Today, Greece is one of the most popular European destinations for property purchases. The mild climate, favourable geographical location and relatively low prices attract investors. Naturally, interest is also linked to the upcoming changes in the “golden visa” programme: from 1 September, the minimum investment threshold will increase from €250,000 to €800,000.
In this article, we discuss the costs of purchasing and maintaining property in Greece, as well as how to obtain a residence permit through property acquisition. Learn all about property in Greece in the Astons Greece blog.
How Much Does Property Cost in Greece?
Property prices in Greece have been rising in recent years: the Bank of Greece reported an increase of 11.8% in 2022 and 14.5% in 2023. According to The Economist magazine, Greece’s economy has topped the list of the world’s fastest-growing economies for the second consecutive year, and experts predict it will maintain its leadership. This, coupled with growing demand and a shortage of supply in the market, will lead to further price increases.
Here are the average prices per square metre of residential property in different regions of Greece.
| Region | Price per m², € |
| southern and northern regions of Attica | 2,900 – 3,700 |
| Western and Eastern Athens, rest of Attica | 2,000 – 2,300 |
| Thessaloniki | 1,500 – 4,000 |
| Crete | 2,400 – 4,000 |
| Santorini | 3,000 – 4,500 |
Where is the Best Place to Buy Property in Greece?
Foreigners most often choose property in Athens and major suburbs – Piraeus and Glyfada, in Thessaloniki and Halkidiki, on Mykonos, Crete, Santorini and Corfu: here you can not only make a reliable investment but also acquire an income-generating asset. Most investors seek to purchase villas and townhouses on the coast – prices there are almost never low, but the properties typically meet the conditions of the “golden visa” programme. Relatively inexpensive property is located in smaller cities: Loutraki, Corinth, Larissa, Patras.
How to Buy Property in Greece? Step-by-step Guide
You can buy property in Greece remotely: if you cannot come in person, it is sufficient to grant power of attorney to a representative. The trusted person can be a lawyer who will conduct the transaction. Documents can be processed by a notary in your country of residence or in Greece and certified with an apostille.
Step 1. Obtain a Tax Identification Number. This can be done independently or with the help of a lawyer at the local tax office.
Step 2. Choose, reserve and verify the property. The right choice of property determines not only its price but also how comfortable it will be to live in and how profitable it will be to rent out. Consider the area, infrastructure and transport accessibility, number of bedrooms and bathrooms, presence of a veranda, etc.
Then the property needs to be reserved. The deposit amount depends on the property value: typically, it’s 1% to 10%. The sum can be transferred to the seller’s account or paid in cash against a receipt. By law, this transaction must be accompanied by a notary; otherwise, it will be invalid. A lawyer’s participation is not mandatory and entirely depends on the buyer’s decision, but it’s better to use the services of a specialist: this will save time and protect you from errors in the buying and selling process.
After paying the deposit, the selected property must be verified – it’s best if this is done by your lawyer experienced in property matters. At this stage, documents on ownership rights, encumbrances, debts, court bans on sale and arrests are checked. Typically, verification in the property register takes about a week.
Step 3. Pay the property transfer tax, fees and notary services. The tax amount is 3.09% of the market value of the property.
The Greek government has abolished the standard 24% VAT on property transactions until 31 December 2024: instead, the buyer pays 3.09% of the market value of the property (or the cadastral value if it exceeds the amount specified in the sale and purchase agreement). If the building permit for the property was issued before 1 January 2006, then a 24% VAT rate applies.
Property tax in Greece for foreigners is the same as for citizens of the country. A cadastral registration fee of 0.45-0.78% of the property value is also paid. Add to this notary services – 1-2% of the property value.
Step 4. Conclude a sale and purchase agreement. At this stage, the notary prepares the sale and purchase agreement. This document is in Greek, but one copy can be translated into the buyer’s native language. The agreement describes the object of the transaction, its cost, conditions for the transfer of ownership rights and payment terms.
Step 5. Pay for the property. After signing the agreement, the buyer pays the full cost of the property and receives the keys from the seller.
