This case study documents the acquisition of a short-term rental apartment in Athens, Greece, located in the Koukaki neighborhood. The property was acquired as a fully operational Airbnb with the objective of generating rental income immediately after completion.
The end-to-end process took approximately 180 days, covering market research, property selection, negotiations, due diligence, legal structuring, and the transition to ongoing rental operations.
1. Setting Buying Criteria
The process began with in-depth research into the Athens short-term rental market. This included analyzing demand by neighborhood, apartment size, bedroom count, and historical Airbnb performance.
A flexible investment budget of €150,000 to €500,000 was established, allowing room to adjust for properties offering stronger risk-adjusted returns.
The primary objective was to acquire a property with a minimum pre-tax net rental yield of 6%, calculated after all operating expenses and management fees. Immediate income generation was a key requirement, which led to a focus on established Airbnb listings rather than vacant or newly launched properties.
Target parameters included:
- Minimum Price: €150,000
- Maximum Price: €500,000 (including closing costs)
- Target Cap Rate: 6% or higher (pre-tax)
2. Property Search and Tax Analysis
With the criteria defined, the property search was conducted using AirDNA and local listings. Five properties were shortlisted based on location and performance metrics:
- Two properties in Koukaki
- One property in Kypseli
- One property in Exarchia–Neapoli
- One property in Voula, Attica
Agents were contacted to obtain detailed income and expense data directly from the property owners. Only properties that met the target return thresholds were considered further.
In parallel, a local lawyer conducted a full review of Greek tax and regulatory requirements related to short-term rentals. This included calculating applicable taxes, operating obligations, and transaction costs to ensure accurate yield projections with no hidden liabilities.
3. Scheduling Property Viewings
Property viewings were arranged following initial screening. Coordinating schedules with agents required some back-and-forth, but all shortlisted properties were inspected in person.
On-site visits provided insights beyond financial data, including building quality, neighborhood dynamics, and the practical aspects of operating a short-term rental in each location. Discussions with local real estate professionals also helped validate assumptions, although all input was evaluated critically given the potential for commission-driven bias.
All five properties were viewed in a single day, allowing for direct comparison and a clearer understanding of relative value across locations.
4. Offer, Negotiation and Due Diligence
Following a post-visit review of the properties and supporting data, one apartment emerged as the strongest candidate. The initial listing price was €420,000.
An opening offer of €390,000 was submitted, reflecting both market conditions and the length of time the property had been listed. The offer was accepted shortly thereafter, avoiding a prolonged negotiation process.
Once agreed, a 5% deposit was transferred to secure the transaction. Formal due diligence was then initiated, including:
- Review of historical income and expense statements
- Verification of short-term rental performance and Airbnb license
- Legal confirmation that the title deed was free of liens, mortgages, or restrictions
While the negotiated purchase price was €390,000, total acquisition costs ultimately brought the final price close to €420,000 after accounting for closing costs of approximately €30,000.
5. Purchase Process and Notary Completion
After successful completion of due diligence, the transaction proceeded to closing.
An existing EU company was used for the acquisition, eliminating the need to set up a separate Greek entity for ownership. However, it was later confirmed that short-term rentals in Greece are classified as business activity, which requires a local Greek company for full regulatory compliance. This requirement does not apply to long-term rentals.
Purchasing as a private individual is also permitted in Greece. A local company becomes mandatory only when owning and renting out three or more properties.
As part of the transaction, standard KYC procedures were completed to document the source of funds. This process took approximately five days and involved notarized and apostilled documentation.
The sale was finalized at a notary’s office in Athens. Due to limited flight availability during the low season, the buyer was represented by a local lawyer acting under Power of Attorney (POA), who executed all documents and completed the transaction.
6. Professional Management and Ongoing Operations
To maintain a hands-off operating structure, the existing property manager was retained. The manager had an established track record, including an average Airbnb rating above 4.80 across more than 200 reviews.
The management agreement covered:
- Guest communication
- Check-ins and check-outs
- Cleaning and ngoing maintenance
Detailed monthly financial reports were provided, outlining revenue, expenses, and net profit. The management fee was set at 20% of revenue, reflecting a full-service arrangement.
An external accountant was also engaged at a cost of €200 per month to manage tax filings, distributions, and compliance obligations. A transition to a more cost-efficient provider is planned for 2025.
Rental Performance Update (Last 12 Months)
Over the most recent 12-month period, the apartment generated approximately €43,000 in gross rental income. After accounting for all operating costs — including management fees, cleaning, maintenance, and other expenses — net profit amounted to approximately €26,400.
This corresponds to a pre-tax net yield of approximately 6.3%.
- April 2024: €900
- May 2024: €2,050
- June 2024: €5,050
- July 2024: €3,100
- August 2024: €1,700
- September 2024: €3,150
- October 2024: €2,550
- November 2024: €1,800
- December 2024: €1,600
- January 2025: €1,600
- February 2025: €1,250
- March 2025: €1,650
Interested in Buying Real Estate in Greece?
When evaluating real estate opportunities in Greece (or anywhere in Europe), access to reliable market data and structured due diligence can materially reduce risk. This typically involves identifying suitable properties, reviewing historical performance, and verifying legal and tax considerations before proceeding.
Where needed, Global Property Guide can also assist with property sourcing, acquisition support, and independent due diligence, working alongside local professionals to help investors navigate the process more efficiently.
