Buying Property in Greece

A property in Greece offers a holiday home, an investment opportunity, a sun-soaked retirement – or even all three.

Greece stretches for 800 kilometres across the Mediterranean from Corfu to Rhodes, encompassing hundreds of inhabitable islands and a mainland that curls around the Aegean Sea.

You can buy property in a buzzing city like Athens or Thessaloniki, or buy in a small, romantic Greek island such as Skopelos (from the movie Mamma Mia) or all the lovely little islands of the Cyclades. There are large islands too, that stay busy all year, such as Crete and Corfu, both with large expat communities.

You’ll be able to find properties to suit a variety of budgets too, from million-euro villas in Mykonos to stone cottages on the mainland that barely reach five figures.

Buying is easy too, with a little help. English is widely spoken, especially in the most popular islands, so you will find a network of expats to connect with.

The Greek economy has recovered from the financial problems of a decade ago and property here seems a reliable investment. Demand for property, particularly on the islands, has soared and holiday homes are ever popular.

Who can buy property in Greece?

There are no restrictions on foreigners purchasing property in Greece. Residents from outside of Greece and the European Union, such as those from the UK and North America are able to buy there.

However, third-country nations are only able to stay in Greece for 90 days out of every 180. This is the case for all non-EU citizens, even if you are a homeowner in Greece.

Is it safe to buy property in Greece?

Since its 2015 debt crisis the Greek economy has largely turned itself around. According to Reuters, borrowing levels have plummeted to below that of Italy and banks that were bailed out by the state have become fully privatised.

However, there are always risks if buying property in Greece without due diligence or legal advice. Buyers should establish a network of reputable, English-speaking estate agents, property lawyers and international payment specialists to ensure a safe Greek property purchase.

There are certain regulations on what you can do with your property or land plot. These will be dependent on property registration, environmental restrictions and zoning restrictions. You will also have to licence your property to rent it out. However, international buyers do not have any additional rules to follow compared to Greek homeowners.

The types of property you can buy in Greece 

• City apartments: Apartments in Athens can be purchased at a far lower price than other major European capitals. For around €100,000, you can find nice, centrally located apartments, often benefitting from a terrace.
• Townhouses: Small houses, usually in a row in a village or town, with some outside space at the front. These can often be bought at affordable prices.
• Villas: Often detached, these properties tend to benefit from privacy, a pool, barbeque and garden.
• Country houses: You can find beautiful older homes with great bones, heaps of potential and at a low price tag across the country. You could even renovate a castle or manor house.
• White-washed homes: Think of Santorini and Mykonos. These sought-after properties boast of white-washed exteriors with blue accents.
• Italianate homes: As a former Venetian territory, the Ionian islands and Crete have distinct, stylish Italian properties for sale.

The team to help you buy in Greece 

To buy property in Greece safely and successfully, you will need to assemble a team of professionals.

Finding an estate agent in Greece 

It can be a bit harder to find reliable nationwide data on the Greek property market, which is why finding an English-speaking estate agent is especially essential.

Greece licenses and regulates its estate agents, who must all be qualified. Check out the site of the Hellenic Association of Realtors for a suitably qualified agent.

Agents normally charge between 2–5% of the property price, which is split between buyer and seller.

Hiring a property lawyer in Greece

It is generally recommended to use an English-speaking lawyer to help you with your property purchase in Greece. They will be able to help you navigate the intricacies of Greek law, as well as playing an essential role in the buying process (they may even be able to save you money). Plus, they can advise on tax and inheritance in Greece too.

Lawyers’ fees usually amount to between 1 to 2% of the commercial value of the property.

If you want a visa, your lawyer should be able to assist with this.

Currency exchange for your purchase in Greece

It’s best not to wait too far into the process before seeking the assistance of a currency specialist.

The risk of buying a Greek home is that during the three months’ or so purchase process, exchange rates could move against you. The price that you are contracted to pay will be fixed in euros, but the moving rate will mean that it is never the same in your own currency, whether pounds, dollars or different.

