Greece has long been a sought-after homebuying destination abroad for individuals from around the world, from regular American and British citizens to A-list celebrities. So why is it so popular among foreigners to buy real estate in Greece and how do you make it happen?
For some it’s the idea of enjoying the pleasant Greek climate, rich culture, delicious cuisine, and beautiful beaches for longer periods of time. For others it’s an attractive investment opportunity in a top tourist destination where rent prices have increased by more than 12% in just the past year.
If you are contemplating this significant step, it is crucial to conduct thorough research to ensure compliance with all legal requirements in Greece and protect your investment.
Greek real estate market overview
The Greek property market has gradually recovered from the country’s prolonged economic crisis that originated from the crash in 2009. Greece has made commendable efforts to stabilize its finances, but both the economic crisis and the global pandemic of 2020 have left an impact on the housing market.
Property prices in Greece recorded an annual increase of 10%, reaching an average of around €2,400 per square meter in 2023. Long term rents are also on the rise. For instance, a 200 square meter villa would rent for close to €2,000 per month, while short term rentals are significantly more.
While prices are generally higher in Greek cities and certain islands like Santorini, there are still plenty of attractively priced houses located on other islands and on the mainland just outside urban areas. One and two-bedroom apartments remain the most popular property types for foreigners buying real estate in Greece.
Who can purchase property in Greece?
For EU residents, buying property in Greece is relatively straightforward. However, non-EU residents, including those from the USA and the United Kingdom, face additional hurdles.
They must provide extensive documentation as evidence of the following:
- Sufficient funds and proof that they are obtained from legal sources.
- Proof of current income.
- Tax returns for income.
- Documentation for inherited funds or income from property sales or rentals in other countries.
- A letter from the current employer, stating position and salary.
These documents are required to assure Greek authorities that the buyer and their family will not become a burden on the Greek economy and are financially self-sufficient.
Are there any additional required documents?
Non-EU buyers will be asked for their residence permit and must demonstrate tax compliance in Greece. This involves opening a Greek bank account and obtaining a tax number (AFM) from the local tax office.
Can foreigners obtain mortgages in Greece?
Securing a mortgage to purchase property in Greece has been challenging since the financial crash, particularly for foreigners. However, the situation is gradually improving, and it is worth inquiring at both Greek banks and banks in the buyer’s home country.
How to find the ideal house in Greece
Choosing a location that suits your preferences is crucial. Renting in the desired area for a few months is an excellent way to ensure the right fit and gain familiarity with the local property market and current prices.
Most buyers engage local estate agents or property developers, especially for new builds. Estate agents are abundant throughout Greece, and many of them are proficient in English.
Navigating the Greek real estate market
There are over 2,000 real estate agents in Athens alone, with thousands more in other Greek cities and towns. Agents handle the majority of property sales involving foreign buyers. They offer various services, including cleaning, painting, and renovations.
The agent’s fee is typically included in the selling price and paid by the sender upon completion of the sale. While it is important to exercise caution and shop around to find reputable agents, it is worth noting that all real estate agents in Greece must hold professional qualifications and licenses.
Many are members of esteemed organizations such as the European Confederation of Estate Agents (CEI), which enforces a strict code of conduct.
Unfortunately, there is no centralized website in Greece that lists all properties for sale, making it challenging to compile a shortlist remotely. Agents often prioritize arranging viewings before providing comprehensive property details.
Thoroughly choose and evaluate the location where you want to buy. There are many attractive locations in Greece to buy a house or apartment. Assess whether the chosen location meets your personal needs, from accessibility to weather to potential for return on investment. Expat forums can offer valuable insights to assist in your search.
The property purchase process in Greece:
Upon selecting a property, several legal formalities must be completed:
1. Engage a lawyer proficient in English to conduct a legal inspection of the property. The lawyer should confirm the owner’s possession of the title deeds and proof of land registration with the local land registry. For new properties, ensure they were built with valid building permits.
2. Consider hiring a technical surveyor to identify any significant and costly issues with the property, although this step is not mandatory.
3. If the legal inspection and survey yield positive results, make an offer to the seller.
4. Upon agreeing on a price, pay a 10% deposit based on the property’s total value.
5. Ensure that the final contract signing takes place in the presence of a notary, a key figure in Greek property purchases.
6. In addition to the remaining balance of the house price, pay the fees and taxes associated with the purchase, including the 3% property transfer tax.
Expenses associated with purchasing property in Greece:
The following taxes and fees apply:
- Notary fees range from 0.65% to 1% plus VAT.
- Lawyer fees range from 0.40% to 1% plus VAT.
- Public registration fees amount to 0.5% plus VAT.
- Property tax transfer is typically 3.09% of the taxable value of the property.
It is important to note that the exchange rate fluctuates daily between banks when converting currency for the house purchase. It may be beneficial to compare rates at different banks to secure the best deal.
What to check before purchasing property in Greece:
- Ensure the chosen estate agency has a reputable track record, as the real estate market, like many others, attracts scammers.
- If you intend to live abroad and become a non-resident owner, declare your residency status during the purchase process.
- Thoroughly verify that the property vendor is the rightful owner with the authority to sell the property.
- For older properties, check if they have been designated an ‘Alpha Property’ by the Greek Government, indicating historical significance that limits modifications.
- Many properties on the market, especially those in rural areas, may require renovation. Seek expert advice to assess feasibility and associated costs before committing to a purchase.
Buying real estate in Greece for the Golden Visa
The Greece Golden Visa is an investment program that simplifies property acquisition for foreigners. Introduced around ten years ago, it is particularly appealing to individuals planning to retire in Greece.
As of May 1, 2023, the scheme requires a minimum investment of €500,000 (approximately $560,000) in Greek real estate in certain locations in Greece: Athens, Thessaloniki, Santorini and Mykonos. For the rest of Greece, the minimum amount is €250,000 ((approximately $280,000).
This includes options such as:
- Purchasing a single property valued at the required amount or more anywhere in Greece.
- Acquiring multiple properties, such as vacation/holiday properties, with a combined value of at least the required amount.
- Entering into a timeshare or lease agreement for a furnished hotel or other tourist accommodation for a minimum of ten years.
Using this program, expats from the United States have obtained a five-year residency permit within a couple of months, with eligibility for Greek citizenship after seven years, subject to passing the required citizenship exam. Furthermore, Golden Visa holders enjoy visa-free travel throughout the Schengen Zone.
By conducting comprehensive research and ensuring the availability of all necessary documentation, the process of purchasing property in Greece can proceed smoothly. Owning your own piece of Greek magic offers a delightful and unique way of life. An added bonus is the warm welcome you’ll receive from your neighbors – καλώς ήρθες στη χώρα μας – welcome to our country!
