How to Buy Property in Greece: A Step-by-Step Guide for Foreign Investors

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Table of Contents

• Introduction
• Understanding the Greek Property Market
• Legal Requirements for Foreign Buyers
• Steps to Purchasing Property in Greece
• Financing Your Greek Property Purchase
• Tax Implications for Foreign Property Owners
• Popular Locations for Foreign Investors
• Potential Risks and How to Mitigate Them
• The Golden Visa Program
• Conclusion
• FAQs

Introduction

Greece, with its rich history, stunning landscapes, and Mediterranean charm, has long been an attractive destination for foreign property investors. The allure of owning a piece of this ancient land, whether for personal use or as an investment, has only grown stronger in recent years. This comprehensive guide will walk you through the intricacies of purchasing property in Greece, providing you with the knowledge and insights needed to make informed decisions in this dynamic market.

Understanding the Greek Property Market

Before diving into the specifics of property acquisition, it’s crucial to grasp the current state and trends of the Greek real estate market. The sector has shown remarkable resilience and growth potential, particularly in the aftermath of the country’s economic crisis.

Market Trends and Dynamics

Recent data indicates a steady uptick in property values across Greece, with certain regions experiencing more pronounced growth. Urban centers like Athens and Thessaloniki, as well as popular island destinations such as Mykonos and Santorini, have seen particularly strong price appreciation. This trend is driven by a combination of factors, including increased foreign investment, a recovering domestic economy, and the success of programs like the Golden Visa scheme.

The rental market, especially in tourist-heavy areas, has also shown promising returns for investors. Short-term rental platforms have opened up new opportunities for property owners to generate income, particularly during the peak summer months. However, it’s important to note that regulations around short-term rentals have been tightening, and investors should stay informed about local laws and restrictions.

Economic Indicators Influencing the Property Market

Several key economic indicators play a crucial role in shaping the Greek property market:

• GDP Growth: Greece’s economy has been on a path of recovery, with modest but consistent growth in recent years. This economic stability has bolstered confidence in the real estate sector.
• Tourism Numbers: The tourism industry, a significant driver of the Greek economy, directly impacts property values in many regions. Areas with strong tourist appeal often see higher property appreciation and rental yields.
• Foreign Direct Investment: There has been a notable increase in foreign investment in Greek real estate, particularly from Chinese, Russian, and Middle Eastern buyers.
• Interest Rates: The European Central Bank’s monetary policy influences mortgage rates in Greece, affecting both local and foreign buyers’ purchasing power.

Legal Requirements for Foreign Buyers

Foreign investors looking to purchase property in Greece must navigate a set of legal requirements. While the process has been streamlined in recent years to attract international buyers, there are still important considerations to keep in mind.

Eligibility and Restrictions

In general, there are no significant restrictions on foreign ownership of property in Greece. However, there are some exceptions:

• Border Areas: Properties in certain border regions or on some islands may require additional permits for non-EU citizens.
• Agricultural Land: There may be restrictions on the purchase of large tracts of agricultural land by non-EU citizens.
• Historical Properties: Buying properties of historical significance may involve additional bureaucratic processes and restrictions.

Required Documentation

Foreign buyers will need to prepare the following documents:

• Valid passport or national ID (for EU citizens)
• Greek Tax Registration Number (AFM)
• Power of Attorney (if not personally present for all procedures)
• Bank statements or other proof of funds
• Criminal record certificate (for some visa applications)

Steps to Purchasing Property in Greece

The process of buying property in Greece involves several key steps. Understanding these will help you navigate the purchase smoothly and avoid potential pitfalls.

1. Property Search and Selection

Begin by researching areas of interest and identifying properties that meet your criteria. This can be done through online portals, real estate agencies, or personal visits to Greece. Consider factors such as location, property type, condition, and potential for appreciation or rental income.

2. Engaging a Lawyer

It’s highly recommended to engage a reputable Greek lawyer who specializes in real estate transactions. They will guide you through the legal aspects of the purchase, conduct due diligence, and protect your interests throughout the process.

3. Making an Offer

Once you’ve found a suitable property, make an offer through your real estate agent or lawyer. Negotiation is common in Greece, so be prepared to discuss the price and terms.

4. Due Diligence

Your lawyer will conduct thorough due diligence, including:

• Verifying the seller’s ownership rights
• Checking for any encumbrances or liens on the property
• Ensuring the property complies with zoning and building regulations
• Reviewing the property’s tax history

5. Preliminary Agreement and Deposit

Once due diligence is complete and both parties agree on terms, a preliminary agreement (promissory contract) is signed. At this stage, you’ll typically pay a deposit of 10% of the purchase price.

6. Finalizing the Purchase

The final step is signing the purchase contract (συμβόλαιο) before a notary public. This is when the full payment is made, and ownership is transferred to you. The contract is then registered with the local land registry or cadastre.

Financing Your Greek Property Purchase

Understanding your financing options is crucial when investing in Greek real estate. While cash purchases are common among foreign buyers, there are also mortgage options available.

Mortgage Options for Foreign Buyers

Greek banks do offer mortgages to foreign buyers, but the terms and availability can vary:

• Loan-to-Value (LTV) Ratio: Typically ranges from 50% to 70% for non-residents.
• Interest Rates: These can be fixed or variable and are generally higher for non-residents compared to Greek nationals.
• Loan Terms: Usually range from 15 to 30 years.
• Currency: Loans are generally provided in euros, which may expose non-euro buyers to currency risk.

