Understanding Greece’s New Property Regulations

Greece is a country known for its rich history, stunning landscapes, and thriving real estate market. However, recent changes to the property laws have raised new concerns and opportunities for buyers, investors, and sellers alike. If you’re considering buying property in Greece, it’s crucial to stay informed about these new regulations and how they might impact your investment plans.

This article will cover everything you need to know about the recent property regulations in Greece, what they mean for buyers, and how to navigate the process. Whether you’re looking for a holiday home or a long-term investment, understanding these changes will help ensure a smoother buying experience.

Key Changes in Greece’s New Property Regulations

Greece has recently updated its property laws to streamline processes, increase transparency, and improve the overall real estate market. Here are the key changes that buyers and investors need to be aware of:

1. New Property Taxation System

One of the most significant changes is the updated property taxation system. Greece has introduced a new set of taxes that affect both local and foreign property buyers. This includes:

• Immovable Property Tax (ENFIA): This tax applies to both Greek and foreign property owners and is calculated based on the value of the property.

• Capital Gains Tax: A tax is now applicable on the profit made from selling a property, especially if the property is sold within a short period after purchase.

2. Restrictions on Foreign Ownership

Foreign buyers will now face certain restrictions, especially when purchasing property near sensitive areas like military zones or protected natural reserves. These measures are designed to control the number of properties in specific regions and prevent excessive foreign influence on local markets.

3. Increased Investment Requirements for Golden Visa Program

Greece’s Golden Visa Program allows non-EU investors to obtain a residence permit in exchange for investing in Greek property. However, the new regulations have increased the minimum investment amount required, making it a higher barrier for entry for some investors. The new minimum threshold is set at €500,000 for real estate investments in high-demand areas such as Athens, Thessaloniki, and certain islands.

4. Revised Planning and Zoning Laws

Planning and zoning regulations have been revised to make it easier for developers to obtain permits for residential and commercial buildings. These new laws aim to modernize the country’s infrastructure and improve the construction process. However, these changes might create competition for land in prime areas, increasing property values.

How the New Regulations Impact Property Buyers

For those looking to buy property in Greece, these changes may affect your purchasing process in several ways. Understanding the implications of the new laws will help you make informed decisions and avoid potential pitfalls.

Impact on Foreign Buyers

While foreign buyers have always had the ability to purchase property in Greece, the recent laws impose more stringent conditions. For example:

• Increased Due Diligence: Authorities will now conduct a more thorough check on foreign buyers to ensure that their investments meet specific criteria, especially regarding tax compliance.

• Restrictions on Location: As mentioned, certain properties near sensitive areas are now off-limits to foreign buyers. If you’re looking at prime real estate near military zones or national parks, this might limit your options.

Higher Costs of Acquisition

The new tax system and higher investment thresholds can lead to increased costs for buyers:

• Property Taxes: The newly structured property taxes may increase your annual ownership costs. It’s important to factor this into your budget before making a purchase.

• Golden Visa Requirements: For foreign investors looking to acquire a Golden Visa, the higher minimum investment required may make it more difficult for smaller investors to participate in the program.

Legal and Planning Complications

Changes to planning and zoning regulations may lead to delays in obtaining construction permits, and stricter laws might affect the potential for property development in certain areas. Buyers who intend to develop or renovate their properties will need to stay up-to-date with the new planning laws to avoid unexpected roadblocks.

Navigating the New Property Landscape in Greece

With the new regulations in mind, it’s crucial to follow the proper steps to ensure your property purchase goes smoothly.

1. Work with a Local Real Estate Expert

Navigating the Greek property market can be challenging, especially with the new regulations in place. Partnering with a local real estate agent, like those at Chase Real Estate Corfu, can help you understand the market dynamics and find the best properties for your needs.

2. Seek Legal Guidance

Property buyers should always consult with a legal expert before making any transactions. Legal advisors can guide you through the complexities of property ownership, taxes, and zoning laws. Visit Chase Real Estate Corfu’s Guide for more information on how to protect yourself during the buying process.

3. Understand the Tax Implications

Greece’s property tax system is complex, and the introduction of capital gains and property taxes may affect your long-term investment returns. Make sure to consult with a tax advisor who understands Greek tax law to avoid any surprises.

4. Consider Your Long-Term Investment Goals

If you’re investing in Greek property for the long term, be sure to factor in the potential for higher taxes and changes in property values. Given the revisions to zoning laws, it’s a good idea to explore areas that are expected to see growth due to urban development and infrastructure projects.

How Greece’s New Property Regulations Benefit Buyers

While these new regulations may seem like a challenge, they also bring certain benefits to property buyers:

1. Improved Transparency

The new laws aim to provide more transparency in the Greek real estate market. Buyers can expect a more straightforward process, with clear regulations for both local and international transactions.

2. Stronger Property Market

The changes are designed to stabilize and strengthen the Greek property market, making it more resilient to fluctuations. This means that property investments are likely to see more consistent growth in the coming years.

3. Greater Security for Foreign Investors

The revised Golden Visa Program and additional checks will create a more secure investment environment for foreign buyers. By ensuring that investments meet certain criteria, the government is helping to maintain the integrity of the market.

Conclusion: Navigating Greece’s Changing Property Market

Greece’s new property regulations are designed to create a more structured and secure real estate market. However, for buyers, these changes mean higher costs, stricter rules, and more competition. It’s important to stay informed and work with experts to navigate these changes successfully.

If you’re considering buying property in Greece, make sure to explore Chase Real Estate Corfu for up-to-date listings, legal guidance, and expert support.