The Complete Guide to Buying Property in Greece as a Foreigner

Buying property in Greece remains highly accessible for foreigners, provided you obtain a Greek Tax Number (AFM) and engage a local legal representative. While there are few restrictions for EU citizens, non-EU buyers must navigate specific regulations in designated border regions and may leverage their investment to secure residency via the Golden Visa programme.

Key takeaways

• Golden Visa Access: Minimum investment thresholds have recently increased to €400,000 or €800,000 in high-demand areas, though certain commercial-to-residential conversions remain at €250,000.
• Transaction Costs: Budget approximately 10 percent to 15 percent of the purchase price for taxes, notary fees, and legal expenses.
• Legal Necessity: A Greek lawyer (Dikigoros) is legally mandatory to conduct title searches and ensure the property is free of encumbrances.
• Tax Compliance: All buyers must obtain an AFM number and a Greek bank account to facilitate transparent fund transfers.
• Market Growth: Greece continues to see strong capital appreciation, particularly in Athens and the Cyclades, driven by tourism and infrastructure development.

Is it a good time for buying property in Greece?

The Greek real estate market has undergone a significant transformation since the debt crisis of the previous decade. Data from the Bank of Greece indicates that residential property prices have seen consistent year-on-year growth, often exceeding 10 percent in major urban centres like Athens and Thessaloniki. For the international investor, the appeal lies in the combination of relatively low price-per-square-metre entry points compared to London or Paris, and a robust short-term rental market fuelled by record-breaking tourism numbers.

However, the landscape is shifting. The Greek government recently introduced stricter regulations to curb housing shortages for locals. These changes primarily affect those looking at the Golden Visa programme, making it essential to understand which zone your target property falls into before committing capital.

What are the legal requirements for overseas buyers?

Greece is generally welcoming to foreign investment, but the process differs significantly based on your nationality. EU and EFTA (Iceland, Liechtenstein, Norway, Switzerland) citizens face virtually no restrictions. They can purchase property with the same ease as a Greek national.

Non-EU citizens, however, must be aware of "border regions." These areas includes islands such as Rhodes, Chios, and Samos, as well as regions in Northern Greece. To buy in these zones, a non-EU citizen must apply for a permit from the Ministry of National Defence. This is largely a formality for legitimate investors but can add three to six months to the transaction timeline.

How does the Greek Golden Visa impact property purchases?

For many non-EU buyers, buying property in Greece is a pathway to European residency. As of September 2024, the Greek Golden Visa programme has implemented a tiered investment structure:

• Zone A (€800,000): Includes the Region of Attica (Athens), Thessaloniki, Mykonos, Santorini, and islands with a population over 3,100.
• Zone B (€400,000): Covers the remainder of the Greek mainland and smaller islands.
• Commercial Conversion (€250,000): A specialised entry point for investors who restore historic buildings or convert commercial warehouses into residential dwellings.

Under the new rules, these properties cannot be rented out on platforms like Airbnb if the buyer wishes to maintain their Golden Visa residency status. Long-term rentals, however, remain permitted.

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

1. Hire a Greek Lawyer

Your lawyer is your most critical ally. They will perform a "Title Search" at the Land Registry (Hypothykofylakeio) to ensure there are no outstanding mortgages, tax liens, or legal disputes associated with the property. Under Greek law, the lawyer is responsible for ensuring the property has been built in accordance with planning permissions.

2. Obtain a Greek Tax Number (AFM)

The Arithmos Forologikou Mitrou (AFM) is essential for any financial transaction in Greece. You can apply for this at a local tax office (DOY). You will also need to appoint a local tax representative, usually your accountant or lawyer, if you are not a resident.

3. Open a Greek Bank Account

While not strictly required by law for all purchases, it is highly recommended. Using a local account makes it easier to pay utility bills and proves that the funds for the purchase originated from abroad (the "Pink Slip" or equivalent bank documentation), which is vital for tax transparency.

4. The Preliminary Agreement

Once a price is agreed, both parties sign a promissory note or a preliminary contract. At this stage, the buyer typically pays a 10 percent deposit to reserve the property. It is vital that this contract includes a clause stating the deposit is refundable if the legal title search reveals issues.

5. Final Deed and Registration

The final contract is signed in the presence of a Public Notary. The notary does not represent the buyer or seller; they represent the State, ensuring the transaction complies with all legal requirements. Once signed, the lawyer registers the deed at the Land Registry and the National Cadastre.

What are the costs associated with buying property in Greece?

When budgeting for a purchase, it is a mistake to only look at the listing price. The total cost of acquisition is usually 10 percent to 15 percent higher.

Comparison Table: Estimated Purchase Costs

Note: The 24% VAT on new construction has been suspended until the end of 2025 to encourage investment. Most new builds currently attract only the 3% Transfer Tax.

Can I buy property in Greece through a company?

Yes, many HNW investors choose to buy through a Greek Private Company (IKE) or a foreign legal entity. This can offer advantages for inheritance planning and the deduction of maintenance expenses against rental income. However, corporate ownership often involves higher annual accounting fees and a different tax structure. You should consult a specialist tax advisor before deciding on the ownership structure.

What are the ongoing taxes after the purchase?

Owning property in Greece carries an annual tax known as ENFIA. This is calculated based on the size, location, and age of the property. For a standard two-bedroom apartment in a mid-range Athens suburb, ENFIA might range from €300 to €600 per year. Luxury villas on the islands will naturally command significantly higher rates.

If you choose to rent out your property, the income is taxed at a progressive rate:

• 0 to €12,000: 15%
• €12,001 to €35,000: 35%
• Over €35,000: 45%

Why is the Cadastre important?

Greece is currently in the final stages of completing its National Cadastre (Ktimatologio). This is a centralised digital registry of all plots of land and buildings. It is imperative to check that the property you are buying is correctly registered in the Cadastre. Discrepancies between the Land Registry and the Cadastre can cause significant delays in the sale process and may require expensive legal corrections.

FAQ

Do I need to be in Greece to buy property? No, you can grant a Power of Attorney (PoA) to your Greek lawyer. This PoA can be signed at a Greek Consulate in your home country, allowing your lawyer to sign all documents, including the final deed, on your behalf.

Can I get a mortgage in Greece as a foreigner? While possible, it is challenging. Greek banks have strict lending criteria for non-residents, often requiring a 50 percent down payment and proof of significant income. Many foreign buyers find it easier to secure financing in their home country or purchase in cash.

Is the property market in Greece safe? Yes, provided you follow the legal steps. The involvement of a Public Notary and a lawyer is designed to protect the buyer. Since the transition to the National Cadastre, the transparency of ownership has improved significantly.

How long does the buying process take? A typical transaction takes between six and twelve weeks. This can be extended if the property is located in a border region or if there are issues with the building's technical certificates.

What is the 'Objective Value' of a property? The Greek tax authorities assign an "Objective Value" to every property based on its location. The 3.09 percent Transfer Tax is calculated on either the Objective Value or the actual purchase price, whichever is higher.

Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or tax advice. Readers should consult with qualified professionals in Greece before making any investment decisions.