Safeguarding Your Greek Property Dreams: How to Avoid Scams When Buying in Greece

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Table of Contents

• The Allure and Risks of Greek Property Investment
• Common Property Scams in Greece
• Understanding the Greek Legal Framework
• Essential Due Diligence Steps
• Working with Trusted Professionals
• Red Flags and Warning Signs
• Real-Life Scenarios: Lessons Learned
• Digital Security When Making Transactions
• Comparative Risks: Urban vs. Island Properties
• Your Anti-Scam Action Plan for Greek Property Purchase
• Frequently Asked Questions

The Allure and Risks of Greek Property Investment

Those whitewashed walls against the deep blue Aegean, olive groves stretching to the horizon, or a chic Athens apartment with a view of the Acropolis—buying property in Greece represents not just an investment, but often the fulfillment of a lifelong dream. Yet beneath this Mediterranean idyll lurks a complex property market where unsuspecting foreign buyers can become targets for sophisticated scams.

Let’s be crystal clear: purchasing Greek property isn’t inherently risky—thousands complete successful, legitimate transactions every year. But the combination of language barriers, unfamiliar legal systems, and occasionally less-than-transparent business practices creates vulnerabilities that opportunists are all too ready to exploit.

“The Greek property market operates with some unique characteristics that foreign buyers often misunderstand,” explains Maria Papandreou, a real estate attorney based in Athens. “What seems straightforward in your home country might involve additional layers of verification and documentation in Greece.”

According to the Greek Property Federation, approximately 12% of foreign property buyers report encountering some form of attempted fraud or misrepresentation during their purchase journey. This isn’t meant to deter you—rather, it’s a call to proceed with informed caution.

Common Property Scams in Greece

Title Deed Irregularities

Perhaps the most pervasive issue involves properties with problematic title deeds (τίτλοι ιδιοκτησίας). Unlike many Western countries, Greece’s land registry system has historically been fragmented, with the National Cadastre project still ongoing in some regions.

Unscrupulous sellers might offer properties with:

• Incomplete ownership documentation
• Undisclosed co-owners who haven’t consented to the sale
• Outstanding liens or encumbrances
• Building code violations that transfer to the new owner

Quick Scenario: Consider the case of James and Sarah, a British couple who fell in love with a stone cottage on Crete. The “owner” presented seemingly legitimate paperwork and offered an attractive price if they would complete the transaction quickly, without involving “expensive lawyers.” After transferring a substantial deposit, they discovered the seller only owned one-third of the property—the remaining shares belonged to siblings living abroad who had no intention of selling.

The “Special Price for Quick Sale” Deception

This classic pressure tactic involves creating artificial urgency. You’ll hear phrases like “I have another buyer coming tomorrow” or “This price is only available if you decide today.” The goal? To rush you into committing before you’ve completed proper due diligence.

The urgency is almost always manufactured. Legitimate Greek property transactions typically take 2-3 months to complete properly—anyone pushing for immediate commitment should trigger your skepticism.

Phantom Development Promises

This sophisticated scam targets buyers interested in areas with development potential. Sellers might claim:

• “The government is about to approve rezoning this agricultural land for residential use”
• “A major infrastructure project (airport/marina/resort) is coming to this area, which will double property values”
• “Building permits are just a formality in this region”

The reality? Land use changes in Greece follow strict procedures, information about major development projects is publicly available, and building permits—especially in areas with archaeological significance, environmental protections, or near coastlines—can be exceptionally difficult to obtain.

Understanding the Greek Legal Framework

The Evolving Property Registration System

Greece has been transitioning from the older Mortgage Registry (Υποθηκοφυλακείο) to the new National Cadastre (Κτηματολόγιο). This transition creates both challenges and opportunities for buyers:

Challenge: During the transition period, properties might have incomplete or outdated registration status.

Opportunity: Properties registered in the new Cadastre generally have clearer ownership records, making them safer purchases.

Approximately 70% of Greek property is now registered in the National Cadastre system, but coverage varies by region. Before pursuing any purchase, verify which system applies to your target property and what that means for your verification process.

Foreign Buyer Restrictions

Contrary to some misinformation, EU citizens face no significant restrictions when purchasing Greek property. However, non-EU citizens must navigate additional requirements, particularly for properties in border areas and certain islands, which require special permissions from regional authorities.

These “border areas” include regions adjacent to Albania, North Macedonia, Bulgaria, Turkey, and many islands near the Turkish coast. If your dream property falls within these zones, factor in additional permit application time and don’t let sellers pressure you to circumvent these legal requirements.

