Can Foreigners buy Real Estate in Greece? Buy Property in Greece

Greece’s Mediterranean allure and substantial investment potential make it a sought-after destination for foreign property buyers. For those looking to buy property in Greece as a foreigner, the process is relatively straightforward, enhanced by the nation’s favorable real estate ownership policies and the Greek property market’s affordability.

With the Golden Visa program in Greece, non-EU citizens can gain European residency by purchasing property in the country. This program, combined with a tax-friendly environment through the non-domicile tax regime, allows eligible individuals to pay a flat annual income tax fee of €100,000 on foreign earnings¹.

The Greek property market is diverse, offering everything from traditional village homes to modern apartments and luxurious villas, making it highly appealing to a wide range of foreign buyers¹. In popular areas like Athens and islands such as Santorini, the rising number of international buyers is a testament to the market’s growing popularity¹. Moreover, Greece is known for its low cost of living compared to the United States and other European nations¹, making it an attractive option for expats.

Many foreigners have successfully navigated the Greek real estate market, with over a thousand obtaining Greek residency in recent years². In Athens alone, there are over 2,000 real estate agents, and thousands more throughout the country, assisting foreign buyers in finding their ideal properties². This collaboration with local professionals ensures a smoother process and helps buyers avoid potential pitfalls.

Key Takeaways

The Golden Visa program in Greece grants non-EU residents European residency upon purchasing property.
Non-EU citizens benefit from Greece’s tax-friendly non-domicile regime, with a flat €100,000 tax on foreign earnings.
Greece offers diverse property options, catering to various preferences and lifestyles.
The cost of living in Greece is lower than in many other European countries and the United States.
Working with local real estate agents can ensure a smoother property-buying process.

Why Buy Property in Greece?

Greece, with its picturesque landscapes and the vibrant Mediterranean lifestyle, attracts international buyers looking to invest in real estate. The Greek lifestyle and culture, investment potential, and the path to European residency serve as major draws for foreign buyers considering property in this beautiful country.

The Greek Lifestyle and Culture

The allure of the Greek lifestyle and culture is undeniable. Greece offers stunning scenery, a warm climate, and friendly locals, contributing to a high quality of life. International buyers are particularly attracted to cities like Athens and islands such as Santorini, where traditional Greek architecture meets modern amenities. In recent years, thousands of foreigners have purchased homes in Greece, reflecting the country’s growing popularity among international buyers³. Living in Greece allows one to indulge in Mediterranean cuisine, take part in vibrant community events, and enjoy a slower pace of life, which is highly valued by expatriates.

Investment Potential

Investing in the Greek real estate market presents significant financial benefits. Property prices in Greece experienced a 3.38% growth in 2020, with an 8.49% adjustment for inflation⁴. Additionally, rental properties in Greece offer gross rental yields between 2.7% and 5.4%, which can provide a steady income stream for investors⁵. The cost of property varies by region, with popular cities such as Athens, Chania, and Santorini featuring average prices per square foot that are appealing to investors. Moreover, Greece offers terrific tax deals under tax treaties, enabling foreign investors to avoid double taxation³. The suspension of VAT on real estate properties further enhances the investment potential in the Greek market³.

Path to European Residency

Another significant draw for foreign buyers is the path to European residency through the Greece Golden Visa program. To be eligible for this program, a minimum investment of €250,000 in real estate is required³. The residency permit, initially valid for five years, is renewable as long as the property investment is maintained⁵. The program also allows family members, including spouses, children under 21, and dependent parents, to gain residency in Greece⁵. This not only provides a stable living environment but also facilitates travel and business opportunities across the Schengen Zone. Thousands of investors, mainly from China, Russia, and the Middle East, have taken advantage of this program to gain EU residency⁵.

Legal Requirements for Foreigners Buying Property in Greece

legal requirements for foreigners buying property in Greece

Purchasing property in Greece as a foreigner involves navigating specific legal requirements. Understanding and preparing the necessary documents is crucial to ensure a smooth transaction process. Below are the key requirements and steps needed to comply with the regulations.

Necessary Documents

Foreigners looking to buy property in Greece must prepare several important documents. A valid passport is required, along with obtaining a Greek tax registry number (AFM), which is essential for all property transactions and financial activities in Greece⁶. Non-EU nationals additionally need a valid visa to enter the country. Prospective buyers must provide proof of residence or a residency permit, copies of recent tax returns, and proof of current residence, such as bank statements or utility bills.

