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Purchase of Properties
The purchase of properties with provision
for seller's right to remain as a resident
In certain cases the Benaki Museum will consider buying properties (such as inhabited apartments) where the purchase price does not exceed 80% of its taxable
value. The seller is considered to have donated the remainder of the value of the property to the Museum.
In cases such as these the seller remains resident in the property for the rest of his life, in return for payment of a token rent. The Benaki Museum
becomes the owner of the property but the seller is exempted from all relevant property taxes. The seller is required to continue paying current bills
such as his telephone, electricity, heating and water bills. The seller also undertakes to provide for the upkeep of the property, so that it is ceded to
the Museum in the same condition it was in at the time it was bought. The seller does not have the right to sublet the property or to transfer it to a
third party.
Payment for the property may be made in the form of:
- A lump-sum payment (e.g. a lump sum of 240.000 €).
- Monthly, tax-free instalments over a specified period of time [e.g. € 2,000 per month for 10 years (120 months), adjusted to reflect inflation].
- Ceding to the Museum management of the purchase price and receiving a monthly non-taxable income [€1000 per month for life (at 5%) adjustable to reflect
the inflation rate] given that the amount will be invested in titles whose yield is not taxed (e.g. treasury bills), or is taxed at
source (e.g. stocks).
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