A Comprehensive Guide to Buying Property in Greece: Everything You Need to Know

Greece, a land of stunning Aegean and Mediterranean landscapes, is rich in history, culture, and the warmth of its people. As the cradle of Western civilization, this enchanting country draws millions of tourists each year with its beautiful coastlines, ancient monuments, renowned cuisine, and friendly atmosphere. Buying a home in Greece is more than acquiring a picturesque retreat; it can also be a rewarding long-term investment.

In this article, we provide a thorough guide for anyone interested in buying property in Greece. From the step-by-step process of purchasing a home, the documents required, the Golden Visa program, property prices in different regions, and much more, this guide aims to make your journey as smooth as possible.

Why Buy Property in Greece

Benefits and Opportunities

Buying a property in Greece is not just about acquiring a residence; it offers several strategic advantages, especially for non-EU investors. With programs like the Golden Visa that provide residency rights and a potential path to citizenship, Greece presents opportunities for lifestyle enhancement and financial growth. Let’s explore the key benefits:

1. Access to the Golden Visa Program

The Golden Visa Program allows non-EU citizens to gain residency by investing in real estate valued at a minimum of €250,000. This program is particularly appealing due to the following reasons:

• Residency Rights: Residency in Greece comes with the benefit of free movement across the Schengen Area.
• No Minimum Stay Requirement: Unlike some countries, Greece does not require investors to reside in the country to maintain their visa.
• Family Residency: The visa is extended to family members, including spouses, children up to 21 years, and parents.

2. Real Estate Prices and Investment Potential

Following Greece’s long economic crisis, property prices have remained significantly lower compared to other European nations. This makes it an attractive option for both investors seeking high returns through rental income and individuals wishing to acquire a vacation home.

The tourism industry also plays a major role. Greece’s status as one of the world’s leading holiday destinations means that buying a home here can turn into a lucrative venture by renting out the property, particularly in highly sought-after areas like Athens, Santorini, and Mykonos.

3. Quality of Life

Owning property in Greece means enjoying its breathtaking landscapes, Mediterranean climate, delicious food, and relaxed lifestyle. Greece offers a quality of life that is hard to find elsewhere, making it a perfect destination for those seeking both investment opportunities and a peaceful escape.

Step-by-Step Guide to Buying Property in Greece

For those looking to buy property in Greece, there are important steps to follow to ensure a smooth purchasing process. While the rules may vary slightly for EU and non-EU citizens, here is a general outline of the key steps:

1. Decide on the Location

Start by researching the different regions and cities to find the area that best suits your needs. Are you looking for a bustling city life in Athens, a historical experience in Thessaloniki, or a serene retreat on one of the Greek islands? Visiting Greece to tour different areas is highly recommended.

2. Engage with a Real Estate Agent

Hiring a local real estate agent is essential, especially if you are unfamiliar with the Greek market. A trusted agent will guide you through the available options, help you find properties that suit your requirements, and assist with negotiations.

3. Appoint a Lawyer

A lawyer is required to facilitate the legal side of the property purchase. This ensures compliance with Greek laws and helps with any due diligence on the property to avoid issues related to title clearance or legality.

4. Obtain a Tax Registration Number (AFM)

You will need a Tax Registration Number (AFM) to complete financial transactions in Greece. This number is also required to open a local bank account, which will be necessary for tax payments and transaction purposes.

5. Property Due Diligence and Making an Offer

Once you find the property of your dreams, the next step is due diligence, conducted by your lawyer, to verify there are no outstanding debts or encumbrances on the property. After ensuring everything is in order, you can proceed to make an offer and negotiate the final price.

6. Sign a Preliminary Agreement

Once you reach an agreement with the seller, it is common to sign a preliminary contract, which includes the essential terms of the transaction and a down payment.

7. Sign the Final Purchase Contract

The final contract is signed before a notary, in the presence of both parties and their lawyers. Once the purchase price is paid, the title is transferred, and your lawyer registers the deed at the Land Registry.

