Understanding Greece’s Property Ownership Laws: A Comprehensive Guide for Foreign Buyers

When buying property in Greece, foreigners must adhere to a series of steps to ensure that the transaction is legal and binding. The property purchase process generally involves the following:

1. Hiring a Lawyer

It’s highly advisable for foreign buyers to hire a Greek lawyer with experience in real estate transactions. The lawyer will help navigate the legal landscape, check property titles, and handle paperwork.

2. Finding the Right Property

Once you’ve hired a lawyer, it’s time to start looking for properties. Many international buyers choose to work with real estate agents who specialize in assisting foreigners.

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3. Making an Offer and Signing a Preliminary Agreement

When you find the property you want to purchase, your lawyer will help you negotiate the price and terms. Once an agreement is reached, a preliminary agreement (pre-contract) is signed, outlining the agreed-upon price and payment terms.

4. Obtaining a Greek Tax Number (AFM)

A Greek tax number (AFM) is required for all property buyers. Your lawyer will help you obtain this number from the Greek Tax Office. The AFM is essential for all property transactions and tax matters in Greece.

5. Finalizing the Purchase

Once all the legal checks have been completed, and the property is free of encumbrances, the final contract is signed in front of a notary public. After the contract is signed, the property is officially transferred to the buyer.

Legal Considerations for Foreign Property Owners

Foreigners who wish to own property in Greece must keep in mind some essential legal considerations:

Property Taxes and Ownership Costs

Property ownership in Greece comes with certain taxes and costs. These include the property transfer tax, which is around 3% of the purchase price, annual property taxes, and other fees such as notary fees and registration fees.

Property Ownership in a Company

For non-EU citizens, one way to bypass restrictions on direct property ownership in certain areas is to purchase property through a Greek company. This is a common strategy for investors looking to buy real estate in restricted zones.

Inheritance Laws

Greece has specific inheritance laws, and property inherited by foreign nationals must be declared and taxed according to the Greek system. It’s crucial to consult a lawyer to ensure compliance with local inheritance laws, especially if you plan to pass the property on to heirs.

Property Ownership for Investors

Greece offers excellent opportunities for real estate investors, with many areas, particularly popular tourist destinations, offering lucrative returns on investment.

Long-Term Investment

Greece’s property market has been experiencing a steady recovery, and for those looking for long-term investments, the country’s real estate sector can provide promising returns. Locations like Corfu, Athens, and Crete have seen significant growth in property values.

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Short-Term Rentals

With Greece’s booming tourism industry, short-term rental properties (such as Airbnb) have become a popular investment choice. By purchasing properties in high-demand tourist locations, investors can take advantage of rental income throughout the year.

Restrictions for Foreign Property Buyers in Greece

While foreigners can generally purchase property in Greece, there are certain areas where restrictions apply. These areas, such as those near the borders or certain islands, are subject to strict regulations that limit foreign ownership.

Areas with Restrictions:

• Border Regions: Non-EU nationals may face restrictions on purchasing property in regions close to the borders.

• Aegean Islands: Some Aegean islands have laws that limit foreign ownership to protect local communities.

Exemptions:

Foreigners can often overcome these restrictions by purchasing through a Greek company, as mentioned earlier.

Final Thoughts: Is Buying Property in Greece Right for You?

Greece is an incredibly attractive location for foreign property buyers. With its Mediterranean climate, stunning landscapes, and rich culture, owning a property in Greece can be a dream come true. However, understanding the local property ownership laws and following the legal procedures is key to making the process smooth and stress-free.

Before embarking on your property purchase in Greece, ensure that you have the right legal counsel, are aware of all the taxes involved, and understand the restrictions that may apply to foreign buyers. For more details on buying property in Greece, feel free to explore the full guide for property buyers in Corfu.

Relevant FAQs

Q1: Can I buy property in Greece as a non-EU citizen?
Yes, non-EU citizens can buy property in Greece, although restrictions may apply in specific areas, especially near borders or in sensitive regions.

Q2: How much does it cost to buy property in Greece?
The property transfer tax is approximately 3% of the purchase price. Additional costs include notary fees, registration fees, and property taxes.

Q3: Can I rent out my property in Greece?
Yes, Greece’s property market is highly favorable for short-term rentals. Many foreigners buy property for the purpose of renting it out to tourists.