The Legal Framework for Foreigners Buying Property in Greece

Table of Contents

1. Introduction
2. Overview of Greek Property Laws for Foreigners
3. Eligibility Requirements for Foreign Buyers
4. The Property Buying Process in Greece
5. Legal Documents and Paperwork
6. Taxation and Fees
7. Restrictions on Property Ownership
8. Golden Visa Program
9. Legal Protections for Foreign Buyers
10. Common Pitfalls and How to Avoid Them
11. Conclusion
12. FAQs

1. Introduction

Greece, with its stunning landscapes, rich history, and Mediterranean charm, has long been a coveted destination for property buyers from around the world. The allure of owning a piece of this ancient land, whether for personal use or investment purposes, has drawn many foreigners to explore the Greek real estate market. However, navigating the legal framework for purchasing property in Greece as a foreigner can be a complex process that requires careful consideration and understanding.

This comprehensive guide aims to shed light on the legal aspects of buying property in Greece for non-Greek citizens. We will explore the intricacies of Greek property laws, eligibility requirements, the buying process, necessary documentation, taxation, and potential restrictions. By the end of this article, you will have a clear understanding of what it takes to legally acquire property in Greece as a foreigner, empowering you to make informed decisions and avoid common pitfalls.

2. Overview of Greek Property Laws for Foreigners

Greek property laws have undergone significant changes in recent years, particularly in response to the country’s economic challenges and the desire to attract foreign investment. The current legal framework is generally welcoming to foreign buyers, with few restrictions on property ownership by non-Greek citizens.

The primary legislation governing property transactions in Greece is the Civil Code, which outlines the rights and obligations of property owners. Additionally, specific laws have been enacted to regulate foreign ownership of real estate, such as Law 1892/1990 and its subsequent amendments.

One of the most significant developments in recent years has been the introduction of the Golden Visa program in 2013, which offers residency permits to non-EU citizens who invest in Greek property. This initiative has further simplified the process for foreigners looking to buy property in Greece.

3. Eligibility Requirements for Foreign Buyers

In general, there are no strict eligibility requirements for foreigners wishing to purchase property in Greece. Both EU and non-EU citizens are allowed to buy and own real estate in the country. However, there are a few considerations to keep in mind:

• EU citizens: Can freely purchase property in Greece without any additional permits or restrictions.
• Non-EU citizens: Can buy property, but may face some restrictions in border areas and certain islands for national security reasons. These buyers may need to obtain a special permit from the Greek Ministry of Defense.
• Legal capacity: All buyers must have the legal capacity to enter into a contract according to both Greek law and the laws of their home country.
• Age requirement: Buyers must be at least 18 years old to purchase property in Greece.

It’s important to note that while there are no specific eligibility requirements based on financial status or background checks, having a clean criminal record and demonstrating the ability to finance the purchase will generally make the process smoother.

4. The Property Buying Process in Greece

The process of buying property in Greece involves several steps, each with its own legal considerations. Understanding this process is crucial for foreign buyers to navigate the Greek real estate market successfully.

4.1 Property Search and Selection

The first step is to find a suitable property. While this can be done independently, many foreign buyers choose to work with a reputable real estate agent who is familiar with local laws and market conditions. It’s important to verify that the agent is licensed and registered with the Greek Real Estate Association.

4.2 Making an Offer and Preliminary Agreement

Once you’ve found a property, you’ll need to make an offer. If accepted, a preliminary agreement (προσύμφωνο) is typically drawn up. This document outlines the terms of the sale and is usually accompanied by a deposit of 10% of the purchase price. While not legally required, this agreement provides protection for both parties and is highly recommended.

4.3 Legal Checks and Due Diligence

Before proceeding with the purchase, it’s crucial to conduct thorough legal checks on the property. This includes verifying the seller’s ownership, checking for any encumbrances or liens, and ensuring the property complies with local zoning and building regulations. It’s highly advisable to engage a Greek lawyer to perform these checks and guide you through the legal aspects of the purchase.

4.4 Finalizing the Purchase

The final step is the execution of the purchase agreement (συμβόλαιο) before a notary public. This document transfers ownership from the seller to the buyer and must be registered with the local Land Registry or Cadastre Office. At this stage, the full payment is made, and the property officially changes hands.

5. Legal Documents and Paperwork

Acquiring property in Greece requires a significant amount of documentation. Foreign buyers should be prepared to provide and obtain the following legal documents:

• Passport or national ID card
• Greek Tax Registration Number (AFM)
• Power of Attorney (if not personally present for all procedures)
• Bank statements or other proof of funds
• Property title deed
• Topographic diagram of the property
• Certificate of Good Standing from the local City Planning Office
• Tax clearance certificate for the property
• Building permit (for new constructions)
• Energy Performance Certificate

Additionally, for non-EU citizens purchasing property in restricted areas, a special permit from the Ministry of Defense will be required. It’s important to work closely with your lawyer to ensure all necessary documents are obtained and properly filed.

6. Taxation and Fees

Understanding the tax implications and associated fees of buying property in Greece is crucial for foreign investors. The main taxes and fees involved in a property purchase include:

• Property Transfer Tax: Currently set at 3.09% of the property’s value.
• Value Added Tax (VAT): Applicable to new buildings, currently at 24%.
• Notary Fees: Typically 1-2% of the property’s value.
• Legal Fees: Usually 1-2% of the property’s value.
• Real Estate Agent Fees: Generally 2-5% of the property’s value, paid by the seller.
• Annual Property Tax (ENFIA): Based on the property’s value and location.