Step 6. Register the ownership rights and pay for the lawyer’s services. Next, documents need to be submitted to the local land archive and cadastral register. Usually, this is done by the buyer’s lawyer. After this, you need to receive a certificate of ownership and register with utility services. The lawyer’s work is paid at the very end – 1.5-2% of the property value.
Thus, along with the amount to pay for the chosen property, it’s necessary to consider additional expenses:
- Lawyer services (including document translations) – about 2%;
- Notary services – 1.5%;
- Real estate agent or agency services – about 2%;
- Property transfer tax – 3.09% (for properties after 1 January 2006);
- State fees (cadastral, registration and land) – up to 0.8%.
The sum of additional expenses is about 10% and is calculated based on the market value of the property, or the cadastral value if it exceeds the amount specified in the sale and purchase agreement. VAT of 24% of the service contract amount will be added to the cost of notary, lawyer and real estate agent services.
How Much Will Property Maintenance in Greece Cost?
Property maintenance costs in Greece consist of property tax, municipal fees and utility services.
Property tax in Greece is paid annually by all property owners and consists of two parts. The main part of the tax – from €2 to €13 per m² – depends on the location, area, cadastral value, and date of construction. An additional part of the tax is paid only if the cadastral value of the property is above €300,000 – from 0.5% to 1% depending on the final price.
Municipal tax is paid at a rate of 0.025%-0.035% of the cadastral value of the property and depends on the location.
Utility services depend on the property area and service provider. The largest expense item is electricity: the monthly payment is €60-€70, depending on the season. Water supply costs €30-€40 per month, but on islands, this amount may be higher due to limited resources. There are few regions in Greece with centralised heating, so the cost depends entirely on need and use, but if you use an air conditioner for heating, the electricity payment will approximately double.
The cost of garbage collection and maintenance of adjacent territory depends on the requirements of the residential complex and can range from €20 to €100 per month. Let’s add to the expenses the cost of mobile communication and internet services – about €20-€40 per month. In total, the average amount of utility payments for a 100 m² apartment per month is €100-€200.
Property Rental Tax in Greece
If you rent out property, you must pay income tax. The tax rate is progressive, from 15 to 45%: For income up to €12,000 per year – 15%; For income from €12,001 to €35,000 per year – 35%; For income over €35,000 per year – 45%.
Buying Property in Greece: Pitfalls
Here are the main points to pay attention to when buying property in Greece to avoid unpleasant surprises and additional expenses.
- If you’re purchasing a land plot in forest areas, pay attention to the purpose of the plot: it will be impossible to change land use.
- If you’re choosing property in border territories, you’ll need to obtain special permission from the government.
- If you’re acquiring a plot outside the city, check if there are building restrictions and if land surveying is available. The same applies to plots in archaeological zones: permission from the Ministry of Culture will be required for rebuilding the object, changing its appearance and expanding construction.
- If you’re buying property on the coast, check if it’s possible to rebuild and develop the chosen object: the state often imposes requirements on the appearance of buildings on the coastline.
- If you’re buying property near protected natural areas, make sure that construction is allowed there and there are no restrictions from the Ministry of Environmental Protection.
- Pay attention to the heating system. In old houses, the internal heating system runs on gas or diesel fuel, and the payment is divided equally among the residents of the house. The price for 1 litre of diesel fuel is about €1. Individual heating systems are more common in new buildings: here, billing is done by meter.
- Check if the property price includes a parking space if you need one: in cities with dense development and old houses, you’ll have to buy a parking space separately, and it can cost up to €20,000 or more. Note: in Greece, the property area is calculated by the external perimeter, meaning the thickness of walls and partitions is included. The total area directly affects the cadastral value: with a total area of 100 m², the usable area may be 80-85 m².
- Greece is a seismically active region, so the demolition of load-bearing walls is prohibited here, and redevelopments are strictly controlled. Be sure to obtain permission if the apartment has been redeveloped. Choose properties with spacious terraces and balconies: they are not included in the total area but significantly increase the value of the object.
