Investment

Investment

Making money and having fun go hand in hand

Enjoying unforgettable holidays and investing at a unique location. You as well can become the owner of an exclusive villa. Of course you can spend a marvelous time here yourself. But additionally your villa will be an excellent investment. By partially renting out your villa, you will have an optimal return on investment. The OHLIVE Villas are suited as private accommodation, holiday rental, or both. You may of course like to see your villa as a second home. But you could share your crown jewel with others. It is worth considering: the combination of private use and rental is financially and fiscally very interesting.

OHLIVE Villas guarantees a return of 5% per year for 5 years.*

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Buying at the ideal moment

AMBITIOUS GERMAN MARKET LEADER FRAPORT LOOKING FORWARD TO MORE & BETTER AT SKIATHOS AIRPORT

Leading German airport operator Fraport recently acquired a 40 year concession for the management of 14 Greek regional airport amongst others Skiathos Airport ““Alexandros Papadiamantis”. This is good news for the touristic industry on the island: the acquisition comes with an investment commitment of over 400 million EURO for all airports. The project in Skiathos has just been finished at the end of 2019.

To better cater to the expected increase in touristic traffic, Fraport has invested the previous years in:

  • Extending and remodeling the current terminal
  • Reorganizing the airport apron area
  • 39 percent increase in the total size of the airport at 9,511 m2 after an extension of the total size of the current buildings of the terminal
  • 11 percent increase in the number of check-in counters (from 9 to 10)
  • 33 percent increase in the number of departure gates (from 3 to 4)
  • Doubling of security-check lanes (from 1 to 2)
  • Improving shopping & restaurant venues
  • Increasing the total capacity of the airport

The upgrade of the airport is expected to have a significant impact on real estate prices on the island: already a top 10 Greek island destination as it is, the increased capacity will drive hotel & villa prices up. Indeed, the buildable land on Skiathos is a scarce resource, and the additional inflow of tourists is bound to drive budgets to the levels of Mykonos and Santorini. For investors that already have land positions in Skiathos, the expansion of the airport comes as a lucky surprise as analysts expect the real estate value to increase impressively.

What you need to know about the profit you will make on real estate in Greece

Of course you like to enjoy your Greek dream villa yourself. However, when you are not around, your southern real estate is an excellent investment with a nice return. Optimizing that return is something that we want to make as safe as possible for you, by a fixed guaranteed rental income: you rent out your villa for 5 years to Architect Villas IKE (the company that will develop and rent), and you are sure of a 5% return per year on your investment*. Meanwhile, Architect Villas IKE takes care of operations & service. You can enjoy your villa yourself for 2 weeks per year in the touristic season and have unlimited use the rest of the year**.

Like in every European country, you pay taxes when you buy real estate in Greece. The good news is that these taxes are fairly low: about 4,83% (estimate) convers all notary fees & taxes.

  • Additionally, there is of course a tax on real estate ownership and rental income – pretty much like in the rest of Europe.
  • The tax on real estate ownership is called ENFEA. For the OHLIVE villas, this will be around €500 per year.
  • On rental revenue, Greece has a favorable fiscal regime for private persons: on the first €12.000 you only pay 15%, and on the next tranche 35%. That way, you still have an exceptionally high net return after taxes.
  • Your net income is then on your bank account.
  • If you would sell your villa, you are lucky again: as long as you sell less than 3 villas per 2 year, you will not be taxed on the value created. And with the rising real estate prices in Skiathos, that is an important bonus.

Setting up the fiscally most advantageous way to rent out your real estate, is simple. It all starts with buying your villa as a private person. In order to do that, you just need a Greek tax number. Once you have that, you are set to go. The easiest way is to have a Greek accountant to take care of all the formalities for you. He can work for you by proxy, and that saves you at least a few trips to Athens.

Practically

  • You choose a Greek accountant. We like to always work with the same reliable partner, but your are free to make your own choice.
  • You go to the Greek embassy and officialize the proxy allowing the accountant to apply for the Greek tax number for you. In Greece that number is called AFM.
  • Three weeks later you will have your personal AFM number and are able to buy real estate in Greece. Like in most other countries, that is done via the office of the notary public.

Buying real estate

  • The notary public prepares the paperwork for the acquisition of the land. On that transaction, you will pay 4,83% in total for taxes and notary fees.
  • At the same time, you sign an agreement with the contractor and architect that will build your dream villa. Usually, you pay the construction per phase, and only after completion of each phase. That way, you are sure there is no risk.

Being an owner

  • As an owner, you only pay a yearly real estate tax. In Greece that tax is called ENFEA. The exact amount depends on the location, the surface, the swimming pool,… and is calculated per villa before the start of the project. For the luxury villas that we are developing for you, we foresee about € 400 to € 700 per year.

Rental

  • You rent your villa to Architect Villas IKE for 5 years. We take care of everything, and make sure operations & service are running smoothly.
  • The rent we agree with you, will be an amount that already includes all the costs for daily maintenance, electricity, water, publicity, rental, concierge provide welcome & key service, cleaning, maintenance of pool & garden. In other words: no surprises – the rent is your gross income.
  • Finally, an interesting progressive tax scheme applies on rental income for private persons: 15% on the first tranche of €12.000 and 35% on the next tranche. That way, you will realize a net return of 3% to 3,7% per year. That is about 20x more than the return on a savings account.

 


*: Indicative average return calculated on the total of the price of the land, the construction cost of the villa, and the inventory, all taxes included, with own use of the villa from November till April. The exact annual guarantee will be stipulated in the rental agreement between the investor and Architect Villas IKE.
**:The choice for own use of the villa in a. July/August b. May/June/September/October c. the rest of the year, has an impact on the rental guarantee that will be proposed. The exact annual guarantee will be stipulated in the rental agreement between the investor and Architect Villas.