Hello there,

Well well well…can this be April? I set off determinedly to see the Olympic Torch ceremony on Sunday 6th April, and found myself wading through snow!! As Joanna Lumley put it at the Free Tibet rally, "the Snows of Tibet have come to London" and it certainly seemed that way!

I must say that one of the things that strikes me about England, especially coming from the old South Africa as I do, is that one has the freedom to be heard, as so many people (including anti-apartheid protesters of old) did not or still do not have.

I heard many Chinese people at the rally saying that they were proud of their country and had simply come to celebrate the fact that the games were coming to China, and I could sympathise with that. However, I couldn’t help feeling that perhaps if people were allowed to protest in their own country, as we can do here, it may not be necessary to take advantage of an opportunity like this….just a thought…

Unbelievably, snow also fell in Athens this year – in February I hasten to add!! Nevertheless, it was a sight that even the elderly of Athens could not remember seeing, even as far back as 1929, when most of the west and north suburbs of Athens and Piraeus were just empty green fields.

I happened to chat to the Greece Buying Guide recommended lawyer, who was in Athens at the time, and he told me that schools were closed and so were many of the shops and offices in the area. That meant no traffic, no buses, no taxis - only the View from Monastiraki
metro was functioning. Great unless you had urgent
business to attend to!!

Most of the TV channels and radio stations advised people to stay at home but of course, in typical Greek fashion, people had ignored the warnings and ventured out to enjoy this strange phenomenon. Because there was very little traffic and, with the peace and stillness that snow brings, evidently it was quite spooky - weirdly quiet, with an eerie hush where the cacophony of traffic and the blast of hooters usually reigns!!

Did you have snow where you were earlier in April? Yup, I know it’s a nuisance but it still has a curious magical quality, or is that just because I come from a land where the snow VERY seldom falls? I see you look quizzical – we actually HAVE had snow in Johannesburg…but that’s a story for another day!!

Okay, to follow: I discuss a Greece Buying Guide reader’s input, the EOT licence, I give you a peek at an irresistible property on Corfu, provide expert monetary insights from Charles ‘the Main Money Man’, suggest how not to make a fool out of yourself (April or otherwise!!) in money matters when you move abroad and I expand further on the new tax laws recently introduced in Greece.

I hope you find all this helpful.

Please do drop me an email or phone me telling me what you find useful and what you would like to see in these newsletters. Also, I am interested to hear how you have fared along your property journey, so if you have any good advice or warnings for us, please do share them won’t you? Here’s what one reader had to say about The Greece Buying Guide – I was so thrilled to know that we are helping folk out there:

“Hello Carol,
…Let me say how happy Philip and I are with your service, Carol. You have opened so many doors for us to think about. I like to take things one step at a time, to fully take on board every situation, but I could never have been prepared for the multitude of options that you have presented us with. That's fine, the more options the better, but I know I will have to take my time to consider each possibility as it comes along. However, you can be sure that we will be using your recommendations as when we need them, because we are gaining more and more confidence in your company and that is all down to the interest you take and the advice you give.

Our Warmest Regards
Philip and Lynda”

Please let me help you too!!!

All best wishes and looking forward to hearing from you,

Carol

Carol Dunning
Greece Buying Guide Advisor

The Overseas Guides Company Limited.
mailto:carol@OverseasGuidesCompany.com
Phone 0845 017 8771
1 Lyric Square
London
W6 0NB
0207 898 0549 (call me!)

Greece Buying Guide reader’s input!!

I have to tell you about a book I am reading at the moment. It was brought to my notice by a Greece Buying Guide reader – her Mum actually wrote it! It is a really heart rending tale of a young Greek boy – Yiannis - who contracts leprosy back in the days when little was known of this illness and people who suffered from it were treated - well…like lepers!!

I must confess that I had thought little of this disease before the pages of this book, but I was horrified to learn that it was treated, until relatively recently, in almost the same way as it had been in biblical times. We experience the lives of the simple folk on the island and see how tragedy changes those lives – and also the bravery and fortitude that some people show under extreme circumstances.

This may sound a gloomy tale: it is not. It is riveting, moving, edifying and very interesting. Anyone visiting Crete will find it a wonderful companion and I am determined now to take the boat trip to the tiny island of Spinolonga next time I visit Crete – you’ll have to read the book to find out why!

