How to Buy Investment Property in Greece as a Foreigner
Greece has become an attractive destination for real estate investment, drawing interest from Americans, Northern Europeans, and Asian companies and individuals.
The country offers a combination of rich history, stunning coastlines, and a long summer season, making it an appealing choice for both lifestyle buyers and investors.
In recent years, Greece’s real estate market has experienced steady growth. According to the Bank of Greece, property prices in Athens rose by 13.7% year-on-year in 2023, continuing an upward trend seen over the past five years and continuing to 2024 and 2025.
The demand is particularly strong in major cities and popular islands, where short-term NET rental yields can range from 4% to 7% annually.
Despite this growth, property prices in Greece remain more affordable than in many other Mediterranean countries, making it an appealing investment opportunity.
Investing in Greek Real Estate Market
Investing in Greek real estate is influenced by a mix of economic recovery, strategic location, and lifestyle appeal. After a prolonged financial crisis, the Greek real estate market has shown consistent growth, supported by improving economic indicators such as rising GDP and increased tourism, contributing to greater market stability and investor interest.
Greece’s location at the crossroads of Europe, Asia, and Africa adds to its appeal, particularly in cities like Athens and Thessaloniki, as well as popular islands such as Mykonos, Santorini, and Crete. These areas benefit from high tourist demand and higher than average rental yields. Furthermore, Athens offers many direct flights from both Europe and the USA year-round.
Foreign buyers can acquire property either as individuals or through a company. Non-residents have property ownership rights similar to those of Greek citizens, including the ability to buy, sell, and inherit freehold property without significant restrictions.
Key real estate investment destinations in Greece
Athens: The capital city offers opportunities in both residential and commercial real estate, with sought-after areas like Kolonaki, Glyfada, and the historical center known for their accessibility, amenities, and cultural value.
Thessaloniki: Greece’s second-largest city features a growing real estate market, particularly in central areas and Kalamaria, known for their blend of modern infrastructure and cultural heritage.
Crete: This island attracts buyers with its natural landscapes, beaches, and historical sites, with Chania and Heraklion being popular for both holiday homes and permanent residences.
Mykonos and Santorini: These islands are recognized globally for their scenic views and luxury properties, making them prime locations for holiday villas and rental investments.
Chalkidiki: Known for its sandy beaches and clear waters, this region’s peninsulas, such as Kassandra and Sithonia, are popular for vacation homes and resorts.
Corfu: This Ionian island’s lush landscapes and Venetian architecture appeal to buyers seeking summer homes or investment properties.
Rental Yields
Gross rental yields in Greece for long-term tenants hover around 5%. The real NET is likely somewhere around 3.5% - 4.5%. Smaller apartments tend to have higher rental yields than larger ones.
- In Athens, gross rental yields of apartments ranged from 3.73% to 8.25%, with a city average of 4.99% in Q4 2024.
- In Thessaloniki, apartment rental yields ranged from 2.94% to 6.32%, with a city average of 4.32%.
- In Kavala, apartments offer rental returns of between 3.34% and 5.30%, with an average of 4.27%.
- In Patra, rental yields ranged from 4.59% to 5.50% in Q4 2024, with an average of 5.07%.
- In Heraklion, gross rental yields ranged from 4.44% to 5.81%, with an average of 5.02%.
- In Volos, apartments offer yields from 3.79% to 5.40%, with a city average of 4.73%.
Rents have been generally falling in the past decade. From 2010 to 2023, rents in Greece plunged by about 19%, the worst performance in the European Union, according to the Eurostat. Among the 27 EU member states, only Greece recorded rent declines over the period. However, rents have been now one the rise since 2021.
Short-term rental yields are higher, especially in tourist hotspots like Athens. Successful short-term rentals can earn up to 14% gross yields, resulting in 7%–8% net yields (pre-tax). However, it is important to note that a license is required to operate a short-term rental business. Only consider properties where you are confident you can obtain the necessary license.
Finding Properties for Sale
If you’re serious about buying or investing in Greece, it’s important to connect with local real estate agents and visit properties in person.
This will provide a clearer understanding of the market and help you decide whether to proceed with a purchase or reconsider your options.
Financing for Non-Residents
Foreigners can obtain property loans in Greece, though the process involves meeting specific requirements set by Greek banks.
The Greek banking system allows non-residents to apply for property loans, provided they fulfill certain conditions.
Currently, mortgage interest rates are approximately 4%, though they may vary slightly depending on the bank and the applicant’s financial profile.
To qualify, foreign buyers typically need to present a valid residence permit, along with proof of income or stable employment, to demonstrate their ability to repay the loan.
In addition to property loans, foreigners can also apply for business loans if they wish to establish a real estate business in Greece. However, business loan interest rates are generally higher, ranging from around 8% to 10%.
The approval process for business loans often requires a detailed business plan, proof of financial stability and a collateral. While obtaining financing as a foreigner is possible, it is advisable to consult with local banks or financial advisors to fully understand the terms, conditions, and available options before making any commitments.
Note: If you have properties in your home country, you can take loans against them from your local bank to purchase property abroad. The interest rates are likely higher than regular mortgage rates, but it is worth exploring that option too.
Due Diligence and Sales Contract
Conducting due diligence is a crucial step in protecting yourself from potential legal and financial risks when purchasing property.
While not legally required, skipping this process can lead to unexpected issues, such as hidden debts, legal disputes, or structural defects.
Due diligence typically involves verifying the property's legal ownership, checking for outstanding mortgages or liens, and ensuring compliance with zoning and building regulations. A thorough house inspection is highly recommended, especially if you’re considering a more expensive property or one with uncertain quality.
This process is usually handled by local real estate lawyers who specialize in property transactions.
In Greece, the property purchase agreement plays a central role in real estate transactions.
Known as the "ΣυμβÏŒλαιο Αγοράς" (Symvolaio Agoras), this legally binding document outlines the terms and conditions of the sale.
It includes key details such as property specifications, the agreed-upon purchase price, and the obligations of both the buyer and seller. Once signed, it serves as a formal commitment, securing the transaction between both parties.
Property Buying Costs and Taxes in Greece
Buying and Selling Costs |
||
% from Final Price | Who Pays? | |
Transfer tax | 3.09% | buyer |
Registration fees | 0.48% - 0.68% | buyer |
Notary fees | 0.80% - 1.00% (+ 24% VAT) | buyer |
Legal fees | 1.00% - 2.00% | buyer |
Real Estate Agent Fee | 2.00% - 4.00% 2.00% - 4.00% |
buyer seller |
Total costs paid by the buyer: | 7.37% - 10.77% | |
Total costs paid by the seller: | 2.00% - 4.00% | |
ROUNDTRIP TRANSACTION COSTS* | 9.37% - 14.77% | |
*The round trip transaction costs include all costs of buying and then re-selling a property - lawyer fees, notary fees, registration fees, taxes, agent fees, etc. Source: Global Property Guide, PWC |
Legal Fees explained
Engaging the services of a lawyer is highly recommended to navigate the complexities surrounding property ownership in Greece and to conduct thorough legal due diligence on potential encumbrances such as liens or mortgages. The lawyer will ensure compliance with tax regulations and verify the legitimacy of the land title.
There is no set minimum fee for lawyer services in property transactions; the fee is typically determined through negotiation between the attorney and the client. It generally ranges from 1% to 2% of the property value, plus 24% VAT.
For first-time property transactions in Greece, additional preparatory tasks may be necessary, such as tax registration, opening a bank account, or official translations. In such cases, an extra fee is typically charged by the lawyer.
Further reading: Guide to Property Taxes in Greece