To avoid mistakes, consult specialists with experience in property and knowledge of the nuances of buying and selling.
How to Obtain a Residence Permit in Greece When Buying Property?
The Greek “golden visa” programme has been operating since 2013: today it’s one of the most accessible and fastest options for obtaining a European residence permit. To participate, you need to purchase property in Greece – one or more objects – for a sum of at least €250,000. In Athens and major cities (36 municipalities in total), the minimum threshold starts from €500,000.
From 1 September 2024, changes to the Greece Golden Visa Programme will come into effect. The minimum entry threshold will be increased throughout Greece: up to €800,000 in major cities and tourist centres and up to €400,000 in other regions. Until 31 August 2024, investors can apply in accordance with the current minimum threshold of €250,000, provided they make a deposit of 10% by 30 August 2024 and complete the investment by 31 December 2024.
A residence permit can be obtained in 5-6 months immediately for 5 years with the possibility of further extension – provided that ownership of the object is maintained. The property can be rented out and generate passive income, or used for personal purposes. In the application, along with the main investor, family members can be indicated – spouse, children up to 21 years old and parents of both spouses. There are no requirements for minimum stay in the country – neither before nor after obtaining the residence permit. There’s no need to pass a Greek language exam, confirm the source of funds or undergo Due Diligence checks.
The EU resident status provides great advantages: The ability to travel to more than 125 countries worldwide without obtaining a visa – including Schengen Agreement countries, the UK and the USA; The ability to use the international banking system; The ability to relocate business and unfreeze assets; Access to European education and quality healthcare; The ability to optimise taxes (under the preferential Non-Domicile regime for non-residents, there’s a fixed tax rate of €100,000 per year; the regime is available when purchasing property worth at least €500,000); The possibility of obtaining Greek citizenship – under certain conditions; Your own residence for summer holidays on the Mediterranean; Life in a safe country with a high standard of living; A reliable backup plan for the whole family in case of unforeseen situations.
To participate in the programme, the main applicant must be of legal age, have no criminal record and provide a medical certificate of health.
Examples of Property Suitable for Greek Residence Permit
Residential Complex in Pangrati, Athens
https://www.astons.com/property/greece/modern-residential-building-in-pagkrati-area-athens/
The complex in one of the central districts of Athens features modern architecture and elegant design. Everything is nearby: schools, medical centres, gyms, shops, parks, attractions. Apartments with 3 bedrooms and an area of 134 m² are perfect for families with children. The cost of apartments starts from €590,000, the object is suitable for participation in the Greek residence permit programme.
Apartments in the Centre of Heraklion, Crete
https://www.astons.com/property/greece/residential-complex-in-heraklion-crete/
This option is suitable for those who want to combine city life with island life in close proximity to the sea. The main advantage is a wide choice of apartments: with 1-3 bedrooms and an area of 63 to 136 m². Each apartment is equipped with a “smart home” system and has its own design. Kitchens and bathrooms are designed and decorated based on buyers’ needs. The cost of apartments starts from €260,000, the object is suitable for obtaining a residence permit.
Luxury Villas in Santorini
https://www.astons.com/property/greece/authentic-villa-in-santorini/
The project includes villas and townhouses with 3 bedrooms, an area of 140 m². Each house has a spacious veranda with a picturesque view of the Santorini volcano and the sea. In addition to a fully equipped kitchen, the owner gets a jacuzzi, pool, private attic, parking and a video surveillance system with an alarm. The villa is perfect for both living and renting out: the main attractions of Santorini, beaches, restaurants and cafes are nearby.
Summary
In practice, it’s impossible to obtain a Greek “golden visa” independently, although there’s no direct prohibition. The best solution is to consult specialists: a licensed lawyer knows all the nuances of immigration legislation, will help select an object that meets your wishes and budget, prepare documents and make requests to the relevant departments, saving your time and nerves.
Astons company has extensive practical experience in obtaining residence permits and citizenship by investment in foreign property. Contact us for a free consultation – our specialists will take full responsibility for the transaction from start to finish.