Required Documents for Buying Property in Greece

To buy property in Greece, you will need to prepare the following documents:

• Valid Passport: Identification and proof of citizenship.
• Entry Visa: Required for non-EU citizens.
• Tax Registration Number (AFM): Obtainable through opening a Greek bank account.
• Proof of Residence: May be needed to demonstrate your address outside Greece.
• Tax Returns: Past tax returns may be requested as part of financial checks.

In addition to these documents, it is strongly recommended to work with a notary and local lawyer to ensure all legal formalities are properly handled.

Understanding the Costs Involved

Buying property in Greece comes with several additional costs that you should be prepared for:

• Real Estate Agent Fees: Typically 1.5% – 2.5% of the property price.
• Notary Fees: Approximately 0.65% – 1% of the sale price plus 23% VAT.
• Lawyer Fees: Ranging from 0.4% – 1% of the property price, plus 23% VAT.
• Land Registry Fees: Approximately 0.5% of the property price plus 23% VAT.

These costs can add up to around 8% – 12% of the total property price, depending on the complexity of the purchase.

Golden Visa Program: Pathway to Residency and Beyond

The Golden Visa is one of the most significant benefits for foreigners investing in Greek real estate. The program offers a five-year residency permit, which can be renewed as long as the property remains in the investor’s possession.

Advantages of the Golden Visa

• Freedom of Movement: Visa holders enjoy visa-free travel across the Schengen Area of Europe.
• Permanent Residency Eligibility: After seven years, Golden Visa holders may apply for permanent residency or even citizenship.
• Investment Returns: The property purchased can be rented out, providing a return on investment.

Buying Property on Greek Islands

The Greek islands are known for their captivating scenery, unique culture, and traditional architecture, making them popular locations for foreign buyers. However, purchasing property on certain islands may come with additional restrictions due to national security concerns, particularly on islands near military zones or borders.

Popular Islands for Property Investment

• Mykonos and Santorini: Known for their luxury, glamour, and stunning views, properties on these islands are on the higher end of the market, with prices reflecting their exclusivity.
• Crete: Offers a mix of stunning landscapes, affordability, and rich history, making it a top choice for many buyers.
• Rhodes: Combining historical significance with beautiful beaches, Rhodes is an attractive destination for those seeking both culture and relaxation.

Property Prices in Major Cities and Islands

To give a better overview, here are some average property prices per square meter in Greece’s key cities and regions:

These figures, provided by Spitogatos in 2021, illustrate the variations in property prices across Greece. While cities like Athens are more expensive due to their popularity, other areas such as Trikala and Serres offer more affordable options.

Pros and Cons of Buying Property in Greece

Pros

• Affordable Prices: Compared to other European countries, Greek real estate is competitively priced.
• Golden Visa Benefits: Investment can grant residency rights.
• Tourism Rental Potential: Strong tourism industry provides an opportunity for lucrative rental income.

Cons

• Bureaucratic Challenges: Navigating through the bureaucratic processes can be complicated and time-consuming.
• Economic Instability: Though recovering, Greece has experienced economic instability in recent years.

Conclusion: Is Buying Property in Greece Right for You?

Buying property in Greece presents a unique blend of lifestyle enhancement and investment opportunity. From enjoying Greece’s idyllic landscapes to benefiting from the Golden Visa program and its associated rights, there are numerous advantages for foreign investors.

However, the process requires careful planning, legal assistance, and financial readiness to cover additional costs and fees. Whether you are looking for a vacation home, a rental investment, or an opportunity to reside in Europe, Greece has a lot to offer.

If you are ready to take the next step, consider consulting with a local real estate agent and lawyer to begin the process. Greece’s inviting culture, favorable real estate prices, and residency options make it a compelling choice for those seeking both personal enjoyment and long-term gains.

Next Steps and Related Topics

If you found this guide helpful, you might also be interested in exploring the following:

• “Navigating Greek Real Estate Laws: What Foreign Buyers Need to Know”
• “Top 10 Greek Islands for Vacation Homes”
• “Golden Visa Programs in Europe: How Greece Compares to Portugal and Spain”