The real estate market in Greece has become a lucrative choice for investors, whether institutional or not, due to the collapse of the prices –more than 45% – as a result of the long lasting economic crisis. Prices have not reached pre-crisis levels, except for areas of high- interest, such as Athens, Santorini and Mykonos.
The revival of the real estate market is vastly dependent on foreign capital flow. Various types of assets are acquired: old urban residencies of significant architectural value, urban residential buildings and tourist buildings. Recently, investment companies show interest in purchasing urban buildings to renovate them in office buildings and in large plots of land to be used as business centers and logistics hubs. The latter trend is closely related to the government’ s commitment, manifested in already adopted legislative initiatives, to facilitate foreign investment that can have a positive impact on national development and is linked with the exploitation of the country’s position as a transit trade hub for the markets of the Balkans and continental Europe.
Rental agreements in general
The most common and immediate way of making use of a property is through rental agreements, either long-term or short term.
Residential rental contracts are freely negotiated between the interested parties but the, otherwise neutral, legal framework, imposes a fixed duration of three years to the landlord in case the agreed contract is for a shorter period. As to the rental price, the law does not provide for specific thresholds, but the contract must include a provision specifying the annual rental increase. At the end of the three year period or at the end of the otherwise agreed longer term, the contract automatically ends – extension is valid only if both parties agree. Right after signing the lease agreement, the landlord must have it registered with the local Tax Authority.
It is important to note that the abovementioned obligation of three years duration applies when the property serves as the main residence of the tenant. Under Greek Civil Law, the landlord has the right to rent his property through holiday leasing agreements, where the compulsory three-year term does not apply, provided that the contract clearly stipulates that the use of the property will be that of a holiday/temporary residence. In this case, the duration of the contract is subject to the mutual agreement of the parties, but landlords should specify the nature of the lease and ask for the advance payment of the rent.
Regarding commercial agreements, the law provides that a minimum duration of three years is compulsory and binding for both parties. In practice, tenants seek to introduce terms that will protect them from contractual requirements of the landlord in the event of adverse business development. Furthermore, due to the fact that the respective commercial use is accompanied by specific legal requirements (urban planning, occupation and safety), as well as the need for an agreement regarding the sharing of renovation costs, especially in commercial rental agreements the signing of a contract adapted to the respective case is preferable to standardized contracts.
In focus: Renting villas
In recent years, owners of luxurious summer homes have taken advantage of the provision of Law 4276/2014 which allows for the rental of properties with specific characteristics as self-serviced tourist accommodation, subject to the issuing of a permit. The provision imposes a mandatory rental period, with a minimum of one week and a maximum of three months annually. For villas to comply with the legal prerequisites and acquire the permit, they need to be detached homes with a surface of at least 80m2 that have private access and are autonomous as buildings.
Furthermore, individual residences or residential compound with a surface of at least 40m2 each, operational autonomy and private external access are considered self-serviced touristic furnished accommodation and are to be granted the relevant permit. In this case, each owner needs to be cautious as to the scope of his obligations towards the tax authorities.
In focus: Airbnb in Greece – Legal framework
The introduction of platforms of sharing economy such as Airbnb, except for the benefits in terms of capital flow, has created a double problem in the property market in Greece: 1) scarcity of residence homes for longer leases due to the lack of regulatory provisions through quantitative limitations as to the number and location of properties allowed for short-term leasing; and 2) limited public revenue through the taxation of the rental income, a phenomenon closely related to the inefficiency of the implementation of the already established regulatory framework for rental income from platforms of the sharing economy.
Under Law 4446/2016, the property manager must register each leased property individually in the “Registry of Short -Term Lease Properties”, kept by the Independent Authority for Public Revenue (AADE). After doing so, the manager receives a Property Registry Number (AMA). For every short-term lease agreement, the manager has an obligation to submit a statement in the online platform including the AADE registry registration number, the agreed upon rent or the total amount based on the cancellation policy, the name of each online platform used, personal details of tenants, start-end date of rental, method of payment by tenant. Failure to do so may result in a fine of €5,000.It is important to note that recent court decisions have used the building regulations as legal basis for restricting the use of residencies as Airbnb accommodation. Building regulations impose specific obligations to owners and allow for specific uses of the properties. By extent, co-owners may prove to have a substantial legal basis to deny another co-owner the use of his property within the scope of platforms of the sharing economy. This needs to be considered before acquiring property in Greece, e.g. an apartment in a residential building.
