Greece remains an attractive destination for foreign investors and private individuals seeking to acquire real estate in Europe. Its natural beauty, Mediterranean climate, cultural heritage, strategic geographical position and membership of the European Union are important factors of interest. In many cases, the purchase of real estate is also connected with permanent or seasonal residence, investment purposes or, subject to specific legal requirements, the acquisition of a residence permit through the Golden Visa programme.
However, the purchase of real estate in Greece by a foreign buyer should not be treated as a simple administrative transaction. It is a process that requires careful legal due diligence, cooperation with a notary, and, where necessary, input from an engineer and a tax advisor, as well as a clear understanding of the buyer’s rights, obligations and potential risks before any binding document is signed.
Who Can Buy Real Estate in Greece
As a general rule, both European Union citizens and third-country nationals may acquire real estate in Greece, either as individuals or, subject to applicable requirements, through legal entities.
Particular attention is required when the property is located in a border area, as in certain cases a special permit or prior review may be required, especially where the buyer is a third-country national or where the transaction is carried out through a corporate structure. This issue should be examined from the outset, before any deposit is paid or any private agreement is signed.
Types of Properties and Selection Criteria
Foreign buyers are often interested in residential properties, such as apartments, houses and villas, commercial properties, such as shops and offices, properties with potential tourism or investment use, as well as rural properties, estates or plots of land.
When selecting a property, the buyer should consider the purpose of the purchase, the location, the value, the actual condition of the property, whether the property may lawfully be used for the intended purpose, and any legal, planning or factual issues affecting it. The commercial selection of the property is usually carried out with the assistance of a real estate agent, while the legal and technical safety of the transaction should be reviewed separately by a lawyer and, where required, by an engineer.
Step 1: Choosing a Lawyer
The first critical step for every foreign buyer is to appoint a lawyer experienced in real estate transactions and property law. The notary drafts and reviews the deed within the scope of his or her duties, but does not act as the buyer’s personal legal advisor.
The buyer’s lawyer reviews the title deeds, checks for encumbrances or claims, communicates with the notary, the seller or the seller’s representative, and ensures, within the scope of the legal review, that the buyer understands what is being acquired and on what terms.
Where the buyer resides abroad, it is often practically useful to sign a power of attorney, allowing the lawyer or another authorised person to act on the buyer’s behalf in Greece, within the limits and for the acts expressly provided for in the power of attorney.
Step 2: Obtaining a Greek Tax Number and Banking Preparation
In order to purchase real estate in Greece, it is necessary to obtain a Greek Tax Identification Number (AFM). The foreign buyer may also need access to the electronic services of the Independent Authority for Public Revenue, where this is required for the completion of the transaction and future tax obligations.
The issuance of an AFM may, depending on the case, be handled through a power of attorney, provided that the power of attorney contains the necessary authorisations.
Opening a Greek bank account should not be presented as a formal requirement in every case; however, it is often practically useful for payment of the purchase price, transaction costs and future property-related obligations, such as utility bills, common expenses or tax liabilities. Issues relating to the source of funds, banking compliance and tax residence should be examined with the appropriate banking or tax advisor.
Step 3: Title Review and Legal Due Diligence
The legal due diligence of the property is the core of a safe real estate purchase. The lawyer requests and reviews the necessary documents, such as title deeds, certificates of registration or transcription, cadastral records, previous deeds and any other documents required depending on the circumstances.
The review examines whether the seller appears to be the owner of the property, whether there is continuity in the chain of title, and whether there are mortgages, prenotations of mortgage, seizures, pending claims, easements, pending registrations or other legal encumbrances that may affect the purchase.
At the same time, the planning and technical aspects of the property —such as the building permit, any unauthorised constructions, legalisations, surface areas, permitted uses and the Electronic Building Identity— must be reviewed by an engineer. The lawyer assesses the legal consequences of any findings, but does not replace the technical review, which falls within the engineer’s field of expertise.
Failure to carry out full due diligence before the buyer becomes committed may result in delays, additional costs, cancellation of the transaction or subsequent legal disputes.
Step 4: Private Agreement and Deposit
Following the initial review, and provided that the parties agree on the main terms, a private agreement or preliminary agreement may be drafted, setting out the purchase price, method of payment, deadlines, obligations of the parties and the conditions under which the final notarial deed will be signed.
Any payment made before the final deed must be treated with particular care. In practice, the parties may agree on a deposit or earnest money, but the legal consequences in case of withdrawal or failure to complete the transaction depend on the exact wording of the agreement. It should not be assumed that every amount paid before the final deed has the same legal effect, or that it is automatically refundable or forfeited in a specific way.
For this reason, no payment should be made before legal due diligence has been carried out and before there is a clear written agreement on what exactly is being paid, under what conditions and with what consequences.
Step 5: Tax Obligations before the Deed
Before the final notarial deed is signed, a Real Estate Transfer Tax declaration is submitted and the corresponding tax is paid by the buyer. The relevant process is now carried out to a significant extent electronically, with the involvement of the notary and the acceptance of the parties where required.
The Real Estate Transfer Tax is, as a general rule, calculated at a rate of 3% on the taxable value of the property. In addition to this tax, the buyer should take into account notarial fees, registration or transcription fees, legal fees, any engineer’s fees and other expenses depending on the characteristics of the transaction.
In special cases, such as the purchase of a newly built property from a developer or business entity, the applicable VAT regime or any suspension of VAT must be examined separately. This issue has tax implications and should be reviewed in cooperation with the notary and, where necessary, a tax advisor.