You can purchase the book through Amazon at £7.99: please go to:

Amazon - Yannis by Beryl Darby

Interestingly, Beryl has also written a guide to this tiny island off the coast of Crete and has written a follow-up to Yiannis, titled Anna, tracing the life of one of the characters in Yiannis. As I mentioned to Beryl, Anna is coming to Dubai with me on holiday and I will report back to you when I have made closer acquaintance with her!!

Incidentally, talking about Crete, I have a truly wonderful property agency on the island that has helped many of our Greece Buying Guide readers. If you want to have a look at some great properties next time you visit please go to: http://www.GreeceBuyingGuide.com/property.htm and fill in the property form, or call me on 0207 898 0549 and we can chat about it. You won’t be sorry you did.

An Option the Banks Won't Tell you About....

by Smart Currency’s Charles Purdy.

It is often thought that the only way to buy currency is by paying for it in full.

Most buyers that don't know about currency options buy the currency as and when it is required - they wait until the last minute. This is what the banks love their clients to do as the client is 'forced' to buy at the rate the bank offers.

Some buyers buy the €’s immediately when they know the amount even if they don't need to use them for 3 months. Buyers do this to avoid the cost of the euros increasing so they know their exact costs.

However there is a more efficient alternative that the banks fail to tell you about.

The alternative is to secure your currency requirements (without paying the full amount for them) using what is known as a forward contract.

Pretend that you require €100,000 in three months time and you don't want to risk the sterling cost increasing by £5-10,000. (An increase can easily happen due to changes in the exchange rate between now and 3 months time)

You can agree an exchange rate for those €’s now. All that would be required is a deposit of up to 10% of the sterling purchase cost.

This means that you don't need to pay the full amount for the Euros now, so you can keep 90% of your funds in a sterling high interest account. By doing this you will know EXACTLY how much you will require when it comes to pay for the €’s in three months time. (You'll know that you won't need to pay an extra £5-10,000 )

It may sound complicated but is very simple to do when you work with a company like Smart Currency Exchange. And the joy of such an approach is that it removes all the uncertainty and the associated stress and strain as you know exactly what your cost will be.

Sterling

The improvement that sterling enjoyed at the end of last week was short lived. It seems to have been a case of buy on rumour and sell on the facts... On Friday it was rumoured that the Royal Bank of Scotland would raise £12bn through a rights issue and that the Bank of England would aid liquidity through the “buying” of £50bn in mortgage loans from the banks. These are now facts, and because of these facts sterling has lost ground. It is thought that the Bank of England will continue to cut UK interest rates and as such sterling is seeing one of its main supports slowly eroded. [All in all, this means that overseas property will become more expensive]

The Euro

The € has had an interesting week and sits at €1.246/£1 inter bank. Euro land inflation is still at the top end of expectations which means that the European Central Bank will not cut the € interest rates in the short to medium term. However, there are ever rising concerns about the Euro land economy as the strength of the € is making Euro land exports ever more expensive. The € still has its “safe haven” status which it has now held for a while but pressure is continuing to rise in Euro land. However don’t expect the € to “blow up” any time soon.

Why overseas property buyers lose money...
...and how you can avoid it!

This 10-page educational report outlines:

• Case Study: When Property Buyer, Mr Reed, Purchased an Overseas Property, he Made Three Mistakes that Cost Him £10,256...learn how you can avoid them...
  
  
• How the Banks make HUGE profits from their long-standing unsuspecting customers
  
  
• Ways to safeguard yourself against adverse fluctuations in exchange rates (or in other words, helping you to keep your money in your pocket)
  
  
• The entire process of moving money from the UK to any overseas location, so that you're armed with all the knowledge you need to make intelligent decisions about your money
  
  
• How you can ultimately save £100’s and £1000’s so that you have ample money to buy furniture and white goods…
  
  
• More case studies of people that lost money due to foreign currency strengthening against the pound, so that you learn from other peoples mistakes rather than your own!
  

And just a couple remarks about the report from our readers...

" We have found your free report to be extremely helpful... Wendy Watson"

"I have read and absorbed the information in the stories outlining the mistakes which the uninitiated can make when transferring currency. It is very illuminating and essential that any one,like myself, who is in the process of buying an overseas property should be aware of. I would go so far as to say that every agent selling overseas properties should be compelled to advise their prospective purchasers that it is paramount that they use a currency expert such as yourselves. Regards, Eric Thomas"

To get a copy of the report at no charge go to: http://www.smartcurrencyexchange.com/freereport.htm

To get a Better-than-Bank rate go to: http://www.smartCurrencyExchange.com/smartsquotation.htm
or call Carl on 08081 630 102 freephone.

