Contracts & Taxation

What you need to know about contracts and tax

However, if you do regular letting you may wish to check with a lawyer that your agreement is legal and contains all the necessary safeguards. If you plan to let to non-English speaking clients, you should have a letting agreement in Greek or other languages. If you use an agent, they will provide a standard contract.

Although the law is on your side, you should be aware that if a tenant with a short-term rental contract refuses to leave, it can take months to have him evicted. Note also that if you receive rent and accept a lessee without protest, you're usually deemed to have entered into a contractual relationship, even if there's no written contract.

Taxation You should inform the local tax office if you plan to let your property and must comply with the following regulations:

• You must issue official tax receipts (including your tax number) for any rental payment received.
• You must declare your rental income annually and may have to pay tax on it. Rates in 2005 ranged from 0 to 40 per cent.
• In addition to income tax you're also liable for an annual property income tax levied at a flat rate depending on the size and category of the property you let. For example, an apartment in Category A (the highest) is liable for a payment of around €200 and a villa around €300. This tax changes annually.
• You must pay stamp duty (3.6 per cent of the rent) monthly.
• Declaring rental income can be complicated, particularly as regulations change periodically so it's advisable to use the services of an accountant.

This article is an extract from Buying a Home in Greece
Click here to get a copy now.

Greece Property Guide Subjects:

Introduction	Advantages & Disadvantages	Buying for Investment in Greece	Greece Estate Agents
Cost of Property	Property Prices in Greece	Purchasing Fees	Inspections & Surveys
Buying Off Plan in Greece	Conveyance	Purchase Procedure	Completion
Letting Intro	Letting Rules & Regulations:	Greece Contracts & Taxation	Letting Rates in Greece
Using an Agent for Letting	Doing Your Own Letting	Mortgages & Loans in Greece

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