Step 6: Signing the Final Notarial Deed
The final sale and purchase deed is signed before a notary. Before signing, the buyer’s lawyer should carry out a final legal check to confirm that no new encumbrance or other change has occurred that could affect the property.
The purchase price must be paid in a manner that is compatible with applicable law, the notary’s requirements, banking compliance rules and, where the transaction is connected with a Golden Visa application, the specific requirements applicable to proof of the investment.
If the parties agree that part of the purchase price will be paid after signing, this must be clearly reflected in the deed and it should be examined whether a subsequent notarial deed of payment or other form of security is required.
Step 7: Registration with the Cadastre or Transcription with the Land Registry
After the deed has been signed, the next step is registration of the deed with the competent Cadastral Office or, where the previous system still applies, transcription with the competent Land Registry.
Registration or transcription is an essential stage of the transaction, as the acquisition of a real right must be completed in accordance with the applicable publicity requirements. In several cases, the process may be carried out electronically, depending on the competent office and the type of deed.
The buyer should obtain the relevant certificates of registration or transcription and keep a complete file with the deed and all supporting documents.
Golden Visa and Real Estate Investment in Greece
For third-country nationals, the purchase of real estate in Greece may, subject to specific conditions, be connected with an application for an investor residence permit, commonly known as the Golden Visa.
Under the current framework, for certain areas, such as the Region of Attica, the Regional Unit of Thessaloniki, the Regional Units of Mykonos and Thira, and islands with a population of more than 3,100 inhabitants, the minimum investment threshold is EUR 800,000. For the remaining areas of Greece, the minimum threshold is EUR 400,000.
In these main categories, the investment must concern one property, while for built property a minimum surface area of 120 sq.m. of main spaces is required. There are also special categories with a different minimum amount, such as properties converted into residential use or listed buildings under restoration, which require specific review before any commitment is made.
It is also important that properties acquired for the granting or renewal of an investor residence permit are subject to restrictions on short-term rentals within the sharing economy framework and on subleasing, with specific distinctions depending on the category of investment. For this reason, anyone purchasing property for Golden Visa purposes should review not only the value and location, but also the use, surface area, method of payment and future exploitation of the property.
Frequently Asked Questions (FAQ)
Can any foreigner buy real estate in Greece?
As a general rule, yes. European Union citizens and third-country nationals may acquire real estate in Greece. However, in certain border areas, a special permit or prior review may be required, especially for third-country nationals. This issue should be examined before any commitment is made.
Do I need a lawyer or is the notary sufficient?
The notary has an institutional role in drafting and completing the deed, but does not act as the buyer’s exclusive legal advisor. The lawyer represents the buyer’s interests, reviews the title deeds, identifies legal risks and advises the client before any binding document is signed.
What is a power of attorney and why is it useful?
A power of attorney is a notarial deed by which the buyer authorises another person, usually the buyer’s lawyer or another trusted representative, to act on his or her behalf in Greece. It is particularly useful when the buyer resides abroad and cannot be physically present at every stage of the process.
How long does it take to complete the purchase?
The time required depends on the completeness of the documents, the condition of the title, the technical review, the cooperation of the parties and the speed of the competent authorities. In straightforward cases the process may be completed relatively quickly, while cases involving legal, planning or tax issues require more time.
What taxes and expenses are borne by the buyer?
The main tax is the Real Estate Transfer Tax, which is generally calculated at a rate of 3% on the taxable value. In addition, there are notarial fees, registration or transcription fees, legal fees, possible engineer’s fees and other expenses. The total cost should be calculated individually for each transaction and not on the basis of generic estimates.
What is a deposit or earnest money and what happens if the transaction is not completed?
A deposit or earnest money is an amount that may be paid before the final deed. The consequences in case of withdrawal or failure to complete the purchase depend on the exact legal nature of the amount and the wording of the relevant agreement. For this reason, no amount should be paid without prior legal review and clear written terms.
Can I buy real estate in Greece through a company?
Yes, a foreign investor may acquire real estate through a Greek or foreign company, subject to applicable requirements. The choice of corporate structure has legal, tax and practical consequences and should be examined by a lawyer in cooperation, where necessary, with a tax advisor.
What is the Golden Visa and how is it connected with real estate purchase?
The Golden Visa is an investor residence permit that may be granted to third-country nationals who make an eligible investment in Greece, including through the purchase of real estate. Eligibility depends on the value, location, surface area, use of the property, method of payment and the specific legal requirements applicable at the time.
What is reviewed during title due diligence?
Title due diligence examines whether the seller is the lawful owner, whether there is continuity in the chain of title, and whether the property is burdened with mortgages, prenotations, seizures, easements, claims or other third-party rights. This review is essential for the safety of the transaction and should be carried out before the buyer becomes finally committed.
Conclusion
The purchase of real estate in Greece by a foreign buyer can be completed safely, provided that it is properly organised from the outset. The selection of the property, title due diligence, tax and banking preparation, technical review and proper notarial process are critical stages that should not be underestimated.
Our office provides legal support to foreign buyers and investors in real estate transactions in Greece, from the initial legal review to the completion of the registration of the deed with the Cadastre, in cooperation with the appropriate professionals where required.
This article is for informational purposes only and does not constitute legal advice. Each case requires an individual assessment, based on its specific facts and the applicable legal framework. For tailored legal advice, please contact our office.
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