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. Financing Your Greek Property Purchase
6. Popular Locations for Foreign Buyers
7. Types of Properties Available
8. Taxes and Fees Associated with Property Purchase
9. Potential Pitfalls and How to Avoid Them
10. Benefits of Owning Property in Greece
11. Conclusion
12. FAQs

1. Introduction

Greece, with its rich history, stunning landscapes, and Mediterranean charm, has long been a favorite destination for tourists and property investors alike. The allure of owning a piece of this ancient land, whether it’s a sun-soaked villa on a Greek island or a chic apartment in Athens, is undeniable. This comprehensive guide aims to walk you through the process of buying property in Greece as a foreigner, ensuring you’re well-equipped to navigate the complexities of the Greek real estate market.

From understanding local laws and regulations to identifying the perfect location for your dream home, we’ll cover every aspect of the property buying process in Greece. Whether you’re looking for a holiday home, a retirement haven, or an investment opportunity, this guide will provide you with the knowledge and tools necessary to make an informed decision and successfully purchase property in this beautiful Mediterranean country.

2. Understanding the Greek Property Market

Before diving into the specifics of buying property in Greece, it’s crucial to have a good grasp of the current state of the Greek property market. The Greek real estate sector has experienced significant changes over the past decade, influenced by economic factors, political shifts, and global trends.

Recent Market Trends

Following the economic crisis that hit Greece in 2008, property prices declined significantly. However, in recent years, the market has shown signs of recovery, with prices stabilizing and even increasing in popular areas. This recovery has been driven by factors such as:

• Increased foreign investment
• Growing tourism industry
• Government initiatives to attract foreign buyers
• Improved economic outlook

As a result, many foreign buyers are now seeing Greece as an attractive destination for property investment, with potential for capital appreciation and rental income.

Regional Variations

It’s important to note that the Greek property market is not homogeneous. Prices and demand can vary significantly depending on the location. For instance:

• Popular islands like Mykonos and Santorini command premium prices
• Athens, especially its southern suburbs, has seen increased interest from foreign buyers
• Less touristy areas may offer better value for money but potentially lower rental yields

Understanding these regional differences is crucial when deciding where to invest in Greek property.

3. Legal Requirements for Foreign Buyers

Greece has relatively straightforward rules for foreign property ownership, but there are some important legal considerations to keep in mind.

EU Citizens vs. Non-EU Citizens

European Union (EU) citizens face fewer restrictions when buying property in Greece compared to non-EU citizens. EU citizens can purchase property freely, just like Greek nationals. Non-EU citizens, however, need to follow additional steps:

• Obtain approval from the Ministry of National Defense for properties in border areas and certain islands
• Provide proof of connections to Greece or intention to live in the country
• In some cases, obtain a residence permit

Golden Visa Program

Greece offers a “Golden Visa” program, which grants a residence permit to non-EU citizens who invest at least €250,000 in Greek real estate. This program has been particularly popular among investors from countries like China, Russia, and Turkey.

4. Steps to Buying Property in Greece

The process of buying property in Greece involves several steps. Here’s a detailed breakdown of what you can expect:

1. Research and Property Viewing

Start by researching different areas and property types that match your requirements and budget. It’s advisable to work with a reputable real estate agent who can guide you through the local market and arrange property viewings.

2. Making an Offer

Once you’ve found a property you like, make an offer through your agent. Negotiation is common in Greece, so don’t be afraid to start lower than the asking price.

3. Hiring a Lawyer

Engage a Greek lawyer to handle the legal aspects of the purchase. They will conduct due diligence, checking the property’s legal status and ensuring there are no outstanding debts or claims on the property.

4. Obtaining a Tax Number (AFM)

You’ll need to obtain a Greek tax number (AFM) to proceed with the purchase. This can be done at a local tax office with the help of your lawyer.

5. Preliminary Agreement and Deposit

Once your offer is accepted, you’ll sign a preliminary agreement and pay a deposit, typically 10% of the purchase price.

6. Final Contract and Payment

The final contract (συμβόλαιο) is signed before a notary public. At this point, you’ll pay the remaining balance and any associated taxes and fees.

7. Property Registration

The final step is registering the property in your name at the local land registry office.

5. Financing Your Greek Property Purchase

Understanding your financing options is crucial when buying property in Greece. Here are the main ways to finance your purchase:

Cash Purchase

Many foreign buyers opt for cash purchases, especially given the relatively low property prices in Greece compared to other European countries. This approach simplifies the process and can sometimes lead to better deals with sellers.

Greek Mortgages

While it’s possible for foreigners to obtain mortgages from Greek banks, it can be challenging, especially for non-EU citizens. Greek banks typically require:

• A significant down payment (often 30-40% of the property value)
• Proof of income
• Credit history
• Life insurance

International Financing

Some buyers choose to finance their purchase through banks in their home country. This can be advantageous if you have an established relationship with a bank and a strong credit history.

