Legal Advice for Joint Property Ownership in Greece: What You Need to Know

Table of Contents

1. Introduction to Joint Property Ownership in Greece
2. Types of Joint Property Ownership in Greece
3. Legal Framework for Joint Property Ownership
4. Acquiring Joint Property in Greece
5. Rights and Responsibilities of Joint Property Owners
6. Taxation on Joint Property Ownership
7. Dispute Resolution and Legal Challenges
8. Estate Planning and Inheritance Issues
9. Selling Joint Property in Greece
10. Conclusion
11. FAQs

1. Introduction to Joint Property Ownership in Greece

Greece, with its stunning landscapes, rich history, and Mediterranean charm, has long been an attractive destination for property investors and vacation homeowners. As more people consider purchasing property in this beautiful country, understanding the intricacies of joint property ownership becomes crucial. This comprehensive guide aims to provide essential legal advice for those considering or already engaged in joint property ownership in Greece.

Joint property ownership in Greece offers numerous benefits, including shared financial responsibilities, increased purchasing power, and the ability to co-invest with family members or friends. However, it also comes with its own set of legal complexities and potential challenges that require careful consideration and expert guidance.

In this article, we’ll delve into the various aspects of joint property ownership in Greece, exploring the legal framework, types of ownership structures, acquisition processes, rights and responsibilities, taxation, dispute resolution, and more. By the end of this guide, you’ll have a solid understanding of what it takes to navigate the Greek property market as a joint owner.

2. Types of Joint Property Ownership in Greece

Before diving into the legal intricacies, it’s essential to understand the different types of joint property ownership available in Greece. Each type has its own set of rules and implications, which can significantly impact your rights and obligations as a property owner.

2.1 Co-ownership (Synydioktysia)

Co-ownership, or “Synydioktysia” in Greek, is the most common form of joint property ownership in Greece. In this arrangement, two or more individuals own distinct shares of the property. Each co-owner has the right to use the entire property, but their ownership is limited to their specific share. This type of ownership is often used among family members or friends who wish to invest together.

2.2 Joint Tenancy

Joint tenancy is a form of ownership where all co-owners have equal rights to the entire property. In this arrangement, if one owner passes away, their share automatically transfers to the surviving owners. This type of ownership is less common in Greece but can be established through careful legal structuring.

2.3 Tenancy in Common

Tenancy in common allows co-owners to have unequal shares in the property. Each owner can sell, lease, or will their share independently of the other owners. This flexibility makes it an attractive option for investors with varying financial contributions or those who wish to maintain more individual control over their share.

3. Legal Framework for Joint Property Ownership

Understanding the legal framework governing joint property ownership in Greece is crucial for making informed decisions and avoiding potential pitfalls. The Greek Civil Code and various property laws form the backbone of this framework.

3.1 Greek Civil Code

The Greek Civil Code (Astikos Kodikas) is the primary source of property law in Greece. It outlines the basic principles of ownership, including joint ownership, and defines the rights and obligations of property owners. Key articles of the Civil Code relevant to joint property ownership include:

• Article 973: Defines the concept of ownership
• Articles 1002-1017: Cover co-ownership regulations
• Articles 1033-1035: Outline the process of property transfer

3.2 Property Registration System

Greece operates a Land Registry system known as the “Ktimatologio.” This system is gradually replacing the older Mortgage Offices (Ypothikofilakeia) and aims to provide a comprehensive and digitalized record of all property ownership in the country. Joint property owners must ensure their ownership is properly registered in the Ktimatologio to protect their rights and avoid future legal complications.

4. Acquiring Joint Property in Greece

The process of acquiring joint property in Greece involves several steps and legal requirements. It’s crucial to navigate this process carefully to ensure a smooth and legally sound transaction.

4.1 Legal Requirements for Foreign Buyers

Foreign buyers, including EU citizens and non-EU nationals, are generally allowed to purchase property in Greece. However, there are some restrictions in border areas and islands for non-EU citizens, which require special permission from the Greek Ministry of Defense. It’s essential to verify these requirements based on your specific situation and the location of the property you intend to purchase.

