Greece, a country synonymous with rich history, sun-drenched landscapes, and azure seas, offers more than just a beautiful vacation destination. 

Whether you’re a seasoned property investor or a first-time buyer looking to expand your global footprint, this WorldPassports article serves as your comprehensive guide to making a real estate investment in Greece.

If you’re ready to explore the prospect of acquiring Greek real estate, don’t stop reading now; stay with us!

*Disclaimer: All amounts mentioned in this article were correct at the time of publication and might have shifted since.

What Are the Basics of Real Estate Investment?

Real estate investment involves purchasing property to generate income or capital appreciation.

What is Real Estate Investment?

Real Estate Investment involves the acquisition, ownership, and management of properties with the aim of generating income or achieving capital appreciation.

Investors can choose to invest in different types of real estate, such as residential homes, commercial buildings, or industrial spaces.

Strategies for real estate investment may include renting out properties for regular income, participating in property development projects, or holding properties for long-term value appreciation.

Real estate is a tangible asset class that offers potential returns, diversification, and a hedge against inflation.

Prior to making real estate investment decisions, investors should conduct thorough due diligence, assess market conditions, and carefully evaluate potential risks and rewards.

What is Greece Real Estate Investment?

Greece Real Estate Investment refers to the act of investing in properties within the Hellenic Republic (Greece).

This encompasses various real estate types, including residential, commercial, or industrial properties.

Investors may engage in Greece Real Estate Investment to capitalize on potential market growth, tourism-related opportunities, or the allure of the Greek property market.

However, investors should conduct thorough research, consider market conditions, and adhere to legal regulations governing real estate transactions in Greece.

Why Should I Consider Investing in Real Estate in Greece?

You should consider investing in real estate in Greece, as it boasts some of the most sought-after properties in the Mediterranean.

Greek property prices are still some of the most affordable in the region. This is one of several reasons that Greek real estate is some of the most popular in Europe. 

Greece is an exceedingly safe country and one of the most frequented tourist destinations in the world, with a large number of World Heritage sites.¹ 

How does post-pandemic Greece compare, though?

Greece’s economy has also been showing strong signs of growth and investment appreciation in recent years, with property values steadily increasing.

This recovery, combined with the strong tourism sector in Greece, means that there’s usually a high demand for rental properties, which poses the promise of lucrative income generation for real estate owners.

How Does the Real Estate Market in Greece Compare With Other European Countries?

Compared with other European countries, the real estate market in Greece fares very well indeed, with relatively affordable property prices and a strong dependence on tourism.

Our team has listed some of the ways in which the Greek real estate market compares to the rest of Europe:

• Affordability: Following the economic crisis that began in 2009, property prices in Greece plummeted. Even though prices have been recovering, they’ve remained more affordable compared to many Western European countries. This has made Greece particularly attractive for investors seeking value.
• Golden Visa program: Like some other Southern European countries such as Portugal and Spain, Greece offers a Golden Visa program, which provides residency permits to non-EU citizens who invest a certain amount in real estate. This has been a significant driver for foreign investment in the Greek property market.
• Tourism dependency: The Greek economy is heavily dependent on tourism, and this influences the real estate market. Coastal areas and islands such as Santorini, Mykonos, and Crete are popular with tourists and have a strong market for holiday rentals. However, this dependency also makes the market vulnerable to global events that impact tourism.
• Rental yields: In prime tourist locations and cities like Athens, rental yields can be relatively high. The combination of affordable property prices and strong demand for short-term holiday rentals has made Greece attractive for investors seeking rental income.
• Regulatory environment: Greece has traditionally had a more bureaucratic and less efficient property transaction process compared to some Northern European countries. However, efforts have been made to streamline processes and improve the ease of doing business.
• Market sentiment and growth prospects: The Greek real estate market has been seen as having strong growth potential, particularly as the economy recovers from the financial crisis. However, it’s also considered by some to be riskier than more stable Western European markets.
• Diverse property types: Greece offers a range of property types, from ancient buildings in historic cities to modern villas on picturesque islands. This diversity can be appealing to different types of investors.
• Capital controls and taxation: Greece has had capital controls in place due to the economic crisis, and property taxes can be relatively high. This has sometimes been seen as a deterrent for some investors.

