The Complete Guide to Buying Property in Greece as a Foreigner

Buying property in Greece as a non-resident is a straightforward process provided you navigate the legal and tax frameworks correctly. Foreigners, including non-EU citizens, have the right to own real estate in most parts of the country, though specific restrictions apply to border regions for non-EU nationals. Successful acquisition requires a Greek Tax Number (AFM), a local bank account, and the assistance of a qualified lawyer and notary.

Key takeaways

• Non-EU citizens must obtain special permission to buy in 'border areas' such as parts of the Aegean and Northern Greece.
• A Greek Tax Number (AFM) is a mandatory requirement for any property transaction.
• The Golden Visa programme currently offers residency to non-EU investors, with thresholds recently increased to 800,000 Euros in high-demand zones.
• Transaction costs typically range from 7% to 15% of the property value, including taxes and professional fees.
• Post-acquisition, all owners must file an annual E9 statement and pay ENFIA property tax.

Is the Greek real estate market a good investment in 2024?

The Greek real estate market has shown remarkable resilience and growth over the last five years. Following a decade of stagnation after the 2008 financial crisis, prices have been on a steady upward trajectory. According to data from the Bank of Greece, apartment prices rose by an average of 13.4% in 2023, with Athens and Thessaloniki leading the surge.

Investors are drawn to Greece not only for its lifestyle appeal but also for its competitive entry points compared to peers like Spain or Italy. While the Golden Visa rules have tightened, the demand for short-term rentals in island hotspots like Crete, Rhodes, and Mykonos remains robust. However, prospective buyers must account for the recent legislative changes aimed at curbing the housing crisis, which include stricter regulations on Airbnb-style rentals in central Athens.

What are the legal requirements for foreigners?

Greece distinguishes between EU/EFTA citizens and non-EU citizens (Third Country Nationals). For EU citizens, there are virtually no restrictions on where they can buy. For non-EU citizens, the process is largely the same, except for properties located in designated 'border regions'. These regions include the Dodecanese, the Eastern Aegean, and parts of Northern Greece. To purchase here, non-EU buyers must apply for a waiver from the Ministry of National Defence, a process that can take several months.

Every buyer, regardless of nationality, must obtain a Greek Tax Number, known locally as an AFM (Arithmos Forologikou Mitrou). This is issued by the local tax office (DOY) and is required for signing the final contract and setting up utility bills. Furthermore, while not legally mandated to have a Greek bank account to own property, it is highly recommended for paying taxes and bills to avoid international transfer complications.

How does the Greek Golden Visa programme work?

The Greek Golden Visa remains one of the most popular residency-by-investment schemes in the world. As of September 2024, the Greek government introduced a tiered investment structure. In the 'Tier A' zones, which include the entire Attica region (Athens and suburbs), Thessaloniki, Mykonos, Santorini, and any island with a population over 3,100, the minimum investment is 800,000 Euros. In other regions, the threshold is 400,000 Euros.

There are specific exceptions. If an investor converts a commercial property into residential use or restores a listed (historic) building, the minimum investment remains at 250,000 Euros regardless of the location. It is important to note that properties purchased under the Golden Visa programme can no longer be rented out as short-term holiday lets (Airbnb) if they were converted from commercial to residential use.

What is the step-by-step process of buying property in Greece?

1. Property search and reservation

Once a property is selected, a formal offer is made. If accepted, the buyer usually signs a reservation agreement and pays a deposit (typically 1% to 10%) to take the property off the market. It is vital that this deposit is held by a lawyer or in an escrow account, rather than paid directly to the seller without a contract.

2. Legal due diligence

Your lawyer will perform a title search at the Land Registry (Ypothykofylakeio) or the National Cadastre (Ktimatologio). This ensures the seller has clear title, there are no outstanding mortgages, and no tax liens on the property. In Greece, the lawyer's role is critical as they also verify that the building complies with local planning laws.

3. Technical due diligence

A civil engineer must inspect the property. They provide a certificate stating that the property adheres to its building permits. Since 2011, Greece has had strict laws regarding 'unauthorised constructions'. If a balcony was enclosed or a basement converted without a permit, these must be legalised by the seller before the sale can proceed.