4.2 Due Diligence

Before finalizing any property purchase, thorough due diligence is crucial. This process typically includes:

• Verifying the seller’s ownership rights
• Checking for any existing liens or encumbrances on the property
• Ensuring the property complies with local zoning and building regulations
• Reviewing the property’s tax history

For joint ownership, it’s particularly important to clearly define each party’s share and rights in the property during this stage.

4.3 Legal Documentation

The main legal document for property transfer in Greece is the notarial deed (Symvolaio). This document must be drafted by a notary public and signed by all parties involved. For joint ownership, the deed should clearly state the ownership structure, the share of each owner, and any specific agreements between the co-owners.

5. Rights and Responsibilities of Joint Property Owners

Joint property ownership comes with a set of rights and responsibilities that all co-owners must understand and adhere to. These can vary depending on the type of joint ownership chosen and any specific agreements made between the owners.

5.1 Use and Enjoyment of the Property

Generally, all co-owners have the right to use and enjoy the entire property, regardless of their ownership share. However, this right must be exercised without infringing on the rights of other co-owners. It’s often advisable to create a written agreement outlining how the property will be used, especially if it’s a vacation home or investment property.

5.2 Decision-Making

Major decisions regarding the property, such as renovations, leasing, or selling, typically require the agreement of all co-owners. The specific decision-making process should be outlined in a co-ownership agreement to avoid potential conflicts.

5.3 Financial Responsibilities

Co-owners are responsible for sharing the costs associated with the property, including maintenance, repairs, property taxes, and utilities. These costs are usually divided according to each owner’s share in the property, but alternative arrangements can be made through mutual agreement.

6. Taxation on Joint Property Ownership

Understanding the tax implications of joint property ownership in Greece is crucial for financial planning and compliance with local laws. The Greek tax system has undergone several changes in recent years, making it essential to stay informed about current regulations.

6.1 Property Transfer Tax

When purchasing property in Greece, buyers are required to pay a property transfer tax. As of 2021, this tax is set at 3% of the property’s value. For joint ownership, this tax is typically divided among the co-owners based on their respective shares.

6.2 Annual Property Tax (ENFIA)

The Unified Property Tax (ENFIA) is an annual tax levied on property owners in Greece. For jointly owned properties, each co-owner is responsible for paying their share of the tax based on their ownership percentage. The amount of ENFIA varies depending on factors such as the property’s location, size, and value.

6.3 Rental Income Tax

If the jointly owned property is rented out, the income generated is subject to taxation. The rental income tax rate in Greece is progressive, ranging from 15% to 45%, depending on the total amount of rental income. Co-owners must declare their share of the rental income on their individual tax returns.

7. Dispute Resolution and Legal Challenges

Despite best efforts, disputes can arise among joint property owners. Understanding the available dispute resolution mechanisms and potential legal challenges is crucial for protecting your interests.

7.1 Mediation and Arbitration

In case of disputes, co-owners are encouraged to first attempt resolution through mediation or arbitration. These alternative dispute resolution methods can be faster and less costly than court proceedings. Many Greek lawyers specialize in property-related mediation and can assist in reaching amicable solutions.

7.2 Court Proceedings

If informal resolution methods fail, co-owners may need to resort to court proceedings. Greek courts have jurisdiction over property disputes, and cases are typically heard in the court of the region where the property is located. It’s important to note that legal proceedings in Greece can be lengthy and costly, making it advisable to seek legal counsel early in the dispute process.

7.3 Common Legal Challenges

Some common legal challenges in joint property ownership include:

• Disagreements over property use or management
• Disputes over financial contributions or profit distribution
• Conflicts arising from one owner wanting to sell their share
• Issues related to inheritance and succession

Having a well-drafted co-ownership agreement can help mitigate many of these potential challenges.

