Real estate financing in Greece
Many people are drawn to beautiful Greece every year for their well-deserved holidays. The Mediterranean country with its azure beaches and southern flair is the most popular holiday destination for Europeans and always worth a trip. Therefore, it is also understandable that one does not only want to spend a few weeks a year in sun-drenched Greece, but plays with the idea of acquiring one's own property. The holiday home can not only be used as a nice holiday domicile, but also as a future retirement home. No matter what requirements your new property abroad should meet - the necessary financing options should be clarified first.
Financing a house abroad
If you cannot pay for the house of your dreams entirely out of your own pocket, it must be financed supportively with a loan. However, a loan for a property abroad is only possible if you either have an already debt-free house at home, or want to take out a loan abroad. If you already own a paid-off property, your new home in Greece can be financed with a mortgage loan. You can use your existing property in Greece as collateral. If you do not own a property in your home country, you can finance your house with a loan in Greece.
Real estate financing in Switzerland
With a Swiss mortgage, you cannot normally finance holiday homes abroad, except near the borders of France and Germany. However, you can ask foreign banks that are based in Switzerland and know the market well to provide financing abroad. To do this, you negotiate with a local bank, but you are likely to pay more because credit institutions charge higher interest rates for a house abroad than for a property in Switzerland. A tip: Because prices vary more abroad, play it safe and don't lend on your property for more than 50%.
Income tax liability in Greece for Swiss nationals
Whoever buys a property will sooner or later also have to deal with the tax office. Because if you spend more than 183 days in Greece, you are considered a resident and therefore liable for income tax. Otherwise you are liable to pay tax in Switzerland. The agreement between the Swiss Confederation and the Hellenic Republic, which came into force on 21 February 1985, is intended to avoid double taxation of income tax. Furthermore, since 01.01.2014, a real estate transfer tax of 3% has to be paid regardless of your nationality and place of residence. The age of the property and the number of floors are important facts for the calculation of the property tax "ENFIA". You are exempt from the tax up to a unit value of 200,000 euros.
Tips for your financing
- Let a competent interpreter support and advise you during negotiations in the context of a purchase financing.
- Inform yourself also about the legal situation abroad, because in some countries it can even differ significantly between different places.
- Make it mandatory to bring in collateral when financing abroad.
- Check bureaucratically unclear or incomprehensible cost centres.
We will be happy to support you in obtaining the necessary documents for your contract conclusions and advise you on secure financing options, as well as legal and tax advice from selected lawyers and notaries.