greek-French School Kalamari many Greek parents choose to send their 10. Greek-French College Delasalle children to such schools is indicative of 11. Leonteios School of Nea Smyrni their high quality – at least some of them. 12. Greek-French School Saint Joseph A key feature of international schools 13. Greek-French School Ursulines in Greece is that they follow the curricu- 14. Leonteios High-school in Patision lum of the reference country and not 15. American Community Schools of Athens that approved by the Greek Ministry of 16. French Primary School of Thessaloniki Education. Thus, international schools 17. French School of Thessaloniki (Junior high-school, high-school) are mainly established by foreign em- 18. International Community School of Larisa bassies to meet the needs of their citi- 19. Katipunan Philippines Cultur al Academy zens living in Greece. That’s where most 20. Byron College of their pupils come from, and their 21. Pinewood School of Thessaloniki teachers are mainly foreign nationals. 22. Polish School Zygmunt Mineyko Nonetheless, students from countries 23. St. Catherine’s British School other than the country of reference can 24. St. Lawrence College attend these schools. In classes of inter- 25. International School of Athens national schools which follow the cur- 26. Campion School riculum of a European Union member- 27. Iranian School of Athens state, or a combination program in 28. “7th of February” Libyan School which one of the countries involved is 29. Canadian Lyceum of Greece a member-state of the EU, it is permis- The many international schools cate to the needs of families from abroad sible for students of EU citizenship to attend, without restrictions. On the other hand, international choose a school not mentioned in the dren with Greek as their native language school) as well as the additional services schools and is considered to open doors to Science, Ancient Greek – with students schools emphasize foreign-language official list. who intend to study abroad or those each school offers. acclaimed universities abroad. It is indica- choosing a course from each group. All teaching (with several hours of teaching According to the law, “the unautho- who want to achieve fluency in the main tive, according to a 2013 survey, that 72 courses are taught in English. As for the in a language other than Greek each rized operation of a foreign institution foreign language of the school. In fact, The International Baccalaureate percent of Chinese students who have tak- exams, they are held simultaneously in week), and are an excellent choice for will result in its closure by a decision of following pressure by Greek parents, en the IB entered one of the top 500 uni- the final year of high school, while the ex- bilingual children. the Ministry of Education, which is ex- and EU legislation, a law was passed in For children aged 15, another option versities in the world. The courses at all amination subjects are selected from the International schools in Greece cover ecuted by the competent police author- 2009 allowing Greek nationals to study available is the International Baccalaureate the schools around the world offering the IB exams headquarters. Those interested all levels of education, from kinder- ity.” Certificates issued by international at international high-schools. program, which is offered in private schools program are the same. Specifically, the IB in the program can learn more about at- garten to high school. All schools must schools are considered equivalent to International schools are private, in Greece. The program corresponds to the is made up of six subject groups, including: tending a school in another EU country have acquired an operating license those issued by Greek schools of the with tuition depending on the level of last two years of secondary education and Mother Tongue, Foreign Languages, on the website: https://europa.eu/youreu- based on Law 4186 and parents must same grade. education (kindergarten, elementary is aimed at pupils aged 16-19. In Greece, Mathematics, Arts, Social Sciences, Eco- rope/citizens/education/school/enrol be particularly careful if they want to Thus, they are also suitable for chil- school, junior high school or high the IB program is offered at 13 private nomics, Experimental Sciences, Computer /faq/index_el.htm

Epsilon team is a business of special features their services to the customers of the Epsilon Our fee regarding the selling of real estate is which makes it different than the rest of the team, giving them priority as well as a 20% dis- between 2% and 6%, depending on the effort and real estate agencies in Greece. It is a group of count. the cost of advertising needed to promote and 9 people who cooperate closely with each other sell a property, while it is just two percent for to complete any project they have taken on. It The Epsilon team covers all the prime location buyers. is the only group that has constant legal sup- areas in the north, the south and the center of port – both for the company as well as for any Athens when it comes to buying or renting. There We have been operating in the last ten years questions or problems its customers might is also a special department for the independent by undertaking and completing projects that have – given the fact that the laws concerning and commercial buildings and shops. The Epsilon have to do with finding properties based on our buying and selling are very versatile and by de- team also deals with selling residential real estate customer’s needs and not on what is in our port- fault rather complex in Greece. by the sea. folio. The specific demands are registered in our To provide better service to our customers we office by special order and they are valid for the Additionally to the free legal advice that Epsilon cooperate with real estate agencies in big cities in time period which is necessary to find the right team provides its customers with, it has estab- Europe and we promote our real estate in Greek property, as mutually agreed between us and the lished a constant partnership with experts and and international portals as well as in the Social customer. scientists that might be needed when buying real media. estate. There is an Interior Designer, a Civil En- Call us and ask us to discover your dream prop- gineer and an Architect, the services of whom are The Epsilon team is a member of the Athens erty on your behalf. When it comes to the Epsilon totally guaranteed by the company. Realtors Association and the Athens chamber of team, the expression IT DOES NOT EXIST sim- All of the above-mentioned partners provide tradesmen. ply… DOES NOT EXIST. EN0403_07_ 29/3/18 6:50 μμ Page 1

We give your holidays a home.

Finest real estate in Rhodes.

