Pitfalls of Buying Property in Greece: What Expats Need to Know

Purchasing property in Greece is a dream for many expats. But without the right preparation, buying property here can lead to costly mistakes. This article will guide you through the pitfalls of buying property in Greece, especially for those considering options like the Greece Golden Visa or planning to move to Greece from the USA. Whether you're interested in the Greece residency by investment route, exploring houses in Greece, or looking to settle down, here’s what you need to know.

For an in-depth overview, see our guides like The Definitive Guide to Buying Property in Athens and How to Buy Property in Greece in 2024.

Common Pitfalls of Buying Property in Greece

1. Neglecting Legal Requirements and Due Diligence

One of the biggest mistakes expats make is bypassing essential due diligence, particularly around legal documentation. Greek real estate can have complex ownership issues, including historical claims, unregistered properties, or zoning restrictions.

• Solution: Hire a local lawyer who specializes in property law and real estate transactions. They can navigate the Greek legal landscape, ensuring that your investment is secure. Need a professional lawyer? Contact us via our Services page.

2. Underestimating the True Cost of Ownership

Buying property in Greece comes with additional expenses beyond the property price, such as transaction taxes, legal fees, and maintenance costs. Many expats also overlook ongoing expenses like the Greece's tax rate and property management fees if they don’t reside there year-round.

• Solution: Research Greece's cost of living vs. the US to understand all associated costs and fees. For more details about how much it costs to live in Greece, and how that compares to the U.S., read Comparing The Cost of Living: Greece vs. the U.S.
• For an overview of property taxes in Greece, read What is ENFIA? Property Taxes in Greece Debunked.

3. Not Understanding Residency and Visa Options

For non-EU citizens, navigating Greek residency requirements is essential, especially if they are planning to live in Greece long-term. Programs like the Greece Golden Visa offer pathways to residence, but they come with their own criteria and investment levels. For more details, read our guide, Golden Visa Program Changes in 2024.

• Solution: Determine whether a Greece Golden Visa or another visa is best for your needs, especially if you're considering retirement in Greece or seeking Greece residency by investment. If you are thinking of retiring in Greece, then the Financially Independent Person's Visa is the most viable, offering various benefits compared to the Greece Golden Visa. Read the guide, How to Get an FIP Visa in Greece in 2024.

4. Failing to Get a Property Inspection

Unlike some countries, property inspections aren’t a standard practice in Greece, leaving buyers at risk of discovering costly repairs post-purchase. Hidden issues like structural damage, plumbing, and electrical problems are common in older properties, especially those on islands.

• Solution: Arrange a professional inspection to evaluate the property's condition before finalizing the purchase. This step can save significant future expenses and avoid surprises.

5. Ignoring Exchange Rate and Financing Options

For buyers financing a property from abroad, fluctuations in exchange rates can significantly impact the final cost. Additionally, financing options in Greece may be limited for non-residents, making it essential to plan ahead.

• Solution: Open a local bank account (e.g., Eurobank or others) and work with a financial institution that understands cross-border transactions. This can offer more stable financing solutions and favorable exchange rates. For this, read The Ultimate Guide to Choosing a Bank in Greece for Foreigners.

6. Overlooking Local Market Trends and Property Value

The Greek real estate market can vary widely by region. Certain areas, especially tourist destinations, may have inflated prices due to high demand, while others may offer better value. Not researching these trends may lead to overpaying or investing in areas with little appreciation potential.

• Solution: Consult with local real estate agents familiar with areas like Athens and islands. They can offer insights into current trends and potential for property appreciation. Read 5 Most Affordable Islands to Buy Property in Greece.

7. Failing to Account for Future Residency Plans

Many expats envision a long-term stay in Greece, but may not plan thoroughly for their Greece retirement visa requirements or the implications of gaining permanent residency. Residency laws and the Greece tax rate should be factored into long-term plans.

• Solution: Review residency options and consult with a tax advisor to plan for future needs, particularly if you’re seeking permanent residency or considering Greece residency by investment. Need a tax consultation with a professional? Contact us via our Services page.

How to Avoid These Pitfalls: Essential Tips for Expats

1. Set Clear Financial Goals

Before you begin, outline your financial goals and expectations. Are you looking for a vacation home, a rental property, or a permanent residence? Each option has different implications for taxes, residency, and maintenance.

2. Work with Local Professionals

Engaging a local, on-demand team, like My Greek Expat Journey —lawyer, real estate agent, and tax advisor—will help ensure a smooth transaction and compliance with local laws. They’ll be familiar with potential issues unique to Greece, helping you avoid costly errors.

3. Understand Visa and Tax Implications

Ensure your visa status aligns with your property goals. If you’re a non-EU national, the Golden Visa Greece program may be appealing, as it grants residency for a minimum real estate investment. However, note that taxes may apply differently based on your residency status and property use.

4. Research the Property’s Location and Market Trends

Different areas in Greece have varied price ranges, lifestyle options, and investment potential. Conducting market research and working with real estate professionals is key to making an informed choice. For an in-depth overview, read Best Places to Purchase Property in Greece.

Conclusion

Purchasing property in Greece is a rewarding yet complex process. From legal issues and hidden costs to navigating residency requirements and tax implications, each aspect requires careful planning and local expertise. By understanding these pitfalls and following best practices, you can ensure a successful investment and a smooth transition to living in Greece.

Frequently Asked Questions

1. Can Americans buy property in Greece?

Yes, Americans can buy property in Greece without restrictions. However, understanding visa and residency options, like the Golden Visa Greece, is important for long-term stays.

2. What is the Golden Visa Greece program?

‍The Golden Visa Greece program grants residency to non-EU nationals who invest a minimum amount in Greek real estate, providing a path to permanent residency and potentially citizenship.

3. Is Greece expensive to live in compared to the US?

‍Generally, the cost of living in Greece vs. the US is lower, though it depends on location and lifestyle. Cities like Athens may have higher costs than rural areas.

4. Are there hidden costs when buying property in Greece?

‍Yes, additional costs include legal fees, property taxes, notary fees, and maintenance. It’s essential to account for these expenses before making a purchase.

5. Do I need to be a resident to buy property in Greece?

‍No, residency is not required to buy property in Greece. However, non-EU buyers may benefit from programs like the Greece residency by investment if they plan extended stays.