The Definitive Guide to Buying Property in Athens

Buying property in Greece as a foreigner can incur a lot of stress. There are many moving parts involved in buying a property in Greece, such as taxes, financing and other types of paperwork.

Foreign nationals can buy property in Athens, including land, with ownership rights that are largely equivalent to those of Greek citizens. This encompasses the freedom to buy, sell, and inherit property with minimal restrictions.

According to Global Property Guide, as of Q1 2024, the average gross rental yield in Greece was 4.82%, down from 5.22% in Q3 2023. In Athens, Greece's capital city, house prices rose by 9.35% (5.94% in real terms) in Q1 2024 from a year earlier, a slowdown from the prior year's huge growth of 17.39%. During the latest quarter, house prices were up 2.58% (2.93% in real terms).

1. Choose a Neighborhood

There are many neighborhoods in Athens that vary in demographics, size, culture, lifestyles, and landscape. This is why it is important to visit all of the different areas prior to purchasing a property.

For instance, if you are buying in the south suburbs like Glyfada or Voula, then you would be close to seaside areas like the Athens Riviera or Vouliagmeni beach.

For more information on where to buy property in Athens, read our guide on 7 Best Neighborhoods to Live in Athens.

2. Work out Financing

You need to prove that you will be a borrower that will not bail on the loan, so you must have a valid residence permit.

Non-residents are eligible to obtain property loans in Greece. The Greek banking system permits foreigners to apply, as long as they fulfill certain conditions and requirements. Typically, this involves holding a valid residence permit and presenting proof of income or employment.

We strongly recommend visiting IMS (Individual Mortgage Solutions), a website that offers tools like a loan calculator to help you view loan terms, interest rates, and total monthly payments.

3. Property Taxes & Additional Fees

Bear in mind that there are different taxes and buyer's fees involved when you are buying a property in Athens. Here is a list of the different types of income tax

Income Tax on Rental Income (9.00-44.00%)

The income tax on rental income in Greece ranges from 9% to 44% because it is based on a progressive tax system, which means the rate increases as the rental income rises. This progressive system ensures that those who earn more rental income contribute a higher percentage in taxes. The range from 9% to 44% reflects the increasing rates across the different income brackets.‍

• 9% Tax Rate: Applied to rental income up to €12,000 per year.
  • This is the lowest bracket, ensuring that smaller landlords with modest rental earnings pay a lower rate.‍
• 22% Tax Rate: Applied to rental income between €12,001 and €35,000 per year.
  • As the rental income increases, this middle tier applies a higher tax rate.‍
• 44% Tax Rate: Applied to rental income above €35,000 per year.
  • For high-earning landlords, the top bracket of 44% is charged on rental income exceeding €35,000.

Roundtrip Transaction Costs (6.89-10.09%)

Roundtrip transaction costs refer to the total expenses involved in buying and then selling a property. These costs are incurred at both ends of the transaction—when purchasing the property and when selling it later. They include a variety of fees, taxes, and other expenses related to the property transfer process.

Buying Costs: 5.89-8.09%

This refers to the total percentage of the property's purchase price that a buyer typically spends on various transaction-related fees and taxes. Here's a breakdown of the main components that contribute to these costs:

• Property Transfer Tax (3.09%):
  • This is the largest single component of buying costs in Greece. Buyers typically pay a property transfer tax of 3%, and an additional 0.09% surcharge for municipalities, bringing the total to 3.09% of the property's value.
• Notary Fees (0.80% - 1.20%):
  • Greek law requires a notary to oversee the property sale process. The notary fee ranges from 0.80% to 1.20% of the property value. The exact percentage may vary depending on the notary and the complexity of the transaction.
• Registration Fees (0.475% - 0.775%):
  • This is the cost for registering the property in the land registry. Depending on the value of the property and other factors, the fee can range from 0.475% to 0.775% of the property price.
• Legal Fees (0.40% - 1.00%):
  • Legal fees typically range from 0.40% to 1.00% of the property price. It is common for buyers to hire a lawyer to ensure the transaction is legally sound, especially when dealing with foreign buyers or more complex properties.
• Real Estate Agent Fees (2.00% - 2.50%):
  • Although agent fees are often shared between buyer and seller, in some cases, the buyer might pay a portion of the commission. This fee usually ranges from 2% to 2.50% of the property's purchase price.
    

4. Obtain a Greek VAT Number

To purchase a property in Greece, you must obtain a Greek VAT number, called the AFM. This Taxpayer's Identification Number is used to make a basic financial footprint in Greece, allowing you to complete necessary transactions such as opening a bank account, paying property taxes, and fulfilling other financial obligations related to the property purchase process.

The AFM is essential for both residents and non-residents and is required for signing contracts, paying utilities, and managing other legal and tax-related matters in Greece.

To obtain an AFM, please see more information on our blog article, How do I get a TIN (AFM) in Greece?

Frequently Asked Questions

Do I need a valid residency permit to buy property in Athens?

Foreigners, including non-EU citizens, are generally allowed to purchase real estate without residency requirements. You do not need a valid residence permit to buy property in Athens.

Need help? If you currently require assistance with obtaining an AFM or with purchasing property, feel free to book a 15-minute discovery call.