Navigating Legal Restrictions for Foreign Buyers in Greece: Complete Guide 2023

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Introduction: The Growing Appeal of Greek Property

Dreaming of a sun-drenched villa overlooking the Aegean? You’re not alone. Greece’s property market has experienced a remarkable renaissance, with foreign investment increasing by 34.5% in the past two years alone. But beneath the Mediterranean allure lies a complex web of regulations that demands careful navigation.

The good news? Greece generally welcomes foreign investment in real estate—with some critical caveats. While mainland properties and many islands offer relatively straightforward purchase paths, border regions and certain strategic areas come with restrictions that can catch uninformed buyers off guard.

“The Greek property market represents one of Europe’s most promising investment landscapes, but success hinges on understanding the nuanced legal framework,” explains Eleni Karamalegou, a property law specialist with the Athens Bar Association. “What appears as bureaucratic red tape often serves as essential protection for both the buyer and Greek national interests.”

This guide cuts through the complexity to deliver precisely what you need to know. Whether you’re considering a holiday home in Santorini, a retirement villa in Crete, or an investment property in Athens, we’ll map the legal terrain that stands between you and your Greek property dreams.

Legal Framework for Foreign Buyers

Greece’s approach to foreign property ownership reflects both its openness to international investment and its concerns about strategic national interests. The fundamental principle is straightforward: most foreign nationals can purchase property with similar rights to Greek citizens—but with some geographic exceptions and procedural differences.

Border Area Restrictions

The most significant restriction applies to properties in what Greece designates as “border areas” (παραμεθόριες περιοχές). These regions, established for national security reasons, include:

• Land borders with Albania, North Macedonia, Bulgaria, and Turkey
• Certain islands near the Turkish coastline (including parts of Rhodes, Kos, and Lesvos)
• The prefectures of Dodecanese, Evros, Thesprotia, Kastoria, Kilkis, Lesvos, Florina, Chios, and Samos
• Specific municipalities within Ioannina, Drama, Serres, Xanthi, and Rhodope

In these areas, non-EU citizens face substantial restrictions, while EU citizens encounter more limited barriers. Let’s break down who can buy what:

Real-world scenario: Michael, a British citizen (post-Brexit), found his dream property on Lesvos, unaware it was in a border area. After submitting his purchase application, he discovered the property required special approval from the Greek Ministry of Defense. The process took nine months, considerably lengthening his purchase timeline and increasing legal costs by approximately €3,500.

The key takeaway: Always verify whether your property of interest lies within a border area before making any financial commitments or signing preliminary agreements.

Golden Visa Program Requirements

For many non-EU citizens, Greece’s Golden Visa program represents the most straightforward path to property ownership. Introduced in 2013 and modified several times since, the program offers five-year renewable residence permits to non-EU nationals who invest at least €250,000 in Greek real estate (with increased thresholds of €500,000 in certain high-demand areas as of May 2023).

The program has been particularly popular among Chinese, Turkish, Russian, and Middle Eastern investors, with over 9,500 primary applicants receiving permits since its inception. Golden Visa holders face fewer restrictions when purchasing in border areas, though approvals are still required.

However, the program comes with specific legal requirements:

• The property investment must be maintained throughout the residence permit period
• The permit does not automatically grant the right to work in Greece
• Time spent in Greece under the permit does not necessarily count toward citizenship eligibility
• Annual proof of health insurance coverage is required
• The property cannot be leased through short-term rental platforms in certain municipalities without additional licenses

The Property Purchase Process for Non-Residents

For foreign buyers, purchasing property in Greece follows a structured process with several critical distinctions from the process for locals. Let’s walk through the journey:

1. Preliminary Research and Property Selection: Identify properties of interest, keeping border area restrictions in mind.
2. Obtain a Greek Tax Number (AFM): This is mandatory for all property transactions and requires an appointment at the local tax office with your passport and completion of the relevant forms. Non-residents must appoint a tax representative in Greece.
3. Open a Greek Bank Account: Required for the transaction and future property expenses. Foreign buyers must provide additional documentation on the source of funds.
4. Border Area Verification: Your lawyer should verify whether the property lies within a restricted border area and initiate special permission applications if necessary.
5. Title Search and Legal Checks: Your lawyer conducts comprehensive due diligence at the Land Registry and Cadastre Office.
6. Preliminary Agreement and Deposit: Typically 10% of the purchase price is paid as a deposit upon signing the preliminary agreement.
7. Special Approvals (if applicable): For border areas or properties with special designations (historical, beachfront, forest adjacent).
8. Final Contract and Completion: Signed before a notary public, with all parties (or their legal representatives with power of attorney) present.
9. Property Registration: The transfer must be registered at the local Land Registry and Cadastre Office within statutory deadlines.