Essential Due Diligence Steps

Ever felt overwhelmed by the complexity of international property transactions? You’re not alone. Let’s break down the essential verification steps that can protect your investment:

Property Verification Checklist

1. Title Search: Have your lawyer conduct a thorough title search going back at least 20 years (the standard legal requirement in Greece).
2. Tax Verification: Check for outstanding property taxes (ENFIA) or other tax liabilities that could transfer with the property.
3. Building Permit Verification: Ensure all structures have proper building permits and haven’t been designated as illegal constructions.
4. Boundary Confirmation: Compare the property’s actual boundaries with those in official documents, as discrepancies are common.
5. Utility Connections: Verify that utility connections (water, electricity) are legal and properly documented.

Pro Tip: Consider commissioning a technical report from a civil engineer, especially for older properties or those with evident alterations. This report can identify structural issues, illegal modifications, or discrepancies between the property’s actual state and its official documentation.

The Critical Role of the Tax Number (AFM)

Before conducting any property transaction in Greece, you must obtain a Greek tax number (AFM – Αριθμός Φορολογικού Μητρώου). This process requires:

• Appointment at the local tax office (Εφορία)
• Passport and proof of home country address
• Completion of specific tax forms
• Appointment of a tax representative if you’re not an EU resident

Be wary of anyone offering to “handle this for you” without proper legal credentials. Your AFM is linked to all your financial activities in Greece and should be obtained through official channels with appropriate legal guidance.

Working with Trusted Professionals

Selecting the Right Legal Representation

“The single most important decision you’ll make in your Greek property journey is choosing the right lawyer,” emphasizes Nikos Stavroulakis, a property law specialist in Thessaloniki. “Not just any lawyer, but one with specific expertise in real estate transactions and, ideally, experience working with foreign buyers.”

When selecting legal representation:

• Choose a lawyer independent from the seller or estate agent
• Verify they’re a member of the local Bar Association
• Check if they’ve handled transactions for other foreign nationals
• Ensure they speak your language fluently or work with qualified translators
• Ask about their familiarity with the specific region where you’re buying

Real Estate Agents: Selection Criteria

In Greece, real estate agents must be licensed and registered with their local professional association. Before working with any agent:

• Ask for their license number and verify it with the relevant association
• Request references from previous foreign clients
• Clarify their fee structure upfront (typically 2% from both buyer and seller)
• Discuss their experience with international transactions

Unlike some countries, dual agency (representing both buyer and seller) is common in Greece. While not inherently problematic, it requires additional transparency about whose interests the agent primarily represents.

Red Flags and Warning Signs

Developing your “scam radar” means recognizing subtle warning signs that might indicate potential issues. Here are key red flags that should prompt additional scrutiny:

Communication Patterns That Signal Risk

• Resistance to written documentation: Preference for verbal agreements over written contracts or specifications
• Discouraging professional consultation: Suggestions that lawyers are “unnecessary expenses” or that you should use “their lawyer” exclusively
• Inconsistent details: Information that changes between conversations or differs between verbal claims and documentation
• Unusual payment requests: Suggestions to make payments to personal accounts rather than escrow or official business accounts

Pricing Anomalies

While everyone loves a bargain, in Greek real estate, prices that deviate significantly from market norms often signal underlying problems:

• Properties priced 30%+ below comparable listings often have title issues or undisclosed problems
• Unusually high prices without corresponding quality or location advantages may indicate money laundering schemes
• Hidden fees revealed late in the transaction process often compensate for initially attractive pricing

To establish realistic price expectations, consult multiple sources including the Bank of Greece’s property price indices, local real estate listings, and property tax valuation bands (αντικειμενικές αξίες) for the area.

Real-Life Scenarios: Lessons Learned

The Heritage House Nightmare

Elena, an American with Greek heritage, purchased her grandfather’s village home from distant relatives who claimed to have inherited it. After spending €45,000 on renovations, she discovered that while her relatives owned the building, the land beneath it belonged to the local municipality—a common situation in older Greek villages where building ownership and land ownership were sometimes separated.

Key Lesson: Always verify both building and land ownership independently, especially with older properties in rural areas.

The Development Dream That Wasn’t

Michael, a German investor, purchased a large coastal plot after sellers showed him unofficial “plans” for a tourist development zone designation. Two years later, the area was instead designated as an environmental protection zone, severely limiting development possibilities.

Key Lesson: Verify all claims about future development potential with official government sources, not seller-provided documentation.

