Turkey or Greece: real estate, taxes and other peculiarities of the countries 132
Turkey is a country with a population of more than 80 million people. The state is located in Europe and Asia. Turkey has a large enough territory, which is located at the intersection of the most important trade routes linking Asia and Europe.
Turkey has a common border with Greece, the length of almost 200 km.
Greece is a country with a population of more than 11 million people. The state is located in Southern Europe. It is peculiarity is that 20% of the territory of the country are islands. There are more than 2 thousand of them, from very tiny ones to such large and famous ones such as Crete, Euboea, and Lesvos. By the way, you can get there by a ferry from Turkey in less than an hour and a half.
In Turkey and Greece, the climatic zones are almost the same, the incredibly beautiful nature, luxurious beaches and of course, the endless number of attractions telling the history of mankind. The states are in close proximity to each other, therefore, for those who want to purchase real estate by the sea, the question is "Turkey or Greece? " In fact, the choice is very simple, for clarity, comparing both countries living conditions and real estate is enough.
Life in Turkey and Greece
Both of the countries have lots of foreigners among them and a huge number of tourists visit every year. The local population is friendly towards visitors. As for the standard living, Greece is still experiencing the consequences of serious financial crisis, which hit several years ago. This affects the standard of living: high taxes, expensive food and problems with employment, especially for foreigners. In Turkey, the economic situation is ten times better. Here, the low cost of living, especially in small towns is simply to create your own business, and you can register in literally 1-2 days. The main source of income in Greece is tourism. In Turkey, many spheres are well developed: agriculture, automotive, industry, etc…
The construction of housing has fallen in Greece because of the crisis, but Turkey has new constructions of residential facilities throughout the entire country. So, the choice of apartments and villas is hundreds of times greater than in Greece.
As for the dazzlingly beautiful Greek islands, life on most of them boils only during the tourist season. For the rest of the time, the Greeks are moving to the mainland – piercing sea winds literally blow out warmth and comfort from home. Therefore, if you want to settle on an island, you should prepare for the cold and almost complete lack of infrastructure in winter. In addition, the cost of living on the islands is much higher than on the mainland of Greece.
Real estate in Turkey and Greece
The place of purchasing real estate in Turkey and Greece depends on the purpose. If the apartment or villa is expected to be rented, it is better to consider options near the sea. Housing on the first line in both countries is more expensive than the interior of the mainland. For those who want to permanently live in Turkey or Greece, it is better to consider options in cities where there is all the necessary infrastructure.
Both of the countries have fabulously expensive objects, and quite budgetary for the price. In this sense, the real estate market in both countries is similar and the prices for housing are approximately the same.
As for the cost of utility bills, the apartments are counters, so the costs depend only on the owner. Both of the countries has central heating and it takes part in only large cities. In winter, which usually lasts 1-2 months, the premises are heated using air conditioners, heaters, etc…
In Greece, foreigners cannot purchase real estate anywhere. Sales of objects are prohibited in the border areas – this point should definitely be specified at the time of purchase.
Rules of buying real estate in Turkey and Greece
Under Greek law, if the value of the property is more than 11.750 euros, the purity of the transaction is checked by the lawyer (his services are paid by the buyer). Also, it will be necessary to submit documents to the Land Register, and the transaction itself is performed only with a notary. The documents for the real estate object must be checked in one of the Greek municipal departments: they determine lawfully there and the house is built according to all the rules. Without this procedure, it may later turn out that the building was built with irregularities and the owner will have a long trial. In Turkey, this procedure is not necessary: the developers, even before the construction, must provide the relevant documents, which prescribed compliance with all rules governed by the state.
In general, the process of obtaining a certificate of ownership takes up to six months in Greece. In Turkey, lawyers and notaries are not required, and the registration of real estate in the property takes only a few days.
