What are the pitfalls of buying property in Greece?

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

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries (Greece, Italy, Spain, Portugal, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Greece. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At InvestRopa, we explore the Greek real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Athens, Thessaloniki, and Crete. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the most common legal or bureaucratic issues foreigners face when buying property in Greece?

Foreign buyers in Greece encounter four major legal and bureaucratic hurdles that frequently delay or complicate property purchases.

Title complexity represents the biggest challenge, with many properties having incomplete or fragmented documentation due to historical claims, unregistered properties, or complex inheritance issues. The Greek property system has evolved over centuries, leaving many properties with unclear ownership chains that require extensive legal investigation.

Land registry delays create another significant obstacle, as the Greek Cadastre (Hellenic Cadastre) remains incomplete in some areas as of mid-2025. Properties not properly registered face substantial fines, potential "blocking" that makes them unsellable, or even eventual reversion to the state if ownership claims aren't properly established.

Construction violations known as "Afthaireta" (unpermitted alterations) plague many older and rural properties. Greek law strictly prohibits selling properties with illegal modifications unless they're legalized and accompanied by a Declaration of Legal Property Status verified by a qualified engineer or architect.

Tax and debt clearance requirements mandate that sellers present an ENFIA certificate proving no outstanding property tax debts before any sale can proceed, often revealing surprise obligations that delay transactions.

Are there specific restrictions or complications for non-EU citizens purchasing real estate in Greece?

Non-EU citizens face targeted restrictions in specific border regions but can purchase property freely throughout most of Greece.

Border area restrictions apply to designated security zones including parts of Crete, Rhodes, the Dodecanese islands, East Aegean islands, and northern border areas. Non-EU buyers must obtain special permits from local Prefecture Councils, involving security checks that typically take several months to complete.

The Golden Visa program offers an attractive pathway for non-EU buyers seeking residency through property investment. As of 2025, minimum investment thresholds are €800,000 in prime areas like central Athens and popular islands, €400,000 elsewhere for properties over 120 square meters, or €250,000 for certain conversion and restoration projects.

This program grants five-year renewable residency permits and has become increasingly popular among international investors, particularly from China, Turkey, and North America. The Golden Visa route often justifies the higher investment requirements by providing long-term residency benefits.

It's something we develop in our Greece property pack.

How reliable and protective is the Greek legal system when it comes to enforcing property rights and resolving disputes?

The Greek legal system provides constitutional protection for property rights but operates with significant complexity and potential delays that buyers must navigate carefully.

Property rights enjoy strong constitutional protection once properly registered, making ownership secure for buyers who complete all legal requirements correctly. The Greek constitution explicitly guarantees property rights, and the European Union framework provides additional protection layers for international investors.

Dispute resolution has improved with increased use of mediation as a cost-effective alternative to lengthy court proceedings. Mediation typically resolves property disputes within 6-12 months compared to court cases that can extend for several years due to bureaucratic complexity.

However, the system's complexity creates risks for buyers who skip proper due diligence. Court proceedings can be protracted, especially when dealing with incomplete documentation or disputed ownership claims. Legal costs can escalate quickly, making prevention through thorough initial legal review far more economical than resolving disputes later.

The European Court of Justice provides ultimate recourse for EU citizens, while bilateral investment treaties offer some protection for non-EU investors, though these processes are lengthy and expensive.

What are the hidden costs or surprise taxes that buyers typically don't anticipate in Greece?

Cost Category	Amount/Rate	When Applied
Transfer Tax	3% of objective value	All property purchases
VAT	24%	New builds (non-first homes)
Annual ENFIA Tax	€2-20 per m² annually	Ongoing ownership
Municipal Taxes (TAP)	€50-500 annually	Via electricity bills
Notary Fees	1-1.5% of value	Transaction completion
Legal Fees	€2,000-5,000+	Due diligence and contracts
Legalization Fines	€500-10,000+	Construction violations

Is it easy to verify property titles and ensure there are no outstanding debts or ownership disputes?

Title verification requires professional legal assistance and can reveal complex ownership issues that aren't immediately apparent to foreign buyers.

A comprehensive title search at the local land registry examines the complete chain of ownership, uncovers encumbrances like mortgages and liens, and identifies any existing claims or disputes. This process typically takes 2-4 weeks and costs €500-1,500 depending on property complexity.

Outstanding debts frequently surprise buyers, as properties may carry hidden mortgages, tax liens, or other financial obligations that transfer with ownership. Greek law makes buyers responsible for certain pre-existing debts unless specifically cleared before purchase.

