Authored by the expert who managed and guided the team behind the Greece Property Pack
Everything you need to know before buying real estate is included in our Greece Property Pack
Are you considering investing in Greece’s real estate market? What are the legal steps, tax implications, and cultural differences you need to understand before taking the plunge? What challenges do foreign investors typically face, and how can you overcome them?
These are the questions we hear most often from foreign investors because we’re actively connected to this market. We’ve spent time working with local agents, developers, and investors, so we know what works—and what doesn’t. That’s why we’ve written this article: to provide a clear guide that answers the questions we get asked daily.
Our goal is to help you, as a foreigner, to navigate the property buying process with confidence. If you think there’s something we missed or want more details, let us know (please do!). Your input helps us refine and improve our advice for everyone.
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1) Act quickly on Greece’s Golden Visa program for investments over €250,000 before thresholds rise in some areas
Greece's Golden Visa program is a fantastic opportunity for those looking to gain residency through property investment.
Currently, you can secure residency by investing €250,000 in property, but this is set to change soon. In popular spots like Attica, Thessaloniki, Mykonos, and Santorini, the minimum investment will jump to €800,000 starting August 31, 2024. For other areas, the new threshold will be €400,000.
This shift is part of Greece's strategy to balance real estate growth and promote fair development across the country. If you're eyeing a property in these high-demand areas, now's the time to act before the increase.
There's a grace period until December 31, 2024, to finalize investments under the current rules, with a hard deadline of April 30, 2025. This gives you a limited window to benefit from the lower threshold.
Imagine owning a piece of paradise in Mykonos or Santorini while securing residency. The current threshold offers a unique chance to invest in these dream locations without the upcoming higher costs.
Don't miss out on this opportunity to invest in Greece's exciting real estate market before the changes take effect.
Sources: Global Citizen Solutions, Economic Times, The Luxury Playbook
2) Be aware that Greek properties often come with tenants, and evicting them can be a lengthy legal process
In Greece, many properties are sold with tenants already living in them.
This might seem unusual, but it's quite common because about three-fourths of Greeks own their homes, leaving only a small portion available for rent. So, when you buy a property, there's a good chance it comes with tenants. This can be a bit tricky if you're planning to move in right away.
The legal side of things can be a bit of a maze. Evicting tenants in Greece is not a quick process due to the country's tenant-friendly laws. The Hellenic Civil Code requires a minimum lease term of three years, and if you want to evict someone, you might have to go through a lawsuit or send an extrajudicial notice, which can take months.
Once you start the eviction process, there's a 30-day waiting period after you request compliance from the tenant. After that, you can file for an eviction order, but even then, the process involves a bailiff to execute the decision, which adds more time.
Greek laws are designed to protect tenants, so landlords must follow specific steps to end a lease. This means that buying a property with tenants can complicate your plans if you're not prepared for the legal hurdles.
Sources: Chambers Global Practice Guides, Global Property Guide
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Greece. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Consider rental properties in Greece’s urban centers and tourist areas, as high homeownership rates drive demand
Greece boasts a high homeownership rate of 69.60% in 2023, making it one of the top in the European Union.
With so many Greeks owning homes, rental properties are scarce, especially in bustling cities like Athens and Thessaloniki. This scarcity drives up demand, particularly in urban areas where people are looking for places to rent.
Tourist hotspots, like the Greek islands, see a surge in demand for short-term rentals thanks to platforms like Airbnb. This trend is fueled by the booming tourism industry, which saw a 24.5% increase in early 2024.
Many tourists prefer the charm and convenience of short-term rentals, further boosting their popularity. Investing in rental properties in these tourist areas can be a lucrative opportunity, as real estate market analyses suggest.
For those considering buying property in Greece, understanding these dynamics is key. The limited supply of rentals in urban and tourist areas presents a unique investment opportunity.
Sources: Trading Economics, To Vima, NTL Trust, The Luxury Playbook, Grekodom
4) Consider properties with high-speed internet and comfortable workspaces to attract digital nomads
The rise of digital nomadism has skyrocketed by 131% from 2019 to 2022, creating a buzz in the property market.
Greece is a hotspot for these remote workers, thanks to its stunning islands like Crete and the Dodecanese that offer more than just beautiful views. The reliable internet connectivity here is a game-changer for those who need to work from anywhere. Plus, the Greek government is rolling out the red carpet with initiatives like the Digital Nomad Visa program, which attracted over 10,000 applications in its first year.
In cities and islands across Greece, coworking spaces are popping up to meet the needs of this new wave of workers. Places like "The Cube" in Chania and WorkHub Chania in Lesvos are leading the charge, offering high-speed Wi-Fi and ergonomic workspaces that are essential for digital nomads.