Visa and Residency Permits

A significant incentive for investing in Greek real estate is the potential to obtain a Golden Visa. Non-EU citizens can qualify for this residency permit with a minimum real estate investment of €250,000⁷ investment. The Golden Visa grants an initial five-year residency, which is renewable as long as the investment is maintained⁶. This visa also allows for travel within Schengen Zone countries without requiring an additional visa, enhancing its appeal to international buyers⁷.

Step-by-Step Guide to Buying Property in Greece

Greek property purchase process

Purchasing property in Greece involves a comprehensive process with multiple steps to ensure a successful transaction. Understanding the Greek property purchase process is crucial when navigating the market, especially for foreigners seeking to invest in this picturesque country. Below is a detailed guide covering the essential steps in buying a house in Greece as a foreigner.

Researching the Market

Begin by researching the Greek real estate market to understand prevailing trends, property values, and desirable locations. Areas like Athens and the Peloponnese are currently experiencing real estate appreciation⁸. Moreover, it’s important to consider the impact of currency exchange rates, as property costs can vary significantly⁹.

Finding a Property

Once you have a clear understanding of the market, start looking for properties that meet your criteria. Coastal properties tend to be more expensive than those inland¹⁰. Collaborating with a reputable real estate agent can help streamline your search and provide access to a wider range of listings.

Hiring Legal Assistance

Engaging a lawyer is essential in the Greek property purchase process, especially for foreign buyers. Legal assistance ensures that all paperwork is in order and supports you in navigating local regulations. In Greece, for transactions over certain values, foreigners are required to hire an attorney¹⁰.

Negotiating and Making an Offer

After identifying the ideal property, negotiate the price with the seller and make a formal offer. The negotiation phase should include discussions about the property condition, included furnishings, and any repairs needed. Remember to consider real estate agent fees and notary fees, which typically amount to around 2% of the purchase price⁸¹⁰.

Completing Due Diligence

Due diligence is a critical step in securing your investment. This involves a thorough inspection of the property, confirming its legal status, and any encumbrances. Engage a civil engineer to verify property boundaries and zoning compliance, as required by Greek law¹⁰. Additionally, it is vital to understand the transfer tax rates, which range from 9% to 11%¹⁰ and secure your AFM—a Greek tax number necessary for purchasing property⁹¹⁰.

Finalizing the Purchase

Once due diligence is complete, you can proceed to finalize the purchase. This involves signing the final deed, transferring the remaining funds, and officially registering the property in your name. The entire property purchase process in Greece usually takes four to six weeks from the initial purchase agreement to finalizing all government duties⁹.

Post-Purchase Obligations

After completing the purchase, the next step involves managing post-purchase obligations. Transfer utility accounts to your name, and familiarize yourself with recurring property taxes, including the FMAP large property holding tax, if applicable¹⁰. Moreover, keeping abreast of any legal requirements, such as required permits and registrations, will ensure your smooth transition to property ownership in Greece.

For more detailed guidance on the Greek property purchase process, you can find a step-by-step guide here⁹.

Best Places to Buy Property in Greece

best places to buy property in Greece

Greece is renowned for its diverse and breathtaking locales, offering an array of opportunities for those looking to invest in real estate. From the bustling capital of Athens to the tranquil Greek islands, each area offers unique advantages. For instance, the average property asking prices in the south of Athens are 3,611 (€ /sqm) in Q3 2023, with a 14.40% increase in the center to 2,000 (€ /sqm)¹¹. Moreover, popular neighborhoods such as Glyfada and Kolonaki are known for their premium real estate values, reaching close to 5,000 EUR per square meter in Glyfada and over €410,000 for an apartment in Kolonaki¹²

Thessaloniki, Greece’s second-largest city, is another notable property hotspot. The average property asking price in Thessaloniki stood at 2,164 (€ /sqm) in Q3 2023, a 21.20% increase from the previous year¹¹. For those seeking affordability, this city offers one-bedroom apartments ranging from €50,000 to €70,000¹². Additionally, luxurious houses in Thessaloniki suburbs can reach up to 2 million euros¹³. This demonstrates the city’s dynamic real estate market, catering to a broad spectrum of investors.

