Financing a Property Purchase in Greece: Can Foreigners Get Mortgages?

Reading time: 12 minutes

Dreaming of owning a villa overlooking the Aegean Sea or a charming apartment in Athens? You’re not alone. Greece’s property market has become increasingly attractive to international buyers, but navigating the mortgage landscape as a foreigner can feel like deciphering ancient Greek. Let’s cut through the complexity and show you exactly how to secure financing for your Greek property dreams.

Table of Contents

• Who Can Apply: Foreign Buyer Eligibility Requirements
• The Mortgage Application Journey: Step-by-Step Guide
• Greek Banks vs. International Lenders: Your Options
• Understanding the True Cost of Greek Property Financing
• Smart Financing Strategies for International Buyers
• Common Pitfalls and How to Avoid Them
• Your Property Financing Roadmap
• Frequently Asked Questions

Who Can Apply: Foreign Buyer Eligibility Requirements

Here’s the straight talk: Yes, foreigners can absolutely get mortgages in Greece, but the devil is in the details. Greek banks have become more selective since the financial crisis, but opportunities still exist for well-prepared international buyers.

EU vs. Non-EU Citizens: The Divide

Your passport color matters more than you might think. EU citizens enjoy a significant advantage in the Greek mortgage market, with most banks treating them almost identically to Greek nationals. Non-EU citizens face additional hurdles but aren’t locked out entirely.

EU Citizens typically need:

• Proof of stable income (minimum €30,000 annually)
• Clean credit history in their home country
• Down payment of 30-40% of property value
• Greek tax number (AFM)

Non-EU Citizens must additionally provide:

• Greek residence permit or work visa
• Higher down payment (often 40-50%)
• Demonstrated ties to Greece (employment, business interests)
• Enhanced financial documentation

Income and Employment Requirements

Banks typically require your monthly mortgage payment to not exceed 40% of your net monthly income. For a €200,000 mortgage at current rates, you’d need to demonstrate monthly income of approximately €1,500-2,000 after taxes.

The Mortgage Application Journey: Step-by-Step Guide

The mortgage process in Greece typically takes 6-12 weeks, significantly longer than many other European countries. Here’s your roadmap:

Phase 1: Pre-Application Preparation (2-3 weeks)

1. Obtain your Greek Tax Number (AFM) – Visit any tax office with your passport and proof of address
2. Open a Greek bank account – Required for salary deposits and mortgage payments
3. Gather financial documents – Income statements, tax returns, bank statements (last 6 months)
4. Get pre-approved – Many banks offer preliminary approval based on basic financial information

Phase 2: Formal Application (3-4 weeks)

Once you’ve identified a property, the formal application begins. Greek banks are particularly thorough, often requesting additional documentation multiple times during the process.

Essential Documents Checklist:

• Completed mortgage application form
• Property valuation report (arranged by the bank)
• Purchase agreement or reservation contract
• Proof of down payment funds
• Employment contract and salary certificates
• Life insurance policy (often required)

Phase 3: Final Approval and Closing (2-3 weeks)

After approval, you’ll sign the mortgage contract before a notary. Greek law requires all property transactions to be notarized, adding an extra layer of complexity but also security.

Greek Banks vs. International Lenders: Your Options

Your financing options fall into three main categories, each with distinct advantages and drawbacks:

Greek Banks: The Traditional Route

The “Big Four” Greek banks – National Bank of Greece, Alpha Bank, Eurobank, and Piraeus Bank – dominate the mortgage market. They offer competitive rates but maintain strict lending criteria.

Alpha Bank has emerged as particularly foreigner-friendly, with dedicated international client teams and streamlined processes for EU citizens. Their current rates start at 3.2% for prime borrowers.

International and Private Banks

Banks like HSBC Greece and Credit Suisse cater to high-net-worth individuals, offering more flexible terms but requiring larger deposits and higher minimum loan amounts (typically €300,000+).

Understanding the True Cost of Greek Property Financing

Beyond the sticker price and mortgage payments, Greek property purchases involve significant additional costs that can catch international buyers off-guard.

Upfront Costs Breakdown

For a €300,000 property purchase, expect to pay:

• Transfer Tax: €9,000 (3% of property value)
• Legal Fees: €3,000-4,500 (1-1.5%)
• Notary Fees: €1,200-1,800 (0.4-0.6%)
• Property Survey: €800-1,200
• Bank Valuation: €400-600
• Mortgage Arrangement Fee: €1,500-3,000

Total additional costs: €15,900-21,100 (5.3-7% of property value)

Ongoing Mortgage Costs

Greek mortgages typically include mandatory life insurance, costing 0.3-0.5% of the loan amount annually. Property insurance adds another €300-800 yearly for most properties.