It’s important to note that tax rates and regulations can change, so it’s advisable to consult with a Greek tax professional for the most up-to-date information and to understand how these taxes apply to your specific situation.

7. Restrictions on Property Ownership

While Greece generally welcomes foreign property buyers, there are some restrictions in place, particularly for non-EU citizens:

• Border Areas: Properties within 20 kilometers of the Greek border require special permission from the Ministry of Defense for purchase by non-EU citizens.
• Islands: Some Greek islands have restrictions on foreign ownership, again requiring special permission.
• Agricultural Land: There may be limitations on the purchase of large areas of agricultural land by foreigners.
• Historical Sites: Properties near archaeological sites or of historical significance may have restrictions or require additional permits.

These restrictions are in place for national security reasons and to protect areas of cultural or historical importance. It’s crucial to verify whether any such restrictions apply to the property you’re interested in before proceeding with a purchase.

8. Golden Visa Program

The Greek Golden Visa program, introduced in 2013, has been a significant factor in attracting foreign investment in Greek real estate. This program offers a residency permit to non-EU citizens who invest in property in Greece, subject to certain conditions:

• Minimum Investment: The program requires a minimum real estate investment of €250,000.
• Residency Rights: The visa grants the right to live in Greece and travel within the Schengen Area.
• Family Inclusion: The investor’s spouse and children under 21 can also obtain residency permits.
• Renewal: The permit is valid for five years and can be renewed as long as the property investment is maintained.
• Path to Citizenship: After seven years of residency, investors may be eligible to apply for Greek citizenship.

The Golden Visa program has made it particularly attractive for non-EU citizens to invest in Greek property, offering not just a real estate investment but also the potential for European residency.

9. Legal Protections for Foreign Buyers

Greece has implemented several measures to protect the interests of property buyers, including foreign investors:

• Transparent Titling System: The Greek land registry system provides clear information on property ownership and encumbrances.
• Notary Involvement: The mandatory involvement of a notary in property transactions adds an extra layer of legal protection.
• Consumer Protection Laws: Greek and EU consumer protection laws apply to property transactions, offering recourse in case of disputes.
• Legal Representation: Foreign buyers have the right to engage their own legal counsel to protect their interests throughout the buying process.

Despite these protections, it’s crucial for foreign buyers to exercise due diligence and seek professional legal advice to ensure their rights are fully protected throughout the property acquisition process.

10. Common Pitfalls and How to Avoid Them

While buying property in Greece can be a rewarding experience, there are several common pitfalls that foreign buyers should be aware of:

• Unclear Property Titles: Always conduct a thorough title search to ensure there are no ownership disputes or encumbrances.
• Building Violations: Check that the property complies with all building regulations to avoid future legal issues.
• Underestimating Costs: Be prepared for additional costs beyond the purchase price, including taxes, fees, and potential renovation expenses.
• Rushing the Process: Take the time to conduct proper due diligence and don’t feel pressured to make hasty decisions.
• Neglecting Legal Advice: Always consult with a qualified Greek lawyer specializing in real estate transactions.
• Ignoring Local Regulations: Be aware of any local restrictions or requirements, especially in tourist areas or islands.

By being aware of these potential issues and taking proactive steps to address them, foreign buyers can significantly reduce their risk and ensure a smoother property acquisition process in Greece.

11. Conclusion

The legal framework for foreigners buying property in Greece is generally welcoming and designed to encourage foreign investment. While there are certain complexities and potential pitfalls to navigate, with proper research, professional guidance, and due diligence, foreign buyers can successfully and legally acquire property in this beautiful Mediterranean country.

From the initial property search to the final transfer of ownership, understanding the legal requirements, tax implications, and potential restrictions is crucial. The Golden Visa program has further simplified the process for non-EU citizens, offering not just property ownership but also residency benefits.

As with any significant investment, especially in a foreign country, it’s essential to approach the process with caution and seek expert advice. By doing so, you can ensure that your Greek property purchase is not only legally sound but also a rewarding long-term investment.

12. FAQs

Q1: Can foreigners buy any type of property in Greece?

A1: Generally, yes. Foreigners can buy most types of property in Greece, including residential, commercial, and land. However, there are some restrictions on properties in border areas and certain islands for non-EU citizens, which may require special permission from the Greek government.

Q2: Do I need to be physically present in Greece to buy property?

A2: While it’s beneficial to be present, it’s not strictly necessary. You can appoint a legal representative with Power of Attorney to act on your behalf. However, it’s advisable to visit the property and familiarize yourself with the area before making a purchase.

Q3: How long does the property buying process typically take in Greece?

A3: The process can take anywhere from 1 to 3 months, depending on various factors such as the complexity of the transaction, the efficiency of local authorities, and whether any special permits are required. It’s important to allow for potential delays and not rush the process.

Q4: Are there any ongoing costs associated with owning property in Greece?

A4: Yes, property owners in Greece are subject to annual property taxes (ENFIA), which vary based on the property’s value and location. Additionally, you may have to pay utility bills, maintenance costs, and possibly management fees if the property is part of a complex.

Q5: Can buying property in Greece lead to citizenship?

A5: While buying property doesn’t directly lead to citizenship, it can be a path to residency through the Golden Visa program. After seven years of continuous residency, you may be eligible to apply for Greek citizenship, subject to meeting other criteria such as language proficiency and integration into Greek society.

Article reviewed by Liina Tamm, Real Estate and Investment Expert | Consultant for Commercial and Residential Properties | Market Analysis and Strategies for International Investors, on March 2, 2025