Case study: Sara, a Canadian entrepreneur, purchased a €320,000 villa in Crete in 2022. Her experience highlights the importance of professional guidance:

“I almost lost my dream property by underestimating the complexity of the process. The property had a small section that wasn’t properly registered in the national cadastre, which could have created significant legal issues down the line. My lawyer caught this during due diligence and negotiated with the seller to resolve the discrepancy before proceeding. Without that intervention, I’d have inherited a complicated legal problem that could have cost thousands to resolve.”

Essential Documentation and Legal Requirements

Successful property acquisition in Greece depends on assembling the correct documentation. Foreign buyers face additional documentation requirements beyond those for locals. Here’s what you’ll need:

• Personal Identification: Passport (with certified translation for non-Latin alphabet countries)
• Greek Tax Number (AFM): Applied for at the local tax office
• Tax Representative Declaration: For non-residents
• Bank Documents: Evidence of funds transfer and account statements
• Property Documents: Title deeds, topographic diagrams, energy performance certificate
• Special Permits: For border areas or properties with special designations
• Declaration of Property Assets: Known as “E9 form”
• Power of Attorney: If not personally present for all steps

For Golden Visa applicants, additional documentation includes:

• Health insurance covering the cost of medical and pharmaceutical care
• Criminal record check from the country of origin (apostilled)
• Medical certificate from a Greek public hospital
• Proof that the investment funds came from abroad

Expert tip: “The most common pitfall I see among foreign buyers is failing to properly investigate the legal status of the property,” says Nikolaos Parcharidis, a real estate attorney specializing in foreign investments. “Greece has only recently completed its land registry, and many properties still have unclear boundaries or legacy issues. A thorough title search is non-negotiable.”

Taxation and Financial Considerations

Property Taxes

Foreign property owners in Greece face the same tax obligations as locals, with a few critical distinctions. The primary taxes include:

1. Unified Property Tax (ENFIA): Annual tax based on the property’s size, location, age, and other characteristics. Rates start at approximately €2-3 per square meter for standard properties but can increase significantly for high-value or large properties. Foreign owners must pay this annually, even if not residing in Greece.
2. Special Property Tax for Foreign Companies: Foreign legal entities owning Greek property may be subject to an annual special property tax of 15% of the property’s value unless they meet specific exemption criteria.
3. Income Tax on Rental Income: Rental income is taxed on a progressive scale:
   • Up to €12,000: 15%
   • €12,001 – €35,000: 35%
   • Above €35,000: 45%

   Non-resident landlords must file annual tax declarations in Greece.

4. Capital Gains Tax: Currently suspended but expected to be reintroduced. When active, this applies to properties acquired after January 1, 2006, with a 15% tax rate on the difference between purchase and sale prices.

Foreign owners should also be aware of potential taxation in their home country. Many countries have double taxation treaties with Greece, but specific arrangements vary significantly.

Transaction Costs

Beyond the purchase price, foreign buyers should budget for significant transaction costs:

• Property Transfer Tax: 3.09% of the property’s value (reduced to 1.09% for primary residences under certain conditions, though rarely applicable to foreign buyers)
• Notary Fees: Approximately 0.8-1% of the property value
• Legal Fees: Typically 1-2% of the property value (higher for complex cases or border properties)
• Real Estate Agent Commission: 2-3% (plus 24% VAT) of the property value, typically paid by the buyer
• Land Registry and Cadastre Fees: Approximately 0.5-0.7% of the property value
• Technical Inspection Fees: €300-800 depending on property size
• Bank Charges for International Transfers: Vary by institution but can be substantial

Pro tip: “Many foreign buyers underestimate total transaction costs by focusing solely on the property transfer tax,” notes Maria Papandreou, a property tax consultant. “In reality, additional fees and taxes typically add 7-10% to the purchase price. Budget accordingly to avoid financial stress during the purchase process.”

Common Challenges and How to Overcome Them

Foreign buyers frequently encounter specific challenges when purchasing Greek property. Here’s how to address the most common issues:

Challenge 1: Navigating Border Area Restrictions

The approval process for border area properties can be lengthy and unpredictable. To improve your chances:

• Start the permission process as early as possible, ideally before signing any agreements
• Work with a lawyer experienced specifically in border area purchases
• Consider alternative properties outside restricted zones if time is a factor
• Never make non-refundable deposits on border area properties without special condition clauses

Challenge 2: Unclear Property Boundaries and Titles

Greece’s ongoing cadastral survey means property boundaries sometimes remain ambiguous.

• Commission an independent survey to verify property boundaries
• Ensure your lawyer performs thorough research at both the Land Registry and Cadastre
• Consider title insurance (though still uncommon in Greece)
• Include contractual protections against potential boundary disputes

Real-world example: David and Lisa, Australian investors, purchased a villa near Nafplio in 2021. Their due diligence revealed that a small portion of the garden technically belonged to the neighboring property, despite having been used by their seller for decades. Rather than abandoning the purchase, they negotiated a €15,000 price reduction to account for the reduced land and potential future reconciliation costs with the neighbor.