Investing in properties that cater to this trend could be a smart move. Think about amenities like high-speed internet and comfortable workspaces that make life easier for remote workers. These features are not just perks; they're necessities for anyone looking to attract digital nomads.
With the right setup, your property could become a go-to spot for digital nomads seeking a balance of work and leisure. The demand is there, and it's only growing as more people embrace the freedom of working from anywhere.
Sources: The Nomad Almanac, Mighty Travels, ConnectPLS
5) Be patient in Greece’s real estate market, as it can be slow-moving when seeking the right opportunity or buyer
Buying property in Greece requires patience due to its slow-moving market.
Transactions can stretch from 15 days to several months, influenced by factors like the seller's situation, property location, and existing mortgages or tenancies. This means you might need to wait a bit longer than expected to finalize a deal.
In 2023, house prices in Athens rose by 10.93%, while urban areas saw a 12.48% increase. This growth is more gradual compared to the past, reflecting a steadier pace in the market.
Interestingly, over 35% of Greek homes are vacant, especially in rural regions. This high vacancy rate can slow down sales, as there's more supply than demand. Real estate agents often mention that the process is lengthy due to the need for detailed documentation and regulatory compliance.
For those eyeing rural properties, be prepared for a longer wait. The abundance of vacant homes means finding the right buyer might take time. However, this could also mean more options for you to choose from.
Understanding these dynamics can help you navigate the market better. Remember, patience is key when investing in Greek real estate.
Sources: Global Property Guide, Varnavas, The Luxury Playbook
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6) Avoid properties in Greece with illegal structures, as they may result in fines or demolition orders
When buying property in Greece, be wary of illegal structures or extensions.
In recent years, the Greek government has been cracking down on unauthorized constructions, imposing fines on property owners who have them. These fines aren't random; they're based on the size of the illegal area and the property's value. So, if you're eyeing a property with a suspiciously large patio or extra room, it might be worth double-checking its legality.
Properties with illegal extensions can face serious consequences, including demolition orders. A stark example of this was in Mandra, west of Athens, where illegal structures blocked rainwater drainage, leading to severe flooding. This incident underscores the potential dangers and liabilities of owning such properties.
Greek authorities have identified numerous illegal constructions over the years. While there are laws to legalize these structures, the process is often complex and filled with conditions. This means that if you own a property with illegal modifications, you might be in for a long haul of legal and financial headaches.
It's not just about fines and demolitions; owning a property with illegal structures can lead to ongoing legal challenges. The process to legalize these structures can be daunting, and not everyone succeeds. So, it's crucial to ensure that any property you're considering is free from these issues.
Before making a purchase, it's wise to consult with local experts or legal advisors who understand the intricacies of Greek property laws. They can help you navigate the potential pitfalls and ensure that your investment is sound and secure.
Sources: Rightmove, CEE Legal Matters
7) Have cash ready in Greece, as locals often prefer cash transactions to make your offer more appealing
In Greece, cash is king in real estate deals.
Even as we moved through 2023 and 2024, the Greek Tax Authorities scrutinized 40,000 suspicious real estate transactions worth €462 million, all conducted in cash. This shows a strong preference for cash in the Greek real estate market. Real estate agencies often stress the importance of cash offers, advising that while cash is preferred, payments should be made through secure methods like bank transfers or cheques, especially after signing a Private Agreement.
Cash transactions are deeply ingrained in Greek culture, and this trust and convenience make them appealing. The Greek banking system, despite improvements, still faces challenges, making financing options less reliable. This situation further increases the appeal of cash transactions, as they eliminate the risk of financing issues or delays.
In a market where speed is crucial, cash offers are often more attractive to sellers. Greeks often prefer cash transactions, and having funds readily available can make your offer more attractive. This trend is particularly notable in the Greek real estate market, where cash transactions are a significant part of the process.
Understanding the local market dynamics can give you an edge. For instance, knowing that cash transactions are preferred can help you navigate the buying process more effectively. This insider knowledge can be crucial when making an offer, as it aligns with the expectations of sellers in Greece.
So, if you're considering buying property in Greece, being prepared with cash can be a strategic advantage. It not only speeds up the process but also aligns with the cultural norms and expectations of the Greek real estate market.
Sources: Grekodom, Your Home Sold, Statista
8) Consider properties in Athens neighborhoods like Metaxourgeio and Kypseli, as gentrification is boosting property values and profits
Investing in Athens' neighborhoods like Metaxourgeio and Kypseli is a savvy way to boost your property portfolio.
