A Step-by-Step Guide for Foreigners Buying Property in Greece

Table of Contents

1. Introduction
2. Understanding the Greek Property Market
3. Legal Requirements for Foreign Buyers
4. Steps to Buying Property in Greece
5. Popular Locations for Foreign Property Buyers
6. Types of Properties Available in Greece
7. Financing Your Greek Property Purchase
8. Taxes and Fees Associated with Property Ownership
9. Potential Pitfalls and How to Avoid Them
10. Benefits of Owning Property in Greece
11. Conclusion
12. FAQs

1. Introduction

Greece, with its stunning landscapes, rich history, and Mediterranean charm, has long been a dream destination for many. In recent years, the country has also become an attractive option for foreign property buyers looking to invest in a slice of paradise. Whether you’re seeking a vacation home, a retirement retreat, or an investment opportunity, buying property in Greece can be an exciting and rewarding experience.

This comprehensive guide will walk you through the process of purchasing property in Greece as a foreigner, covering everything from legal requirements and financing options to popular locations and potential pitfalls. By the end of this article, you’ll have a clear understanding of what it takes to make your Greek property dreams a reality.

2. Understanding the Greek Property Market

Before diving into the specifics of buying property in Greece, it’s essential to understand the current state of the Greek real estate market. After facing economic challenges in the past decade, Greece’s property market has shown signs of recovery and growth in recent years.

Several factors have contributed to the renewed interest in Greek real estate:

• Attractive prices compared to other European countries
• The Golden Visa program, which offers residency permits to non-EU citizens who invest in Greek property
• Improved economic conditions and political stability
• Growing tourism sector, creating opportunities for rental income
• Ongoing infrastructure improvements and development projects

As a result, foreign buyers from various countries, including China, Russia, Germany, and the United Kingdom, have been increasingly active in the Greek property market. This trend has led to rising property values in popular areas, but prices remain competitive compared to other Mediterranean destinations.

3. Legal Requirements for Foreign Buyers

One of the first considerations for foreigners looking to buy property in Greece is understanding the legal requirements. Fortunately, Greece has relatively straightforward rules for foreign property ownership, making it an accessible market for international buyers.

Eligibility for Property Ownership

In general, EU citizens face no restrictions when purchasing property in Greece. They enjoy the same rights as Greek nationals and can freely buy and own real estate throughout the country.

Non-EU citizens can also buy property in Greece, but there are some additional requirements:

• Obtaining approval from the Ministry of National Defense for properties in border areas and certain islands
• Providing proof of intended use for the property (e.g., personal residence, vacation home, or investment)
• Demonstrating the legal source of funds used for the purchase

It’s worth noting that the Golden Visa program has made it even more attractive for non-EU citizens to invest in Greek property, offering residency permits for investments of €250,000 or more.

4. Steps to Buying Property in Greece

Now that we’ve covered the basics of the Greek property market and legal requirements, let’s dive into the step-by-step process of buying property in Greece as a foreigner.

Step 1: Research and Property Selection

Begin by researching different regions and properties in Greece. Consider factors such as location, property type, budget, and potential for rental income or capital appreciation. You can use online property portals, work with local real estate agents, or attend property exhibitions to find suitable options.

Step 2: Engage a Lawyer

Hiring a reputable Greek lawyer is crucial to ensure a smooth and legally compliant property purchase. Your lawyer will help you navigate the legal process, conduct due diligence, and protect your interests throughout the transaction.

Step 3: Obtain a Greek Tax Registration Number (AFM)

All property buyers in Greece must obtain a Greek tax registration number, known as an AFM (Arithmo Forologikou Mitroou). This can be obtained from the local tax office with the help of your lawyer or a tax representative.

Step 4: Make an Offer and Sign a Preliminary Agreement

Once you’ve found a property you like, make an offer through your real estate agent. If accepted, you’ll typically sign a preliminary agreement (prosynfono) and pay a deposit, usually around 10% of the purchase price.

Step 5: Due Diligence

Your lawyer will conduct thorough due diligence on the property, including checking for any legal issues, outstanding debts, or building code violations. This step is crucial to ensure you’re making a safe investment.