The Greek islands are especially alluring for property buyers. The average asking price in the Cyclades was 3,333 (€ /sqm) in Q3 2023, showing a 12.50% increase from the previous year¹¹. Mykonos and Santorini are iconic Greek property hotspots, with prices averaging around 10,000 EUR per square meter¹². A three-bedroom villa with a sea view on Mykonos can cost from €550,000 up to the millions, while in Santorini, similar properties are equally sought after¹¹.

Crete is another attractive destination, with a variety of options such as renovation projects and apartments in Chania starting at around €130,000, and new countryside houses beginning at €150,000¹¹. Two-bedroom apartments in Crete average around €100,000, making it a feasible choice for many¹². Additionally, houses in Crete typically include a plot, swimming pool, and garage, with prices starting from 260 thousand euros¹³.

Investors looking for unique locations may consider Corfu or the Peloponnese. In Corfu, the real estate market offers properties averaging at €1,500 to €1,700 per square meter¹². The average asking price of property on Corfu in Q3 2023 rose by 21.50% to 2,083 (€ /sqm)¹¹. In Messinia, Peloponnese, average prices stood at 1,557 (€ /sqm), marking a 14.30% increase from the previous year¹¹. These areas not only promise stunning landscapes but also significant investment potential.

Exploring other islands, one would find that Skiathos, the most visited of the Sporades islands, saw a 10.30% increase in asking prices, averaging 2,000 (€ /sqm) in Q3 2023¹¹. In Rhodes, property options are diverse with one-bedroom apartments starting at €75,000 and villas at €400,000¹².

Whether you are seeking vibrant city life, serene island beauty, or investment opportunities, Greece’s property market has something to offer. Should you wish to delve deeper into the specifics, you can always refer to a guide on house prices and the best places to buy property in Greece at Properstar¹¹.

Cost of Buying Property in Greece

cost of buying property in Greece

When considering the cost of buying property in Greece, several factors come into play, including property prices, additional fees and taxes, and maintenance and upkeep costs. Understanding these elements is crucial for making an informed investment decision.

Property Prices

The price of properties in Greece varies significantly depending on the type, location, and condition of the market. For instance, real estate property prices in Greece saw a rise of 9.32% in the third quarter of 2019¹⁴. Major cities like Athens and popular islands such as Mykonos and Santorini tend to have higher property prices. For example, the average price for a villa with a pool in Mykonos starts from around €800,000¹⁴.

Additional Fees and Taxes

Beyond the purchase price, there are several additional fees and taxes that investors must account for. One of the primary taxes is the transfer tax, which is typically 3% of the purchase price or the property value¹⁵. Additionally, for buildings with permits issued after January 1st, 2006, a VAT of 23% is applicable¹⁵. Other essential fees include notarial fees estimated at approximately 1% of the purchase price, plus VAT at 23%, and civil engineer’s fees for certifying compliance with permits and restrictions, costing about €500 plus VAT at 23%¹⁵.

Maintenance and Upkeep Costs

Once the property is purchased, owners should be prepared for ongoing maintenance and upkeep costs. Real estate taxes in Greece, such as the uniform real estate property tax (ENFIA), are an essential consideration for property owners. Additionally, maintaining the property to a high standard is crucial for those aiming to achieve maximum rental yields. Rental yields in Greece can reach a net rental yield of 4.2% of the property’s purchase price, particularly in dynamic rental markets like Athens¹⁴.

For a more comprehensive look at the total cost and investment strategies, check out this detailed guide.

Allocating budget nuances extend beyond the initial purchase, intertwining long-term financial planning with strategic investment acumen.

Can Foreigners Buy Real Estate in Greece?

overseas buyers acquiring property in Greece

Greece presents a captivating opportunity for overseas buyers acquiring property in Greece. Unlike several other European countries, there are no restrictions on foreigners buying property in Greece, making it an attractive destination for international investors. This friendly approach towards non-EU nationals buying real estate in Greece allows a seamless acquisition process.

Rules for Non-EU Citizens

Non-EU nationals buying real estate in Greece can benefit from the country’s accommodating policies. While the process is similar to that for EU citizens, non-EU buyers are also required to obtain a residence permit known as the Golden Visa. This program is particularly attractive as it offers more than just real estate investment opportunities but a gateway to European residency.

