Buying Property in Greece

Real estate transactions in Greece are conducted by the country's regulatory framework and European Union legislation. The signing of purchase agreements, registration, and transfer of property rights, etc., are public and transparent processes that are under state control.

The sale of Greek real estate to foreign nationals is one way to attract capital into the national economy. The process is relatively simple and fast, taking only two weeks. Until June 2011, the country had a law regarding border areas that required additional permits from the Ministry of Defense for those wishing to purchase properties located in these zones. The wait for a decision could take several months. Currently, there are no such restrictions in Greece.

New Trends in the Greek Residential Real Estate Market and Price Increases in the First Quarter of 2021

The real estate sector in Greece has shown resilience and stability during the crisis and quarantine restrictions associated with the COVID-19 epidemic.

While 2020 was not the most successful year for the country's economy, the government's prudent policies helped shield the domestic market from collapse and contributed to the gradual elimination of undesirable consequences.

Greek real estate retained its value during the crisis. Moreover, housing prices increased in regions where demand remained consistently high. This trend is also evident in the first quarter of 2021. Only the pace of price growth and the ratio between primary and secondary market properties have changed:

• Housing prices increased by 3.2% compared to the same period in 2020.
• The secondary market outpaced new construction in price growth by 0.5%, which is unusual for the Greek real estate market. Properties commissioned more than five years ago typically lag behind new developments in this indicator.

Price dynamics vary by region. Of the five districts in Athens, the cost of apartments in new buildings increased the most in Peristeri, surpassing €1,500 per square meter in the first quarter. Cholargos saw a significant increase in prices for older housing (commissioned over 15 years ago) — up to €1,400 per square meter.

Athens and Thessaloniki remain the leaders in price growth for residential properties from January to March of this year.

Amid rising housing prices, rental costs have significantly decreased in some areas of Greece since the beginning of the year. For example, in central Athens and the northern and southern suburbs, the decline ranged from 5.7% to 7% year-on-year. At the same time, rents in the western and eastern suburbs increased by an average of 8.4%.

Currently, housing prices in Greece are higher than the 2014 levels. Analysts believe that if the current growth rates are maintained, the market has every chance to return to pre-crisis levels of 2013.

The COVID-19 Pandemic Has Prompted Wealthy Europeans to Turn Their Attention to Greek Real Estate

The global pandemic has raised the question: "Where in Europe can you find a relatively safe place to live?" In this context, owning a home, particularly in a country where infection rates remain relatively low, becomes an attractive option.

An excellent choice is Greece! Commentators from the German publication Deutsche Welle (DW) note an unusually high surge of interest in buying property in this Mediterranean country.

DW journalists point out that while the virus rages in many developed countries, including the US, Greece remains a relative haven. The country offers a great climate and beautiful nature, is located close to developed EU countries, and its real estate is still significantly cheaper than in neighboring countries.

Wealthy buyers seeking a safe refuge are eager to take advantage of the opportunity, showing interest in local real estate and planning to buy Greek houses and villas for their use. The surge in demand is particularly driven by British investors, who increased demand for Greek housing by 200% in just a few summer weeks. The removal of the ban on flights from Britain to Athens on June 15 also fueled the frenzy.

Interestingly, around the same time, a British film "The Trip to Greece" was released, which fit perfectly into this situational trend and added its dose of dynamism.

German investors are not far behind their northwestern neighbors. In recent months, their investments in Greek housing have increased by 50%, with Germans preferring to buy properties in popular Greek resorts: Peloponnese, Crete, and Corfu.

Important! British investors, considering the country's exit from the EU, are now intensively buying property in "warm Europe": Spain, Portugal, Italy. They aim to obtain EU residency status in time. However, Greece leads in demand. The relatively low price of housing in Greece plays a significant role here.

Registration and Ownership of Property by Foreign Citizens in Greece

The registration and ownership process for foreign citizens purchasing real estate in Greece involves the following steps:

1. The potential buyer issues a notarized power of attorney to a lawyer, who will represent their interests in the future.
2. The lawyer, on behalf of the client, obtains a Taxpayer Identification Number (TIN) from the Greek tax office.
3. The next step is opening a bank account for the potential buyer.
4. The lawyer thoroughly checks all the documents related to the property to ensure that there are no encumbrances, mortgage claims, etc.

The conclusion of this legal check is provided to the potential buyer.

• The property transfer tax (PTT) is paid.
• The purchase agreement is signed by the parties in the presence of a lawyer, notary, and translator. The buyer receives the entire package of property documents translated into their native language.
• The final step is the registration of the agreement by the lawyer in the Unified Property Register.

The list of documents that a foreign buyer must submit for registration and ownership is minimal:

• Foreign passport and visa for entry into Greece.
• Greek Taxpayer Identification Number and bank account number. To open a bank account, the following must be submitted separately: a foreign passport, visa for entry into Greece, national passport of the country of residence, a certificate from the workplace in the established format, and a copy of the completed tax declaration.

Costs associated with the registration and ownership of property include:

• PTT,
• registration fee in the Unified Tax Register,
• payment for notary, lawyer, and realtor services.

Conclusion

Foreign nationals wishing to purchase real estate in Europe often choose properties located in Greece. This is not surprising! The climate, nature, standard of living of the local population, and well-developed infrastructure, along with the state's favorable policy towards foreign investors, create ideal conditions for potential buyers.

The specialists at GARANT.in Migration Center can help you understand the process of obtaining property rights in Greece and provide individual cost estimates for the procedure.