4. Paying the Transfer Tax

Before the final contract is signed, the buyer must pay the Property Transfer Tax (FPT). This is currently set at 3% of the 'objective value' or the purchase price, whichever is higher. The proof of payment must be presented to the notary.

5. Final contract and registration

The final contract is signed in the presence of a Public Notary. The notary does not represent the buyer or seller; they are a government official who ensures the transaction follows the law. After signing, the lawyer registers the deed at the Land Registry. Ownership is only legally transferred once the deed is registered.

What are the costs associated with buying property in Greece?

Budgeting for a Greek property purchase requires accounting for several additional fees. Generally, you should allow for 10% to 12% on top of the purchase price.

What taxes must owners pay after the purchase?

Owning property in Greece brings ongoing fiscal responsibilities. The primary tax is ENFIA, an annual unified property tax. The amount depends on the size, age, and location of the property. For a standard 100-square-metre apartment in Athens, ENFIA might range from 300 to 800 Euros annually.

If you choose to rent out your property, the rental income is taxed at progressive rates. For individuals, the rates start at 15% for income up to 12,000 Euros, rising to 35% for income between 12,001 and 35,000 Euros, and 45% for anything above that. Non-residents must also appoint a local tax representative, often their accountant, to handle their annual filings.

Can I buy property through a company?

Some High Net Worth Individuals (HNWIs) prefer to hold Greek real estate through a Greek Private Company (IKE) or a foreign legal entity. While this can offer benefits for inheritance planning or asset protection, it carries a significant tax burden. Companies owning residential property in Greece are subject to a Special Real Estate Tax (SRET) of 15% of the property value annually, unless they meet specific exemption criteria, such as disclosing the ultimate beneficial owners to the Greek authorities.

Common pitfalls to avoid

One of the most frequent mistakes is skipping the technical survey. Because Greek building laws have changed frequently, many older properties have minor illegalities that can prevent a future sale or result in heavy fines. Another pitfall is failing to account for the 'Objective Value'. The Greek state assigns a theoretical value to every zone in the country. If you buy a property for 200,000 Euros but the state says its objective value is 250,000 Euros, you will pay taxes on the higher amount.

Furthermore, never rely on a verbal agreement. In Greece, only a notarised contract or a written pre-contract registered with the authorities provides legal protection for your funds. Always ensure your lawyer is independent of the developer or the real estate agent to avoid conflicts of interest.

Frequently Asked Questions

Can I buy property in Greece after Brexit?

Yes, British citizens are treated as Third Country Nationals. You can buy property freely, though you are subject to the 90-day Schengen area limit unless you apply for a Golden Visa or another type of residency permit. For border regions, UK citizens now require Ministry of Defence permission.

Do I need to be in Greece to complete the purchase?

No, you can grant a Power of Attorney (PoA) to your lawyer. This PoA can be signed at a Greek Consulate in your home country or before a notary in Greece. This allows your lawyer to obtain your tax number, open a bank account, and sign the final deed on your behalf.

Is it possible to get a mortgage in Greece as a foreigner?

While Greek banks have become more open to lending, it remains challenging for non-residents. Typically, you will need a 40% to 50% down payment, and the bank will require extensive proof of income from your home country. Many foreign buyers find it easier to finance the purchase through a bank in their country of residence.

What is the 'Electronic Building Identity'?

Since 2022, every property transfer requires an 'Electronic Building Identity' (Taftotita Ktiriou). This is a digital file compiled by a civil engineer that contains all the plans, permits, and energy certificates of the property. A sale cannot proceed without it.

Are there restrictions on renting my property on Airbnb?

Yes, new regulations introduced in 2024 require owners of short-term rentals to register for a VAT number if they manage three or more properties. Additionally, certain municipalities may impose limits on the number of days a property can be rented out per year to protect the local housing market.

Disclaimer: This article is provided for informational purposes only and does not constitute legal or tax advice. Readers should consult with qualified legal and financial professionals before undertaking any real estate transaction in Greece.