Taxation
Under Greek Revenue Tax Code, rental income received in Greece is independently taxed, therefore, there will be an obligation to file appropriate tax returns to the competent authority. Property income is taxable at 15% for revenue up to €12,000, 35% between €12,000 and €35,000 and 45% for annual rental income above €35,000.
The same provision applies for income gained through the use of digital platforms of sharing economy (Airbnb, Booking, Homeaway etc.). As to the latter, it is important to note that for those offering additional services on the side (similar to those provided by hotels), the earnings are assessed as income from business activity and taxed at 22% for earnings up to €20,000, 28% for earnings between €20,001 and €30,000, 36% for earnings between €30,001 and €40,000, and 44% for profits exceeding €40,000.
Finally, it is important to note that rental income earned by companies is subject to corporate income tax as business income (currently the corporate tax is 24%). From 2021 and onwards, the corporate tax will be at 22%.
Purchasing and operating hotel units
Αn alternative but preferential option for the development of real estate in Greece is the acquisition and operation, either by the owner himself or by management companies, of hotel units. The tourism industry in Greece constitutes approximately ¼ of the GDP and investing in various forms of tourism (“silver tourism”, “eco-tourism”, “wine-tourism”, and “agro-tourism”) presents a prospective entrepreneur with an opportunity to introduce to the market diversified touristic services.
Law 4276/2014 provides an adequate regulatory framework of the requirements for the establishment and operation of hotels. It is important that the operation of hostels in buildings specially re-designed for this purpose as well as that it allows the use of buildings of special architectural value (listed buildings, according to the Ministry of Culture) as hotels is encouraged.
The successful implementation of the provisions combined with an expressed policy to upgrade the touristic product and expand the tourism season is particularly evident in the investment activity in the center of the city of Athens. In the last 5 years, various projects were undertaken that have changed the physiognomy of the city as a tourist destination. For instance, listed buildings have been renovated and now operate as boutique hotels; urban residential buildings are now reborn and operate as hostels, attracting young tourists.
An investment in the hospitality industry takes the form of either the purchase of an existing and operating unit or the purchase of land and the then construction of a new unit. In both cases, a legal due diligence is imperative so as to ensure that the targeted property complies with technical (building, safety regulations, potential breach of building laws and legalizations, earthquake stability, renovation costs) and legal (property, licenses, agreements, employee issues, litigation) requirements. A point meriting attention is the licensing procedure which is linked with the classification of the hotel according to a five star ranking system, applies to every hotel and is based on its technical and operational characteristics.
In focus: Boutique hotels
The Boutique hotel certification is an initiative launched by the Hellenic Chamber of Hotels aiming to strengthen small and medium entrepreneurship that chooses to invest in a high quality tourist product. The voluntary label is acquired through an online platform run by the Chamber to which the interested party submits a documented application and the evaluation is carried in four separated stages.
To acquire the seal, the hotel must meet certain requirements. First of all, it needs to have a capacity of up to 60 rooms and a 3-star plus Rating Certificate. Then, it needs to be small in size in order for guests to familiarize with the premises and enjoy a unique hospitality experience; it needs to have a distinctive style, evident by a unique design concept that transcends all its functions, by a special architectural design and decoration; and finally, it needs to offer high-level services to its guests.The accreditation is granted for a period of five years. After its expiration, it is renewed at the request of the accommodation for five years each time.
It is important to note that the acquisition of the certification provides additional benefits through an increasingly expanding network of associates, as well as special benefits through an integrated reciprocal program by the Hellenic Chamber of Hotels (forum, TV promotion, online promotion through special portal, online reporting tools, dedicated events, participation in expos, focused actions).
Point of attention: change of use in a building
Urban planning legislation provides for specific uses for each property, which can be modified, following certain procedures. A first point of attention is when looking to modify a commercial property for residential use: the “small-scale” permit can be acquired for changes inside the property, avoiding the costly and time-consuming issuing of a full building permit.
Another issue is the change of use for buildings that were constructed in order to serve specific objectives for spatial development and were related to the economic activity of each region/location. These buildings were abandoned and the regulatory framework did not allow for their repurposing. The issue has been resolved through recent legislation which allows for modifications to be carried out in order for older buildings to meet modern requirements and prevent the accumulation of abandoned buildings unsuitable for use.
FAQs
Undoubtedly, investing in a property in Greece is going to be the best decision you will make so far. However, there are some risks with the procedures and legal system during the whole process of selecting and buying it. So, the most crucial thing to do before starting off is to research! In-depth research!
