Investing in real estate in Greece: a guide to regions and prices for investors

Greece is a modern country with a developed infrastructure and excellent prospects for investors.

Buying real estate will be a reliable pass for obtaining European citizenship. A well-purchased real estate in a tourist area will be the key to a stable profit for the investor.

• Sea and beaches: 115 Blue Flag beaches
• Transport accessibility: there are 18 airports in Greece
• Climate: The sunniest weather in Europe with 320 sunny days a year
• Rental income: high demand for rental property among Europeans (tourism market is growing at 10-15% per year)
• Banking system: Greece has an efficient and loyal banking system in the EU

• The possibility of obtaining a residence permit for the whole family: the status of a residence permit opens up unlimited opportunities for the investor to freely move around both Greece and the territory of the Schengen member states. After five years of permanent residence in Greece, an investor can obtain permanent residence, and after another two years, apply for citizenship.

The Greek real estate market is mainly dependent on the influx of foreign investment, tourism and domestic demand. They determine the rise in prices and the availability of housing for purchase and rent.

Favorable conditions for investment. Property prices in Greece remain 20-25% lower than before the 2008 economic crisis. In 2021, the international consulting agency Ernst & Young included Greece in the top ten most attractive European investment destinations.

One of the reasons why foreigners choose to invest in real estate in Greece is the opportunity to obtain a residence permit under the Golden Visa program.

The minimum investment in real estate to obtain a residence permit is 250,000 euros (important: from January 1, 2023, the price for obtaining a residence permit when investing in real estate will double - from 250 thousand euros to 500 thousand euros.

Athens is the capital and business center of Greece, where one third of the country's population lives. The city is surrounded by mountains and descends to the Mediterranean Sea. In Athens, there are no buildings higher than seven floors, so as not to block the view of the Acropolis.

The Athenian Riviera includes the coastal areas south of the city, from Paleo Faliro to Vouliagmeni. Residents of the capital and tourists come here for a beach holiday. The trip from the center of Athens to the Riviera area takes about 15 minutes by car. The peculiarity of the Athenian Riviera is that far from everywhere buildings start from the first coastline. The demand for investment in residential real estate along the Athenian Riviera is steadily growing. The pandemic has further increased the demand for this region, with people moving to the suburbs for more pleasant and comfortable living conditions.

Santorini is famous for its whitewashed buildings sloping down to the shores of the blue Mediterranean Sea. The beaches of the island are marked with a "blue flag" and surprise with a variety of colors: white, red and black sand can be found on the coast. In 2021, Travel + Leisure named Santorini one of the top 25 islands in the world. Renting tourist accommodation on the island costs from 40 to 4,000 euros per day.

Crete is one of the most famous Greek resorts. The island has a hot climate: the sun shines 320 days a year. You can come to rest on the island at any time. The swimming season lasts from April to October. The cost of rent in Crete is comparable to Athens, and sometimes exceeds the capital.

The purchase price depends on the type of property and location. Housing in new buildings is more expensive than secondary real estate. For example, the price per square meter of an apartment in a new project from a reliable developer in Athens is from 3,000 euros. In the capital's secondary housing market, you can find very cheap real estate, but it will be in poor condition or in a dysfunctional area.

The average cost of a square meter of housing for noteworthy proposals is about 1,900 euros. In Athens, prices vary depending on the area, and the further south the property is from the center, the more expensive it is.

The buyer of real estate pays a tax on the transfer of ownership in the amount of 3%. VAT on real estate transactions has been canceled until December 31, 2022.

Registration in the Land Register and services of a notary and a lawyer accompanying the transaction are paid separately.

In total, the investor's expenses are as follows:

• Property transfer tax 3%
• Legal support of the transaction 1.5% (+VAT 24%)
• Notary 1.5% (+ VAT 24%)
• Real estate services 2% (+VAT 24%)
• Registration of the contract in the real estate register 0.6%
• Total - 9.5% all expenses

The guaranteed yield from renting out real estate in Greece ranges from 4 to 10%. The highest yield of real estate in Athens. The average cost of renting apartments in the metropolitan area is:

• from 400 to 600 euros per month for renting a one-room apartment;

• from 800 to 1000 euros per month for renting a two-room apartment;
• from 1,200 to 1,300 euros per month for renting a three-room apartment.

If an investor is buying a property specifically for renting out, we recommend focusing on long-term options in Athens and Crete.

Operating expenses consist of two main items: utility bills and taxes. The cost of utilities in Greece for an apartment of 85 m² is from 100 euros per month. This amount includes the cost of electricity, water, heating and garbage disposal.

Taxes. The annual property tax ranges from 0.001 to 13 euros per square meter. The calculation takes into account the age of the object, its location and the objective cost per square meter in the region. The rate is progressive: from 0.1 to 1.5%. Property valued at €2,000,000 or more is taxed at a rate of 1.5%. Depending on the location of the property, the owner pays an annual municipal property tax ranging from 0.025% to 0.035%.

Rental income is taxed on a progressive scale.

Tax rates on rental income in Greece:

• Up to 12,000 euros - 15%
• From 12,000 to 35,000 euros - 35%
• Over 35,000 euros - 45%