How to Secure a Greek Tax Identification Number (AFM) for Property Deals

Table of Contents

1. Introduction to Greek Tax Identification Numbers (AFM)
2. Importance of AFM for Property Transactions in Greece
3. Eligibility Criteria for Obtaining an AFM
4. Steps to Obtain a Greek Tax Identification Number
5. Required Documents for AFM Application
6. The Application Process at the Greek Tax Office
7. Online Application for AFM: A New Alternative
8. Common Challenges and How to Overcome Them
9. Using Your AFM for Property Transactions
10. Maintaining Your AFM and Obligations
11. Legal Considerations and Compliance
12. Benefits of Having a Greek AFM Beyond Property Deals
13. Conclusion
14. FAQs

1. Introduction to Greek Tax Identification Numbers (AFM)

A Greek Tax Identification Number, known as AFM (Αριθμός Φορολογικού Μητρώου) in Greek, is a unique identifier assigned to individuals and legal entities for tax purposes in Greece. This nine-digit number is essential for various financial and administrative transactions within the country, including property deals. Whether you’re a Greek citizen, an expatriate, or a foreign investor looking to engage in property transactions in Greece, understanding the process of obtaining an AFM is crucial.

The AFM serves as your fiscal identity in Greece, allowing the tax authorities to track your financial activities and ensure compliance with Greek tax laws. It’s not just a number; it’s your key to participating in the Greek economy legally and efficiently, especially when it comes to real estate dealings.

2. Importance of AFM for Property Transactions in Greece

When it comes to property deals in Greece, having an AFM is not just important—it’s mandatory. Here’s why:

• Legal Requirement: Greek law mandates that all parties involved in property transactions must have an AFM.
• Taxation Purposes: The AFM allows the Greek tax authorities to monitor property-related taxes and ensure proper payment.
• Contract Validity: Without an AFM, property contracts may be considered invalid or unenforceable.
• Banking Operations: An AFM is necessary for opening Greek bank accounts, which are often required for property transactions.
• Utility Connections: Setting up utilities for your property typically requires an AFM.

For foreign investors, the AFM is particularly crucial as it demonstrates your commitment to complying with Greek fiscal regulations and smooths the path for your property investments in the country.

3. Eligibility Criteria for Obtaining an AFM

Before diving into the application process, it’s important to understand who is eligible for a Greek AFM. The good news is that the eligibility criteria are quite broad:

• Greek citizens residing in Greece or abroad
• Foreign nationals planning to conduct financial transactions in Greece
• EU citizens living or working in Greece
• Non-EU citizens with a valid residence permit or visa for Greece
• Companies and legal entities operating or planning to operate in Greece

Essentially, if you have a legitimate reason to engage in financial activities in Greece, including property transactions, you are likely eligible for an AFM. However, the specific requirements and documentation may vary depending on your nationality and residency status.

4. Steps to Obtain a Greek Tax Identification Number

Securing your AFM involves a series of steps that, while straightforward, require attention to detail and proper preparation. Here’s a general outline of the process:

1. Gather all necessary documents (we’ll cover this in detail in the next section)
2. Choose the appropriate tax office (DOY) based on your location or intended property location
3. Schedule an appointment with the tax office (if required)
4. Submit your application and documents in person or through an authorized representative
5. Provide additional information or clarification if requested by the tax officer
6. Receive your AFM, typically issued on the spot or within a few days

It’s worth noting that while this process traditionally required in-person visits, recent developments have introduced online application options for certain categories of applicants, which we’ll discuss later in this article.

5. Required Documents for AFM Application

The documentation required for your AFM application can vary based on your citizenship and residency status. However, here’s a general list of documents you should prepare:

For Greek Citizens:

• Valid Greek ID card or passport
• Proof of address (recent utility bill or rental agreement)
• Birth certificate (in some cases)

For EU Citizens:

• Valid passport or national ID card
• EU registration certificate (if residing in Greece)
• Proof of address in Greece or intended property location

For Non-EU Citizens:

• Valid passport
• Valid residence permit or visa
• Proof of address in Greece
• Birth certificate with Apostille and official translation (in some cases)

Additional Documents for Property Transactions:

• Preliminary property agreement or proof of intent to purchase
• Power of attorney (if applying through a representative)

It’s crucial to have all documents translated into Greek by a certified translator and, where applicable, apostilled or legalized. Always check with the specific tax office or the Greek embassy in your country for the most up-to-date document requirements, as they can change.