Why Greece is good for investment? ›
As a member of the EU and the Eurozone, Greece offers access to high-growth and emerging regional markets, being an excellent gateway -without any trade barriers- to more than 140 million consumers in Southeast Europe and the Eastern Mediterranean.
What is the best investment in Greece? ›
Buying real estate in Greece is considered one of the most popular investments for many investors since it can yield excellent returns, offer passive income and tax advantages, at a low risk.
What is the trend in real estate in Greece? ›
Property prices trend in Greece
Over the past 2 years, the average price in Greece has reached its peak in May 2023, with a value of € 2,352 per square meter. The month with the lowest asking price was November 2021: for a property for sale were asked an average of € 2,003 per square meter.
Is it safe to buy a house in Greece? ›
- Greece is known as a very safe and friendly country which welcomes property buyers from all countries. What are the main attractions of property in Greece? - Greece as a country is very friendly, has a low crime rate and is a very inexpensive place to live.
Is Greece an investment grade? ›
Greece is on the cusp of regaining investment grade status more than 12 years after losing that important credit rating, marking a sharp reversal for an economy that was roiled during the euro area's sovereign debt crisis.
Is Greece a high income economy? ›
As of 2021, Greece is the sixteenth-largest economy in the European Union. According to the International Monetary Fund's figures for 2023, Greece's GDP per capita is $22,595 at nominal value and $39,478 at purchasing power parity. 2.1% (Q1 2023 est.)
What is the financial risk in Greece? ›
Greece's sovereign risk rating remains at BB in EIU's July 2022 assessment. The rating is supported by positive growth and reform momentum in Greece. The country's large stock of sovereign debt, estimated at 189.4% of GDP, and its recent default history weigh on the rating.
What are the advantages and disadvantages of Greece? ›
Pros And Cons Of Living In Greece – Summary Table
| Pros of Living in Greece | Cons of Living in Greece |
|---|
| 1. Cost Of Living Is Low | 1. Healthcare Can Vary In Quality |
| 2. The Weather Is Stunning | 2. You Will Need Sponsorship To Work |
| 3. Greek Culture Is Welcoming | 3. Greek Is Difficult To Learn |
5 more rowsThe land of stunning islands, pristine beaches with clear blue waters, green valleys, and breathtaking landscapes offers everything you could want for retirement. Great food, history, sunny weather, safety, and low living costs make Greece a great place to retire on an affordable monthly budget.
The gross salary range for people working in Greece is typically from 981 EUR (minimum salary) to 3,343 EUR (highest average, actual maximum salary is higher). This is the total monthly salary including bonuses. Salaries can vary drastically among different job categories.
Where is the best place to buy a house in Greece? ›
Popular locations for purchasing property in Greece include the Cyclades islands (Mykonos, Santorini), the Ionian islands (Corfu, Ithaca), the Aegean islands (Skiathos, Samothraki), Halkidiki, Athens, Thessaloniki, and the Dodecanese islands (Kos, Rhodes).
What is the average price of a house in Greece? ›
The median sale price of a home in Greece was $248K last. The median sale price per square foot in Greece is $143, up 0.7% since last year.…
Are property prices falling in Greece? ›
Financial and real estate investors started to invest in Greece with immediate positive impacts on the economy. Since then property prices show an upward trend, but the 2020 values are still 35% lower than the historical high and 14% lower than the index average (at 77,59) between 2006-2020.
Is it easy to sell property in Greece? ›
The process for selling Property in Greece is exactly the same for all property sellers, Greeks and foreigners. This process can be stressful as - unlike the buyer- the seller is burdened with collecting the majority of the documents and certificates required for the transfer.
Do you pay tax on property in Greece? ›
In the case of buying a property in Greece, a person pays tax at 3.09% of the property value. In case of a capital increase after selling the property, a capital gain is taxed at 15%. And when renting properties out, landlords pay 15—45% tax on rental income.
How long can you stay in Greece if you own a property? ›
How long can you stay in Greece if you own property? You can get a residence permit if you own a property in Greece. With this document, you are allowed to stay in Greece for as long as you want. However, you need to renew your residence permit every five years.
Are property taxes high in Greece? ›
When purchasing a home in Greece, the buyer must pay a property tax at the rate of 3.09 percent of the home's value. A capital gain is taxed at 15 percent if there is an increase in capital after selling property in Greece. Also, landlords are subject to a 15 – 45 percent tax on their rental income.
What is considered upper class in Greece? ›
Athenian society was ultimately divided into four main social classes: the upper class; the metics, or middle class; the lower class, or freedmen; and the slave class. The upper class consisted of those born to Athenian parents. They were considered the citizens of Athens.
