Buying Real Estate in Greece: Taxes, Expenses, ROI, Property Maintenance, and Obtaining a Residence Permit

Greece is one of the most attractive countries for investors due to its mild climate, rich culture, low property prices compared to other EU countries and favorable conditions for obtaining a residence permit. The country offers not only excellent living conditions, but also the opportunity to move freely within the Schengen area, as well as prospects for doing business and investing in real estate.

Before buying real estate in Greece, it is important to understand the associated taxes, expenses, possible return on investment, responsibilities for property maintenance and the procedure for obtaining a residence permit.

Property transfer tax:

• For new buildings: 3.09% of the transaction amount instead of 24% VAT until the end of 2023, as part of support for the construction market
• For secondary housing: 3.09% of the cadastral value or the transaction amount, depending on which amount is higher. This rate includes the municipal tax on the purchase of real estate

Additional costs:

• Notary fee: 1%-1.24% of the transaction amount, including 24% VAT
• Registration fee: 1%-2% of the transaction amount
• Agency fee: Usually included in the price of the property, amounts to 2.5%-5% of the transaction amount, including 24% VAT.
• Legal support: The cost of a lawyer's participation amounts to 1.24%-2.5% of the transaction amount, including 24% VAT.

Ancillary costs when purchasing real estate can range from 5% to 11% of the transaction amount.

For example, when purchasing an apartment worth €250,000, the total costs could reach approximately €277,500, including additional costs.

Annual Property Tax

In Greece, property owners are required to pay an annual flat tax called ENFIA. This tax consists of a basic part and an additional part.

• The basic part is calculated at a rate of €2 to €16 per 1 m², depending on the cadastral value, year of construction and floor.
• If the cadastral value exceeds €200,000, an additional tax of 0.1% to 1.15% of the cadastral value of the property is levied.

Profit tax on the sale of real estate

Sellers of real estate in Greece pay a capital gains tax of 15% of the difference between the sale price and the purchase price.

There is no income tax on the income from the sale of real estate.

Property Maintenance Costs

• Utilities: Electricity, gas, water and waste disposal cost from 95 to 280 € per month
• House Maintenance: Elevator, cleaning, repairs and security costs from 10 to 300 € per month
• Internet, TV and telephone: Cost from 25 to 50 € per month, depending on the tariff and location
• Water, electricity and gas are paid according to the meters. Central gas supply is only available in large cities: Athens and Thessaloniki. There is usually no central heating in houses.

Rental Tax and Return on Investment

• Rental income is subject to income tax on a progressive scale from 15% to 45%.
• Return on investment from renting out property in Greece can be attractive due to the stable demand for rental housing.

For all matters related to purchasing real estate in Greece, we also provide our investors with a full range of concierge services.

Golden Visa Program

The most popular and convenient way to obtain a residence permit in Greece is the Golden Visa program, which is available to investors who purchase real estate worth at least 250,000 euros. However, since August 2023, the threshold has increased to 500,000 euros in some regions of the country.

Program conditions:

• Minimum investment amount – from 250,000 to 500,000 euros depending on the region.
• A residence permit is issued for 5 years with the possibility of extension while maintaining the investment.
• There are no requirements for residency in Greece.
• Possibility of obtaining a residence permit for the whole family (spouse and minor children, as well as the parents of the investor and his/her spouse).
• The right to visa-free travel to the Schengen area countries.

Under the "golden visa" it is allowed to purchase only one real estate property with an area of ​​at least 120 square meters.

The minimum threshold for the cost of the property is set at:

• from €800 thousand - in certain regions of Attica, in Thessaloniki, Mykonos and Santorini, as well as on islands with a population of more than 3,000 residents (see the list of areas here).
• from €400 thousand - in the rest of Greece.
• from €250 thousand if the property is subject to reconstruction or is being converted from industrial premises into residential. At the same time, such a property is exempt from the rule on the minimum area and region.

Required documents: purchase/sale agreement or long-term lease; certificate from the Register on registration of ownership; act confirming payment of the amount specified in the agreement.