Smart Financing Strategies for International Buyers

Successfully financing Greek property requires strategic thinking beyond simply finding the lowest interest rate.

The Currency Hedge Strategy

If your income is in a currency other than euros, consider the exchange rate risk. Many successful international buyers use forward contracts to lock in favorable exchange rates, protecting against currency fluctuations during the purchase process.

Timing Your Application

Greek banks are more lending-friendly during certain periods. Q1 and Q3 typically see more favorable conditions as banks work toward quarterly targets. Avoid August when many banking personnel are on vacation.

Building Banking Relationships

Opening accounts and conducting regular business with Greek banks 6-12 months before applying can significantly improve your mortgage terms. Banks view existing customers more favorably than new applicants.

Relationship Building Checklist:

• Open checking and savings accounts
• Set up regular deposits (even small amounts)
• Use bank credit cards for purchases
• Maintain consistent account activity

Common Pitfalls and How to Avoid Them

Even well-prepared buyers can encounter unexpected obstacles. Here are the most frequent challenges and proven solutions:

Challenge 1: Documentation Translation and Certification

Greek banks require all foreign documents to be officially translated and apostilled. Many buyers underestimate this process, which can take 2-4 weeks.

Solution: Start document preparation immediately upon deciding to buy. Use certified translators recognized by Greek courts to avoid rejection.

Challenge 2: Property Valuation Discrepancies

Bank valuations often come in 10-15% below agreed purchase prices, affecting loan amounts.

Solution: Factor potential valuation shortfalls into your financing planning. Consider negotiating purchase price reductions or increasing your down payment.

Challenge 3: Income Verification for Self-Employed Buyers

Freelancers and business owners face additional scrutiny, with banks requiring 2-3 years of audited accounts.

Solution: Work with accountants in both your home country and Greece to ensure documentation meets banking requirements. Consider guarantor options if income documentation is complex.

Your Property Financing Roadmap

Ready to transform your Greek property dreams into reality? Here’s your strategic action plan:

Phase 1: Foundation Building (Months 1-2)

• Assess your financial position: Calculate realistic budgets including all costs, not just property price
• Research locations strategically: Focus on areas with strong rental potential if investment is your goal
• Begin banking relationships: Open Greek bank accounts and start building credit history
• Prepare documentation: Start translation and certification processes early

Phase 2: Market Engagement (Months 2-4)

• Secure mortgage pre-approval: Apply to 2-3 lenders for comparison
• Partner with local experts: Find English-speaking lawyers and real estate agents with international experience
• Property search and due diligence: Focus on legally compliant properties with clear titles

Phase 3: Transaction Execution (Months 4-6)

• Negotiate strategically: Factor in potential valuation gaps and additional costs
• Finalize financing: Complete formal mortgage applications with full documentation
• Execute purchase: Coordinate between lenders, lawyers, and sellers for smooth closing

The Greek property market offers exceptional opportunities for informed international buyers. Success isn’t about finding the perfect deal—it’s about thorough preparation, strategic financing, and working with the right local partners.

What’s your next move? Will you start building banking relationships now, or continue researching until the perfect opportunity passes by? The Greek sun is waiting, but successful property financing requires action today, not tomorrow.

Frequently Asked Questions

Can I get a Greek mortgage without Greek residency?

Yes, but your options are more limited. EU citizens can typically secure mortgages without Greek residency, though they’ll need to demonstrate stable income from their home country. Non-EU citizens generally need Greek residency permits or work visas, though some international banks offer solutions for high-net-worth individuals without residency requirements.

What’s the minimum down payment required for foreign buyers?

Down payment requirements vary by nationality and lender. EU citizens typically need 30-40% down payment, while non-EU citizens often face 40-50% requirements. Some specialist lenders offer higher loan-to-value ratios (up to 75%) but at premium interest rates. Factor in additional purchase costs of 5-7% when calculating total upfront investment needed.

How long do Greek mortgages typically run, and can I pay them off early?

Greek mortgages typically run 15-25 years, with some banks offering up to 30-year terms for prime borrowers. Early repayment is generally allowed but may incur penalties, especially in the first 3-5 years. Most banks charge 1-2% of the outstanding balance for early settlement, though EU regulations limit penalties after certain periods. Always negotiate early repayment terms upfront.

Article reviewed by Devon Bergnaum, Residential Property Consultant | Helping Clients Find Dream Homes, on July 8, 2025