Step 6: Finalize Financing

If you’re not paying cash, secure your financing through a Greek bank or an international lender. Ensure all necessary documentation is in order for the loan approval process.

Step 7: Sign the Final Contract

Once due diligence is complete and financing is arranged, you’ll sign the final purchase contract (symboleographiko) in the presence of a notary public. This contract will be registered with the local land registry office.

Step 8: Pay Taxes and Fees

At this stage, you’ll need to pay various taxes and fees associated with the property purchase, including property transfer tax, notary fees, and registration fees.

Step 9: Receive the Keys and Register the Property

After all payments are made, you’ll receive the keys to your new Greek property. Your lawyer will then complete the registration process at the local land registry office.

5. Popular Locations for Foreign Property Buyers

Greece offers a diverse range of locations for property buyers, each with its own unique charm and appeal. Some of the most popular areas for foreign investors include:

Athens and Surrounding Areas

The Greek capital and its suburbs have seen increased interest from foreign buyers, particularly in upscale neighborhoods like Glyfada, Vouliagmeni, and Kifissia. The city offers a mix of modern amenities and historical attractions, making it attractive for both residential and investment purposes.

Greek Islands

The Greek islands are perennially popular among foreign buyers, with options to suit various preferences and budgets:

• Mykonos and Santorini: Known for luxury properties and high rental yields
• Crete: Offers a diverse range of properties and a well-developed infrastructure
• Corfu: Popular for its lush landscapes and blend of Greek and Italian influences
• Rhodes: Attracts buyers with its historical sites and beautiful beaches

Peloponnese

The Peloponnese region in southern Greece is gaining popularity among foreign buyers seeking a more authentic Greek experience. Areas like Nafplio, Kalamata, and Costa Navarino offer a mix of historical sites, beautiful beaches, and relatively affordable properties.

6. Types of Properties Available in Greece

Greece offers a wide variety of property types to suit different needs and preferences:

Apartments

Urban apartments are popular in cities like Athens and Thessaloniki. They range from small studios to large, luxury penthouses and are often favored by investors looking for rental income.

Villas and Houses

Standalone villas and houses are common in coastal areas and on the islands. These properties often come with private pools, gardens, and sea views, making them ideal for vacation homes or luxury rentals.

Traditional Properties

For those seeking a more authentic Greek experience, renovated traditional houses or stone-built properties in villages can be an attractive option. These properties often require some restoration work but can offer unique charm and character.

Land

Buying land for development is another option, particularly for those interested in custom-building their dream home or for investment purposes. However, it’s crucial to understand local zoning laws and building regulations before purchasing land.

7. Financing Your Greek Property Purchase

When it comes to financing your property purchase in Greece, there are several options available:

Cash Purchase

Many foreign buyers opt to purchase Greek properties outright with cash. This can simplify the process and may give you an advantage in negotiations.

Greek Bank Mortgages

Greek banks do offer mortgages to foreign buyers, but the process can be more complex and stringent than in other countries. Typically, banks will finance up to 70% of the property value for EU citizens and up to 50% for non-EU citizens. Interest rates and terms may be less favorable compared to other European countries.

International Lenders

Some international banks and specialized lenders offer mortgages for overseas property purchases. These may provide more favorable terms, especially if you’re borrowing in your home currency.

Developer Financing

In some cases, property developers may offer financing options, particularly for off-plan or new-build properties. However, be sure to carefully review the terms and conditions of such arrangements.

8. Taxes and Fees Associated with Property Ownership

When buying and owning property in Greece, it’s important to be aware of the various taxes and fees involved:

Property Transfer Tax

The standard property transfer tax is 3.09% of the property’s value. For new properties with building permits issued after January 1, 2006, VAT of 24% applies instead of transfer tax.

Notary Fees

Notary fees typically range from 0.8% to 1% of the property’s value, with a minimum fee of €100.

Legal Fees

Legal fees for property transactions usually range from 0.5% to 1% of the property value.