But, take note…

Comparing the real estate market in Greece to other European countries will hinge on your personal priorities, risk tolerance, and goals. 

Markets can also evolve, so we recommend consulting with a real estate expert with knowledge of the local market to help you make informed decisions.

Which Regions of Greece Are Best for Real Estate Investment?  

The best regions of Greece for real estate investment can vary based on individual goals and market conditions, but we’ve still got some solid guidance for you. 

Here are some Greek regions that have been popular for real estate investment in recent years:

• Athens: As the capital city and economic hub of Greece, Athens has a strong demand for both residential and commercial properties. It's particularly popular for rental investments due to tourism and business activity.
• Thessaloniki: As the second-largest city in Greece, Thessaloniki is a cultural and economic center in the northern part of the country. It has a burgeoning tech scene and is also a popular destination for tourists.
• Crete: The largest of the Greek islands, Crete is known for its natural beauty and historical significance. It's a popular tourist destination, making it ideal for vacation rental investments.
• Santorini: Famous for its stunning sunsets and unique architecture, Santorini is one of the most popular tourist destinations in Greece. Luxury vacation rentals here can generate significant income during the tourist season.
• Mykonos: Similar to Santorini, Mykonos is known for luxury tourism. The high-end market and strong demand for short-term rentals make it an appealing option for investors seeking high returns.
• Rhodes: With its combination of historical sites and beautiful beaches, Rhodes is a favorite among European tourists, making it a solid choice for vacation rental investments.
• Corfu: Located in the Ionian Sea, Corfu is popular with tourists and has a mix of luxury and more affordable properties. Its accessibility from other parts of Europe is an added advantage.
• Peloponnese: This region has a rich history and a diverse landscape. It's less touristy compared to some islands but has been gaining popularity, offering potential for growth in property investments.
• Chalkidiki: Known for its stunning beaches and proximity to Thessaloniki, Chalkidiki is a popular holiday destination for both domestic and international tourists, making it a viable location for vacation property investments.
• Kefalonia: As one of the Ionian islands in Greece, it’s known for its natural beauty and strong tourism trade. Property prices here can be more affordable than on some of the more renowned Greek islands.

While these regions have historically been popular for real estate investment, market conditions can change.

Our advice? 

Conduct thorough research or consult with a real estate expert for the most current information and advice tailored to your specific investment goals.

How Can Greek Real Estate Investment Facilitate Citizenship and Residency?

If you’re keen to find out if buying real estate in Greece will help you in your citizenship and/or residency journey, then scroll on.

This is what you should know. 

Can Investing in Greek Real Estate Lead to Greece Citizenship?

You can’t get Greek citizenship directly by investing in Greek real estate. 

It’s possible to obtain Greek residency in this manner via the Golden Visa program, but citizenship is only obtainable after meeting several prerequisites, including living, working, and paying taxes in Greece for 7 years.

Do I Need to Be a Greek Resident To Buy Real Estate in Greece?

No, you don’t need to be a Greek resident to buy real estate in Greece; foreigners from any other country can buy real estate in Greece.

However, typically, EU citizens and permanent residents of Greece are given preference in Greek real estate acquisition. 

Does Owning Property in Greece Facilitate a Pathway to Greek Residency? 

Yes, owning property in Greece can facilitate a pathway to Greek residency. 

Greece’s residency by investment program allows you to become a Greek resident by making an investment of at least €250,000 in Greek real estate. 

Take note

As of May 2023, the minimum real estate investment in certain Greek municipalities will double to €500,000.² 

These municipalities include Athens, Thessaloniki, Glyfada, Mykonos, and Santorini, amongst others.

Are There Any Restrictions on Foreign Investment in Greek Real Estate?

No, there aren’t any serious restrictions on foreign investment in Greek real estate. 

Generally, Greece has friendly policies toward foreign investors.

Some specific areas of national security or strategic interest (such as borders or certain islands) have laws restricting property ownership relating to non-EU citizens, but this is the exception rather than the rule.³

What’s the Process to Buy Real Estate in Greece? 

