Oliver Hayes 
Renting vs. Buying in Greece: Which Option Is Best for Expats?
Table of Contents
- Introduction
- The Greek Real Estate Market
- Renting in Greece
- Buying Property in Greece
- Factors to Consider for Expats
- Legal Considerations
- Financial Implications
- Lifestyle Considerations
- Pros and Cons of Renting vs. Buying
- Case Studies
- Expert Opinions
- Conclusion
- FAQs
1. Introduction
Greece, with its rich history, stunning landscapes, and Mediterranean lifestyle, has long been a magnet for expats seeking a new life abroad. Whether you’re planning a temporary stay or considering a permanent move, one of the most crucial decisions you’ll face is whether to rent or buy property in this beautiful country. This comprehensive guide will explore the intricacies of renting versus buying in Greece, helping expats make an informed decision that aligns with their personal, financial, and lifestyle goals.
2. The Greek Real Estate Market
Understanding the Greek real estate market is essential before diving into the rent vs. buy debate. The market has experienced significant fluctuations over the past decade, influenced by economic crises, recovery periods, and most recently, the global pandemic.
Currently, the Greek property market is showing signs of recovery and growth. According to recent data, property prices in major cities like Athens and Thessaloniki have been steadily increasing. This trend is partly driven by foreign investment, particularly in the luxury and holiday home sectors.
However, it’s important to note that the market varies greatly depending on the location. While urban centers and popular tourist destinations are experiencing price hikes, rural areas and less touristy islands often offer more affordable options.
3. Renting in Greece
Renting property in Greece is a popular option for many expats, especially those who are new to the country or unsure about their long-term plans. Here’s what you need to know about renting in Greece:
3.1 The Rental Process
The rental process in Greece is relatively straightforward. You can find rental properties through real estate agencies, online platforms, or local newspapers. Once you’ve found a suitable property, you’ll typically need to:
- Provide identification (passport)
- Show proof of income or financial stability
- Pay a security deposit (usually one to two months’ rent)
- Sign a rental agreement
3.2 Rental Costs
Rental costs in Greece vary widely depending on the location, property size, and amenities. In general, you can expect to pay:
- Athens city center: €400-€800 per month for a one-bedroom apartment
- Thessaloniki: €300-€600 per month for a one-bedroom apartment
- Greek islands: Prices can range from €300 to over €1000 per month, depending on the island and proximity to the sea
It’s worth noting that short-term rentals, especially in tourist areas, can be significantly more expensive than long-term leases.
4. Buying Property in Greece
For those considering a long-term stay in Greece or looking for an investment opportunity, buying property can be an attractive option. Here’s what you need to know about purchasing real estate in Greece:
4.1 The Buying Process
The process of buying property in Greece involves several steps:
- Obtain a Greek Tax Registration Number (AFM)
- Hire a lawyer to conduct due diligence
- Make an offer and sign a preliminary agreement
- Secure financing (if needed)
- Sign the final contract before a notary
- Register the property with the land registry
4.2 Property Costs
Property prices in Greece vary significantly based on location, size, and condition. As of 2023, average prices per square meter are:
- Athens city center: €1,500-€3,000
- Thessaloniki: €1,200-€2,500
- Greek islands: €1,000-€5,000+ (with premium locations commanding even higher prices)
In addition to the property price, buyers should budget for additional costs such as legal fees, notary fees, and property transfer tax, which can add up to 10-15% of the property value.
5. Factors to Consider for Expats
When deciding whether to rent or buy in Greece, expats should consider several key factors:
5.1 Length of Stay
If you’re planning a short-term stay (less than 2-3 years), renting is often the more practical choice. For longer-term commitments, buying could be more economical and offer potential for capital appreciation.
5.2 Financial Situation
Buying property requires a significant upfront investment. Assess your financial situation, including savings, income stability, and access to financing, before deciding to purchase.
5.3 Desired Location
Some areas in Greece may have a limited rental market, while others might have inflated property prices. Research your desired location thoroughly to understand the local real estate dynamics.
5.4 Future Plans
Consider your long-term plans. Do you intend to settle permanently in Greece, or is there a possibility you might move elsewhere in the future? This can significantly influence your decision to rent or buy.
6. Legal Considerations
Understanding the legal aspects of renting and buying in Greece is crucial for expats. Here are some key points to consider:
6.1 Renting Legalities
Rental agreements in Greece are typically for a minimum of three years, although shorter-term contracts are possible. Tenants have strong rights under Greek law, including protection against unfair eviction. However, it’s essential to have a written contract that clearly outlines all terms and conditions.
6.2 Buying Legalities
Non-EU citizens must obtain approval from the Ministry of Defense to purchase property in certain border areas and islands. This process can take several months. Additionally, all property purchases must be registered with the local land registry office.
It’s highly recommended to hire a local lawyer who specializes in real estate transactions to navigate the complexities of Greek property law.
7. Financial Implications
The financial aspects of renting vs. buying in Greece are crucial to consider:
7.1 Renting Finances
Renting requires less upfront capital and offers more flexibility. However, long-term renting means ongoing monthly expenses without building equity. Rent increases are also a possibility, although they are regulated by Greek law.