What is the investment rate in Greece? ›
Key information about Greece Investment: % of GDP
Greece investment share of Nominal GDP data is updated quarterly, available from Mar 1995 to Dec 2022, with an average ratio of 19.5 %.
Greece - Income distribution was 5.25 in December of 2022, according to the EUROSTAT. The income distribution ratio considers the total income received by the 20 % of the population with the highest income to that received by the 20 % of the population with the lowest income.
What is the quality of life in Greece? ›
Greece is an incredibly beautiful place to live, with plenty to explore and enjoy, from ancient historical sites to black sand beaches. The quality of life is high, and expats earning anything above the average salary will be able to live a relatively lavish life in this Mediterranean country.
What is the economic outlook for Greece in 2023? ›
Greek economic growth will remain robust with real GDP growth projected at 2.2% in 2023 and 1.9% in 2024, the Paris-based Organisation for Economic Cooperation and Development (OECD) said in its economic outlook survey released on Wednesday.
What is the economy forecast for Greece in 2023? ›
The ratio is expected to decline further to 160.2% of GDP in 2023 and 154.4% in 2024, helped by primary surpluses and economic growth.
Is Greece in a lot of debt? ›
In 2021, the national debt in Greece was around 401.71 billion U.S. dollars.
Is Greece a high risk country for money laundering? ›
The lucrative drug trade in Greece is one of the most important money laundering risks the country faces. Other risks include corruption and smuggling of migrants. The country's terrorist financing risks come primarily from domestic terrorist groups.
What is the risk of poverty in Greece? ›
Based on the data of the 2022 Household Income and Living Conditions Survey, the population at risk of poverty or social exclusion, according to the revised definition1, amounts to 26.3% of the country's population (2,722,000 people), showing a decrease by 2.0 percentage points compared to 2021 (Graph 1).
Can an American move to Greece? ›
As a non-EU citizen moving to Greece, you will need to get a D visa, also known as a National Visa (long-stay). This type of visa is required for all non-EU citizens that want to reside in Greece for the long term.
Does Greece have free healthcare? ›
Public Healthcare in Greece. The Greek Healthcare System is called ESY, and it provides free healthcare to all the citizens and residents of Greece. Additionally, you are eligible for this healthcare system even if you are an expat, EU citizen, or unemployed.
Does Greece tax US Social Security? ›
Yes, the United States and Greece have a totalization agreement to help prevent double taxation of Social Security benefits for individuals who have worked in both countries. The agreement ensures that workers are not required to pay Social Security taxes to both countries for the same work.
Cost of Living
Greece is super-affordable, especially when compared to North America and much of the rest of Europe. Prices for daily essentials (food, transport, etc.) are at least 20% cheaper than in the U.S., and costs to rent an apartment can be as much as 70% less.
How do Americans retire in Greece? ›
If you just want to retire in Greece, work be gone, then you should apply for a residence permit. The plus side of being a US citizen is that you can visit Greece for up to 90 days without a permit or visa. This is a type of entry visa. It can give you more than enough time to see if Greece is indeed the place for you.
How much money a month do you need to live in Greece? ›
Yes, the average monthly living expenses for a single person in Greece are €730 without costs on rent, and the monthly cost for a family of four is €2,470. The average monthly living expenses for a single person in the USA are $3,189, and the average cost for a family of four is $7,095.
What is the average monthly income in Greece? ›
European and transcontinental countries by monthly average wage
| State | Net in local currency | Net PPP in Int$ |
|---|
| Greece | €1,092 | 2,068 |
| Hungary | HUF 398,800 | 2,505 |
| Iceland | ISK 490,000 | 3,296 |
| Ireland | €3,086 | 4,029 |
21 more rowsThe tax wedge for the average single worker in Greece remained unchanged at 37.1% in 2021 and 2022. The OECD average tax wedge in 2022 was 34.6% (2021, 34.6%). In 2022, Greece had the 19th highest tax wedge among the 38 OECD member countries, occupying the same position in 2021.
Which Greek island is the best to buy property? ›
Best places to buy property in Greece
- Corfu. A mega popular destination for UK expats, the island of Corfu has a UNESCO heritage old town, beautiful sandy bays and lively tourist areas.
- Kefalonia. ...
- Zakynthos/Zante. ...
- Crete. ...
- Rhodes. ...
- Peloponnese. ...
- Athens.
spitogatos.gr ranked number 1 and is the most visited Real Estate website in Greece in May 2023, followed by tospitimou.gr as the runner up, and plot.gr ranking at 3rd place as the leaders of the Real Estate websites in Greece.