6. The Application Process at the Greek Tax Office

Once you’ve gathered all necessary documents, the next step is to visit the appropriate Greek tax office (DOY) to submit your application. Here’s what you can expect during this process:

1. Locating the Right Office: Determine which tax office you need to visit. This is typically based on your Greek address or the location of the property you’re interested in.
2. Scheduling an Appointment: Many tax offices now require appointments. Check their website or call ahead to schedule one.
3. Arrival and Wait Time: Arrive early and be prepared to wait. Greek bureaucracy can be slow, so patience is key.
4. Document Submission: Present all your documents to the tax officer. They will review them for completeness and accuracy.
5. Interview Process: You may be asked questions about your reason for applying, your intended activities in Greece, and your financial situation.
6. Application Form: You’ll need to fill out an M1 form, which is the official AFM application. The tax officer can assist you with this.
7. Processing: If everything is in order, your AFM may be issued on the spot. In some cases, it might take a few days for processing.
8. Receiving Your AFM: You’ll receive a document with your AFM printed on it. Keep this safe, as you’ll need it for future transactions.

Remember, the process can vary slightly between different tax offices and individual cases. It’s always a good idea to ask for a contact number or email in case you need to follow up on your application.

7. Online Application for AFM: A New Alternative

In recent years, the Greek tax authority has introduced an online platform for AFM applications, aiming to streamline the process and reduce the need for in-person visits. This system, while not available for all applicants, can significantly simplify the process for eligible individuals.

To use the online system:

1. Visit the official website of the Independent Authority for Public Revenue (AADE)
2. Navigate to the AFM application section
3. Create an account or log in if you already have one
4. Fill out the online application form
5. Upload scanned copies of required documents
6. Submit your application and wait for processing

While this online option is convenient, it’s primarily available for Greek citizens and some categories of EU residents. Non-EU citizens and those applying for property-related reasons may still need to apply in person. Always check the latest information on the AADE website to see if you’re eligible for online application.

8. Common Challenges and How to Overcome Them

Obtaining an AFM can sometimes present challenges, especially for foreign applicants. Here are some common issues and how to address them:

• Language Barrier: Greek is the primary language used in tax offices. Bring a translator or use a legal representative if you’re not fluent in Greek.
• Document Discrepancies: Ensure all your documents are up-to-date and consistent. Any discrepancies in names or dates can cause delays.
• Proof of Address: If you don’t have a Greek address yet, you may need to provide alternative proof, such as a hotel reservation or a letter from a Greek resident.
• Long Wait Times: Be prepared for potentially long waits at the tax office. Bring something to occupy your time and all necessary documents to avoid multiple visits.
• Changing Regulations: Greek bureaucracy can be complex and subject to change. Stay informed by checking official sources or consulting with a local tax advisor.

If you encounter significant difficulties, consider seeking help from a Greek lawyer or tax consultant who specializes in assisting foreign nationals. Their expertise can be invaluable in navigating the system efficiently.

9. Using Your AFM for Property Transactions

Once you’ve successfully obtained your AFM, you’re ready to proceed with property transactions in Greece. Here’s how your AFM will be used in the process:

• Property Purchase Agreements: Your AFM must be included in all official documents related to property purchases.
• Tax Declarations: You’ll use your AFM to file annual tax returns, including declarations of property ownership.
• Property Transfer Taxes: When buying property, you’ll need to pay transfer taxes using your AFM.
• Utility Connections: Setting up electricity, water, and other utilities for your property will require your AFM.
• Banking Operations: Opening a Greek bank account, which is often necessary for property transactions, requires an AFM.

Remember to keep your AFM information secure but accessible, as you’ll need it frequently throughout your property ownership journey in Greece.

10. Maintaining Your AFM and Obligations

Obtaining an AFM is just the beginning. To remain compliant with Greek tax laws, you need to maintain your AFM and fulfill certain obligations:

• Annual Tax Returns: Even if you’re not a permanent resident, you may need to file annual tax returns in Greece if you own property there.
• Updating Personal Information: Any changes to your personal details (address, marital status, etc.) should be reported to the tax office.
• Property Taxes: Be prepared to pay annual property taxes (ENFIA) using your AFM.
• Rental Income Reporting: If you rent out your property, you must declare the income using your AFM.
• Maintaining Records: Keep all tax-related documents and receipts for at least five years.

