Legal Requirements for Purchasing Greek Property: AFM, Bank Accounts, and More

Table of Contents

1. Introduction
2. Understanding the Greek Property Market
3. Legal Requirements for Foreign Buyers
4. The Importance of an AFM (Tax Registration Number)
5. Opening a Greek Bank Account
6. The Role of a Lawyer in Greek Property Purchases
7. Property Taxes and Fees in Greece
8. The Buying Process: Step-by-Step Guide
9. Restrictions on Foreign Ownership
10. Common Pitfalls and How to Avoid Them
11. Conclusion
12. FAQs

1. Introduction

Greece, with its stunning landscapes, rich history, and Mediterranean charm, has long been a favorite destination for property investors and those seeking a slice of paradise. However, navigating the legal requirements for purchasing Greek property can be a complex process, especially for foreign buyers. This comprehensive guide will walk you through the essential steps, focusing on key aspects such as obtaining an AFM (Tax Registration Number), opening a Greek bank account, and understanding the various legal nuances involved in the property acquisition process.

Whether you’re dreaming of a sun-soaked villa on a Greek island or a chic apartment in the heart of Athens, being well-informed about the legal landscape is crucial. This article aims to provide you with the knowledge and insights needed to make your Greek property purchase a smooth and successful experience.

2. Understanding the Greek Property Market

Before delving into the legal requirements, it’s essential to have a good grasp of the Greek property market. The real estate sector in Greece has seen significant changes over the past decade, influenced by economic factors, tourism trends, and government policies.

Greece offers a diverse range of properties, from traditional stone houses in rural villages to modern apartments in bustling cities. Popular areas for foreign buyers include the islands of Crete, Corfu, and Santorini, as well as coastal regions in the Peloponnese and urban centers like Athens and Thessaloniki.

The market has shown resilience and growth potential, particularly in tourist-heavy areas. However, prices and demand can vary greatly depending on the location and type of property. It’s crucial to conduct thorough research and possibly engage a local real estate agent to understand current market conditions in your area of interest.

3. Legal Requirements for Foreign Buyers

Foreign nationals looking to purchase property in Greece must comply with several legal requirements. While the process has been streamlined in recent years to encourage foreign investment, there are still important steps and documents needed:

• Valid passport or ID
• AFM (Greek Tax Registration Number)
• Greek bank account
• Power of Attorney (if not personally present for all procedures)
• Certificate of non-Greek tax residency (for tax purposes)

Additionally, buyers from non-EU countries may need to obtain approval from the Greek Ministry of Defense for properties in certain border areas or on specific islands. This requirement is part of Greece’s national security measures and applies to about 60% of Greek territory.

4. The Importance of an AFM (Tax Registration Number)

One of the most crucial steps in purchasing Greek property is obtaining an AFM (Αριθμός Φορολογικού Μητρώου). This unique tax identification number is essential for various transactions in Greece, including property purchases.

How to Obtain an AFM

To acquire an AFM, foreign buyers need to visit a local tax office (Eforia) with the following documents:

• Valid passport or ID
• Proof of address in their home country
• Completed M1 and M7 forms (available at the tax office)
• A Greek tax representative (usually a lawyer or accountant)

The process is generally straightforward, but it’s advisable to have a Greek-speaking representative to assist with communication and paperwork. Once obtained, the AFM is valid indefinitely and can be used for future transactions in Greece.

5. Opening a Greek Bank Account

Having a Greek bank account is not only a legal requirement for property purchases but also practical for managing property-related expenses and receiving rental income if applicable. Opening a bank account in Greece as a non-resident involves the following steps:

1. Choose a Greek bank (popular options include Alpha Bank, Eurobank, and Piraeus Bank)
2. Gather necessary documents:
   • Valid passport or ID
   • AFM (Tax Registration Number)
   • Proof of address in your home country
   • Reference letter from your current bank
3. Visit a branch in person (some banks may offer online account opening for EU residents)
4. Complete the application form and provide the required documents
5. Make an initial deposit (minimum amount varies by bank)

It’s important to note that Greek banks have strict anti-money laundering procedures. Be prepared to provide detailed information about the source of funds for your property purchase.

6. The Role of a Lawyer in Greek Property Purchases

Engaging a reputable Greek lawyer is not just advisable; it’s practically essential when buying property in Greece. A qualified lawyer will guide you through the complex legal landscape, ensuring that all requirements are met and your interests are protected.

Key responsibilities of your lawyer will include:

• Conducting due diligence on the property
• Checking for any outstanding debts or liens on the property
• Verifying the seller’s ownership rights
• Drafting and reviewing the purchase agreement
• Representing you at the final signing (if you’re not present)
• Handling the property registration process

Choose a lawyer with experience in foreign property transactions and fluency in both Greek and English. Their expertise can be invaluable in navigating potential pitfalls and ensuring a smooth purchase process.