7.2 Buying Finances
Purchasing property involves significant upfront costs but can be a good investment in the long run. Property owners in Greece are subject to annual property taxes (ENFIA), which vary based on the property’s value and location. On the positive side, owning property can provide rental income and potential capital appreciation.
8. Lifestyle Considerations
Your lifestyle preferences play a significant role in the decision to rent or buy:
8.1 Flexibility
Renting offers more flexibility to move or change locations, which can be advantageous if you’re still exploring different areas of Greece or if your work situation is uncertain.
8.2 Personalization
Owning a property allows you to personalize and modify your living space as you see fit, which isn’t always possible when renting.
8.3 Maintenance
Renters typically have fewer maintenance responsibilities, while homeowners are responsible for all repairs and upkeep.
9. Pros and Cons of Renting vs. Buying
9.1 Renting Pros
- Lower upfront costs
- Greater flexibility to move
- Less responsibility for maintenance and repairs
- Easier to budget with fixed monthly costs
- Opportunity to test different areas before committing
9.2 Renting Cons
- No build-up of equity
- Limited control over the property
- Potential for rent increases
- Less stability and security
9.3 Buying Pros
- Building equity and potential for capital appreciation
- Freedom to renovate and personalize
- Potential rental income
- More stability and sense of permanence
- Protection against inflation in housing costs
9.4 Buying Cons
- High upfront costs
- Responsibility for maintenance and repairs
- Less flexibility to move
- Exposure to market fluctuations
- Additional costs like property taxes and insurance
10. Case Studies
To provide a more concrete understanding, let’s look at two case studies of expats in Greece:
10.1 Case Study: Renting in Athens
Sarah, a 32-year-old digital nomad from the UK, chose to rent an apartment in Athens’ trendy Koukaki neighborhood. She pays €650 per month for a fully furnished one-bedroom apartment. Sarah appreciates the flexibility of renting, as her work allows her to travel frequently. She also enjoys not having to worry about property maintenance or long-term commitments.
10.2 Case Study: Buying on a Greek Island
John and Maria, a retired couple from the US, decided to buy a villa on the island of Paros for €280,000. They view this as both a retirement home and an investment, as they plan to rent it out during the peak tourist season. While the initial costs were high, including renovation expenses, they believe the long-term benefits of property ownership in a desirable location outweigh the costs.
11. Expert Opinions
To provide a balanced view, here are some expert opinions on the rent vs. buy debate in Greece:
George Eliades, a real estate agent in Athens, says: “For those planning to stay in Greece long-term, buying can be a wise investment, especially given the current upward trend in property values in many areas. However, for short-term expats or those unsure about their plans, renting provides valuable flexibility.”
Maria Spanou, a financial advisor specializing in expat finances, adds: “The decision to rent or buy should be based on a thorough analysis of one’s financial situation, long-term goals, and lifestyle preferences. In some cases, a mix of both – renting initially and then buying once settled – can be the best approach.”
12. Conclusion
The decision to rent or buy property in Greece as an expat is a complex one, influenced by numerous factors including financial circumstances, long-term plans, desired location, and personal preferences. While renting offers flexibility and lower initial costs, buying provides the opportunity to build equity and offers more stability.
For those new to Greece or unsure about their long-term plans, renting can be an excellent way to explore different areas and get a feel for life in the country without a significant financial commitment. On the other hand, for expats planning to settle in Greece for the long term, buying property can be a sound investment, particularly in areas experiencing property value appreciation.
Ultimately, there’s no one-size-fits-all answer. The best choice depends on your individual circumstances, goals, and comfort level. Whichever option you choose, thorough research, careful financial planning, and seeking advice from local experts can help ensure that your decision aligns with your vision for life in Greece.
13. FAQs
Q1: Can non-EU citizens buy property in Greece?
A1: Yes, non-EU citizens can buy property in Greece. However, they may need to obtain special permission from the Ministry of Defense for purchases in certain border areas and islands. It’s advisable to consult with a local lawyer to navigate the process.
Q2: What are the additional costs associated with buying property in Greece?
A2: Additional costs when buying property in Greece typically include legal fees, notary fees, property transfer tax, and registration fees. These can add up to 10-15% of the property value. There’s also an annual property tax (ENFIA) for homeowners.
Q3: Is it difficult for expats to obtain a mortgage in Greece?
A3: While it’s possible for expats to obtain a mortgage in Greece, it can be challenging. Greek banks have strict lending criteria, and non-residents may face higher interest rates. Many expats choose to finance their purchase through banks in their home country or pay cash.
Q4: How long does the process of buying property in Greece usually take?
A4: The process of buying property in Greece typically takes 1-3 months from offer acceptance to completion. However, it can take longer if there are complications or if special permissions are required.
Q5: Are there any restrictions on renting out property in Greece?
A5: Property owners in Greece can rent out their properties, but there are regulations to follow. For short-term rentals (less than 30 days), owners must register with the Greek Tax Authority and obtain a property registration number. Long-term rentals require a formal rental agreement and declaration of rental income.
Article reviewed by Alexandros Ioannidis, Senior Wealth Manager | Multi-Asset Portfolio Specialist | Building Customized Investment Solutions for High-Net-Worth Clients, on March 1, 2025
