Real Estate Investment in Greece: Key Strategies

Greece has long been a top destination for property investment, offering a range of opportunities for both local and foreign investors. The country’s real estate market is thriving, with its attractive climate, beautiful landscapes, and favorable legal and tax structures for property owners. This comprehensive guide will help you understand why investing in real estate in Greece is one of the most profitable decisions you can make, and provide all the key information you need to make an informed investment.

Why Invest in Real Estate in Greece?

Greece offers an open real estate market, with no restrictions for foreign buyers, allowing them to freely purchase, lease, and sell residential and commercial properties. Over the past decade, the market has experienced significant growth, with property values consistently increasing. Investors who enter the market today are likely to see strong returns, as real estate prices continue to rise in key areas, especially in the residential sector.

Growing Property Prices

Residential real estate prices in Greece have been growing steadily, with prices increasing by an average of 1.2% every quarter. Just seven years ago, an apartment of 100 m² cost around €150,000, while today, similar apartments are selling for €250,000. This consistent price increase demonstrates the liquidity of investments in the country, making it an attractive proposition for both short-term and long-term investors.

Average price per square meter: €2,600
Minimum real estate investment for residency: €250,000+
Associated costs of property value: 5–11%

Key Areas to Invest in Greece

Investing in Greece offers multiple options, depending on the investor’s budget, objectives, and the region they are interested in. Popular areas like Athens, Thessaloniki, Mykonos, Santorini, and Crete offer a variety of high-demand properties that attract both tourists and permanent residents. Below is a breakdown of costs for typical property types:

€2 million: Luxury apartment in prestigious areas of Athens or its suburbs
€500,000: Apartment with a sea view, 2 km from the beach
€300,000: Modern apartment on Crete with a sea view

Greece’s Golden Visa Program: Residency and Citizenship Through Real Estate Investment

One of the most attractive aspects of investing in Greek real estate is the ability to obtain a Golden Visa, which grants residency in Greece. To qualify for the Golden Visa, investors must purchase a property worth at least €250,000, depending on the region and type of property. This residency permit is valid for five years, with the option to renew it, and does not require the investor to live in Greece full-time.

After seven years of permanent residence in Greece, investors may also be eligible to apply for Greek citizenship. However, the application for citizenship requires meeting certain conditions, including:

Spending at least 183 days per year in Greece for seven consecutive years
Proving integration into Greek society
No criminal records or deportations
Passing language, history, and culture exams

Minimum Investment Requirements for Real Estate in Greece

The minimum investment threshold for acquiring property in Greece varies depending on the type of property and location. The basic requirements are as follows:
€250,000+ for properties under renovation or conversion into residential properties
€800,000+ for new properties in key tourist destinations, such as Attica, Thessaloniki, Mykonos, Santorini, and islands with more than 3,100 inhabitants
€400,000+ for new properties in other regions of Greece

For new properties, the minimum area must be at least 120 m². Additionally, investors can also register properties under an EU-based company, provided they own 100% of the shares. It is important to note that properties purchased under the Golden Visa program can only be leased for long-term rental purposes. Any violation of this restriction may result in the cancellation of the residence permit, accompanied by a fine of €50,000.

Associated Costs When Purchasing Real Estate in Greece

When buying property in Greece, there are various costs to consider beyond the purchase price. The main expenses include taxes, notary fees, registration fees, and agency commissions. Here’s a breakdown of the costs you can expect:

Property transfer tax: 3.09% of the transaction amount for new buildings (until the end of 2024, this replaces the 24% VAT).
Resale housing tax: 3.09% of the cadastral value or the transaction amount, whichever is higher.
Notary fees: 1.5–2% of the transaction amount.
Registration fee: 0.5% of the transaction amount.
Agency fees: Typically included in the property price and range from 2.5–5% of the transaction amount, including VAT.
Legal support: Optional but can cost 1.24–2.5% of the transaction amount, including VAT.

For example, if you buy a property worth €250,000, the total cost with additional fees will be approximately €277,500.

Property Ownership Taxes and Fees in Greece

Once you own property in Greece, there are certain annual taxes and maintenance costs to consider. Property owners must pay an ENFIA (Unified Property Tax), which includes a base tax calculated at €0.01–13 per m². An additional municipal tax is applied at a rate of 0.025–0.035% of the property’s value.

Property rentals are subject to income tax on a progressive scale of 15–45%, depending on the rental income.

Monthly maintenance costs for utilities, such as electricity, water, gas, and garbage collection, range from €95 to €280, depending on usage. Additionally, building maintenance fees for elevators, cleaning, repairs, and security vary between €10 and €300 per month.

Selling Property in Greece: Capital Gains Tax and Associated Fees

When selling property in Greece, sellers must pay a capital gains tax of 15% on the difference between the purchase and sale prices. However, income from the sale of real estate is not taxed. If you sell the property through an agency, the commission is usually included in the property price and paid by the buyer.

Capital gains tax: 15% on the difference between the purchase and sale prices.
Agency fees: Typically 2.5–5% of the transaction amount, including VAT.

Future Investment Opportunities in Greece (2025 and Beyond)

Looking ahead to 2025, Greece remains an attractive market for property investment. The country offers diverse investment options, including real estate in tourism-heavy areas, hotel businesses, and commercial properties. Notably, Kaloudis Real Estate

provides tailored investment projects that offer guaranteed profitability, with opportunities ranging from residential properties to ready businesses in prime locations. The company’s extensive experience ensures a seamless investment process for clients looking to secure long-term returns.