The process to buy real estate in Greece is comparatively easy, but it has the potential to be onerous if it isn’t well managed. 

We’ve broken the process down into steps for you. 

Step 1: How Do You Find a Reputable Estate Agent in Greece?

You can certainly find property in Greece under your own steam, but using an estate agent can ease the process significantly. 

Greece is also known to operate largely on having the right contacts, so accessing the network of a reputable agent can smooth your property search. 

A good estate agent will likely also be able to connect you with reputable attorneys, insurers, and contractors.⁴

Step 2: How Do You View and Select Your Ideal Property in Greece?

Although it isn’t mandatory that you be present to purchase your property (you can assign a lawyer to handle it in your absence), it’s advisable that you visit the site physically so that you have confidence in your purchase. 

Step 3: How Does a Lawyer Perform Due Diligence With the Land Registry in Greece?

Your chosen lawyer will conduct a review of the title deeds of both the seller of the property and its previous owners, going back at least 20 years.

This is partly to ensure that there are no encumbrances on the property. Examples of encumbrances include mortgages, seizures, and claims. 

Step 4: How Do You Open a Bank Account in Greece?

It’s not imperative to have a Greek bank account to purchase Greek real estate.

However, in actuality, you’ll need a Greek account to pay the property transfer tax to the tax office in the property’s municipal region.

In effect, having a Greek bank account will be necessary at certain significant points in the process of purchasing your property.

Step 5: How Do You Make an Offer and Obtain a Greek Tax Number?

Once you’ve chosen your ideal property, it’ll be time to secure it.

Negotiate the asking price if there’s room to do so.

What’s next?

Once you've made an offer on your chosen real estate and it's been accepted, you'll need to obtain a Greek Tax Registry Number (AFM). 

It’s not possible to buy property in Greece without an AFM.

Step 6: How Do You Pay a Deposit When Buying Property in Greece?

Pay the seller a deposit to take the property off the market. 

Ordinarily, the deposit will be 10% of the total asking price.

Step 7: How Do You Pay Transfer Tax at the Greek Tax Office?

In Greece, the buyer is required to pay the property transfer tax.

Ordinarily, transfer tax comprises 3.09% of the taxable property value.

This process will likely take a few days to wrap up.

Step 8: How Do You Sign the Final Contract With a Notary in Greece?

Once the transfer tax process is complete, the contract deed will need to be finalized by a notary public and registered at the Land Registry and the Ktimatologio (public registry).

Both you and the seller will need to sign the contract deed in the presence of the notary.

For this process, your Greek Tax Number (AFM), referred to in Step 5 above, will be needed.

Step 9: How Do You Pay the Outstanding Property Amount in Greece?

Before the key exchange, you’ll need to pay the outstanding amount of the agreed property price.

Step 10: How Do You Pay Associated Fees and Taxes When Buying Property in Greece?

The final step in the process will be to settle all associated fees and taxes.

Staying compliant with Greek tax laws and legislation will help to create a seamless Greek residency experience. 

What Costs Are Involved in Investing in Greek Real Estate? 

The purchase price of your Greek real estate won’t be the only cost you incur. 

You’ll need to budget for estate agent fees, legal fees, notary fees, registration fees, and transfer tax.

Let's take a look.

What Are the Typical Estate Agent Fees for Property Investment in Greece?

Both the buyer and the seller are responsible for paying estate agent fees. 

These fees are typically charged at 2% of the agreed-upon purchase price of the property.

What Legal Fees Can You Expect When Investing in Greek Real Estate?

Lawyers’ fees range from 1% to 2% of the total purchase price.

How Much Are Notary Fees for Real Estate Transactions in Greece?

A notary public is essential in the Greek real estate purchase process.

Notary fees typically cost 2% of the total purchase price. 

What Are the Public Registration Fees for Property in Greece?

Public registration fees in Greece generally amount to between 0.48% and 0.68% of the total purchase price.

How Is Transfer Tax Calculated for Greek Real Estate Purchases?

Currently, property transfer tax in Greece amounts to 3.09% of the total purchase price of your property.