Failing to meet these obligations can result in fines or legal complications. If you’re unsure about your responsibilities, consult with a Greek tax advisor or accountant.

11. Legal Considerations and Compliance

When dealing with Greek tax authorities and property transactions, it’s crucial to understand and comply with all relevant laws and regulations. Here are some key legal considerations:

• Anti-Money Laundering Laws: Greece has strict regulations to prevent money laundering. Be prepared to provide proof of funds’ origin for large transactions.
• Golden Visa Program: If you’re investing in property as part of the Golden Visa program, additional legal requirements apply.
• Tax Treaties: Be aware of any tax treaties between Greece and your home country to avoid double taxation.
• Property Ownership Restrictions: Some areas in Greece have restrictions on foreign ownership of property, particularly near borders or on certain islands.
• Legal Representation: Consider hiring a Greek lawyer to ensure all property transactions are conducted legally and efficiently.

Staying compliant with Greek laws not only keeps you on the right side of the authorities but also protects your investment in the long run.

12. Benefits of Having a Greek AFM Beyond Property Deals

While obtaining an AFM is crucial for property transactions, its benefits extend far beyond real estate dealings:

• Business Opportunities: An AFM allows you to start a business or become self-employed in Greece.
• Employment: It’s necessary for legal employment in Greece, whether full-time or part-time.
• Banking Services: Access a wider range of banking services, including loans and investment products.
• Vehicle Registration: Register and own vehicles in Greece using your AFM.
• Social Security: Contribute to and benefit from the Greek social security system.
• E-Government Services: Access various online government services more easily.

Having an AFM essentially integrates you into the Greek financial and administrative system, opening up numerous possibilities for living, working, or investing in the country.

13. Conclusion

Securing a Greek Tax Identification Number (AFM) is a crucial step for anyone looking to engage in property transactions or other financial activities in Greece. While the process may seem daunting, especially for foreign nationals, understanding the requirements and following the steps outlined in this guide can make it much more manageable.

Remember that obtaining an AFM is not just about complying with Greek law; it’s about opening doors to numerous opportunities in Greece, from property ownership to business ventures. It’s your fiscal identity in the country, allowing you to participate fully in the Greek economy.

As with any legal or financial process in a foreign country, it’s always wise to seek professional advice if you’re unsure about any aspect of the AFM application or its usage. Stay informed about any changes in regulations, and don’t hesitate to ask questions at the tax office or consult with a local expert.

With your AFM in hand, you’ll be well-equipped to navigate the exciting world of Greek property deals and beyond, enjoying all that this beautiful Mediterranean country has to offer while remaining compliant with its fiscal regulations.

14. FAQs

Q1: How long does it typically take to get an AFM in Greece?

A1: The time to obtain an AFM can vary. In many cases, if all documents are in order, you can receive your AFM on the same day as your application at the tax office. However, in some instances, it may take up to a week. Online applications, where available, may have different processing times.

Q2: Can I apply for an AFM if I’m not physically in Greece?

A2: While it’s generally preferred that you apply in person, it is possible to apply for an AFM through a legal representative with a properly authorized power of attorney. Some Greek embassies or consulates may also assist with the process. However, the availability of these options can vary, so it’s best to check with the Greek tax authorities or your nearest Greek diplomatic mission.

Q3: Do I need to renew my AFM periodically?

A3: No, the AFM itself does not need to be renewed. It’s a permanent identification number assigned to you. However, you are required to update the tax office if there are any changes to your personal information, such as address or marital status.

Q4: Can I use my AFM for multiple properties in Greece?

A4: Yes, your AFM is used for all your financial activities in Greece, including multiple property transactions. You use the same AFM number for buying, selling, or renting any number of properties in the country.

Q5: What happens if I lose my AFM document?

A5: If you lose the document containing your AFM, don’t panic. The number itself is still valid and registered in the Greek tax system. You can visit your local tax office with identification to request a new copy of your AFM certificate. Some tax offices may also offer this service online or by phone.

Article reviewed by Devon Bergnaum, Residential Property Consultant | Helping Clients Find Dream Homes, on March 1, 2025