Paradise Island
 Buying a private island in Greece is a much more attainable goal than you would probably imagine. So if the idea of lazing around, sipping Ouzo and skinny-dipping off your own Mediterranean idyll appeals, read on, says Simon French
Published in Square Foot Magazine on May 1 2007
Lying at the juncture of Europe, Asia, and Africa, Greece comprises thousands of islands and islets scattered around the Aegean archipelagos and the Ionian Sea. What most people don't know is that plenty of these are privately owned, and that landlords are eager to develop them with the help of real-estate agents or else sell them to foreigners in search of seclusion.
One island such is Scorpios in the Ionian Sea, privately owned by Greek tycoon Aristotle Onassis since the 1960s. But the days when islands were the exclusive status symbols of the rich and famous are long gone: you can now pick one up for about $15 million.
Among Greece's numerous islands are Crete, Euboea, Lesbos, Chios, the Dodecanese islands, the Cyclades, as well as the Ionian Sea islands. In a report on worldwide vacation reader preferences, the November issue of Condé Nast Traveller magazine listed Mykonos and the Cyclades as Europe's first choice; Crete came in fifth, Rhodes eighth and Corfu in tenth place. All the islands are famous for their crystal-clear, deep-blue waters and lack of pollution.
Greece's appeal lies in its unique climate, suggestive landscapes, warm people, low cost of living and an even lower crime rate. It also enjoys a solid banking system and foreign property investors can seek loans from Greek banks. And despite recent changes in tax laws that have made the buying process a tad more expensive (including 19 percent VAT on newly-built premises), the property market continues to prosper. Over the past few years reduced interest rates, the deregulation of rents and a general improvement in countrywide living standards have all played their part in attracting foreign investors.
Can you afford it?
 Greek islands are relatively affordable, costing as little as $15m - less than a ski chalet in Aspen or a townhouse in Repulse Bay.
Think carefully about the type of getaway you want: are you looking for somewhere isolated, or is an island in a well-trafficked area more to your taste? Does roughing it Robinson Crusoe-style live up to your fantasies, or is it worth the added expense to find an island with a pre-built villa?
If you're on a strict budget, you may have to limit your search to islands that are located off the beaten path, and in an undeveloped natural state.
But if you're planning on building a home or cottage, bear in mind that construction costs are significantly higher than on the mainland - budget at least 1.5 times the price you'd normally expect to pay for construction. While untouched islands tend to be cheapest, you may end up saving both time and money by purchasing an island with an existing dwelling
Currently, there are a couple of dozen islands on the market; two, St. George's and St. Athanasios, for just $15m. St. George's comprises more than 23 acres and, located in Galaxidi Bay, it enjoys views of Delphi and Mount Parnasus. St. Athanasios Island, meanwhile, lies 1.5 miles from the city of Itea, and offers up 2.5 acres of freehold land.
At the top end, Nafsika Island, located in the Ionian Island chain and subject to the authority of Ithaki, is going for $165m. For this you get 1,235 acres.
Which island is right for you?
Many island owners rent their properties for all or part of the year, often at rates comparable to a typical hotel stay. Renting an island gives you the chance to "test drive" island ownership, and learn exactly what you're looking for (or want to avoid) in an eventual island purchase.
Once you've decided on the type of island you're interested in, the serious research begins. Spend as much time as possible investigating the islands that are available. Contact the owners or their representative and ask lots of questions. The challenge of owning a private island isn't so much the cost itself but the question of overcoming complications involved in building liveable accommodation and providing basic services like water, electricity, and communication. You'll want to ask about year-round accessibility, and the ease and method of navigating the surrounding waters.
Advances in renewable energy sources like solar and wind power have allowed for a reliable and affordable means of providing electricity. And the proliferation of satellite and cellular phones has made it easier than ever to stay in touch from even the most far-flung places Also, when it comes to the logistics of building a house on a remote private-island, you may have to think creatively. Prefabricated homes can be a great option.
Is it easy to buy Greek property?
Purchasing an island in Greece is relatively straightforward. Regardless of nationality, anybody can be a property owner. The only exceptions occur when trying to purchase an island near a national border or military land. You should retain a local lawyer with knowledge of land and real-estate law. All the paperwork involved in the purchase will be in Greek, so it's necessary to have someone working for you who can translate and decipher the red tape.
You will need a solicitor to carry out necessary legal surveys and conduct a property title check for the past 20 years; in addition, he will ensure that all property taxes burdening the vendor have been paid.
You will also need a notary public who will process and certify all real-estate transactions, including drawing up and reviewing all official documents, to ensure the legal transfer of the property.
A land surveyor will ensure that all acts associated with the construction of the property are based on lawful planning permissions.
It is essential to hire an accountant early on to help you with tax returns and explain taxation laws to you. You will need a tax number (AFM), as it's mandatory for all buyers, including foreigners. This is issued on the spot at tax offices, free of charge.
PURCHASING PROCESS
- Make sure financing for the property is secured
- Appoint your solicitor, notary public, surveyor and accountant
- Apply for your Blue Card (temporary resident permit)
- Apply for your Blue Card (temporary resident permit)
- Open a Greek bank account
- Sign the pre-contract detailing terms of sale and payment schedule
- Pay a 10 percent deposit to remove the property from the market; usual payment methods include cash, bank transfer or credit card
- Return to Greece to sign the final contract, after all legal work is completed (6-8 weeks). Alternatively, your solicitor may sign for you if he has been granted full Power of Attorney. Upon completion of the final contract, all fees and taxes must be paid
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