The verification process becomes more complex for properties with long ownership histories, multiple previous owners, or inheritance issues. Properties in rural areas or on islands often have incomplete documentation that requires extensive research to establish clear title.

Professional legal assistance is essential, as only qualified Greek lawyers can access complete land registry records and interpret complex ownership documentation. Attempting DIY title verification almost inevitably leads to missed issues that create problems later.

What roles do notaries, lawyers, and real estate agents play in the buying process, and who should you definitely hire?

The Greek property buying process requires coordination among several professionals, with lawyers and engineers being absolutely essential for foreign buyers.

Lawyers conduct comprehensive title searches, draft and review contracts, verify all permits and documentation, and ensure taxes and debts are properly cleared. For foreign buyers, legal representation isn't just recommended—it's practically mandatory given the system's complexity. Budget €2,000-5,000 for quality legal services.

Notaries prepare and witness the final purchase deed, calculate all applicable taxes, and ensure transactions comply with Greek law. Unlike in some countries, Greek notaries are neutral parties appointed by the state, not advocates for either buyer or seller.

Engineers or architects inspect properties for construction violations, verify building permits, and prepare the required Declaration of Legal Property Status. This technical due diligence costs €800-1,500 but prevents discovering expensive violation issues after purchase.

Real estate agents assist with property search and negotiations but cannot replace proper legal and technical due diligence. Choose agents with established reputations and local market knowledge, particularly for island or rural properties.

Accountants advise on tax implications and handle ongoing property tax filings, becoming particularly valuable for Golden Visa investors or those with complex international tax situations.

How common is it to discover construction violations or undocumented alterations after purchase, and what are the risks?

Construction violations affect approximately 60-70% of older properties in Greece, making pre-purchase engineering inspections crucial for buyers.

Unpermitted alterations are particularly common in properties built before 1980 and in rural or island locations where building oversight was historically limited. Common violations include unauthorized extensions, balcony enclosures, basement conversions, and swimming pool installations without proper permits.

The risks of undiscovered violations are substantial and can include immediate fines ranging from €500 to €10,000 or more, depending on violation severity. More seriously, properties with unlegalized violations cannot be sold, refinanced, or used as collateral until violations are addressed.

Legalization is possible through the "Afthaireta" process but requires significant time and expense. The process involves hiring qualified engineers, submitting detailed plans, paying legalization fees, and potentially making structural modifications to meet current building codes.

In extreme cases, demolition orders can be issued for severe violations, though this is rare for minor infractions. The safest approach involves comprehensive pre-purchase engineering inspections that identify violations before closing, allowing negotiation of responsibility between buyer and seller.

Are there issues with land registry or zoning plans that can delay or invalidate property deals?

Land registry and zoning complications create significant transaction delays and can occasionally invalidate property deals entirely.

The Greek Cadastre modernization project continues as of mid-2025, with some areas still operating under older, incomplete registry systems. Properties not properly registered in the new Cadastre face automatic fines of up to €2,000 and potential "blocking" that prevents any transactions until registration is completed.

Zoning "gray zones" represent areas where informal settlement extensions face uncertainty over future building rights due to shifting municipal plans and ongoing legal reforms. These areas, common around major cities and popular tourist destinations, can experience sudden zoning changes that dramatically impact property values.

Registration delays often occur when properties have complex ownership histories or when municipal boundaries have changed over time. The bureaucratic process of resolving these issues can extend transaction timelines by 6-12 months in complicated cases.

Properties in these problematic areas may face future restrictions on renovations, extensions, or commercial use. Buyers should verify both current zoning status and any pending municipal planning changes that could affect long-term property use and value.

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.

Is the property market in Greece considered stable, improving, or problematic compared to other Mediterranean countries?

The Greek real estate market is considered stable and improving, positioning itself competitively against other Mediterranean destinations as of mid-2025.

Market stability has strengthened significantly since the economic crisis, with consistent year-over-year price growth in major markets like Athens (8-12% annually) and popular islands like Crete and Mykonos (10-15% annually). This growth rate outpaces inflation while remaining more moderate than speculative bubbles seen in some markets.

Compared to Italy and Spain, Greek property prices remain 20-30% lower on average, offering better value for international investors. The combination of lower entry costs, strong rental yields (4-8% in prime locations), and residency benefits through the Golden Visa program creates compelling investment propositions.

Foreign investment continues growing robustly, with Chinese, Turkish, German, and American buyers leading international purchases. The market benefits from Greece's EU membership, NATO alliance, and stable democratic institutions that provide political and economic security.