Do I need a Greek bank account to buy a house in Greece? ›
Foreigners who wish to buy real estate property in Greece are not expressly required by the law to open a bank account with a bank in Greece; in practice, however, they need to open an account in order to be able to pay the real estate transfer tax (which is payable to the Tax Office at the property's location or to ...
How much is property tax in Greece? ›
When you purchase a property in Greece, you pay a transfer tax, which is FMA. The tax rate is 3.09% of the taxable property value. There's a system of “Objective Value”. It calculates how much a property should be worth depending on its size, location, and technical specification.
Is it a good time to buy real estate in Greece? ›
Real Estate Prices in Greece. If you dream of buying an apartment or house in Greece, now seems to be the optimal time to do so. Property prices in this country remain affordable but are increasing every year: value of the Greek realty is not falling anytime soon.
Although the Greek law does not impose buyers or sellers to be represented by lawyers, this is almost always the case, as the services of property lawyers are rather necessary throughout this procedure, in order to avoid any types of legal issues.
Why are so many houses in Greece not finished? ›
Unfinished buildings is a common sight in Greece. The reason is that greek people build what they need today and leave the rest of the building unfinished for the future. It may seem that the Greeks are constantly building houses - and they are.
Who inherits property in Greece? ›
Under the Greek law of succession, the estate is acquired by the heir directly upon the death of the deceased, without intervention by a representative or administrator (Articles 983 and 1846 of the Civil Code).
Can you negotiate real estate prices in Greece? ›
The buyer has an opportunity to bargain with the property owner (in Greece, bargaining is acceptable always and everywhere) which confirms our honesty and trustworthiness. Besides, the buyer always has an opportunity to compare our prices with the prices offered by other companies working in the same market.
Can an American move to Greece permanently? ›
As a non-EU citizen moving to Greece, you will need to get a D visa, also known as a National Visa (long-stay). This type of visa is required for all non-EU citizens that want to reside in Greece for the long term.
How long can a US resident stay in Greece? ›
Citizens. If you wish to stay in Greece for longer than 90 days within a 180-day period, you should apply for a visa at Greek Embassy or Greek Consulate prior to your arrival in Greece. Visas may be issued for property owners, students, employment, athletes, coaches, etc.
Can a US citizen retire in Greece? ›
Can US Citizens Retire In Greece? Yes, US citizens can easily retire in Greece. As an American citizen, you can enter Greece without a visa for 90 days and apply for a residence permit during this time while in the country. However, if you plan on staying longer than 90 days, you need a Greece Visa.
Which is the best Greek island to buy property? ›
Best places to buy property in Greece
- Corfu. A mega popular destination for UK expats, the island of Corfu has a UNESCO heritage old town, beautiful sandy bays and lively tourist areas.
- Kefalonia. ...
- Zakynthos/Zante. ...
- Crete. ...
- Rhodes. ...
- Peloponnese. ...
- Athens.
Cost of Living
Prices for daily essentials (food, transport, etc.) are at least 20% cheaper than in the U.S., and costs to rent an apartment can be as much as 70% less. Throughout Greece, you'll save money by using public transport, avoiding touristy areas, shopping at local markets, and eating out where the Greeks do.
Does Greece tax foreign income? ›
In principle, subject to relevant tax treaty provisions, income tax is payable by all individuals earning income in Greece, regardless of citizenship or place of permanent residence. Permanent residents are taxed on their worldwide income in Greece.
Foreign income, such as dividends, interest, and capital gains, are also taxed at 7%. Tax credits and deductions for international double taxation may be applied against the 7% tax if it has already been paid at source. The special regime is valid for up to 15 consecutive years.
What is the capital gains rate in Greece? ›
Capital gains realised by individuals are calculated as the difference between sales and purchase price and are subject to income tax at a rate of 15%. Capital gains are generally taxable at a rate of 15%. The taxation of capital gains realised on the disposal of real estate is deferred until 31 December 2022.
How much is property tax in Greece per year? ›
When you purchase a property in Greece, you pay a transfer tax, which is FMA. The tax rate is 3.09% of the taxable property value. There's a system of “Objective Value”. It calculates how much a property should be worth depending on its size, location, and technical specification.
Is capital gains tax suspended in Greece? ›
According to the Greek Income Tax Code (L. 4172/13), as a general rule, individuals are subject to a 15% tax on capital gains. Notwithstanding this, however, an exception has been put in place for individuals who sell real estate assets, as these gains are currently exempt from taxation until 31 December 2024.