Another important point is the statement "Poten Yeshoes" - the tax return. Within a year, after the purchase of real estate in Greece, you will need to provide a document that will indicate where you have money to buy, or rather whether you legally received them on the territory of the country. In order to avoid problems, it is simplest to declare the amount that is imported from abroad to purchase an apartment at the airport. Upon discharge, it will be clear that the money is imported into the country legally. In Turkey, the foreigner no one will ever ask where he got this or that amount for buying real estate. Money can be withdrawn from the ATM, brought with you - the authorities do not monitor this process.
Taxes on real estate in Greece and Turkey
One-time taxes in Greece. When buying Greek real estate, a one-time tax of 3% is paid on real estate objects, the permission for construction of which was received before 2006, as well as for secondary housing. If the building permit was issued after 2006, the tax will be 24% of the value of the property. Simply put, for a flat-new building will have to give almost a quarter of its value as a tax.
For registration in the Land Registry it will be necessary to pay 0.5% of the value of the property, as well as 23% VAT. Further notary fees are paid, the amount of it depends on the purchase price. If the property is cheaper than 120 thousand euros, then you will need to pay 1%. The more expensive the property, the lower the interest rate. With all these payments, VAT is also taken at a rate of 23%. And that is not all! It will be necessary to pay from 100 to 200 euros for checking in the municipal department, about 200 euros for a certificate of possession of property and copies of contracts for sale and purchase, for a lawyer. The cost of its services, by the way, is also tied to the value of the object. For example, if it is a question of buying a property of 100 thousand euros, a lawyer will have to spend about 800 euros. Needless to say, all these costs are additionally subject to VAT at 23%.
In Turkey, a lump-sum payment of 4% of the cadastral value of housing, which, incidentally, is always significantly below the market. Real estate agencies take about 1-2% of the cadastral value of housing. This amount includes all services, collection of documents, registration of property, etc.
But that's not all! In both countries, it is necessary to pay annual taxes on real estate. In Turkey, everything is simple: for residential real estate, the tax is 0.1% or 0.2%, for commercial property from 0.2 or 0.4% and for land with a building permit of 0.3 or 0.6%.
The difference is where the object is located-for large cities the rate is higher.
In Greece, the annual property tax is calculated from the base rate, which is from 2 to 16 euros per 1 sq. Meter and depends on the age of the building, its location and the value of the property. A municipal tax is also paid, which ranges from 0.025% to 0.035% of the cadastral value of the object. If the value of the property is more than 300 thousand euros, then an additional tax of 0.1% to 1% is paid.
We draw your attention to the fact that all figures are relevant at the time of the release of the material! In Greece, the tax system is in a very unstable state and the amount of fees varies literally every year, and sometimes more often. The Greeks themselves are now selling real estate, leaving only the most necessary, unable to pay all the rising taxes.
Under such conditions, property falls in price. However, when buying inexpensive villas and apartments, be sure to consider how much will their content cost you and whether you can then sell them.
Letting of the property for rent
Because of high taxes, renting a property in Greece is now not the most profitable business. On average, the income will be 3 percent small, provided that you find people who want to rent a house, especially in the winter season. In Turkey, the profit from the delivery of real estate is from 5 to 7%, while the full management of the apartment or villa usually takes over the company in which you bought housing - you will only receive money.
Residence permits and citizenship in Turkey and Greece
Obtaining residence permit and permanent residence in Turkey and Greece are almost identical. They are issued on the basis of studies and work in the country, with the aim of reuniting with the family, as well as those who want to open their own business.
As for obtaining residence permits when buying a property, the conditions are as follows.
When buying a property worth 250 thousand euros in Greece, a foreigner gets a residence permit, as well as members of his family. At the same time, they are prohibited from working in Greece, and the owner of real estate can open a business.
In Turkey, residence permits are given when buying real estate for any amount. When buying an apartment worth 1 million dollars you can get the citizenship of the country. In Greece, the purchase of real estate does not play a big role - citizenship is given only on general grounds.