The tourism sector's strong recovery post-COVID supports rental property investments, particularly in Athens, Thessaloniki, and island destinations. Infrastructure improvements, including Athens International Airport expansion and port developments, further support long-term market fundamentals.

It's something we develop in our Greece property pack.

Are there areas or islands in Greece that are known for frequent buyer issues or scams?

Certain areas and property types carry higher risks of buyer issues and potential scams that require extra vigilance from foreign purchasers.

Border regions pose legitimate permit complications for non-EU buyers, but scammers sometimes exaggerate these restrictions to pressure quick decisions. The Dodecanese islands, parts of Crete, and northern border areas require special permits that legitimate agents understand and plan for appropriately.

Rural and remote island properties frequently have incomplete documentation, making them targets for fraudulent listings. Properties advertised at prices significantly below market value often have serious legal issues or don't actually exist as advertised.

Online listing scams particularly target foreign buyers through international real estate websites, using stolen photos and fictitious pricing to collect advance fees or personal information. These scams often involve properties in highly desirable locations like Santorini, Mykonos, or central Athens offered at unrealistic prices.

"Gray zone" settlements around major cities present legitimate legal complications that unscrupulous sellers may downplay or misrepresent. These areas have unclear zoning status that can affect future development rights and property values.

The safest approach involves working exclusively with established real estate agencies, meeting sellers and agents in person, and conducting all transactions through qualified Greek lawyers who can verify legitimacy at every step.

How can a buyer best protect themselves before, during, and after a property purchase in Greece?

1. **Hire qualified professionals early in the process** - Engage a Greek-licensed lawyer specializing in real estate law - Retain a certified engineer or architect for property inspections - Work with established real estate agents with verifiable track records - Consult tax advisors familiar with Greek property law - Use reputable notaries recommended by your legal team2. **Conduct comprehensive due diligence** - Complete thorough title searches examining 20+ years of ownership history - Verify all building permits and construction compliance - Confirm property tax payments and debt clearance - Check zoning status and municipal planning restrictions - Investigate any liens, mortgages, or encumbrances3. **Budget for all costs and contingencies** - Add 15-20% to purchase price for taxes, fees, and unexpected costs - Reserve funds for potential legalization expenses - Plan for ongoing annual property taxes and maintenance - Consider currency exchange risks for international buyers - Maintain emergency funds for transaction delays4. **Verify legitimacy at every step** - Meet all parties in person when possible - Confirm property ownership through official registry searches - Avoid deals that seem "too good to be true" - Request and verify all professional certifications - Use escrow services for deposit payments5. **Complete post-purchase requirements promptly** - Register property immediately in land registry - Set up property tax accounts and payments - Arrange appropriate insurance coverage - Establish ongoing legal and accounting support - Maintain all documentation for future reference

Which of these problems are well known among expats and which ones tend to catch people by surprise?

Expat awareness varies significantly between well-publicized issues and hidden problems that frequently surprise even experienced international property buyers.

Well-known issues among the expat community include the need for legal representation, basic transfer taxes, and the importance of title verification. Most online expat forums and guidebooks adequately cover these fundamental requirements, making them predictable for buyers who do basic research.

The Golden Visa program requirements and non-EU border restrictions are also well-documented, with specialized agents and legal services readily available to navigate these processes. Currency exchange considerations and basic bureaucratic delays are generally expected by international buyers.

Surprising issues that frequently catch buyers off guard include the prevalence and complexity of construction violations, which affect the majority of older properties. Many buyers assume building compliance is straightforward, only to discover expensive legalization requirements after purchase.

The sheer number and variety of hidden taxes and fees shock many buyers, particularly municipal taxes that appear on electricity bills, unexpected debt transfers, and professional fees that compound throughout the process. The Greek tax system's complexity often produces surprise obligations months or years after purchase.

Land registry complications and "gray zone" zoning issues surprise buyers who assume property registration is automatic and permanent. These bureaucratic complexities can emerge years after purchase, affecting refinancing, resale, or renovation plans.

It's something we develop in our Greece property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. My Greek Expat Journey - Pitfalls of Buying Property in Greece
2. Titlos - Delays and Surprises in Greek Real Estate Transactions
3. RUA - Land Registry Fines and Property Blocking
4. Samos Housing - Arbitrary Buildings Guide
5. Arencores - Property Legalization Law
6. Greek Dom - Overcoming Debt Obstacles for Real Estate Transfer
7. Econlaw - Greek Property Title Search
8. Elxis - Ultimate Guide to Buying a Home in Greece
9. LinkedIn - What's Driving Greece's Real Estate Market 2025
10. The Luxury Playbook - Pitfalls of Buying Property in Greece