To qualify for the Golden Visa, non-EU nationals must invest in property with a minimum value of €250,000. This residence permit, initially valid for five years, opens the door to long-term residency and potentially Greek citizenship over time. The investment is not limited to a single property; buyers can achieve the required amount by purchasing multiple properties.

The Golden Visa Program

The Golden Visa Program is a significant allure for non-EU nationals buying real estate in Greece. With a minimum property investment of €250,000, overseas buyers can secure a five-year residence permit, renewable indefinitely, provided they retain ownership. This investment threshold applies uniformly across different regions of Greece.

Beyond property acquisition, the Golden Visa offers numerous advantages, like potential EU residency and advantageous tax regimes. For instance, non-EU citizens qualifying for the Golden Visa scheme are subject to a flat annual income tax fee of €100,000 on foreign earnings, further cementing Greece as a tax-friendly environment for expats¹. The low cost of living in Greece, coupled with the attractive tax benefits under the non-domicile tax regime, enhances its appeal to international investors¹.

Additionally, the Golden Visa provides an opportunity to benefit from Greece’s growing property market, which has seen a significant increase in house prices over recent years due to strong economic growth and favorable interest rates¹⁶. This growth translates into potential capital appreciation and rental income for property owners.

An overview of key points can be found in the linked resource on buying property in Greece¹⁶.

Advantages of Hiring a Greek Real Estate Agent

Greek real estate agent benefits

Engaging a Greek real estate agent offers numerous significant advantages in the property purchase process. One of the primary benefits of hiring a Greek real estate agent is their profound knowledge of local market conditions. For instance, property prices in Mykonos average around €4,000 per square meter and in Crete around €1,600 per square meter, showcasing the need for expert guidance when navigating the market¹⁷.

These agents provide invaluable property purchase assistance in Greece by aligning properties with buyers’ specific criteria and budget. Considering that property prices in Greece are relatively low compared to other popular European destinations, a real estate agent’s insight becomes essential to securing the best deals¹⁸.

Additionally, Greek real estate agents are instrumental during negotiations, ensuring foreign buyers get the most value for their investment. Their local connections and negotiation skills can be particularly advantageous, noting that real estate prices in Greece increased by 8-10% in 2022 and are forecasted to rise by 35-40% over the next three years¹⁹.

Moreover, navigating the complexities of Greek legal systems can be a daunting task for foreign buyers. Real estate agents in Greece facilitate this process by handling bureaucratic requirements, which would otherwise be slow and cumbersome¹⁸. They ensure that all transactions comply with legal frameworks, providing peace of mind to buyers.

Lastly, the rise in foreign investments in the Greek property market, which increased by 60% in 2022, emphasizes the growing need for expert assistance¹⁹. Coupled with the forecasted price rise and the market’s recovery, these factors underscore the necessity to employ a knowledgeable agent for a successful property acquisition in Greece.

Things to Consider Before Buying Property in Greece

Before diving into the real estate market, understanding key factors can make your experience seamless and rewarding. Prospective buyers must meticulously outline their criteria for buying property in Greece and ensure that their financial planning covers a holistic range of expenses. Let’s delve into these considerations.

Defining Your Criteria

When outlining your criteria for buying property in Greece, it’s essential to consider your lifestyle needs, desired property features, and the amenities available in the chosen location. Whether you’re seeking a serene coastal retreat or a bustling city apartment, each option has its unique appeal. Major urban centers like Athens have property prices ranging from €3,500 to €5,000 per square meter, reflecting the high demand and vibrant lifestyle the capital offers²⁰. Conversely, picturesque areas like Rhodes and Corfu offer more affordable options, with prices starting at €2,978 and €1,925 per square meter respectively in central areas²⁰. By defining your criteria, you can make an informed decision aligned with your priorities.

Setting a Budget

Setting a realistic and comprehensive budget for property purchase in Greece is crucial. Beyond the purchase price, several additional costs must be accounted for. These include property tax transfer, real estate agency fees ranging from 1.5% to 2.5%, and notary and lawyer fees that can add up to 1% of the total property transaction value plus VAT²¹. Furthermore, property maintenance and unforeseen expenses should also be factored into your budget planning here.