A specialist in overseas transactions (as opposed to a regular bank or FX app) can fix the exchange rate for the entirety of the purchase process for you, using a forward contract. Then, even if the value of your currency collapses, you will not end up having to pay thousands more for your Greek home.

Getting a mortgage in Greece 

You do not need to be a Greek citizen to apply for a mortgage in Greece. Your income, credit and the value of the property determine the amount of your mortgage loan.

Typically, non-citizens can get up to 65% of the value of the property (it’s 70% for citizens). Non-citizens can get a floating rate of up to 15 years (up to 181 months if the interest rate is fixed, and at least one instalment is calculated with a floating interest rate). You will have less flexibility if you are closer to 75.

However, some buyers may find it easier to release equity from their UK home and use that to fund their Greek property purchase.

The process of buying in Greece 

The essential process of buying a property in Greece is:

Define what you’re looking for: Determine what you want in terms of property type, size, location, accessibility and budget. Separate your must-have features from your nice-to-haves. Allow for buying costs of up to 10% on top of the sales price.

Research and planning: Download guides, go on trips, sign up for events and exhibitions to gather all the information you may need about buying a property in Greece. Narrow down the location you want to buy a property in.

Speak to a currency expert: Firstly, you need to know your budget. Secondly, moving exchange rates are a risk in international property purchases, so discuss managing that risk with a forward contract that fixes your exchange rate.

Online property search: Homes for sale will be listed on portals, some even with video walk-throughs. You can also look at the local area via Google Earth. When you see a property you like, make an enquiry and you can start a conversation with the estate agent.

Get legal and financial information: Buying in Greece being a complex and expensive legal contract, ensure you know all that you need to protect your interests. For example, how ownership will be structured, any tax implications, plus checking that you can legally use a property for what you want.

Viewing trip: Once you have narrowed your online list, reach out to your estate agent and head out to view your selected homes in person.

Get your AFM number:  The ‘Arithmos Forologikou Mitroou’, or AFM, is required for many everyday transactions, including buying property. To get your AFM number, head to your local Greek tax office (Eforia) with real versions and photocopies of your passport, birth certificate.

Making an offer: Once the price has been agreed, you will sign a reservation contract of upwards of €3,000 but it could be as high as €10,000, dependent on the price of property. This will enable you to take the property off the market for a set number of days.

Preliminary contract:  The legal process will usually start with a preliminary contract — a private contract of sale between the buyer and seller agreeing the price, the payment method and any other conditions. When this contract is signed, it is binding and a deposit of around 10% of the agreed purchase price must be paid by the buyer.

Getting a survey: Greece is an earthquake zone, so your lawyer should check that the property complies with Greece’s Seismic Code, as laid down by the Earthquake Planning and Protection Organisation (EPPO). As this is already in place, surveys are not common, but you can have one done. UK-based organisation the Royal Institution of Chartered Surveyors (RICS) has members in Greece, and you can find registered members using their RICS Firms search for Greece.

Sales contract: A Greek simvoliographo (notary) must also be a party to the sale contract. As a buyer, you will have the responsibility of hiring the notary, who will prepare the sales contract and make sure all details are right. The sale contract legally transfers ownership between the seller and buyer. You sign it before the notary, who ensures this process is legal. Your lawyer must also be present, as they’ll sign the document when the contract’s signed.

The costs of buying in Greece  

In addition to the price of property, you will need to factor in lawyer and notary fees, property taxes and land registry fees. As an estimate, this will be another 10% on top of the purchase price.

Transfer tax (FMA) is 3.09% of the taxable property value, which is judged on the size, location and technical specification of the property. Currently, there is no VAT for new-build properties. You are also obliged to pay community fee of 3%.

Notary fees will usually cost between 1 – 2%. Land registry tends to be between 0.3 – 0.5%.

Legal fees can cost around 1% of the property purchase. While agents’ fees will be split between buyer and seller and usually will be between 2 – 5% of the purchase price. The seller’s part may well be included in the purchase price of the property, meaning that in effect the buyer pays all fees.