These areas are on the rise, with property prices climbing steadily over the past few years. In 2023, Athens saw a 9.4% increase in residential property prices, and Metaxourgeio and Kypseli were at the forefront of this growth. The buzz around these neighborhoods is largely due to infrastructure improvements that have transformed them into vibrant communities.
Take Kypseli, for instance. The renovation of the Municipal Market has turned it into a lively spot for locals and businesses, drawing more people and pushing property values higher. This kind of development is a magnet for new residents and investors alike.
In addition to infrastructure, there's a wave of new businesses popping up. Kypseli is seeing a surge in trendy restaurants, cafes, and shops, which is a clear sign of its growing popularity. This influx of businesses not only enhances the area's appeal but also attracts potential buyers and renters looking for a dynamic place to live.
Demographics are shifting too. A younger, more affluent crowd is moving in, adding diversity and energy to these neighborhoods. In Kypseli, you can see this change in the mix of people and cultures, with children from various backgrounds playing together, highlighting the area's newfound vibrancy.
Sources: The Luxury Playbook, Lazo Magazine
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Greece versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
9) Consider rural or small island properties for lower prices, but be aware they might lack infrastructure and services
In Greece, property prices in rural areas and smaller islands are much lower than in bustling cities like Athens and Thessaloniki.
For example, while you might pay around €1,636 per square meter in central Athens, you could find properties in Crete's Hieraklion for about €1,316 per square meter. This price difference is attractive, but there's a catch.
Many of these rural spots and islands lack essential infrastructure. Imagine living in a place where roads and public transport are sparse. It's no surprise that over 35% of Greece's housing stock, mostly in these areas, is vacant and often needs a lot of work.
Residents in these regions often face challenges accessing basic services. Healthcare and education can be quite a trek, with longer travel times making everyday life a bit more complicated.
Despite the allure of lower prices, the trade-off is clear. You might enjoy the peace and beauty of the countryside, but be prepared for some inconveniences.
So, if you're considering buying property in these areas, weigh the pros and cons carefully. The charm of rural Greece is undeniable, but it's essential to know what you're getting into.
Sources: Tranio, Global Property Guide
10) Consult a local tax advisor in Greece, as property taxes vary by location and type and can be complex
Buying property in Greece? Be prepared for a complex tax landscape.
In bustling Athens, property tax rates can range from 0.5% to 1.5% of your property's value. But if you're eyeing a quaint village or a serene rural area, you might enjoy a lower rate, as low as 0.2% to 0.5%. This difference can significantly impact your annual expenses.
The type of property you own also plays a big role. Commercial properties often face higher taxes than residential ones. If you're considering agricultural land, you might catch a break with lower rates, thanks to its economic contribution. This makes understanding the property type crucial when calculating potential taxes.
Since 2014, the "ENFIA" system has been the backbone of property taxation in Greece. It was designed to simplify things, but many find it still quite complicated and costly. Despite tweaks over the years, it remains a hot topic among property owners and experts.
Keeping up with these evolving tax laws can be tricky. Changes are frequent, and staying informed is key to avoiding surprises. Consulting a local tax advisor is a smart move to navigate this ever-changing landscape.
Sources: Greek Ministry of Finance, Greek Government Gazette, ENFIA System Overview
11) Hire a local Greek lawyer to check for unresolved legal issues, as they are common in property deals
Buying property in Greece can be tricky due to unresolved legal issues.
In rural areas like Peloponnese and Crete, many properties are unregistered, which means ownership might be unclear. This can lead to legal disputes or challenges in proving who really owns the land. It's not uncommon for property lines to be fuzzy, especially in these regions, causing boundary disputes with neighbors that complicate transactions.
Greek inheritance laws add another layer of complexity. Without a Will, property is divided among the closest relatives, but even with a Will, excluded relatives can still claim a share. This can make the process of buying inherited property quite challenging.
Illegal constructions and unauthorized modifications are also a concern. Properties with these issues might face expropriation, making ownership claims difficult. Many properties lack proper building permits, which can lead to unexpected costs or even property seizure if not checked before buying.
Given these challenges, hiring a local lawyer for thorough due diligence is crucial. They can help navigate these potential pitfalls and ensure that all legal aspects are covered, providing peace of mind in your property purchase.
Sources: The Luxury Playbook, Advocate Abroad
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12) Focus on energy-efficient properties in Greece, as demand rises with the push for greener building standards
In Greece, energy-efficient properties are becoming increasingly popular as the country moves towards greener building standards.