THE OLD PHARMACY at Magoulades on CORFU

THE OLD PHARMACY at Magoulades on CORFU

Could this be the perfect village house? Combining a renovated house with courtyard parking, citrus trees, and outbuildings for renovation it could well be just that.

Set behind iron gates, this house sits in a paved, flowery, courtyard right in the middle of the village of Magoulades, north west Corfu, and yet provides privacy and relative seclusion from the neighbours and traffic.

Once the home of the local doctor and pharmacist, the main house is ready to move into, but there is plenty left for a d.i.y. enthusiast to get his teeth into. A huge single-storey olive press complete with the old stone wheels is just part of it. There is also the original pharmacy, set on two floors, which needs full conversion and the addition of an internal staircase. There is yet another storeroom connected to the main house awaiting conversion. The buildings form a natural courtyard to the front and two sides of a little garden area, with well, to the rear.

The main part of this house has been tastefully renovated by its present owner. In the manner of most village properties, the rooms are arranged in a non-symmetrical way, with several outside doors and both internal and external stairs. The advantage of this arrangement is that the property could be easily divided into smaller, separate apartments, or just left the way it is - a huge sprawling manor house.

The main house consists of two storeys with a single storey extension to one side containing a summer (cool) living room. There are three double bedrooms, a bathroom and a small study or storeroom. Each room has views over the rooftops, church tower, gardens, and light streams in from all sides.

The potential of this property is hard to ignore. Lending itself to a variety of purposes, an obvious choice would be a bed-and-breakfast, country cottages for rent type business, but a huge single family home is also an option.

Magoulades village is within 10 minutes drive of the beautiful sandy beaches of Arillas and Aghios Stephanos, and the resort of Sidari which provides year-round supermarkets and cafes is also a short drive away.

Land Size: 600 m2 / Building Size: 340 m2 / Price: € 295.000

I have so many people asking for business ideas on their move to Greece – this looks like the perfect solution doesn’t it? If you want to speak to these wonderful agents, from whom a number of Greece Buying Guide readers have actually BOUGHT homes, please contact me on 0207 898 0549 or email me at: mailto:carol@OverseasGuidesCompany.com

Don’t make a fool out of yourself - do your sums!!

In the early 60’s the race was on globally to introduce colour TV to the world. On April 1 1962, one of the most famous practical jokes convinced the Swedish nation that simply by stretching a pair of stockings over black and white TV screens it was possible to view colour images. Naturally the April Fools hoax featured a huge amount of convincing technical jargon, peppered with gimmicks, including sitting the required distance from the screen with the head moving backwards and forwards rhythmically to achieve the desired coloured effect…! Amazingly, Sweden was duped! A footnote here: Sweden commenced permanent full colour broadcasting to the nation on April 1 1970!

Joking aside, when moving to Greece it’s important to do your homework and understand all the steps involved to ensure your success. Just because friends do things one way that does not necessarily mean that it’s best for you.

One key element that many buyers fail to consider is the full financial future for yourself and your descendents. The creation of your Will and ongoing Estate Planning is an absolutely essential consideration. If you are keeping any links with the UK, be it property, a bank account or that you continue to hold a British passport, it’s advisable to keep your UK Will active as well as preparing a Will in Greece.

On the other hand, if you are planning on severing all ties with the UK it is paramount to follow precise steps. One step omitted could cost you an enormous amount in taxes plus potentially disastrous consequences for those that you wish to benefit from your estate.

Incidentally, I can see the “How much will it cost me “ question forming in your mind, as it did in mine! The good news is that the IFA we will recommend you to will charge you nothing (no, you have not read that incorrectly!!) for the benefit of their advice initially. The point at which they start charging is when you take them up on the advice given and retain their services to do so. Their boast is that, at that stage, they hope to make or save you more than they actually charge you, certainly over the medium term. Independent financial advisers must also offer their clients the option to pay for advice by fee rather than commission.