Required Documentation for Mortgages

To apply for a mortgage in Greece, you’ll typically need to provide:

• Proof of income (tax returns, pay slips)
• Bank statements
• Credit history from your home country
• Property valuation report
• Life insurance policy

Tax Implications for Foreign Property Owners

Understanding the tax landscape is essential for foreign property investors in Greece. The tax system has undergone significant reforms in recent years, and staying informed about your obligations is crucial.

Property Transfer Tax

When purchasing property in Greece, you’ll need to pay a property transfer tax. This is currently set at 3.09% of the property’s value. However, for new buildings with a building permit issued after January 1, 2006, VAT at 24% applies instead of transfer tax.

Annual Property Tax (ENFIA)

All property owners in Greece are subject to the Unified Property Tax (ENFIA). The amount depends on various factors, including the property’s size, location, and features. It’s calculated annually and can be paid in multiple installments.

Rental Income Tax

If you plan to rent out your property, you’ll need to declare the rental income and pay tax on it. The tax rates for rental income are progressive, ranging from 15% to 45%, depending on the total amount of income.

Capital Gains Tax

Capital gains tax on property sales in Greece is currently suspended until 2023. After this period, a 15% tax on capital gains is expected to be implemented, although this may be subject to change.

Popular Locations for Foreign Investors

Greece offers a diverse range of locations attractive to foreign property investors. Each area has its unique characteristics and investment potential.

Athens and Surrounding Areas

The capital city and its suburbs have seen significant interest from foreign buyers. The athens property market offers a mix of historical charm and modern amenities. Areas like Kolonaki, Plaka, and Glyfada are particularly popular among international investors.

Greek Islands

The Greek islands remain a top choice for those seeking vacation homes or rental properties. Popular destinations include:

• Mykonos: Known for its vibrant nightlife and luxury real estate market.
• Santorini: Famous for its stunning views and unique architecture.
• Crete: The largest Greek island, offering a diverse range of property options.
• Rhodes: A blend of historical sites and beautiful beaches.

Thessaloniki

Greece’s second-largest city is gaining attention from investors due to its cultural offerings, universities, and more affordable property prices compared to Athens.

Potential Risks and How to Mitigate Them

While investing in Greek property can be rewarding, it’s important to be aware of potential risks and take steps to mitigate them.

Legal and Bureaucratic Challenges

The Greek legal system and bureaucracy can be complex and time-consuming. Mitigate this risk by:

• Hiring an experienced local lawyer
• Conducting thorough due diligence
• Being patient and prepared for potential delays

Economic Volatility

While Greece has shown signs of economic recovery, it’s important to consider the potential for future economic challenges. Diversifying your investment portfolio and focusing on properties with strong rental potential can help mitigate this risk.

Property Title Issues

In some cases, especially in rural areas or islands, property titles may not be clear. Ensure your lawyer conducts a comprehensive title search and consider title insurance if available.

The Golden Visa Program

Greece’s Golden Visa program has been a significant driver of foreign investment in the real estate market. This program offers residence permits to non-EU nationals who invest in Greek property.

Key Features of the Golden Visa

• Minimum Investment: €250,000 in real estate
• Visa Benefits: Residence permit for five years, renewable
• Family Inclusion: Spouse and dependent children under 21 are included
• Travel: Visa-free travel within the Schengen Area
• Path to Citizenship: Possibility of applying for citizenship after seven years of residence

Application Process

The Golden Visa application process involves several steps:

1. Selecting and purchasing a qualifying property
2. Obtaining necessary documentation (e.g., property title, proof of investment)
3. Submitting the application to the Greek authorities
4. Biometric data collection
5. Issuance of the residence permit

Conclusion

Investing in Greek property offers a unique opportunity to own a piece of one of the world’s most historic and beautiful countries. While the process may seem complex, especially for foreign buyers, understanding the steps involved and being prepared can lead to a successful and rewarding investment.

The Greek real estate market continues to show promise, with attractive options ranging from city apartments in Athens to idyllic island retreats. By conducting thorough research, engaging experienced professionals, and staying informed about legal and tax requirements, foreign investors can navigate the Greek property market with confidence.

Whether you’re looking for a vacation home, a rental property, or a long-term investment, Greece’s diverse offerings and improving economic landscape make it an appealing destination for real estate investment. As always, it’s crucial to approach any investment with due diligence and a clear understanding of your financial goals and risk tolerance.

FAQs

1. Can foreigners own property in Greece?

Yes, foreigners can own property in Greece with few restrictions. However, properties in certain border areas or islands may require additional permits for non-EU citizens.

2. What is the Golden Visa program in Greece?

The Golden Visa program offers residence permits to non-EU nationals who invest a minimum of €250,000 in Greek real estate. It provides visa-free travel within the Schengen Area and a path to potential citizenship.

3. How much are property taxes in Greece?

Property taxes in Greece include the annual Unified Property Tax (ENFIA), which varies based on the property’s characteristics. There’s also a property transfer tax of 3.09% when purchasing (or 24% VAT for new buildings).

4. Can I get a mortgage as a foreign buyer in Greece?

Yes, Greek banks do offer mortgages to foreign buyers, typically with loan-to-value ratios between 50% and 70% for non-residents. However, terms may be less favorable compared to those for Greek nationals.

5. What are the most popular areas for foreign property investment in Greece?

Popular areas include Athens and its suburbs, islands like Mykonos, Santorini, and Crete, as well as cities like Thessaloniki. Each area offers different advantages in terms of lifestyle, rental potential, and investment growth.

Article reviewed by Anna Mayer, Residential Property Investment Advisor | Luxury Market Specialist, on March 14, 2025