The Greek government is actively promoting energy efficiency with programs like “Save-Business” and “Green Businesses.” These initiatives aim to boost both renovations and new constructions that meet higher energy efficiency standards. The National Energy and Climate Plan (NECP) is pushing for more energy-efficient homes, showing a strong governmental commitment to sustainability.
For buyers, the appeal of energy-efficient homes is growing. With rising energy costs, these properties offer long-term savings on utility bills. Media coverage often highlights their benefits, such as reduced environmental impact and lower energy expenses, making them even more attractive to potential homeowners.
In Greece, understanding the shift towards energy-efficient properties can give you an edge in the real estate market. As the country pushes for greener standards, these homes are not just a trend but a smart investment. The demand is driven by both government initiatives and consumer preferences, making it a promising area for potential buyers.
Energy-efficient homes are not only about saving money; they also contribute to a more sustainable future. As Greece continues to implement its National Energy and Climate Plan, the focus on greener building standards is expected to grow. This means that investing in such properties now could be a wise decision for those looking to buy in the country.
Sources: Odyssee-Mure, Statista, The Luxury Playbook
13) Consider properties with historical significance or unique architecture to attract niche buyers or renters for a unique investment angle
Unique and historical properties in Greece are catching the eye of niche buyers and renters.
In places like Santorini and Oia, the charm of historical architecture is a big draw. These areas have been transformed into tourist hotspots, thanks to their carefully preserved traditional settlements. This not only boosts tourism but also increases real estate value in these culturally rich locales.
Buyers, both local and international, are increasingly interested in heritage properties. They are captivated by the distinct architectural features and cultural significance that modern buildings simply can't offer. This trend is particularly noticeable in Greece, where demand for such properties is on the rise.
The Greek government is playing a supportive role by offering incentives like tax breaks to encourage the restoration of heritage buildings. This has made investing in these projects more appealing, especially in historic neighborhoods of Athens, where old buildings are being revitalized into lasting housing options.
Investors are finding success in these ventures, as the combination of government support and the allure of historical charm makes for a promising investment landscape. The restoration of heritage buildings is not just a passion project but a viable business opportunity.
For those looking to invest in Greece, properties with historical significance offer a unique angle. They attract a specific market of buyers and renters who value the blend of history and modern living.
Sources: NTL Trust, Journal of Tourism Research, The Luxury Playbook
14) Consider properties with sea views or near beaches, as they command a premium and appreciate faster
Buying a property by the sea is not just about the view; it's about investing in a lifestyle.
In recent years, especially around 2023 and 2024, Greek coastal properties have seen a notable price surge. Mykonos, for instance, experienced a nearly 20% increase, driven by short-term rental investors eager to capitalize on the island's allure.
Tourism plays a big role in this demand, as many seek second homes in picturesque locations. The limited availability of properties in these sought-after areas only pushes prices higher.
For those considering rental income, properties with sea views or close to beaches offer impressive rental yields. In hotspots like Mykonos and Santorini, these yields often exceed 10%, making them attractive investments.
It's not just about the numbers; owning a coastal property means embracing the beauty and tranquility of seaside living. This lifestyle is a major draw for many buyers.
With the ongoing demand and limited supply, property values in these regions are expected to keep rising, offering both a home and a smart investment.
Sources: The Luxury Playbook, NTL Trust
We have made this infographic to give you a quick and clear snapshot of the property market in Greece. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
15) Expect high rental yields in Mykonos and Santorini, but be prepared for seasonal occupancy challenges
Buying property in Greece's tourist hotspots like Mykonos and Santorini can be a lucrative investment.
These islands are famous for their rental yields exceeding 10%, making them some of the most profitable in Europe. Investors are drawn to these high returns, especially those interested in short-term rentals. However, it's not all smooth sailing. The peak tourist season runs from early July to the end of August, when occupancy rates can skyrocket to over 90%. This is when property owners can really cash in.
But here's the catch: once the summer rush is over, tourist numbers drop significantly. This means that while you might be raking in the cash during the summer, the rest of the year can be a different story. The off-season brings challenges, with lower occupancy rates and the need to cover maintenance costs. Property management companies in these areas often have to juggle these seasonal ups and downs.
For those considering investing, it's crucial to understand this seasonal dynamic. While the summer months can be incredibly profitable, the off-season requires strategic planning to maintain a steady income. Some owners try to attract long-term renters or offer special deals during the quieter months to keep their properties occupied.
Insider tip: local festivals and events outside the peak season can help boost occupancy. Keeping an eye on these can provide opportunities to attract visitors even when the beaches aren't packed. Additionally, properties with unique features or those located near year-round attractions tend to perform better during the off-season.
