Deal in Greece, cash abroad

Property, Greece

Most Greeks selling property to foreign buyers are demanding that the money is paid into a foreign bank, as confidence in the country’s lenders remains low, according to local real estate agents.

“After the imposition of capital controls, we have many more cases where sellers are asking for the money to be paid abroad. These are legal transactions that are taxed in Greece but the revenues stay abroad,” Yiannis Ploumis, general manager at broker Ploumis Sotiropoulos, told newspaper Kathimerini.

This demand is usually made by those selling property by more than 100,000 euros, agents added.

As a result, data kept by the Bank of Greece, the country’s central bank, on capital inflows does not accurately reflect the market without anyone being about to track the deals taking place in the sector, adds the newspaper.

The latest Bank of Greece data shows that capital inflows for January to August rose 4.5% year-on-year to 122.3 million euros versus 23.5% drop in the same period a year earlier.