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Greece, with its stunning islands, rich culture, and affordable real estate, has become a hotspot for expats looking to purchase a slice of Mediterranean paradise. Whether you’re envisioning a villa overlooking the Aegean or a charming apartment in Athens, buying property in Greece can be an excellent investment.

However, navigating the Greek legal system as a foreigner can be challenging. Without a clear understanding of the rules and requirements, you risk delays, unexpected costs, or even invalid transactions. This guide highlights the key legal considerations for expats buying property in Greece and offers practical tips to ensure a smooth purchasing process.

Can Expats or non- residents Buy Property in Greece?

Yes, expats can buy property in Greece, but the process differs depending on your nationality.

• EU Citizens: Citizens of EU/EEA countries face no restrictions when purchasing property in Greece.
• Non-EU Citizens: While non-EU citizens can buy property, they may face restrictions in border regions and islands classified as “sensitive” (e.g., Crete or Rhodes). To purchase property in such areas, non-EU citizens must apply for special permission from the Ministry of Defense.

2. Obtain a Greek Tax Identification Number (AFM)

Before signing any contracts, you’ll need to obtain a Greek tax identification number (AFM). This number is essential for all financial transactions in Greece, including property purchases.

How to Get an AFM?

• Visit the local tax office with your passport and proof of residence.
• Appoint a tax representative if you’re not residing in Greece.

Your AFM will also be used for paying property taxes, so make sure to keep it handy for future transactions.

Due Diligence: Check the Property’s Legal Status

This step is critical to ensure there are no legal complications with the property you’re purchasing.

• Ownership Verification: Confirm that the seller has full legal ownership of the property by checking the Land Registry or Cadastre records.
• Debt and Liens: Ensure the property is free from outstanding mortgages, liens, or legal disputes.
• Zoning Restrictions: Check for zoning laws, as some properties may be classified for agricultural or commercial use only.

4. Signing the Preliminary Agreement

Once due diligence is complete, the next step is to sign a preliminary agreement (if applicable). This document outlines the basic terms of the sale, such as:

• The agreed purchase price.
• Payment terms and timelines.
• Obligations for both the buyer and seller.

At this stage, a deposit (typically 10% of the purchase price) may be required to secure the property.

Understand the Associated Costs

Buying property in Greece involves more than just the purchase price. Be prepared for additional costs, including:

• Property Transfer Tax: Usually 3% of the property’s taxable value.
• Notary Fees: Approximately 1-2% of the property’s value.
• Legal Fees: Typically 1-2% of the purchase price.
• Real Estate Agent Fees: Around 2% of the property value, plus VAT.
• Registration Fees: Costs for registering the property at the Land Registry.

6. Finalize the Sale with a Notary

In Greece, all property transactions must be completed in the presence of a notary. The notary ensures the transaction is legally binding and oversees the signing of the final sale agreement.

What Happens at This Stage?

• You’ll pay the remaining balance of the purchase price.
• The notary records the transaction in the Land Registry or Cadastre, officially transferring ownership to you.

Ongoing Responsibilities: Property Taxes

After purchasing a property, expats are responsible for annual property taxes in Greece. The tax rate depends on the size, location, and value of the property.

• ENFIA Tax: This is the primary property tax in Greece, assessed annually.
• Income Tax on Rental Properties: If you plan to rent out your property, income from rentals is subject to taxation in Greece.

8. Considering the Golden Visa Program

If your property purchase exceeds €250,000, you may qualify for the Greek Golden Visa Program, one of the most attractive residency-by-investment schemes in Europe.

Benefits of the Golden Visa Program:

• Five-year residency for you and your family, renewable indefinitely.
• The ability to travel visa-free throughout the Schengen Zone.
• No minimum stay requirement in Greece to maintain your residency status.

Eligibility Tip: To qualify, the purchase must meet specific legal and financial criteria. Consult with a lawyer to confirm eligibility and guide you through the application process.

Avoiding Common Pitfalls

Buying property in a foreign country comes with potential risks. Some common issues expats encounter include:

• Hidden Debts Attached to the Property: Ensure there are no outstanding taxes, mortgages, or liens tied to the property.
• Misleading Property Descriptions: Verify that the property matches its advertised condition, size, and zoning status.
• Bureaucratic Delays: Missing or incomplete paperwork can cause significant delays in the purchasing process.

How to Avoid These Issues:

• Conduct thorough due diligence.
• Partner with experienced professionals, such as real estate agents and legal advisors.
• Always work with licensed notaries and lawyers to verify every step of the process.

Wrapping Up: A Smooth Path to Property Ownership

Owning property in Greece is a rewarding experience, offering access to one of the most beautiful regions in the world. However, understanding the legal requirements and taking the time to address potential risks is essential to ensure a smooth transaction.

By obtaining the right documentation, budgeting for additional costs, and working with experienced professionals, you can avoid unnecessary headaches and make your dream home in Greece a reality. From handling legal paperwork to protecting your investment, ExpatLaw.gr specializes in guiding expats through every step of the property buying process.