Ultimately, investing in these islands can be rewarding, but it's essential to be prepared for the seasonal ebb and flow. Understanding the local market and having a solid strategy for the off-season can make all the difference in maximizing your investment.
Sources: The Luxury Playbook, HTrends, Greece Travel
16) Build strong relationships with Greek agents and sellers, as personal connections can lead to better property deals
The Greek real estate market is on the rise, with a 3.2% annual growth expected in 2023 and 2024.
In Greece, personal relationships are key to getting the best property deals. Buyers like Ghita and Peter from the UK, and Christophe and Yves from Paris, have found that knowing the right people can make the process smoother.
Greek culture is all about connections, and this extends to real estate. Building rapport with local agents can help you understand the market better and get more favorable terms.
Foreign buyers often share their experiences, emphasizing how personal rapport helped them navigate the complexities of buying property in Greece. This is a common theme in testimonials from Crete Perfect Home.
Understanding the importance of relationships in Greece can be a game-changer. Local agents and sellers value trust, and this can lead to better deals and smoother transactions.
Sources: Crete Perfect Home, The Luxury Playbook
17) Be cautious of "horizontal ownership" in Greece, as shared land ownership can complicate renovations or expansions
In Greece, horizontal ownership is quite common, especially in cities.
This means you might share ownership of a building with others, like owning different floors. Making changes, like renovations, can be tricky because you need everyone’s agreement. If one person says no, your project could be delayed.
Getting everyone on board is a big challenge for property owners wanting improvements. The process of setting up horizontal ownership is also pretty complex. It involves legal steps like a notarial act and registering at the local land registry, which can take time.
This complexity can lead to delays and increased costs, making it a challenging aspect of property management in Greece. You may encounter properties with "horizontal ownership," meaning shared ownership of land, which can complicate renovations or expansions.
Sources: Broosco Real Estate, CoHab Athens
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18) Be aware that Airbnb regulations and taxes in Greece vary by region, despite its popularity
In Greece, short-term rentals like Airbnb have surged in popularity.
By May 2024, Airbnb listings in Greece hit 218,000, showing how much both tourists and property owners are embracing this trend. But, if you're thinking about buying a property here, remember that local rules and taxes can vary a lot depending on where you are. For instance, in Athens, the rules are pretty relaxed, and many listings don't even show their license numbers, hinting that the local government might not be cracking down hard on regulations.
In contrast, places like Santorini and Mykonos are seeing a dip in Airbnb interest. The reason? High costs are pushing people to look at mainland spots instead. This shift is something to keep in mind if you're eyeing a property in these tourist-heavy areas.
There's also a new law, Law 5073/2023, that's shaking things up. It encourages property owners to set up companies to manage their rentals, aiming to balance the playing field between real estate owners and the tourism sector. But, it does mean more complexity for property owners trying to navigate these changes.
So, if you're considering buying a property in Greece, it's crucial to understand these dynamics. The landscape is changing, and being aware of these shifts can help you make a more informed decision. Keep an eye on how these regulations might affect your potential investment.
Sources: Airbtics, BNB News, Tax Experts
19) Look for undervalued renovation properties to flip for profit, but always check local building regulations first
The Greek real estate market is on the rise, with transaction values climbing from $4.94 billion in 2017 to $5.83 billion in 2019.
Thanks to the Golden Visa program, Greece has seen a surge in foreign investment, bringing in about €5.54 billion over the past decade. This program has made it easier for investors to flip properties and enjoy the benefits. In 2023, foreign direct investment in real estate jumped by 8% to €2.13 billion, continuing a trend of strong growth.
When thinking about renovating properties in Greece, it's important to know the local building rules. For instance, in popular areas like Thessaloniki, Mykonos, and Santorini, the minimum real estate value for the Golden Visa is €800,000. In other regions, it's €400,000, so understanding these numbers is key to avoiding legal issues.
Many investors have found success by spotting undervalued properties that need a bit of work. These can often be flipped for a profit, but make sure you're aware of the local regulations. In Greece, compliance with building laws is crucial to prevent any legal troubles.
In some areas, the real estate market is particularly hot, with properties being snapped up quickly. This is especially true in tourist-heavy spots where demand is high. Investors are keen to capitalize on these opportunities, often leading to competitive bidding.
Overall, the Greek real estate market offers a mix of opportunities and challenges. With the right knowledge and strategy, you can find properties that offer great potential for profit. Just remember, understanding the local market dynamics is essential to making a smart investment.
Sources: Global Property Guide, ETIAS, The Luxury Playbook
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.