Challenge 3: Construction Legality Issues

Many Greek properties have unauthorized additions or modifications that may require legalization.

• Request verification of all building permits and licenses
• Commission a technical inspection by an engineer familiar with local building regulations
• Factor legalization costs into your budget or purchase negotiations
• Include contract clauses that place legalization responsibility on the seller before completion

Challenge 4: Currency and Banking Complications

Moving large sums internationally for property purchases can trigger additional scrutiny.

• Plan transfers well in advance of completion dates
• Document the source of funds clearly
• Consider using specialized currency transfer services rather than traditional banks
• Work with Greek banks experienced in handling foreign property purchases

Your Greek Property Journey: Strategic Pathways Forward

Navigating the legal landscape for foreign property ownership in Greece requires strategic thinking and careful planning. As you move forward, consider these action-oriented steps to secure your Mediterranean investment:

1. Assemble Your Expert Team First
   • Engage a lawyer with specific experience in foreign purchases, preferably with previous clients from your country
   • Connect with an accountant familiar with international tax implications
   • Find a reputable real estate agent with foreign buyer experience
   • Consider a property manager if you plan to rent the property
2. Conduct Pre-Purchase Due Diligence
   • Visit multiple properties and regions before committing
   • Research seasonal factors that might affect property enjoyment
   • Analyze rental potential with realistic occupancy projections
   • Verify utility connections and infrastructure reliability
3. Prepare Your Financial Framework
   • Establish a Greek bank account early in the process
   • Budget for all transaction costs plus a 5% contingency
   • Plan for ongoing property management and maintenance
   • Set up efficient mechanisms for handling Greek property taxes
4. Create a Property Ownership Roadmap
   • Define your long-term goals for the property (personal use, rental, investment)
   • Consider ownership structures that align with your estate planning
   • Develop a maintenance and management strategy
   • Create a five-year financial projection including all carrying costs

Remember that successful foreign property ownership in Greece isn’t simply about navigating legal restrictions—it’s about creating a sustainable ownership strategy that aligns with your financial goals and lifestyle aspirations. The legal framework provides the foundation, but your ongoing management approach determines the ultimate success of your Greek property investment.

As Greece continues to evolve its property regulations to balance national interests with foreign investment opportunities, staying informed about legislative changes remains crucial. The country’s growing dependence on foreign investment suggests a trend toward streamlining procedures for international buyers, but border area restrictions are likely to remain a constant feature of the legal landscape.

What Greek property dream are you pursuing, and how will you adapt these strategies to your specific situation? The Mediterranean awaits those prepared to navigate its legal waters with confidence and clarity.

Frequently Asked Questions

Can a foreigner buy any property in Greece, or are there restrictions?

Foreigners can purchase most properties in Greece with similar rights to Greek citizens, with the significant exception of properties in designated “border areas.” These areas, which include land borders and certain islands near Turkey, require special permissions that vary depending on whether the buyer is an EU citizen or not. EU citizens face fewer restrictions but still need committee approval, while non-EU citizens need authorization from the Greek Ministry of Defense—a process that can take 6-12 months with no guarantee of approval. Before making any commitments, foreign buyers should verify whether their property of interest lies within these restricted zones.

What are the additional costs beyond the property price when buying in Greece?

Foreign buyers should budget for transaction costs totaling approximately 7-10% of the purchase price. These include property transfer tax (3.09% of the property’s value), notary fees (0.8-1%), legal fees (1-2%), real estate agent commission (2-3% plus VAT), land registry and cadastre fees (0.5-0.7%), and technical inspection costs (€300-800). Additionally, foreign buyers face ongoing annual costs including the Unified Property Tax (ENFIA) and potentially higher property management fees. Golden Visa applicants should also budget for application fees and related expenses which typically range from €2,000-5,000 depending on the number of family members included.

How has the Golden Visa program changed, and is it still worthwhile for property investors?

Greece’s Golden Visa program has undergone significant changes, most notably the increase in minimum investment amounts from €250,000 to €500,000 in high-demand areas including Athens, Thessaloniki, Mykonos, and Santorini (effective May 2023). The program remains worthwhile for non-EU investors seeking European residency, offering visa-free travel throughout the Schengen Zone and potential rental returns. However, the program’s value proposition has shifted toward mid-tier markets where the €250,000 threshold still applies. Investors should also note that the residence permit doesn’t automatically grant the right to work in Greece, and time spent under the permit doesn’t necessarily count toward citizenship eligibility. For pure investment purposes, projected rental yields (currently averaging 4-6% in popular areas) and potential appreciation should be carefully analyzed against the increased entry costs.

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