Buying property in Crete together sounds simple:
“We’ll just split everything.”
But in real life, most conflicts don’t start because of the house — they start because expectations were never clarified.
Whether you’re a couple relocating from the UK, Germany or Scandinavia, digital nomads investing together, or a family buying a holiday home — joint ownership without structure is riskier than most people realise.
In Greece, legal procedures, taxes, rental regulations and inheritance rules differ significantly from Northern Europe or North America. That makes clear agreements even more important.
This guide walks you through the 7 agreements you should settle before paying a reservation fee.
Why “We’ll figure it out later” Becomes Expensive
The most common mistake?
Postponing uncomfortable conversations.
Once deposits are paid and renovation starts, discussions become emotional instead of rational.
Typical real-life scenario:
- One partner contributes more capital.
- The other plans to “compensate later.”
- A year later, a major repair is needed.
- Suddenly “fair” feels very different.
Buying together means you are effectively creating a small financial partnership.
Partnerships need rules.
1. Ownership Shares: Who Legally Owns What?
Before anything else, decide:
- 50/50 ownership?
- Proportional to capital contribution (e.g., 70/30)?
- Equal shares but unequal investment?
Important:
Equal ownership is not automatically fair.
Unequal ownership is not automatically unfair.
The key is alignment between:
- Legal title
- Financial contribution
- Decision-making rights
2. Capital Contributions: Document Everything
Write down clearly:
- Who pays the reservation deposit?
- Who covers legal fees and taxes?
- Who funds renovation and furniture?
- Is additional funding considered a gift, a loan, or equity?
If one partner contributes significantly more, consider:
- A documented private loan agreement
- An internal compensation structure
- Adjusted ownership shares
Verbal agreements are fragile under pressure.
3. Running Costs: Agree on a Logic
Ongoing costs include:
- Property tax (ENFIA)
- Utilities
- Insurance
- Maintenance
- Management fees (if rented)
- Emergency repairs
Agree on a clear model:
- Based on ownership percentage
- 50/50 split
- Hybrid model (fixed costs by share, usage costs by occupancy)
Clarity avoids resentment.
4. Usage Rules: Who Uses the Property — and When?
Holiday homes often cause unexpected tension.
Clarify:
- Booking priority during peak season
- Guest policy (friends/family)
- Long-term stays or remote work use
- Minimum notice periods
If one partner lives locally and the other abroad, define usage expectations clearly.
5. Rental Strategy: Decide Now, Not Later
“Maybe we’ll rent it out” is not a strategy.
If short-term rental is a possibility, agree on:
- Is rental optional or mandatory?
- Who manages bookings?
- Who handles cleaning and guest communication?
- How is income distributed?
- What minimum furnishing standard is required?
Before deciding, review:
Rental income changes tax exposure and compliance obligations.
6. Exit Strategy: What If One Partner Wants Out?
This is the most important — and most ignored — agreement.
Define:
- Right of first refusal (internal buyout first?)
- Valuation method (independent appraiser? market average?)
- Timeframe to complete buyout
- Forced sale conditions
- What happens if financing is not possible?
Ask yourself honestly:
If one of you wants out in three years — is there a plan, or only hope?
7. Death and Inheritance Planning
Greek inheritance law may not automatically align with your home country’s system.
Clarify:
- Who inherits ownership shares?
- Can heirs force a sale?
- Does the surviving partner have buyout rights?
- Is there liquidity available for inheritance taxes?
International couples should review cross-border estate implications carefully.
Documents You Should Have Before Paying a Reservation Fee
At minimum:
- Written ownership model
- Documented capital contributions
- Running cost formula
- Rental agreement (even internal)
- Exit strategy framework
- Basic inheritance understanding
- Clear budget including buffer
For a structured overview of the buying process itself, see:
Kaste-Immobilien – How to buy property in Greece
https://www.kaste-immobilien.de/blog/wie-kaufe-ich-eine-immobilie-in-griechenland
Common Mistakes Couples Make
- Assuming 50/50 automatically works
- Ignoring maintenance reserves
- Underestimating tax implications
- Not planning for separation
- Treating the purchase emotionally instead of structurally
- Skipping professional review to “save money”
One hour of structured planning is cheaper than one year of conflict.
Checklist Before You Reserve
Before paying any deposit, confirm:
- Ownership shares are defined.
- Capital contributions are documented.
- Running costs follow a clear rule.
- Rental decision is made (yes/no + conditions).
- Exit strategy is written.
- Inheritance considerations are understood.
- Emergency fund is realistic.
- Decision thresholds are defined (e.g., expenses above €1,000 require joint approval).
If you can answer all eight confidently, you’re ready.
If not — pause.
FAQ
Do ownership shares have to match capital contribution?
No. But if they don’t, you need a transparent compensation mechanism.
Should both partners have separate lawyers?
Not always necessary — but advisable when capital contributions differ significantly or inheritance complexity exists.
What happens if we separate?
Without an agreed buyout mechanism, disputes can become lengthy and expensive. Define valuation and timelines in advance.
Is rental income automatically split 50/50?
Only if you choose that model. Income distribution should match your ownership or internal agreement.
Final Thought
Buying property together in Crete can be one of the best decisions you make — financially and emotionally.
But romance does not replace structure.
Clear agreements protect both the relationship and the investment.
If you treat the purchase like a partnership from day one, the property becomes an asset — not a future argument.
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