8. Estate Planning and Inheritance Issues

Estate planning is a crucial aspect of joint property ownership, especially considering Greece’s complex inheritance laws and potential cross-border issues for foreign owners.

8.1 Greek Inheritance Law

Greek inheritance law is based on the principle of forced heirship, which means that a portion of the deceased’s estate must be left to certain close relatives, regardless of the deceased’s wishes. This can complicate matters for joint property owners, particularly if they wish to leave their share to someone other than their legal heirs.

8.2 Wills and Succession Planning

Creating a valid will is crucial for ensuring your wishes regarding the property are respected after your death. Foreign property owners in Greece can choose to have their inheritance governed by the law of their nationality, as per EU Succession Regulation 650/2012. However, this choice must be explicitly stated in the will.

8.3 Tax Implications of Inheritance

Inheritance tax in Greece is calculated based on the relationship between the deceased and the heir, as well as the value of the inherited property. Rates can range from 1% to 40%. It’s advisable to consult with a Greek tax expert to understand the specific implications for your situation.

9. Selling Joint Property in Greece

When the time comes to sell a jointly owned property in Greece, several legal and practical considerations come into play.

9.1 Agreement Among Co-owners

Generally, all co-owners must agree to sell the property. If one owner wishes to sell their share independently, they typically must first offer it to the other co-owners before selling to a third party.

9.2 Legal Process of Selling

The selling process involves several steps, including:

• Appointing a real estate agent (optional but recommended)
• Setting a price and marketing the property
• Negotiating with potential buyers
• Drafting and signing a preliminary contract
• Finalizing the sale with a notarial deed

9.3 Tax Implications of Selling

Sellers may be subject to capital gains tax on the profit made from the sale. As of 2021, this tax is set at 15% of the profit. However, there are several exemptions and reductions available, particularly for properties held for a long time or used as a primary residence.

10. Conclusion

Joint property ownership in Greece offers exciting opportunities but comes with its own set of legal complexities. From understanding the different types of ownership structures to navigating the acquisition process, managing ongoing responsibilities, and planning for future scenarios, there’s much to consider.

Key takeaways include the importance of thorough due diligence, clear communication and agreements among co-owners, proper registration of ownership, understanding tax obligations, and careful estate planning. While the legal landscape may seem daunting, with proper guidance and preparation, joint property ownership in Greece can be a rewarding and enriching experience.

Whether you’re considering investing in a vacation home, looking for a retirement property, or exploring investment opportunities, being well-informed about the legal aspects of joint property ownership will help you make sound decisions and protect your interests in the beautiful land of Greece.

11. FAQs

Q1: Can non-EU citizens own property in Greece?

A1: Yes, non-EU citizens can own property in Greece. However, there are some restrictions for properties in border areas and certain islands, which require special permission from the Greek Ministry of Defense.

Q2: How is the annual property tax (ENFIA) calculated for jointly owned properties?

A2: The ENFIA for jointly owned properties is calculated based on the total value of the property, then divided among co-owners according to their ownership shares. Each co-owner is responsible for paying their portion of the tax.

Q3: What happens if one co-owner wants to sell their share but the others don’t?

A3: Generally, a co-owner wishing to sell their share must first offer it to the other co-owners. If they decline, the selling co-owner may then offer it to third parties. However, specific arrangements can be outlined in a co-ownership agreement.

Q4: Are there any special tax considerations for renting out a jointly owned property in Greece?

A4: Yes, rental income from jointly owned properties is taxed at progressive rates ranging from 15% to 45%. Each co-owner must declare their share of the rental income on their individual tax returns.

Q5: How can disputes between joint property owners in Greece be resolved?

A5: Disputes can be resolved through mediation, arbitration, or court proceedings. It’s advisable to first attempt resolution through mediation or arbitration, as these methods are often faster and less costly than going to court.

Article reviewed by Marco Rossi, Private Equity Portfolio Director | Transforming Distressed Assets into High-Performance Investments, on March 1, 2025