This page has information which may provide answers to questions that potential residents  have. Always try to find the most up to date information possible by searching further on the internet or obtaining professional advice. The information below should not be taken as complete and is offered only as a guide. Remember that rules and regulations can frequently change in both the UK and in Greece.

Transferring money from your English bank account

Maybe your purchase of a property in Rhodes is to fulfill a retirement dream, if so you may be thinking about ways of transferring your UK pension to your Greek bank account here in Rhodes.

 

Alternatively you may be buying a property here in Rhodes and need to transfer add hoc amounts to your Greek bank account or Greek Lawyer. Or you may have to transfer amounts, for maintenance contracts or living costs 

 

There are a number of ways to arrange the transfer. Using the facilities offered by your UK bank, or using a UK based Foreign Exchange Broker (Currency Specialist) are just two of the methods that can be used.

 

UK banks may offer low currency exchange rates and will most likely charge a fee for carrying out each transaction. Using the services of a Foreign Exchange Broker is becoming more popular with English residents in Europe and they often get a better deal for their money. It can also be a less complicated process leaving you to carry on with your life knowing that the transfer will take place on a regular basis if its your pension, or at the specified time if it is an add hoc payment.

 

Foreign exchange brokers usually offer better exchange rates and are normally free from fees and commission charges. However, currently they are unregulated therefore you need to choose carefully and do some research before deciding which one to use. Later this year the Financial Services Authority, (FSA) will undertake registration for Foreign Exchange Brokers and as from then, they will be subject to the rules of the FSA. All companies should be regulated by 2011.

Here are some points to consider if you are thinking of choosing a Foreign Exchange Broker:

1)      Is the Service secure?

2)      How is the exchange rate arranged? is there a choice of “Spot Rate” (normally the best rate on the day the transaction occurs) and “Forward Contract”(a rate fixed for a period of time)

3)      Obtain some references if possible 

Trading Report and accounts from Companies House

Compliance with HMG Customs and Excise regulations

Membership of regulatory bodies

Credit rating

4)      Do they offer a helpful, personal and efficient service; are you able to communicate with them via a website and or email, text etc?

5)      Does the company charge for its service? What are the charges? Are there any hidden fees?

6)      Does the company provide receipts or copies of all transactions, contracts and arrangements made? You will need proof of transfer of monies for tax purposes.

7)      What is the transfer process is the money held in segregated accounts that are separate from the company accounts whilst it is awaiting transfer.

 

Can I claim my UK state pension if I move to Rhodes?

UK pensions and some other benefits are payable in European Countries however most benefits (e.g. Income Support Pension credit) are subject to certain criteria.

Ask HM Revenue and Customs or browse their website for the most up to date information or alternatively. You should also consult the Department of Work and Pensions (DWP) and/or International Pensions Centre (IPC) in the UK.

The IPC will need to know your new address and you will need to ensure that any benefit or pension paying offices have been notified of your intention to move overseas and inform them of your change of address.

Depending on your circumstances you may need to contact HM Revenue and Customs National Insurance Contributions Office International Services and your Social Security Office.

If you qualified for a Winter Fuel payment in the UK or Northern Ireland before moving to Rhodes you may still be able to continue to receive the payment.

You can obtain a state pension forecast by completing form BR19 which can be obtained from Job Centre Plus offices or from the DWP online.

The British Vice Consulate office is in Rhodes Town and is open to the public from 08:30 to 13:30. They have many useful leaflets about living in Rhodes, Information on Health cover for pensioners etc. They also request that you register with the Foreign Office Locate Database, if you decide to live here permanently this enables notification and tracing of relatives etc in time of crisis. The address of the Vice Consulate Office is 1^st Floor 29 G Lambraki Street and the telephone number is 22410 22005. Below are details of helpful pages from the UK foreign Office website.

 

http://ukingreece.fco.gov.uk/en/help-for-british-nationals/living-in-Greece/registering-with-us

 

http://www.fco.gov.uk/travelling-and-living/Locate/

Do I have to file tax returns in Greece once I’ve become a property owner?

Yes. The Greek State has mandated that all property ownership in Greece must be declared by filling out a form called E9 and submitting it to the Greek Tax Authorities. This is mandatory for every property owner in Greece, even for those who live abroad and have never filed tax returns in Greece or do not have an income in Greece. As of 2006, the E9 form will be submitted only by those who either obtain or sell / dispose of any kind of right over immovable property in Greece. If you own immovable property in Greece but your assets next year have not changed from what they were the year before, you do not have to submit the E9 form again.

You can not file an E9 all by itself. E9 is a schedule which must be submitted together with the basic Income tax form E1. If you have no income in Greece, you enter “0” income in the E1 form; still, you must submit the E1 as well.

In order to submit the E1 and E9 returns, you must have a Tax ID Number (AFM). The E1 and E9 can be prepared and submitted by accountants and / or solicitors.

If you fail to declare a property you will not be able to transfer it later. Additionally, failure to file annual tax returns is subject to penalty; therefore, appointing an accountant and a solicitor early on in the buying process is critical.

Do I have to pay Capital Gains tax if I decide to sell my property?

Yes, if you purchased your property after January 1st, 2006.  The percentage of tax owed varies depending on the length of time your property has remained in your ownership.   Specifically:

• For properties purchased after January 1st, 2006, and remaining in one’s ownership for 0-5 years: Capital Gains Tax 20%
• For properties purchased after January 1st, 2006, and remaining in one’s ownership for 5-15 years: Capital Gains Tax 10%
• For properties purchased after January 1st, 2006, and remaining in one’s ownership for 15-25 years: Capital Gains Tax 5%
  

 Do I have to pay annual property taxes?

That depends on the value of your property. You will have to pay an annual property tax if your property’s tax assessed value exceeds 243.600 euros.