Property Law in Laws Greece
Property Law in Greece is governed by a combination of statutory laws, civil law principles, and local regulations, shaped by both European Union laws and the Greek Constitution. As a civil law jurisdiction, Greek property law is heavily influenced by Roman law and the Napoleonic Code, and property transactions and ownership are primarily governed by written statutes and codes.
Here’s an overview of Property Law in Greece:
1. Legal Framework
a. Greek Constitution
- The Constitution of Greece guarantees the right to own property. Article 17 specifically protects property rights, stating that individuals can own and dispose of their property freely. However, the state has the right to expropriate property for public purposes, provided that the process is legal and compensation is given.
b. Civil Code (K Civ.)
- The Greek Civil Code (Codex Civil) provides the general legal framework governing property rights and transactions. The Civil Code covers land ownership, contracts related to property (e.g., sales, leases), and the protection of property rights.
- Real property law is included in the Greek Civil Code, and it regulates transactions, succession, and other matters related to property.
c. Land Registration and Cadastre
- The Land Registration System in Greece is overseen by the Hellenic Cadastre, which is responsible for recording land ownership and transactions. The system is transitioning to a more modern, computerized version, with a full land registry and cadastral maps now being established in various regions.
- Land titles must be registered in the Land Registry to be legally recognized.
2. Types of Property Ownership
a. Freehold (Full Ownership)
- The most common form of ownership is freehold (or full ownership), where the owner has full control over the property and the land it sits on. Freehold ownership gives the holder the right to sell, transfer, mortgage, or bequeath the property.
- Freehold land ownership in Greece is not subject to time limitations, unlike leasehold ownership.
b. Leasehold Ownership
- Leasehold ownership in Greece involves the right to use and occupy land for a specific period (usually between 99 and 150 years). Leasehold agreements must be written and registered in the Land Registry to be legally valid.
- At the end of the lease term, the property reverts back to the original owner unless the lease is extended.
c. Co-ownership
- In cases of co-ownership (often for condominiums or multi-unit buildings), multiple individuals hold an ownership interest in the same property. Each co-owner owns a proportionate share of the property and has the right to use the common areas.
- The share of each co-owner is defined by their percentage in the condominium or multi-unit building. Co-owners are responsible for the upkeep of the property and shared expenses (e.g., maintenance, insurance).
3. Land Tenure System
a. Private Land Ownership
- Private land ownership is common in Greece, and the rights of private landowners are protected by the Civil Code. Property owners can transfer, lease, or otherwise deal with their land as they see fit, subject to legal restrictions.
b. Public Land and Expropriation
- The Greek government holds certain properties as public land, particularly land required for infrastructure, military use, or natural parks. This public land is typically not available for private sale, though it can be leased or granted for specific uses.
- The government has the power to expropriate land for public purposes, but compensation must be provided to the property owner based on the market value of the land.
c. Agricultural Land
- Agricultural land in Greece is subject to special regulations aimed at preserving the country’s agricultural resources. Land used for farming can be owned privately, but certain restrictions apply, such as limits on its sale or transfer for non-agricultural purposes.
- If agricultural land is sold to a non-Greek national, the property must be approved by the Ministry of Agriculture, and there may be restrictions placed on its use.
4. Property Transactions and Registration
a. Land Sale and Purchase
- Property transactions (sales, leases, etc.) must be formalized through a written contract and often require the assistance of a notary public. The notary will verify the legality of the transaction and ensure that it complies with Greek law.
- After the contract is signed, it must be registered with the Land Registry to establish and protect the legal rights of the buyer. Without registration, the buyer does not acquire full ownership or legal protection of the property.
b. Due Diligence
- Due diligence is essential when purchasing property in Greece. Buyers should ensure that the property has a clear title, free from legal disputes, encumbrances, or unresolved issues. It’s important to verify the ownership history of the property, as well as the status of any mortgages or other encumbrances.
- Buyers should also ensure that the property complies with zoning laws, building regulations, and planning permits, especially for properties in urban areas or on the coast.
c. Land Title and Registration
- The Hellenic Cadastre is responsible for maintaining land titles and cadastral records. Once a property sale is completed, the buyer must submit the sale deed to the Land Registry for official registration.
- The buyer must pay stamp duty (around 3%) on the sale value of the property, and a lawyer or notary will assist in preparing all the necessary legal documents.
5. Leasing and Rentals
a. Residential Leases
- The Civil Code governs residential leases in Greece. Residential leases can be for short-term or long-term periods, and the lease terms are generally flexible.
- The Rent Control Law (if applicable) can regulate rent increases and tenant protections. In certain regions of Greece (e.g., Athens, Thessaloniki), rent control measures may be in place to limit excessive rent hikes.
b. Commercial Leases
- Commercial leases are governed by the same basic principles as residential leases but are often more detailed due to the nature of business use. Negotiated lease terms for commercial properties may include fixed rent, rent escalations, and provisions for maintenance or repairs.
c. Tenant Protections
- Tenants in Greece are afforded legal protections under the Civil Code, including protection against unfair eviction and rent increases. For example, a landlord must provide written notice for eviction, and it is typically required that they follow the court procedure to evict a tenant.
6. Property Taxes
a. Property Tax
- Property owners in Greece are subject to an annual property tax known as the ENFIA (Unified Property Tax). This tax is calculated based on the size, location, and type of the property. Both land and buildings are taxed.
- The ENFIA tax is calculated using a taxable value determined by the government, and the rate varies depending on the value of the property.
b. Capital Gains Tax
- Capital gains tax applies to the sale of property, particularly when the property is sold for a higher value than its purchase price. The capital gains tax rate can vary, and there are exceptions for primary residences and other specific circumstances.
c. Transfer Tax (Stamp Duty)
- When transferring property, the buyer is responsible for paying stamp duty at a rate of 3% of the purchase price or the property’s market value, whichever is higher.
- The buyer is also responsible for paying the notary fees and registration costs associated with the transaction.
7. Inheritance and Succession
a. Intestate Succession
- If a person dies without a will (intestate), the property is divided among the heirs according to Greek inheritance law, which typically favors close family members, including spouses, children, and parents.
- Inheritance is subject to forced heirship rules, meaning that certain family members (such as children) have a legal right to a portion of the estate, even if the deceased person left a will to the contrary.
b. Testamentary Succession
- In the case of a valid will, the property will be distributed according to the deceased’s wishes, but again, forced heirship rules will apply in some cases.
- Notaries play a crucial role in the inheritance process in Greece, as they must prepare and validate wills and oversee the distribution of the estate.
8. Dispute Resolution
a. Property Disputes
- Property disputes in Greece, such as those involving land ownership, contractual agreements, or neighbor disputes, are typically resolved in the Greek courts. The Greek civil courts have jurisdiction over property matters, and appeals can be made to higher courts, depending on the case.
- Alternative dispute resolution mechanisms, such as mediation, may also be used to resolve property disputes without resorting to litigation.
Key Takeaways:
- Property law in Greece is based on the Civil Code, with key principles derived from Roman law and Napoleonic Code traditions.
- Freehold ownership is the most common type of ownership, but leasehold and co-ownership are also prevalent, particularly in urban areas.
- Property transactions require due diligence, including verification of title and registration with the Land Registry.
- Property taxes include the ENFIA tax, capital gains tax, and stamp duty on property transfers.
- Inheritance follows both statutory laws and forced heirship rules, and property disputes can be resolved in civil courts or through alternative dispute resolution mechanisms.
Property law in Greece ensures legal protection for property owners and establishes clear processes for transactions, taxation, and dispute resolution, making it crucial for anyone engaging in property dealings to understand the local legal framework.
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