How to Buy Property in Greece in 2024

Whether you're looking for a sunny vacation home, a lucrative investment property, or a place to retire, Greece offers a diverse range of options to suit every taste and budget.

Due to its strategic location as a crossroads between Europe, Asia and Africa, as well as its rising tourism numbers, Greece attracts a plethora of foreign investors.

To help you navigate the process smoothly, here's a step-by-step guide to buying property in Greece:

1. Choose a Property

Start by choosing the property that you like in a neighborhood that suits your needs. Whether it's a charming 2-bedroom villa overlooking the sea, or a cozy apartment in the heart of Athens, take your time to explore the market so that you can find the perfect place for you. For this, you may want to explore your neighborhood of choice, or book a short stay to explore your options.

Prime investment opportunities exist in major cities like Athens and Thessaloniki, as well as popular tourist destinations like Mykonos, Santorini, and Crete. These areas attract significant tourist traffic, leading to higher rental yields and offering rich cultural and historical experiences.

Here are some popular destinations for real estate investment:

• Athens: As Greece’s capital, Athens is a top choice for residential and commercial properties. Prime areas like Kolonaki, Glyfada, and the historical center are favored for their vibrant lifestyle, rich history, and excellent accessibility.
  ‍
• Thessaloniki: The country’s second-largest city offers a thriving urban environment and a growing real estate market. Neighborhoods such as the city center and Kalamaria are highly desirable for their cultural appeal and modern amenities.
  ‍
• Crete: Known for its stunning landscapes, beaches, and historical sites, Crete is a popular choice for holiday homes and permanent residences, particularly in cities like Chania and Heraklion.
  ‍
• Mykonos and Santorini: Famous for their breathtaking views, luxury properties, and lively nightlife, these islands are prime locations for high-end real estate, especially for holiday villas and rental investments.
  ‍
• Chalkidiki: This region, renowned for its sandy beaches and scenic peninsulas, is a magnet for tourists and investors alike. Areas like Kassandra and Sithonia are particularly sought after for vacation homes and resort properties.
  ‍
• Corfu: The lush Ionian island of Corfu is celebrated for its Venetian architecture and picturesque landscapes, attracting buyers interested in summer homes and investment properties.
  ‍
• Peloponnese: Cities like Kalamata and Nafplio are gaining attention due to their historical significance, scenic coastlines, and relatively affordable property prices compared to the islands.

The most popular websites to find properties online:

• https://www.spiti24.gr/
• https://www.spitogatos.gr/
• https://www.xe.gr/

2. Assess Property Value

Before making any commitments, it's essential to assess the property's value. Finding a property valuer or a real estate professional who can help determine the value of a piece of land or building, is highly recommended before you decide to make a purchase.

If necessary, a surveyor may also come in for an extra hand to inspect the property for any structural issues. Keep in mind that a surveyor may not be required for newly built properties.

3. Financing

Foreigners are eligible to secure property loans in Greece. The Greek banking system allows non-residents to apply, provided they meet specific conditions and requirements. Generally, this includes having a valid residence permit and providing proof of income or employment.

A website that we highly recommend is IMS (Individual Mortgage Solutions), where you can find a loan calculator and see loan duration in years, interest rates, and total monthly installments.

4. Due Diligence

A reliable English-speaking lawyer with experience in Greek real estate law is strongly encouraged during the buying process, who will guide you through the legal intricacies of the buying process, ensuring that your interests are protected every step of the way.

Overall, due diligence from a lawyer is essential for buyers to make informed decisions and mitigate potential legal risks when purchasing real estate.

Your lawyer will assist doing the due diligence, which includes doing a full title check to see if there are any mortgages or defects in the title, as well as perform these following tasks:

• Conduct a comprehensive review of legal matters related to a property transaction. This includes identifying any potential risks, liabilities, or issues associated with the property before the purchase is finalized.
• Verify the ownership of the property and ensure that the seller has the legal right to transfer ownership.
• Identify any existing mortgages, liens, or encumbrances on the property that could affect the buyer's rights.
• Confirm that the property complies with all local zoning regulations, building codes, and other legal requirements.
• Assess potential environmental risks or hazards associated with the property, such as contamination or pollution.
• Review the purchase agreement, deeds, and other legal documents to ensure that the terms are fair and favorable to the buyer.
• Verify that all property taxes, fees, and other financial obligations are up to date and paid in full.
• Confirm that the property has all necessary permits, licenses, and approvals for its current use.

For legal fees, you would be expected to pay a range of 1%-2% of the property value, plus 24% VAT.

4. Get a Greek Tax Number or AFM

If you plan to own property, a car, or generate income in Greece, you'll need to obtain a Tax Residency Number (AFM). This identification number is essential for conducting financial transactions and fulfilling your tax obligations in Greece. See our blog post Why You Should Get a Greek Tax ID Before Moving to Greece.

5. Open a Local Bank Account

Some sellers require you to have a local bank account in order to transfer the eligible funds to the property seller. In order to best facilitate this, pick a local Greek bank branch and prepare the correct paperwork. Please see How To Open A Bank Account In Greece in 2024 for reference.

6. The Buying Process

Once due diligence is complete, you can proceed with the buying process, which consists of these following steps:

• ‍Step 1: Make a down payment of 10% to secure the property.
  ‍
• ‍Step 2: The notary will draft the new deed, which will be signed in the presence of a public official.

• Step 3: Obtain permission to own the property from the Ministry of Defense, particularly if the property is located in certain designated areas.
  ‍
• Step 4: Ensure that the seller provides tax clearance certification and a Green certificate, indicating the property's energy efficiency. Your lawyer should assist you with this process.
  ‍
• Step 5: Utilize a reliable foreign exchange service, such as Wise, to facilitate currency conversion and international payments.

7. Property Transfer Tax

Upon completion of the transaction, the buyer will be required to pay a property transfer tax of 3.09%, along with a small registration fee from 0.48% to 0.68%.

8. Annual Property Tax

In addition to the transfer tax, property owners are subject to an annual property tax, called ENFIA, or the Uniform Real Estate Property Tax in Greece, which ranges from €2.5 to €16.25 per square meter, depending on the property's location and size.

In order to calculate your Uniform Real Estate Property Tax, a good website to calculate your ENFIA is:

• https://www.forin.gr/tools/enfia

The main tax is determined based on factors such as the property's location, area, use, age, floor level, and number of façades. This tax is levied on both individuals and legal entities.

9. Supplementary Property Tax

Finally, be aware of the supplementary property tax that applies to properties valued over €250,000. This additional tax is calculated based on the property's assessed value and is payable annually.

By following these steps and working with experienced professionals, you can navigate the process of buying real estate in Greece with confidence and ease. Whether you're purchasing a vacation home, an investment property, or a permanent residence, Greece's rich history, stunning landscapes, and vibrant culture make it an irresistible destination for property buyers worldwide.

If you are currently thinking of purchasing property in Greece, and require assistance from real estate lawyers, feel free to book a 15-minute discovery call for more information.