I am enormously excited by this as I really think this could be of tremendous help to you. If you would like me to introduce you to my recommended IFA, please go to:
http://www.GreeceBuyingGuide.com/resources.htm

Legal Corner GREEK TAX UPDATE MARCH 2008

Here in more detail is new uniform property tax update from my Greek lawyer: I did refer to this on my last newsletter but this gives you a really full overview. To read previous newsletters incidentally, please go to http://www.greecebuyingguide.com/greece_news.htm

“From 2008 and thereafter, a uniform property tax is imposed in Greece on "real property" (subject to certain exceptions) which belongs to either natural entities (i.e. persons) or legal entities (companies etc) on the 1st of January of each year. Every natural or legal entity, irrespective of their nationality or residence, is taxed for their real property situated within Greece on the 1st of January of each tax year, irrespective of any changes which may occur during the course of that year.

The term "real property" includes buildings such as houses and apartments as well as land situated within the town planning zone.

For the imposition of the uniform property tax for 2008 the property declarations (E9) lodged in the years from 2005 through to 2008 has been defined as the database which will be used for imposition of tax. For this reason the property declarations (E9) for the year 2008 from people who have acquired a property interest either by purchase, inheritance or by gift must be lodged by the 31st of March 2008.

This E9 property declaration is separate from, and in addition to, the initial income tax return together with the appropriate E9 form for non-residents who have acquired property in the year 2007 and which must be filed by May 2008.

If people fail to file the appropriate E9 declaration by the 31st of March 2008, a fine of 50% will be imposed for a tax up to €500 and a fine of 100% will be imposed for sums of over €500.

From the uniform property tax point of view, the primary residence of people up to a size of 200 square metres, and where the value does not exceed €300.000, is exempt. This exemption does not apply to non Greek residents.

Furthermore, all agricultural land (land which is situated outside the town planning zones) belonging to persons is also exempted. The appropriate tax authority for the receipt of the E9 property forms is the tax authority which is responsible for your income tax return.

The combined value of the property belonging to persons, after the subtraction of the value of the primary residence (not applicable to non-residents) is taxed at a rate of 1 per thousand so that for say a house valued at €10,000 the tax is €10 per annum.

The tax which is raised on the value of the buildings which are subject to the tax cannot be less than one (1) euro per square metre with an exemption applied to unfinished buildings, ancillary spaces, farm buildings and buildings which are situated in municipalities with less than 1000 residents.

The value which is used for the purpose of the uniform property tax is the objective tax values published by the tax authority.

Examples

Example number 1
Apartment of 50 square metres whose tax value is €15.000
Tax to pay is €50 as a rate of one euro per square metre is applied.

Example number 2
Apartment of 50 square metres whose tax value is €60.000
tax to pay is €60 as the rate of 1 per thousand is applied.

Example number 3
A plot of land of 4000 square metres which is situated outside the town planning zone whose tax value is €70.000
No tax is due as the plot is outside the town planning zone even though it is capable of building development.”

If you need any legal assistance, please don’t hesitate to ask me and I will get our recommended lawyer to get in touch with you. Just click through to the resources page at:
http://www.GreeceBuyingGuide.com/resources.htm
or email me at:
mailto:carol@OverseasGuidesCompany.com

Closing

Before I go I wanted to share with you a very nice piece of feedback we received recently:

"Having found the forum, subscribed to the free newsletters & purchased the Guide to purchasing property, it was amazingly easy using the tips & suggestions, to define my requirements & establish my strategy for what I really wanted.

Then once introduced to the Guides Company's network of friendly, helpful associates, everything fell into place. And this despite some very attractive, but potentially risky, alternatives which I could have easily tempted into. However, I had a plan to keep me on track & knowledgeable friends to draw advice from.

I have now successfully purchased a unique property, which I believe I will enjoy during my future retirement in a friendly & more attractive climate than the UK.

Thanks again Kim to you, your colleagues & all your kind associates & their unique way of working.

Best regards

Brian Dorey."

As I hinted at earlier in this newsletter, I am off to visit my beloved daughter, son-in-law and grandchildren in Dubai soon – 34 degrees at this moment – how perfect!!
Please tell me about your plans this summer – pick up the phone and reach me on 0207 898 0549 or email me: address below. I would love to hear how you will be spending the warm, lovely summer days and, if you are off to Greece, why not just have a peek at a house or two while you are there? You never know – it could be a life changing moment!! I would be happy to put you in touch with people who could help here….let me know, or go to:

http://www.GreeceBuyingGuide.com/property.htm

and fill in the form you will find there.

This comes with all best wishes and warm regards,

Carol

Carol Dunning
Greece Buying Guide Advisor
The Overseas Guides Company Limited.

mailto:carol@OverseasGuidesCompany.com
Phone 0845 017 8771/ 0207 898 0549
1 Lyric Square
London
W6 0NB