[email protected] www.engelvoelkers.com/rhodes Phone +30 22410 79410 · Estate Agent EN0403_08_ 29/3/18 6:51 μμ Page 1

Greek Golden Visa Program: A Success Story

*ARIEL MANIKA, program to the end of 2017 for condition that the new investor other applicants as introduced LAWYER/SENIOR MANAGER, TAX, KPMG real estate owners (a total of ap- meets all the other terms of the in domestic immigration law proximately 5 700, when also program. and in full implementation of We have provided legal and tax counting family members). Al- EU immigration legislation. assistance to a large number of most half of these permits have How is the investor taxed for his Other investment opportunities non EU investors receiving been granted to Chinese nation- Golden Visa investment in Greece? under the Golden Visa program Greek residence permit through als with Russians holding sec- Golden Visa investors may Although the Ministry of the Greek Golden Visa Program, ond place and Turkish nationals continue to be non-Greek tax Economy and Development since its inception. Our services rising up recently to third place residents and only pay tax on has been examining the possi- include purchase negotiations, (obviously because of the politi- their income derived in Greece bility to add more types of in- submission of residence permit cal turmoil in our neighboring and not on income from outside vestments valued at EUR 250 application and follow up until country). Other countries whose the country. Taxes for rental in- 000 to the Golden Visa pro- issuance, bank account open- nationals have received resi- come from property in Greece gram (for example shares and ing, issuance of Greek tax regis- dence permits include Egypt, follow a progressive tax rate bonds), for the moment there tration number, real estate reg- Lebanon, Ukraine, Iraq, Syria, starting from 15% (for income does not seem to be any de- istry checks, drafting and sign- Jordan, Iran, Saudi Arabia etc. up to EUR 12 000) and up to 45% velopment towards this end ing of notarial deed for the real (for amounts over EUR 35 000). especially in view of the need estate purchase, annual tax fil- Analyzing the particulars Certain operating expenses are to give a push to the long ings. Whatever the need, KP- of the program deductible whereas when real time stagnated real estate MG‘s experts are there to assist. Evaluating the factors of suc- estate is held through a legal en- market. cess of the program, one would tity, all expenses relevant to the Indeed, there seems to be Golden Visa Program say this is mainly due to the low exploitation of the real estate movement in the local real es- In line with the direction level of investment required are tax deductible subject to tate market especially for adopted in recent years by (EUR 250 000), the long term of general deductibility rules (cur- properties located in the so many European countries, the residence permit granted rent corporate income tax rate called “historic center” of Greece introduced in April (five years subject to indefinite is 29%). Capital gains tax on the Athens opening up a new 2013 its own “Golden Visa” renewals of five year periods sale of real estate is currently booming market which, ac- program in an effort to attract provided the property is still not applicable (it has been post- cording to what real estate foreign investments to con- owned by the applicant), the is- poned since 2014 in an effort to agents say, is linked to the tribute to a long term and sus- suing of residence permits to boost the local real estate mar- Airbnb business. Now the real tainable growth for the Greek the applicant’s family members ket) and as a result local real es- question is whether the in- economy. as well, (spouses, children up to tate sales are only subject to a come of the State from taxes The Greek Golden Visa pro- the age of 21, parents of both ap- transfer tax at the effective rate arising from the rental of gram is an attractive option plicant and spouse), fast track of 3.09% burdening the pur- these Golden Visa invest- for those seeking investment procedures (40 to 60 days from chaser and imposed on the ments will be equally thriving opportunities and/or residence the time of investment until res- higher between the purchase since rumor is that most real in the European Union espe- idence permit is issued), no min- price and the objective tax value estate owners “forget” to de- cially given the ideal geo- imum stay requirement (just a of the real estate. VAT at the clare Airbnb rentals of their graphical position of Greece. lawful entrance into the coun- rate of 24% is applicable on the properties in the tax notifica- The program stipulates that a try) and low application fees purchase of new buildings. tion electronic system five year residency permit is (EUR 500 for each permit exclud- “TAXIS”. granted to non EU citizens ing those for minor children). Is the Greek citizenship “sold” who are investing in real es- The residence permit granted to rich foreigners? KPMG AT A CLANCE tate in Greece. Purchased through this program allows Unlike other similar Euro- KPMG is a global network of property can be located any- the applicant and his family pean programs, the Greek professional services firms where in the Greek mainland members to live in Greece but Golden Visa program is a resi- providing Audit, Tax and Ad- or the islands, can be either not to work. There is always dency investment program and visory services. We operate in residential or commercial, in however, the option for the ap- does not come under the “citi- 154 countries and territories the form of one single or mul- plicant and family members to zenship by investment” pro- and have 200 000 people tiple properties, or even shares establish businesses in Greece, grams which have raised much working in member firms in real estate holding compa- open bank accounts and ex- controversy and have fueled around the world. The inde- nies as long as the purchase pand investments worldwide. nationalistic outcries in other pendent member firms of the price exceeds EUR 250 000. The Greek residence permit al- member states. In line with the KPMG network are affiliated The success of the program, lows freedom of travel for the EU principles on nationality with KPMG International Co- while modest in the first couple applicant and his family mem- matters, Greece is not selling operative ("KPMG Internation- of years from its introduction, bers throughout the EU Schen- its citizenship, even though the al"), a Swiss entity. Each KP- has increased significantly in gen zone without further visa option for citizenship is avail- MG firm is a legally distinct recent years bringing to the applications. If the resident able for those committed to liv- and separate entity and de- country funds of more than sells the property to another ing in Greece. Applicants who scribes itself as such. EUR 1 billion. non-EU citizen, the Greek resi- live in Greece can apply for citi- Approximately 2 300 resi- dency is revoked for him and zenship and a passport after dence permits have been issued his family members and trans- seven years, subject to the For more information: since the commencement of the ferred to the new investor on same conditions existing for all kpmg.com/gr