Here’s a helpful table showcasing some common costs associated with buying property in Greece:

Expense	Percentage / Amount
Property Tax Transfer	3%
Real Estate Agency Fees	1.5% – 2.5%
Notary and Lawyer Fees	Up to 1% plus 24% VAT

With a clear vision of your criteria and a well-planned budget for property purchase in Greece, you’ll be well-prepared to navigate the market effectively and secure the ideal property that meets your needs while avoiding long-term challenges²⁰²¹

Potential Risks and Pitfalls of Buying Property in Greece

While the Greek property market holds significant allure for foreigners, it’s crucial to be aware of the potential risks involved. The presence of scammers targeting uninformed buyers with attractive offers is a persistent issue²². Ensuring proper authentication of property ownership before making any payments is essential to avoid these scams. Engaging a reliable real estate agent and legal counsel can help in identifying and sidestepping these pitfalls²². The incomplete Greek Cadastre, particularly on islands like Mykonos and Santorini, can result in title disputes²². Conducting diligent title verification checks and understanding zoning and conservation laws, especially for historic homes, is vital to secure a legitimate property transaction.

Common Scams and How to Avoid Them

One of the more common scams involves fraudulent listings or properties sold without clear titles. These scams can lead to legal disputes and significant financial losses. Buyers should verify property ownership through the Greek land registry and ensure there are no hidden liens or debts associated with the property²². Working with a reputable real estate agent and consulting with specialized lawyers who understand the local market can mitigate these risks. Additionally, being familiar with the local community and seeking their approval when necessary can help ensure a smoother transaction.

Legal Challenges and How to Overcome Them

Legal challenges in the Greek property market often revolve around understanding local zoning and conservation laws, particularly for properties in historically significant areas²². Consulting with local authorities and hiring specialized legal assistance is essential to navigate these complexities. These professionals can provide insights on laws restricting development on historical sites and help you understand discrepancies in land sizes. Educating oneself about the legalities involved, including the potential need for local community approval, can greatly enhance the likelihood of a secure and successful property investment in Greece²².

For more detailed information and guidance on how to avoid potential pitfalls, you can refer to this comprehensive article.

FAQ

Can foreigners buy real estate in Greece?

Yes, foreigners can buy real estate in Greece. The Greek property market is open to international investors, including non-EU citizens.

Why should I buy property in Greece?

Greece offers a unique blend of the Mediterranean lifestyle, investment potential, and the pathway to European residency. Its diverse landscapes and rich cultural heritage, combined with favorable legal and tax conditions, make it an attractive destination.

What documents do I need to purchase property in Greece as a foreigner?

Necessary documents include a valid passport, a Greek tax registry number (AFM), and a valid visa for non-EU nationals. Proof of residence or a residence permit, copies of tax returns, and proof of current residence such as bank statements or bills are also required.

What is the process of buying property in Greece?

The process includes researching the market, finding a property, hiring legal assistance, negotiating and making an offer, completing due diligence, finalizing the purchase, and fulfilling post-purchase obligations like transferring utility accounts and understanding property tax laws.

Which are the best places to buy property in Greece?

Popular locations include major cities like Athens and Thessaloniki, and picturesque islands such as Mykonos and Santorini. Each location offers unique benefits and lifestyle choices.

What are the costs involved in buying property in Greece?

Costs include the property price, additional fees such as notary and legal fees, transfer taxes, and the uniform real estate property tax (ENFIA). Maintenance and upkeep costs are also considerations.

Can non-EU nationals participate in the Greek Golden Visa Program?

Yes, non-EU nationals can participate in the Greek Golden Visa Program by making a minimum investment in Greek real estate. This program grants a residence permit that can potentially lead to long-term residency and citizenship.

What are the advantages of hiring a Greek real estate agent?

A Greek real estate agent provides insight into local market conditions, helps locate properties matching buyers’ criteria, facilitates negotiations, and ensures the transaction complies with legal frameworks. Their assistance is invaluable for a smooth purchase process.

What should I consider before buying property in Greece?

Consider defining your criteria, including desired property features and location amenities, and setting a comprehensive budget that includes purchase price, legal fees, and future maintenance costs. Clear financial planning helps prevent long-term issues.

What potential risks should I be aware of when buying property in Greece?

Be wary of common scams such as making payments without proper property ownership authentication. Legal challenges include understanding zoning and conservation laws. Engaging reliable real estate agents and legal counsel can help mitigate these risks.