Can you buy property in Greece?
Can you buy property in Greece? With the changes wrought by Brexit, visa requirements frequently changing, plus the new ETIAS system being introduced, what you can and cannot do in Greece may be confusing.
The news is good, however. Almost anyone can buy property in Greece. But read on to understand the differences below for EU and non-EU citizens.
Buying property in Greece as an EU citizen
If you are from an EU member country, then the process is the same as that of a Greek citizen.
You can also live in the property full time. However, if staying for more the 90 days you need to register there and if staying more than 183 days a year in Greece you will be deemed a tax resident there.
Buying property in Greece as a non-EU citizen
If you are not a citizen of a European Union country, such as the UK, Australia, Canada or USA, there is on difference when buying.
You will need to submit an application explaining how you intend to use the property, which will be evaluated by the Ministry of National Defence. This may seem daunting, but in practice is a simple process and your estate agent or lawyer will help you with it. You are also unable to buy near the country’s borders or military bases.
However, while non-EU citizens can easily buy in Greece, there are restrictions on how long they can stay in the country. Without a visa you are only able to spend 90 days out of every 180 in Greece. That includes not just Greece but all Schengen countries. For example, if you spent seven days in France before visiting your Greek property, then you would have just 83 days to spend in Greece.
Residency by investment: the Greece golden visa
Generally, buying a property in Greece does not by and in of itself give any right to live full time in Greece. The exception to this is if you obtain a golden visa. A golden visa is a residency-by-investment scheme. There are a few routes for the golden visa, including capital and government investments, but the most popular choice is to purchase a property.
By purchasing a property worth a certain amount, you can live in Greece and travel freely in the Schengen Area. The requirements around it change periodically, so check the latest rules with a lawyer. Currently, to obtain a golden visa in Athens, Santorini, Mykonos and Thessaloniki, you will need to purchase a property of at least €800,000. In other areas, the minimum property spend will be €400,000.
Buying in Greece as a foreigner: your AFM number
In order to purchase a Greek property, you will need a Arithmos Forologikou Mitroou (AFM) number. This is a unique tax and identification number, necessary for many purchases, including real estate.
You’ll need to secure a tax registry number (AFM) from the Internal Revenue Service. It’s important to note that anyone involved in making the purchase must obtain one of these (for example, if you are purchasing jointly as a married couple).
It is also extremely useful to have a Greek bank account to buy a property.
You can do this yourself or, if you give a Power of Attorney to your lawyer, they can open on your behalf. In order to open the account, the bank requires:
- Valid identification (ID card or passport)
- Proof of residence (utility bill or rental agreement)
- Employment or income details.
Legal entities’ eligibility to purchase property
It is possible to buy property in Greece as a foreign company. However, this is not a popular choice, as it is slightly more complex than buying as an individual. You will need an AFM, official documentation and an assigned tax representative living in Greece, who must sign an affidavit aggreging to be the foreign company’s tax proxy.
If the foreign company wishes to commence business activity in Greece, for example, turning the property into a holiday home, additional taxation will be required.
Can you invest in Greek property?
Just as residents are able to, non-residents can rent out their Greek property, so long as they comply with regulations.
To rent out a holiday home, you will need an EOT licence from the Greek Tourist Board, which establishes the safety and suitability of the property. You will also have to register your property at the tax office. Rental income is taxed at a progressive rate, between 15 and 45%.
The rules around short-term rentals are different for those that want to rent out one or two properties and those renting out three or more. For the former, there is a fee of €1.50 per booking. While the latter is classified as a business activity; you must pay 13% VAT and the fees of a hotelier. Properties purchased for a golden visa will no longer be eligible to be rented out as a short-term rental. Stays of longer than 30 days are counted as long-term rentals.
Can I “work from home” in my Greek property?
Without a visa, you can spend 90 days out of every 180 in Greece. If you want to stay longer, you’ll need a visa, and one option is a digital nomad visa. Aimed at non-EU remote workers who are either self-employed or working for a foreign company, a digital nomad visa allows you to live and work in Greece for up to twelve months. It can be renewed.
If you are spending less than 90 days in Greece and remain a tax resident in the UK (or elsewhere), you are essentially working while on holiday, so there is no restriction.