Digital Security When Making Transactions

As property transactions increasingly involve digital elements, new vulnerabilities emerge. Protect yourself by:

Secure Payment Protocols

• Never wire money based solely on email instructions
• Verify banking details via phone calls to numbers you’ve independently confirmed
• Consider using escrow services for major payments
• Be wary of last-minute changes to payment instructions—a common sign of email compromise

Document Verification in the Digital Age

With sophisticated document editing technology widely available, verification becomes crucial:

• Request to see original documents in person when possible
• Have your lawyer verify document authenticity with issuing authorities
• Be suspicious of documents shared as editable files rather than secured PDFs
• Consider using digital verification services that authenticate official documents

Comparative Risks: Urban vs. Island Properties

Different property types and locations in Greece present varying risk profiles. Understanding these differences can help you apply appropriate due diligence:

Visualization: Relative Risk Assessment by Property Type

Note: Risk percentages represent relative potential for encountering documentation issues or ownership complications, not absolute risk of fraud.

Your Anti-Scam Action Plan for Greek Property Purchase

Let’s transform all this information into a practical, sequential roadmap for your Greek property journey:

Before Property Viewing

1. Research target regions and establish realistic price expectations
2. Obtain your Greek tax number (AFM)
3. Identify and engage an independent lawyer with real estate expertise
4. Set up a Greek bank account for eventual transactions
5. If non-EU citizen, check border area restrictions for your target regions

During Property Selection

1. Request complete property documentation before making any commitments
2. Have your lawyer conduct preliminary title searches on properties of interest
3. Verify the seller’s identity and right to sell through official documentation
4. Check the property’s status in the local urban planning office
5. For existing buildings, consider commissioning a technical inspection

Before Signing Any Agreement

1. Ensure all contracts are bilingual if you don’t speak Greek fluently
2. Verify that the preliminary agreement includes contingencies protecting your deposit
3. Have your lawyer explain all tax implications of the purchase
4. Confirm all property measurements and boundaries match official documents
5. Secure written documentation of any promises or claims made by the seller

During the Transaction

1. Never make payments directly to sellers without proper legal oversight
2. Ensure funds are held in escrow until all conditions are met
3. Personally attend the final signing at the notary office when possible
4. Verify all utility accounts are properly transferred
5. Register your new ownership with the appropriate property registry immediately

Pro Tip: Create a dedicated documentation folder—physical and digital—for each property you seriously consider. This organized approach will help you track the completion of each verification step and maintain important reference documents.

Navigating Your Greek Property Journey: Beyond the Pitfalls

The path to Greek property ownership certainly contains potential hazards, but with proper preparation, they’re largely avoidable. The key isn’t approaching the process with suspicion, but rather with informed diligence—understanding that different systems require different precautions.

Remember that thousands of international buyers successfully navigate Greek property purchases every year. Those who encounter serious problems typically share a common characteristic: they rushed important verification steps or trusted promises without documentation.

As Maria Papandreou notes, “Greece rewards the patient and meticulous buyer. Take your time, follow the proper procedures, and you’ll find that the system, while sometimes bureaucratic, is designed to protect legitimate transactions.”

Your Greek property journey doesn’t need to be defined by fear of scams, but by thoughtful navigation of unfamiliar territory. The extra time invested in proper verification won’t just protect your investment—it will give you the peace of mind to truly enjoy your piece of Mediterranean paradise.

What aspect of your potential Greek property purchase gives you the most concern? By identifying it now, you’ve already taken the first step toward addressing it with appropriate protective measures.

Frequently Asked Questions

Can I buy property in Greece without visiting in person?

Technically yes, but it’s highly inadvisable. While powers of attorney can legally facilitate remote purchases, in-person inspection is crucial for verifying that property conditions match descriptions. If absolutely necessary, consider appointing a trusted representative with property expertise to conduct in-person verification, preferably someone without connection to the seller. Even with this arrangement, plan to visit before finalizing the transaction.

How can I verify if a property has illegal building elements?

This requires multiple verification steps. First, obtain the property’s building permit and plans from the local urban planning office. Then commission a technical inspection by a Greek civil engineer who will compare actual construction with permitted plans. Pay special attention to areas commonly modified without permits: enclosed balconies, basement conversions, and rooftop additions. The Greek government periodically offers legalization programs for minor violations, but major deviations can create long-term legal complications and restrict future renovations.

What’s the safest way to transfer funds for a Greek property purchase?

The safest approach is using an escrow arrangement through a Greek bank, where funds are only released when specific contractual conditions are met. For the preliminary agreement deposit (typically 10%), your lawyer should hold these funds in a dedicated client account until verification steps are completed. Always maintain a clear paper trail of all transfers, avoid cash payments regardless of incentives offered, and never wire money directly to sellers based solely on email instructions. For large transactions, consider using specialized property transaction services that offer buyer protection guarantees.

Article reviewed by Ethan Blackwell, Build-to-Rent (BTR) Pioneer | Institutional-Grade Residential Portfolios, on May 15, 2025