How to Pay for Your Property in Greece Safely

Paying for property in Greece safely requires a structured, transparent process that protects both the buyer and the seller. The golden rule is: Never transfer large sums directly to a private seller's account without safeguards.

Here is a step-by-step guide to ensure a safe payment process:

Phase 1: Before Any Payment – Preparation & Legal Due Diligence

Critical Initial Milestones:

1. Hire a Qualified, Independent Lawyer: This is non-negotiable. Engage a Greek property lawyer who is fluent in your language and specialises in real estate. They will conduct all checks (see below) and oversee the entire financial process. Their fee is a critical investment in your security.

2. Conduct Due Diligence: Your lawyer will verify:

• Title Deed : Confirming the seller is the legal owner, and that the property is free of mortgages, liens, encumbrances, or inheritance disputes.

• Planning & Building Permits: Ensuring the property was built legally and there are no outstanding violations or fines.

• Outstanding Debts: Checking for unpaid property taxes and utility bills.

Phase 2: The Payment Structure – Using Escrow

Τhe standard and safest method is to use an escrow account, typically managed by your lawyer or a notary public. This holds funds securely until all contractual conditions are met.

Typical Payment Milestones:

1. Reservation Deposit (Optional): A small sum (€2,000-€5,000) to take the property off the market while due diligence is completed. This should be refundable if major issues are found. Use a bank transfer to the lawyer's client account, not directly to the seller.

2. Pre-Contract & Down Payment: Once due diligence is satisfactory, you sign a preliminary contract. At this point, a significant down payment (usually 10-30%) is made. This should be paid into the broker’s, lawyer's, or notary's escrow account. The contract will stipulate precise conditions for releasing these funds to the seller (e.g., upon signing the final deed).

3. Final Payment & Transfer: The remaining balance is paid just before or at the signing of the final contract (purchase deed) before the notary public. This is almost always done via a bank transfer or a bank cheque.

o Ideal Scenario: You, the seller, and both lawyers meet at the bank. You transfer the funds (or provide a banker's draft), and once the seller confirms receipt, you all proceed to the notary to sign the final deed.

o Common Safe Practice: The funds are transferred to the broker's / notary's escrow account a few days before the final signing. On the day, once the deed is signed, the broker / notary releases the funds to the seller.

Phase 3: At the Notary Public – Final Transfer

The notary public is a state-appointed official who drafts and witnesses the final contract. They are impartial and verify the identities and legality of the transaction.

Do not sign the final deed until your lawyer confirms all is in order and the payment method is secure.

After signing, the notary registers the transfer with the land registry. You will receive a certified copy of the deed. The notary's fees and property transfer tax are paid at this stage.

Safe Payment Methods (in order of preference)

1. Bank Transfer (Direct): The most common and traceable method. Always get a receipt.

2. Certified Bank Cheque: Issued by your bank, guaranteeing funds. Safer than a personal cheque.

3. Escrow Account: The safest mechanism for stage payments. Funds are protected and only released upon fulfilment of contract clauses.

4. Letter of Credit (for complex/high-value transactions): A bank-guaranteed instrument, but more common in commercial deals.

Methods to AVOID or Use with Extreme Caution

Cash: Never pay large sums in cash. It is untraceable, risky, and raises red flags for money laundering. Greek notaries are legally obligated to report and often refuse large cash transactions.

Direct Transfer to Seller Before Contract: Extremely high risk. You have no leverage if something goes wrong.

Cryptocurrency or Unregulated FinTech: Highly discouraged due to volatility, regulatory uncertainty, and lack of standard protection in Greek real estate transactions.

Additional Crucial Tips

Obtain a Greek Tax Number: This is the first thing you need from a tax office. Your lawyer, accountant, or broker can assist.

Open a Greek Bank Account: Highly recommended for managing ongoing expenses (utilities, taxes). It also simplifies the final payment.

Use Official Exchange Rates: If converting currency, consider using a reputable foreign exchange service for better rates than standard banks, but always ensure funds arrive in Euros from a traceable source.

Keep a Paper Trail: Document every single payment with contracts, receipts, and bank statements.

Factor in All Costs: Remember to budget for transfer tax (3.09% on new builds, ~3.09%-10%+ on resale properties, depending on value), lawyer fees (1-2%), notary fees, and brokerage fees (typically 2-3% from the buyer).

Summary Checklist for Safe Payment

 Hire an independent Greek property lawyer.

 Complete full legal due diligence.

 Use a staged payment plan linked to contract milestones.

 Route all stage payments through a secure escrow account.

 Make the final payment via bank transfer at or just before the final signing at the notary.

 Never rush or succumb to pressure for direct payments.

By following this structured, professional process, you significantly mitigate financial risk and ensure your property purchase in Greece is not only successful but also secure. Enjoy your new home in Greece!