Yes, for an EOT licince, all the houses on a shared plot have to have the licence and have to be registered under the one name. If at a later date one of the owners lets the licence lapse they all lapse.
In order to have the licence either you have to have a property on your own individual plot, or on a plot planned for all the properties to have EOT.

I think this is a question for your lawyer - but strictly speaking this is the case. Check everything with YOUR lawyer first.

sokin wrote on 27. Oct 2007 at 09:45:


Thanks for your reply.

Please see my comments to your questions above.

Your thoughts are much appreciated.

ok we had our second morning coffee so easier to think. from what i understand you want a house for you for later on, and on the main time you will rent it out to make out part or all of the building cost.
The idea is correct on its basic points. as you can see above there are to many things that you have to take into consideration like gardening, cleaning, taxes, A/C, furniture, advertising and so on.
one other think that i just remembered is the pool. after a specific deapth you need to have a licence and a life quard. dont remember deapth but you should try to find out so you will be ok with that part to.
go out and about and start looking at brochures with villas for 2008. see if you find similar ones in rethymno area to see what prices the agents sell. from those prices depending the agence you have to deduct 20-50% to see the NET price that the owner is giving them. i can see you smiling now. saying ooOOO i will rent them out on my own with higher prices than NET so better profit. trust me its not easy. first year you will be on the market set low prices so you will be ''pushing'' the property.
there are 3 ways of giving the property to some one to rent it out:
1. quaranty. that means he/she gives you a set amount of money for the 6 months period regardless number of bookings.
2. allotment. that means agent has the booking plan and if you need to add a booking from your clients you ask the agent
3. on request. you have booking plan and everybody else askes you for availability.

i dont want to spoil you the dream, but from what i read on your reply you are not building a villa. according to my standards its just a good looking apartment/house. it is very often that developers and estate agents will tell you that if you get to build or buy a property it will make money as a holiday accommodation. some times they are correct. some times not. dont forget they want to sell, so they sell you a dream. you have to think like a business company if you want to rent it out. yes fair enough in the long term you will be in there living but till then you think differently.
sit down and add the following costs:
monthly load payments
taxes (19% VAT in Greece)
Electricity
water (both for pool/garden and drinking one)
gardening
cleaning
furniture
possible damages
fees to the agent that looks after while you not here
bits and bobs
etc

now possible profit:
good case scenario 3 months, middle scenario 2, worst 1 month.
doomed scenario. NO clients at all. who pays all the clenaing, pool etc??

i dont know your financial statues but if you can afford a risk of no income from the property till finished and also 1 FULL tourism season then do it.
IF you get to have all done by the end of the summer of 2008 that means 2009 proper rental to tourists.

trust me. the EOT licence is the last thing you need to worry. i can name you lots of properties rented out with success that are not licenced by EOT.
a successfull property can make you lots of $$$$.

the sale price from an agent for your property (speculation since i have not seen it) should be 1k-1.6k per week for 5-6 persons depending period of the year. that means about 800-1300 for you per week depending the month and the % the agent adds on top of you NET price.
scenarios:
bad 800x4weeks=3200k
middle 800x8=6400
best 800x12=9600.
the above are calculated on lowest price (low season).
now imagine hight season (July August) with about 1.6k per week.
from the 800 deduct running cost of property and you have clear profit of the week.
can you afford a 500/week? that will make you hit the market the first year. means no or low profit for you but puts you in there for people to go for you. later on you can have an increas in prices something like 10% per year till you find the proper price from the property.

bottom line is: if you can afford the running cost of the property and you dont expect an income from it then do it. all you need is the property to make up its running cost and a bit of income to pay out for its existance (bank loan etc)
hope i didnt confuse you a lot.

As INCO was mentioned by Latsida, can I just make a comment? One of the conditions of INCO membership is that you are a permanent resident on the island. That means that unless you generally own more than property, you will be living in it not letting it! Admittedly we have a few members who are in business here, though none that I know of in the villa letting business! We are also confined to the Lassithi area of the island.

However, CIC does cover both Rethymno & Chania, so that might be worth exploring.

thawkins wrote on 26. Oct 2007 at 17:21:


We are on a shared plot of 2 villas.  Our EOT is going through at the moment, we have jointly applied for EOT but the licence will be split and each property will have EOT as an individual when it is complete.  Our EOT lady is VERY experienced and comes highly recommended to us.  So far, so good.  We have seen our accountant and we have set up our business with him - you DO NOT need to set up a business jointly with the other villas on your plot.  The business we have set is just for us, our neighbours have set up on just for them.  Hope this helps.

Thanks eveyone for all the useful info.

Sandy, I have sent you a pm regarding the lady who has hepled with your EOT