Annual Property Tax (ENFIA)

The Unified Property Tax (ENFIA) is an annual tax based on the property’s value and location. Rates vary but can range from 0.1% to 1% of the property’s value.

Income Tax on Rental Income

If you plan to rent out your property, rental income is subject to income tax. The tax rate starts at 15% for annual rental income up to €12,000 and increases progressively for higher amounts.

9. Potential Pitfalls and How to Avoid Them

While buying property in Greece can be a rewarding experience, there are potential pitfalls to be aware of:

Title Issues

Ensure thorough due diligence is conducted to verify clear title and ownership. Some properties may have complex ownership histories or unresolved legal issues.

Building Violations

Many Greek properties have unauthorized constructions or modifications. Be sure to check for any building code violations and their potential impact on the property’s legality.

Overvaluation

In popular areas, properties may be overpriced. Work with a reputable local agent and conduct thorough market research to ensure you’re paying a fair price.

Currency Risk

If you’re buying in a currency other than euros, be aware of potential exchange rate fluctuations that could affect the overall cost of your purchase.

Bureaucratic Delays

The Greek bureaucratic system can be slow and complex. Be prepared for potential delays in paperwork and approvals, and work with experienced professionals to navigate the process.

10. Benefits of Owning Property in Greece

Despite the potential challenges, owning property in Greece offers numerous benefits:

• Access to a beautiful Mediterranean lifestyle
• Potential for rental income in popular tourist areas
• Relatively affordable prices compared to other European destinations
• Opportunity for residency through the Golden Visa program
• Rich cultural experiences and historical attractions
• Excellent climate with abundant sunshine
• Potential for property value appreciation in developing areas

11. Conclusion

Buying property in Greece as a foreigner can be an exciting and rewarding venture, offering the opportunity to own a piece of this beautiful Mediterranean country. While the process may seem daunting at first, with proper research, professional assistance, and careful planning, you can successfully navigate the Greek real estate market.

Remember to conduct thorough due diligence, work with reputable local professionals, and carefully consider your financial options and obligations. By following the steps outlined in this guide and staying informed about local regulations and market conditions, you’ll be well-equipped to make your Greek property dreams a reality.

Whether you’re looking for a vacation home, a retirement haven, or an investment opportunity, Greece offers a diverse range of properties and locations to suit various preferences and budgets. With its stunning landscapes, rich history, and warm hospitality, owning property in Greece can provide not just a valuable asset but also a gateway to a truly enchanting lifestyle.

12. FAQs

Q1: Can foreigners buy property anywhere in Greece?

A1: Generally, EU citizens can buy property anywhere in Greece without restrictions. Non-EU citizens can also purchase property but may need special approval for properties in border areas and certain islands. It’s always best to consult with a local lawyer to understand any specific restrictions that may apply to your situation.

Q2: How long does the property buying process typically take in Greece?

A2: The property buying process in Greece typically takes between 1-3 months from the initial offer to completion. However, this can vary depending on factors such as the complexity of the transaction, the efficiency of local authorities, and whether you’re obtaining a mortgage.

Q3: Are there any restrictions on renting out my property in Greece?

A3: There are no specific restrictions on renting out your property in Greece, but you must declare rental income and pay the appropriate taxes. For short-term rentals (like Airbnb), you need to register your property with the Greek Tourism Organization and comply with specific regulations.

Q4: What is the Golden Visa program, and how does it relate to property purchase?

A4: The Golden Visa program offers residency permits to non-EU citizens who invest €250,000 or more in Greek real estate. This permit allows the investor and their family to live in Greece and travel freely within the Schengen area. The permit is renewable every five years as long as you maintain ownership of the property.

Q5: Are there any specific areas in Greece that offer better investment opportunities for foreign buyers?

A5: While investment potential can vary depending on individual circumstances and market conditions, some areas that have shown promise for foreign investors include Athens (particularly its southern suburbs), popular islands like Mykonos and Santorini for luxury properties, and up-and-coming areas in the Peloponnese. However, it’s crucial to conduct thorough research and possibly consult with a local real estate expert to identify the best opportunities based on your specific investment goals.

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