Paying the transfer tax on your chosen real estate is an essential step in finalizing the purchase process and is payable in either of the following ways:⁵

• A payment code is issued by the Tax Office, upon which the transfer tax that’s due is transferred from your Greek bank account to the relevant bank account stipulated by the Tax Office.
• You make out a check payable to the Greek government from your Greek bank account. You then deposit the check at the Tax office’s treasury department.

What Are the Tax Implications of Investing in Greek Real Estate?

Greece’s tax regime can be complicated, but that shouldn’t deter you from investing in real estate in the country. 

We’ve spelled out some basic information that should help you plan for all the tax implications of purchasing real estate in the Hellenic Republic. 

Read on.

How Can Investing in Real Estate Affect Your Greek Tax Residency Status?

First and foremost, you’ll need to determine whether or not you’ll be a Greek tax resident.

Simply put, if you live in Greece for 183 days in a year, you’re a Greek tax resident. 

What’s the upshot of this?

Essentially, you can be a permanent resident or citizen of Greece without being a Greek tax resident.

Being a tax resident makes you liable to pay certain taxes in Greece. 

How Does Owning Greek Property Influence Worldwide Income Tax Obligations?

If you’re a tax resident in Greece, Greece will tax you on all of your declared worldwide income (this includes cryptocurrency). 

There are exceptions for people whose country of origin has a tax treaty with the Greek government.⁶ 

If your country of origin has a tax treaty with the Hellenic Republic, you may have the option of paying those taxes in your country of origin. 

It might even be the case that you’ll be exempt from these taxes.

And the flipside?

If you’re not a tax resident in Greece, you’ll only be charged income tax on the income you’ve generated within Greece.

How Do Double Taxation Rules Apply to Greek Property Owners?

Greece has double taxation agreements with more than 50 countries, including the US, South Africa, the UAE, and the UK. 

It’s advised that you seek the advice of an international tax expert to ensure you don’t face double taxation as a resident or citizen of Greece.

What Are the Principal and Supplementary Real Estate Taxes in Greece?

The Greek real estate tax is referred to as ENFIA.

ENFIA comprises the principal tax charged against your real estate (measured by multiplying the property's area squared by the coefficient ranging from €2 to €13 per m²) and the supplementary tax on the value of your property rights (measured by multiplying the property's area by the coefficient ranging from €0.0037 to €11.25 per m²).⁷

How Is Property Inheritance Tax Levied in Greece?

Property inheritance tax is typically applied based on your relationship with the person from whom you inherited the property and the value of the property.

Although inherited property up to the value of €150,000 is tax-free for close relatives of the deceased, when property inheritance tax is applied, it can sometimes be up to 40% of the value of the property.

What Are the Tax Rates on Rental Income from Greek Real Estate?

Rental income tax is charged differently for individuals versus corporate entities. 

For companies, the rental income tax rate is set at 24%. 

For individuals, the rental income tax rate ranges from 15% to 45%, depending on how much rental income is being earned. 

How Are Capital Gains on Greek Real Estate Investments Taxed?

Currently, Greece has a favorable stance towards charging capital gains taxes on the sale of a property. 

Circumstances vary, but, generally speaking, this tax isn’t levied unless the seller is selling houses as an entrepreneurial activity or has sold more than 2 houses in 2 years. 

When charged, Greek capital gains tax can be anywhere between 15% and 45%. 

What Inheritance Taxes Must Be Paid on Greek Real Estate?

Inheritance is taxed in Greece, and it can be a complicated process. 

Generally, inheritance tax rates vary from 1% to 40%, depending on the relationship between the deceased and his or her heirs and on the value of the inherited asset(s).

Common Questions

In Conclusion

Buying real estate in Greece can be an excellent strategic move; you'll gain access to a lucrative property market, and you may put yourself on track for acquiring Greek residency. 

As with any investment, it's essential to conduct thorough due diligence and understand the implications of owning property in Greece. 

It's always advisable to seek professional, legal, and financial advice to ensure that your investment aligns with your broader financial and lifestyle goals.

That’s where we come in! 

At WorldPassports, we’re excited to help direct you to the right processes and decisions to get your real estate investment in Greece.