In summary, investing in real estate in Greece not only offers financial benefits but also grants the opportunity for residency and potential citizenship. With a stable market, growing demand, and lucrative returns, now is the perfect time to explore property investments in one of Europe’s most beautiful and vibrant countries.

Conclusion

In conclusion, Greece remains one of the most attractive destinations for real estate investment in Europe, offering competitive prices, steady market growth, and significant potential for high returns. Whether you’re looking to invest in residential properties, vacation homes, or commercial real estate, Greece presents a variety of options for both seasoned investors and those new to the market. With its appealing lifestyle, favorable tax policies, and opportunities for residency, Greece continues to be a prime location for real estate investment in 2025 and beyond.

FAQS

Can foreigners buy property in Greece?
Absolutely! Greece offers a welcoming and open property market for foreign buyers. There are no restrictions on foreign ownership, which means that both individuals and companies from non-EU countries can freely purchase, lease, or sell residential and commercial properties. This flexibility and ease of access make Greece one of the most attractive European countries for real estate investment.

Is it worth investing in property in Greece?
Investing in real estate in Greece is undeniably a smart move. Over the past decade, the market has seen impressive growth, with property values increasing consistently. Greece offers a combination of affordable prices, high rental yields, and strong capital appreciation, particularly in tourist-heavy areas. Whether you’re looking for a vacation home, a long-term rental property, or a commercial real estate opportunity, the Greek property market provides excellent returns on investment, making it a top choice for savvy investors.

Is real estate cheap in Greece?
While property prices in Greece are rising steadily, the country still offers competitive pricing compared to many other European nations. The relatively low cost of real estate, particularly in less tourist-centric areas, provides an excellent opportunity for both first-time buyers and seasoned investors. For those seeking to invest in picturesque coastal towns or up-and-coming urban areas, Greece offers remarkable value for money, especially when considering the future appreciation potential.

Which is the cheapest Greek island to buy property?
Several Greek islands offer affordable real estate opportunities, particularly those that are less frequented by tourists. Islands like Crete, Corfu, and certain lesser-known islands in the Cyclades offer attractive properties at more competitive prices compared to hotspots like Mykonos or Santorini. For investors seeking a more budget-friendly investment, these islands provide the perfect blend of natural beauty, growth potential, and affordable property prices.

Where do most expats live in Greece?
Greece has become a popular destination for expats from all over the world, thanks to its rich history, pleasant climate, and relaxed lifestyle. Most expats are drawn to vibrant cities like Athens and Thessaloniki, where they can enjoy urban living with easy access to cultural and business opportunities. Popular islands such as Mykonos, Santorini, and Crete also attract a large expat population, offering a perfect balance of leisure and work life, along with stunning landscapes and a welcoming local culture.

What is the average house price in Greece?
The average price of real estate in Greece is around €250,000, although this can vary significantly depending on location, property type, and size. In major cities such as Athens and Thessaloniki, the prices can be higher, especially for properties in prime areas or those near the coast. However, the price per square meter tends to be more affordable in smaller towns and rural areas, offering excellent value for money for those willing to explore beyond the popular tourist regions.

Can I live in Greece if I buy property?
Yes, purchasing property in Greece can provide you with the opportunity to obtain a residence permit under the Greece Golden Visa program. With a minimum investment of €250,000 in real estate, non-EU nationals can enjoy long-term residency, which grants them the right to live and work in Greece. Furthermore, this residency allows free travel within the Schengen Zone. After seven years of continuous residency, property owners may also become eligible for Greek citizenship, making it an attractive option for those looking to establish a long-term European base.

Is it easy to buy property in Greece?
Buying property in Greece is generally a straightforward process, though it is essential to follow legal procedures and account for taxes, fees, and regulatory requirements. Foreign buyers will need to obtain a Greek tax number (AFM), open a local bank account, and ensure that all necessary documentation is in order. While the process is relatively simple, it is highly recommended to work with a legal advisor and a real estate agent who can guide you through the transaction, ensuring a smooth and efficient experience. With the right support, purchasing property in Greece can be a seamless and rewarding experience.

What are the financing options for purchasing property in Greece?
While most property transactions in Greece are cash-based, there are financing options available for non-residents through Greek banks. Foreign buyers can apply for a mortgage, although the terms and conditions will vary depending on the bank and the applicant’s financial profile. Typically, Greek banks may offer loans up to 60-70% of the property’s value for foreign buyers, with competitive interest rates and manageable repayment schedules. It’s essential to have a clear understanding of your financial situation and speak to a mortgage advisor before committing to any financing.

How can I maximize returns on my real estate investment in Greece?
To maximize returns on your property investment in Greece, consider purchasing in high-demand areas such as Athens, Thessaloniki, and popular islands like Mykonos or Santorini. Long-term rental properties in these locations offer steady rental income, especially with the influx of tourists year-round. Alternatively, focusing on properties in emerging areas that are undergoing redevelopment can provide substantial capital appreciation. Moreover, participating in Greece’s Golden Visa program adds another level of value by securing residency while your property appreciates. Working with experienced local real estate agents and property management companies will also help you manage and grow your investment efficiently.