Greece
As a member state of the EU, Greece offers its residents and citizens a number of reassuring benefits including high levels of safety and security, excellent education opportunities, robust healthcare options, and a dependable rule of law.
Greece Real Estate
Greece stands out as an attractive destination for real estate investment, offering a blend of historical charm, modern appeal, and strategic advantages. Here’s a detailed look at why Greece is a prime location for real estate investment:
Key Highlights of Greece’s Real Estate Market
- Rich Historical and Cultural Heritage:
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- Historical Significance: Greece is renowned for its ancient history, iconic landmarks, and cultural heritage, including sites like the Acropolis in Athens and the ruins of Delphi.
- Cultural Appeal: The vibrant Greek culture, festivals, and culinary experiences add to the attractiveness of investing in Greek real estate.
- Stunning Landscapes:
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- Diverse Scenery: From the idyllic islands of Santorini and Mykonos to the picturesque landscapes of the Peloponnese and the mainland’s lush greenery, Greece offers a wide range of stunning natural environments.
- Mediterranean Climate: The favorable Mediterranean climate ensures pleasant weather year-round, making it an appealing location for both residential and vacation properties.
- Strategic Location:
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- Gateway to Europe: Greece’s position at the crossroads of Europe, Asia, and Africa enhances its accessibility and strategic importance for international investors.
- EU Membership: As a member of the European Union, Greece provides benefits such as free movement within the Schengen Zone and alignment with EU regulations.
Key Cities for Real Estate Investment
- Athens:
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- Capital City: Athens, the capital of Greece, is a bustling metropolis known for its blend of ancient history and modern living.
- Investment Opportunities: The city offers diverse real estate options, including luxury apartments, commercial properties, and historical buildings. Areas like Kolonaki and Kifisia are particularly sought-after for their prime locations.
- Thessaloniki:
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- Second Largest City: Thessaloniki is Greece’s second-largest city, known for its vibrant cultural scene and dynamic economy.
- Property Market: The city features a range of investment opportunities from modern apartments to traditional properties. Its port and growing tech sector make it an attractive choice for investors.
Why Invest in Greek Real Estate?
- Strong Rental Yields:
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- Tourist Demand: Greece’s popularity as a tourist destination drives high demand for short-term rental properties, particularly in cities and on the islands.
- Growing Market: The real estate market has shown resilience and growth potential, offering investors promising rental returns and capital appreciation.
- Diverse Property Options:
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- Range of Choices: Investors can choose from various property types, including beachfront villas, city apartments, and rural estates.
- Development Projects: There are numerous opportunities in new developments, renovation projects, and luxury real estate.
- Favorable Investment Climate:
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- Legal Framework: Greece has a transparent legal framework for property transactions, and foreign investors can purchase property with few restrictions.
- Incentives: Various incentives, including the Golden Visa program, attract international buyers and offer additional benefits such as residency permits.
Frequently Asked Questions (FAQ)
Are there any restrictions on the acquisition of real estate in Greece by foreign buyers?
Some restrictions apply to non-EU nationals seeking to acquire real estate in border areas (Article 24, Law 1892/1990) such as the eastern Aegean, the Dodecanese, Thrace, and other regions of northern Greece. Restrictions may be lifted upon special request with an indication of the property’s intended use. A license to acquire such property is granted by the Ministry of National Defence following a request submitted to the relevant committee of the decentralized administration in that region.
How can immovable property in Greece be acquired?
After obtaining a tax identification number and opening a bank account, the buyer must conduct a land registry search to ensure that the chosen property is free of encumbrances. Once cleared, the transfer tax is paid, and the final contract is signed by the buyer and the seller before a notary. The contract of sale is registered at the local land registry as the absolute proof of ownership. Within three months, the property must be registered with the tax authorities. The process can be handled by proxies.
Does the applicant need to open a bank account in order to purchase property, and if so, what is the procedure?
The opening of a bank account is not a prerequisite; however, it facilitates the transaction and tax procedures related to the ownership of a property. A bank account can be opened in person or via power of attorney. The applicant must also provide a list of required documents (such as proof of tax residence, proof of address, and source of funds).
What additional expenses will the real estate transaction incur?
In addition to the actual cost of the property, some other expenses will be incurred, most of which are based on the ‘assessed tax value’ of the property.
- Notary fees: 1.2–1.5% of the property value
- Land registry fees: 0.5–0.7% of the property value
- Transfer tax: 3.09% of the property value, payable to the revenue service
- Real estate agency fees (where applicable): 2% of the purchase price
What kind of returns can be expected from property investment in Greece?
Properties are reasonably easy to let. An owner’s annual return from the lease, after expenses and taxes, is estimated at around 4–5%. In central Athens, the gross rental yield on apartments is about 4.49%, while outside the city center, it is about 4.05%.
How is rental income taxed?
Greece has a progressive taxation system. The income tax on rental income is 15% per annum for the first EUR 12,000, 35% between EUR 12,000 and EUR 35,000, and 45% thereafter.
What other immovable property-related taxes and charges are imposed in Greece?
All property owners in Greece (including those who invest in real estate to acquire a Greek residence permit) are liable to pay tax on immovable property in Greece or the income that may arise from such property, regardless of their domicile or residence. Uniform real estate property tax (ENFIA) is calculated based on the location, price zone, surface, floor, year built, and other similar factors. It is approximately EUR 5–10 per m2 annually (roughly calculated as 0.2% of the taxable property value), depending on the tax value of the property.