Assetsure are able to offer insurance for a Greek holiday home.
Greece has for many years been popular as a holiday destination with Brits and many are now considering buying a second home on one of the seemingly infinite number of Greek Islands. Greece is a member of the EU but is still seen as a developing country in a property growth cycle and the rules and regulations relating to property purchase can be quite complex although obtaining a mortgage is now relatively easy. Obtaining Greek Holiday Home Insurance is a must as Greece is a country that is often beset by natural disasters such as forest fires and the occasional earthquake, the former has featured very heavily in the media in recent years. Holiday home insurance for Greek rental villas however, is not readily available and the perils covered by the policy should not be too dissimilar to those available on a standard UK home Insurance policy. At the present moment their is no market standard insurance policy available in Greece so it’s just a case of obtaining the widest range of insurance perils as possible. (Fire & Earthquake should always be requested).
Holiday Homes in Greece – one of the areas where purchasers of second holiday homes in Greece do come unstuck is regard to renting the property out to holiday makers to try to recoup some of the mortgage costs. This is not straight forward in Greece and if you are considering renting your property for periods of less than 3 months then you will need to secure an EOT licence from the Greek Tourist Office. This law applies whether you are going to rent via a holiday letting company or just to your friends, you will still need to obtain the licence. Recently, the Greek authorities have started to clamp down on Holiday Home owners that do not have the necessary licence, if you are caught renting your property without the necessary permit, you could face a very hefty fine and may even face deportation.
Greek Holiday Home Letting Regulations – If you are intending to rent your property for periods over 3 months, you do not need to acquire a licence, but it is still best to check with the local authority. You can find offices of the EOT in most towns or you can visit their website at gnto.gr. You should bear in mind that obtaining a licence is costly and time consuming and you will probably find it a good deal easier if you employ the services of a local person well versed in these matters to assist you. A licence could set you back 3000 Euros or more and will be valid for 5 years, after this period, renewal costs are minimal. Many people have purchased property in Greece for holiday rental purposes only to discover that the tourist board have stopped issuing licences in that area because of over saturation of the market, it is thus vital that you do your home work before buying a Greek Holiday home for rental purposes. To a certain extent the Greeks must be applauded, the issue of licences is designed to ensure that holiday accommodation is of a sufficient standard and the government is very keen than visitors to the islands can stay in property that is safe and will give the renter a good impression of Greek standards. The EOT licence will confirm that your property meets the exacting standards of the Greek Tourist board.
The EOT Licence – as well as the cost, acquiring the licence can be quite complicated. The rules vary from one region to another and each property is considered on it’s merits. Would be Holiday home owners are warned that the criteria could change but the following is typical of what’s involved. Having access to an architect is vital if you are buying a new home, if you are considering buying an older property, check that you can bring it up to the standards required to obtain the EOT licence. The following are important considerations before applying for the licence:-
- It is vital that the property specification is exactly as per the architect plans and minimum room sizes are respected.
- If your holiday home is located within a block or a complex or is a maisonette then all properties of the plot are required to have an EOT licence. It will not be possible to acquire a licence for just the properties that are rented out.
- If the property has the benefit of a swimming pool then it must be marked with depth markings and have warning signs around the pool. Most importantly, if your pool is constructed with a depth of more than 1.70m you must have a lifeguard on duty. Obviously, this is totally unworkable so it is vital that any pool you have constructed is not above this depth.
- A licence must be obtained from the Town Hall to ‘operate’ a swimming pool. If you have licence and a holiday maker is injured at your pool, you could face serious legal implications.
- Your property must be able to be accessed by a public road.
Holiday Home Licence – one you have got past the above hurdles you can go to the application stage. EOT will need a complete list of plans, both architectural and structural, these most be prepared by an architect or structural; engineer. EOT may take them at face value or they may arrange a site visit. At this stage you will be issued with a reference number. The following supporting documents will then be required before the grant of the short term holiday rental licence:-
- A certificate that you have no criminal record.
- A certificate that you have no outstanding tax liabilities;
- A signed declaration that it is your intention to rent the property;
- A copy of your proposed rental; agreement contract;
- A certificate of water clarity for the property;
- Confirmation from an architect that the plumbing and sewerage meet official requirements;
- An environmental survey from an architect confirming that the property is suitable for rental purposes;
- A Fire certificate from the local fire officer who will check fire exists and fire extinguishers on the premises;
- The original and a copy of the planning permission;
- A statement from the architect that the property has been constructed to earthquake building regulations.
The whole process can take many months to complete and then your property will be rented to receive guests.