6. Popular Locations for Foreign Buyers

Greece offers a diverse range of locations attractive to foreign buyers. Here are some of the most popular areas:

Greek Islands

The Greek islands are perhaps the most sought-after locations for foreign property buyers. Popular choices include:

• Mykonos: Known for its vibrant nightlife and luxury properties
• Santorini: Famous for its stunning sunsets and unique architecture
• Crete: The largest Greek island, offering diverse landscapes and rich culture
• Rhodes: Boasting beautiful beaches and historical sites

Athens and Surroundings

The Greek capital and its surrounding areas have seen increased interest from foreign buyers in recent years. Popular areas include:

• Glyfada and Voula: Upscale southern suburbs with beaches and marinas
• Kifissia: A leafy northern suburb known for its high-end properties
• Central Athens: Areas like Kolonaki offer city living with easy access to cultural attractions

Peloponnese

This southern peninsula offers a mix of beautiful coastlines, historical sites, and more affordable property prices compared to the popular islands.

7. Types of Properties Available

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

Apartments

Apartments are common in urban areas and tourist destinations. They range from small studios to large, luxury penthouses. Many foreign buyers opt for apartments as holiday homes or rental investments.

Villas

Standalone villas are popular, especially in coastal areas and on islands. These can range from modest holiday homes to luxurious estates with private pools and sea views.

Traditional Houses

For those seeking authenticity, traditional Greek houses can be found in villages and on islands. These often require renovation but offer unique charm and character.

Land

Buying land to build a custom property is another option. However, this requires navigating complex building regulations and permits.

8. Taxes and Fees Associated with Property Purchase

When budgeting for your Greek property purchase, it’s important to factor in various taxes and fees:

Property Transfer Tax

This is the main tax paid when buying property in Greece. It’s currently set at 3% of the property’s value.

VAT on New Properties

For newly built properties (less than 5 years old), VAT of 24% applies instead of the transfer tax.

Notary Fees

Notary fees typically range from 0.65% to 1% of the property’s value.

Legal Fees

Expect to pay around 1-2% of the property value for legal services.

Real Estate Agent Fees

These are usually around 2-3% of the property value, typically paid by the seller.

Annual Property Tax

Once you own the property, you’ll need to pay an annual property tax (ENFIA), which varies depending on the property’s size, location, and value.

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 Deed Issues

Ensure the property has a clear title and there are no outstanding debts or claims. Your lawyer should conduct thorough due diligence.

Building Regulations

Greek building regulations can be complex. Ensure any property you’re considering complies with local zoning laws and has all necessary permits.

Hidden Costs

Be prepared for additional costs beyond the purchase price, including renovation expenses, utility connections, and ongoing maintenance.

Currency Fluctuations

If you’re not paying in euros, be aware of potential currency fluctuations that could affect the overall cost of your purchase.

10. Benefits of Owning Property in Greece

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

Lifestyle

Greece offers a laid-back Mediterranean lifestyle, beautiful weather, and rich cultural experiences.

Investment Potential

With the Greek property market recovering, there’s potential for capital appreciation, especially in popular areas.

Rental Income

Greece’s thriving tourism industry offers opportunities for rental income, particularly during the peak summer months.

Golden Visa

For non-EU citizens, property ownership can provide a path to residency through the Golden Visa program.

11. Conclusion

Buying property in Greece as a foreigner can be a complex process, but with proper research, professional guidance, and careful planning, it can also be a highly rewarding experience. From the sun-drenched islands to the historic mainland, Greece offers a diverse range of property options to suit various preferences and budgets.

By understanding the legal requirements, financing options, and potential pitfalls, you can navigate the Greek property market with confidence. Whether you’re seeking a holiday home, a retirement haven, or an investment opportunity, Greece’s real estate market has much to offer.

Remember to conduct thorough due diligence, work with reputable professionals, and take your time to find the perfect property. With its rich history, stunning landscapes, and Mediterranean charm, owning a piece of Greece can provide not just a valuable asset, but also a gateway to a unique and enriching lifestyle.

12. FAQs

Q1: Can foreigners buy property anywhere in Greece?

A1: While foreigners can generally buy property throughout Greece, there are restrictions in certain border areas and some islands for non-EU citizens. These buyers need to obtain special permission from the Greek Ministry of Defense.

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

A2: The process usually takes between 1-3 months from making an offer to completing the purchase, depending on various factors such as property type, location, and any potential complications.

Q3: Do I need to be present in Greece to complete the property purchase?

A3: While it’s advisable to visit the property and meet with professionals in person, it’s possible to complete the purchase process through a power of attorney if you can’t be present.

Q4: Are there any restrictions on renting out my property in Greece?

A4: There are no major restrictions on renting out your property, but you will need to register it for short-term rentals and comply with tax regulations. Long-term rentals have different requirements.

Q5: What are the ongoing costs of owning property in Greece?

A5: Ongoing costs include annual property tax (ENFIA), maintenance costs, utility bills, and potentially management fees if you use a property management service. Insurance is also recommended.

Article reviewed by Devon Bergnaum, Residential Property Consultant | Helping Clients Find Dream Homes, on March 2, 2025