Real Estate In Greece
In August 2018, the country finished its eight-year bailout program. It looks like the crisis that engulfed Greece for so long has come to an end, and it’s slowly but surely heading to better places. The economy has kickstarted once again…
It’s becoming increasingly evident that with the recovering economy, now is the right time to enter Greece’s real estate market.
Until the economic crisis hit Greece, 87% of Greeks were property owners rather than renters—the highest percentage in the EU, according to the European Commission’s data.
However, since the crisis and strict austerity measures were introduced, many Greeks have struggled to pay for their properties and so are more likely to accept an offer, making it a strong buyers’ markets in some areas.
The Bank of Greece says prices have fallen by a third since the crisis hit in 2009; some commentators say it’s much more than that. As with many places that have faced economic crisis, the effect varies from area to area.
Greece does not apply general restrictions on foreigners buying property, and most property is bought freehold. However, properties in areas close to military and naval bases, as well as foreign borders, are restricted to Greek nationals. Also, you’ll need to open a Greek bank account and document the transfer of funds you’ll use to make your purchase to be compliant with Greek tax legislation.
There are plenty of affordable real estate deals, from restoration projects to new builds, with the added huge bonus of the opportunity to qualify for a residency visa that will allow you to travel throughout the Schengen Area.
The golden carrot that Greece offers non-EU citizens and their family members (children up to 21 years of age) in return for purchasing property is a residence permit. The total value of the property investment must equal or exceed 250,000 euros, and the purchase may be made by an individual or a legal entity in order to qualify for the residency visa. In the case of joint ownership, the residency permit is only granted to the joint owners if the partners are spouses.
You can buy one or more properties whose total value equals 250,000 euros, as well as land with the intention to build on it to the total value of at least 250,000 euros.
Renting In Greece
Long-term property rentals are generally for a 12-month period. The properties are usually unfurnished and the rental price does not include utilities. A security payment of two to three months is not unusual.
The Buying Process
The whole buying process should take between six to eight weeks, and all documents are signed in the presence of a notary. By law you must first appoint a lawyer. Your lawyer will help you obtain your tax number and should help you open a bank account.
The basic property-buying process:
- Appoint a lawyer (you must do this by law).
- Apply for your tax number (AFM).
- Appoint a notary.
- Get a copy of the title deeds and carry out a title search.
- Pay the property transfer tax (this must be done before signing the contract).
- Sign the contract in the presence of a public notary.
- Transfer of the title to your name.
- Notify the land registry of the change of title.
But the first thing you must do is visit… for two reasons. One, you really shouldn’t buy a property from a photo or weblink (unless you have a trusted property scout); two, you have to start the application for a residency permit on the basis of first having been issued a tourist visa.
Why Athens Is The Market To Be In
Athens is the country’s tourist capital. The number of international tourists visiting Athens has been steadily increasing since 2013. This has a lot to do with still being a more accessible option compared to other tourist hubs like Paris, Rome, Barcelona, Amsterdam, London, and Dublin.
Greece’s capital city already generates 19.9% of the country’s GDP, which is more than any other EU capital. Since the first quarter of 2017, its GDP has been steadily increasing. In 2019, it grew by 2%… its highest growth since 2007.
Greece’s property market is on the rise. Once completely in shambles and after nine years of falling prices, the housing market in this country is growing with its improving economic conditions.
With a new government that has proven to be operating well, with great reaction to crisis, Greece places itself as a top location and proves to be one of the best options to diversify your portfolio.