7. Property Taxes and Fees in Greece

Understanding the tax implications of buying and owning property in Greece is crucial for budgeting and long-term planning. Here’s an overview of the main taxes and fees you’ll encounter:

Purchase Taxes and Fees

• Property Transfer Tax: 3.09% of the property’s value
• Notary Fees: Approximately 1-2% of the property value
• Land Registry Fees: About 0.5% of the property value
• Lawyer’s Fees: Typically 1-2% of the property value

Ongoing Property Taxes

• ENFIA (Unified Property Tax): Annual tax based on the property’s value and location
• Municipal Taxes: Vary by municipality, usually included in utility bills
• Income Tax: If you rent out the property, rental income is subject to income tax

It’s important to factor these costs into your budget when considering a property purchase in Greece. Your lawyer or a local tax advisor can provide more detailed information based on your specific situation.

8. The Buying Process: Step-by-Step Guide

Now that we’ve covered the key legal requirements, let’s break down the typical process of buying property in Greece:

1. Property Search: Identify suitable properties through real estate agents or online platforms.
2. Initial Offer: Make an offer to the seller, usually through your agent.
3. Preliminary Agreement: If the offer is accepted, a preliminary agreement is drafted and signed.
4. Due Diligence: Your lawyer conducts thorough checks on the property’s legal status.
5. Final Contract: The final purchase agreement (συμβόλαιο) is prepared by a notary.
6. Payment: Funds are transferred to the seller’s account.
7. Signing: The contract is signed before the notary, usually with your lawyer present.
8. Registration: The property is registered in your name at the local Land Registry.

This process typically takes 1-3 months, depending on various factors such as property type, location, and any complexities in the legal checks.

9. Restrictions on Foreign Ownership

While Greece generally welcomes foreign property buyers, there are some restrictions to be aware of:

• Border Areas: Non-EU citizens need special permission to buy property in certain border regions and islands.
• Agricultural Land: There may be restrictions on purchasing large tracts of agricultural land.
• Historical Properties: Buying properties of historical significance may require additional approvals.

These restrictions are in place for national security and cultural preservation reasons. Your lawyer can guide you through any specific restrictions that may apply to your chosen property.

10. Common Pitfalls and How to Avoid Them

Being aware of potential challenges can help you navigate the Greek property market more safely. Here are some common pitfalls and tips to avoid them:

• Unclear Ownership: Ensure your lawyer thoroughly checks the property’s ownership history.
• Building Violations: Verify that the property complies with all building regulations.
• Hidden Debts: Check for any outstanding debts attached to the property.
• Incomplete Paperwork: Make sure all necessary documents are in order before proceeding.
• Currency Fluctuations: Be aware of exchange rate risks if you’re buying in a foreign currency.
• Overestimating Rental Income: If buying for investment, research realistic rental yields in the area.

Working with experienced professionals and conducting thorough due diligence can help mitigate these risks.

11. Conclusion

Purchasing property in Greece can be an exciting and rewarding experience, offering the chance to own a piece of this beautiful and historic country. However, it’s a process that requires careful navigation of legal requirements and potential pitfalls.

From obtaining your AFM and opening a Greek bank account to understanding property taxes and working with local professionals, each step is crucial in ensuring a successful and legally compliant purchase. By being well-informed and prepared, you can approach your Greek property investment with confidence.

Remember that while this guide provides a comprehensive overview, each property purchase is unique. Always seek personalized advice from legal and financial professionals familiar with Greek property law and the local market. With the right approach and support, your dream of owning property in Greece can become a rewarding reality.

12. FAQs

Q1: Can non-EU citizens buy property in Greece?

A1: Yes, non-EU citizens can buy property in Greece. However, they may need additional approvals for properties in certain border areas or islands. It’s advisable to consult with a Greek lawyer to understand any specific requirements based on your nationality and the property’s location.

Q2: How long does it take to complete a property purchase in Greece?

A2: The process typically takes between 1-3 months from the initial offer to final registration. This timeline can vary depending on factors such as the complexity of the property’s legal status, the efficiency of local authorities, and whether any special permissions are required.

Q3: Is it necessary to be physically present in Greece to purchase property?

A3: While it’s advisable to visit the property and meet with professionals in person, it’s not strictly necessary to be present for the entire process. You can appoint a lawyer with Power of Attorney to act on your behalf for many aspects of the purchase, including the final signing of documents.

Q4: What are the annual costs of owning property in Greece?

A4: Annual costs include property taxes (ENFIA), municipal taxes, and maintenance expenses. The ENFIA tax varies based on the property’s value and location. Additionally, if you rent out the property, you’ll need to pay income tax on rental earnings. It’s best to consult with a local tax advisor for a detailed breakdown based on your specific property.

Q5: Can I get a mortgage from a Greek bank as a foreign buyer?

A5: While it’s possible for foreign buyers to obtain mortgages from Greek banks, the process can be challenging, especially for non-EU residents. Greek banks have strict lending criteria, and you may be required to provide extensive financial documentation. Many foreign buyers opt to finance their purchase through banks in their home country or pay in cash. If you’re considering a Greek mortgage, it’s advisable to start discussions with banks early in the buying process.

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