There’s hardly an Israeli who hasn’t toyed with the idea of buying a home in Greece at least once or twice. Whether it’s an apartment in the bustling capital of Athens or a vacation home on one of the exotic islands, the dream of buying a home in Greece as an investment—in a global tourism powerhouse that just happens to be only an hour and a half flight from Israel—is particularly appealing. And when you consider that it’s a vibrant country with golden beaches, turquoise seas, and soul-stirring bouzouki music—well, the offer is downright irresistible.
Well, dreams like buying a home in Greece are meant to come true. And believe it or not, the process isn’t even that complicated. So before you tear your hair out (or in this case, break your plates) and give up on the idea of buying a house or apartment in Greece due to bureaucratic hurdles, “headaches,” and various other concerns—you should take a look at the guide we’ve put together for you on buying a home in Greece.
This is the final call for passengers on the flight to Greece; the engines are already warmed up.
Ready? Yassou, let's go!
Year | Average price per square meter (estimated, in euros) | Year-over-year change (percent) |
2018 | 1,200 | – |
2019 | 1,300 | +8.3% |
2020 | 1,350 | +3.8% |
2021 | 1,400 | +3.7% |
2022 | 2,033 | +45.2% |
2023 | 2,233 | +9.8% |
2024 | 2,492 | 11.6% |
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"The Mortgage Cap"
In the wake of the economic crisis 15 years ago, Greek banks virtually eliminated the option for locals to take out a mortgage to purchase a home in Greece. Although there has been a slight change since then, the ability to obtain a home loan remains extremely limited for Greek residents. Once the “mortgage dam” breaks, the rules of the game will change when it comes to the Greek housing market, and the supply of properties in the country is expected to shrink. Therefore, this is a one-time, time-limited opportunity to buy a home in Greece.
Geographical proximity
They say there’s nothing like seeing something with your own eyes, and Greece has a major advantage over other countries: its geographical proximity, which means you can get from Tel Aviv to Athens in the same amount of time it takes to sit in traffic from Kfar Saba to Tel Aviv—without the stress of the drivers on the Ayalon, of course. The physical proximity to Israel gives buyers greater peace of mind and confidence in the process of purchasing a home in Greece, since this isn’t just a “mere purchase” but an accessible, nearby property that can be viewed both before the purchase and from time to time afterward.
A tourism powerhouse
Greece is known as one of the most popular tourist destinations in the world, attracting an average of one million tourists per week (!). As a result, investing in a home in Greece to use as a vacation rental and earn a good return is a more relevant option than ever.
Golden Visa – One of Greece’s main attractions is the “Golden Visa” program, which allows buyers of properties within a certain price range (€250,000 and up) to receive a five-year European residency visa with an unlimited renewal option (as long as they retain ownership of the property). Residency is granted not only to the investor but also to their family members, including parents and the parents of their spouse. Golden Visa holders can live in any of the European countries included in the Schengen Agreement and receive benefits in the areas of healthcare and education, as well as establish a business in the country. Quite a few Israelis have already taken advantage of the Golden Visa program and purchased apartments in areas designated by the Greek government, and although the minimum investment threshold was recently raised, the Golden Visa program is still considered highly sought-after.
Mediterranean climate
It’s no secret that Greece and Israel are remarkably similar in temperament—both in terms of climate and, even more so, mentality. The Greeks, like us, are considered warm, welcoming, and direct—and, well, there’s no getting around it—loud. “Similarity is one of the greatest predictors of love,” experts and psychologists often claim. And here, too, it is a love story. An age-old romance between two countries and two peoples, each of whom sees a bit of themselves in the other, for better or for worse. One thing is certain: in many ways, Israelis can “feel at home in Greece.” Greek cuisine, by the way, is also very similar to Israeli cuisine and is based on a diet that is not only considered rich and colorful, but also one of the healthiest in the world.
Peace of mind
Given the complex security and economic situation in Israel, many Israelis today feel they need a “safety net”—an apartment overseas that will provide them with peace of mind and the assurance that, even in times of crisis, they have a “place to land.” Whether the goal is simply to get some fresh air and clear one’s head, or to establish a longer-term residence, the geographical factor plays an important role in this case as well, since one need not stray too far from their beloved homeland to achieve this goal.
First, you should review market prices in Greece and determine whether apartment prices align with your available investment capital. In Greece, you can find properties ranging from €70,000 to €1 million or more, with prices depending on location, property size, and whether the property has been renovated. It is also recommended to research the expected return on the property in advance, in order to get the full picture before purchasing the apartment.
The process of finding the right apartment for you can be done either on your own or through a real estate agency or investment firm. This decision is significant because it can determine the nature of the transaction, the quality of the property, and how much time and effort you’ll invest in the purchase process. On the one hand, there’s the desire to save on brokerage fees. On the other hand, purchasing real estate in Greece or in a foreign country is a step that involves quite a bit of bureaucracy and “headaches,” and requires in-depth familiarity with the country’s laws, including relevant tax regulations, as well as with the culture and geography of the destination country. In this sense, there is an advantage to a single, experienced company that brings all the relevant experts together under one management umbrella.
Here are a few key factors to consider at this stage of buying a home in Greece:
*Am I looking for an apartment to live in or as an investment?
*Am I interested in a long-term or short-term lease (vacation rental)?
*Am I interested in a property that will also grant me European residency (a Golden Visa property)?
Clients who prefer to take on the task of finding an investment property themselves should tour properties in Greece. It is recommended to enlist the help of a local real estate agent or someone with in-depth knowledge and familiarity with the leading and “hot” investment areas, including knowledge of the range of rental prices in the area, proximity to public transportation, and proximity to academic institutions. If purchasing through a company, your advisor will handle the process of finding a home in Greece for you. Of course, if the investor wishes to visit and inspect the property before the purchase process begins, that is highly recommended—though not mandatory.
Have you found a property you’d like to buy? Congratulations. Now it’s time to roll up your sleeves and gather all the documents required for the bureaucratic process ahead. During the process, you’ll be required, among other things, to open a local Greek bank account (into which the rent will be paid later) and obtain a Greek tax ID number (AFM).
Required documents:
Valid passport
Certificate of Registration from the Israeli Ministry of the Interior
Confirmation of the Opening of a Bank Account in Greece
Greek Tax Identification Number (AFM)
Proof of ownership of a bank account
Proof of financing or equity
Documents required to open a bank account in Greece: Latest pay stub, latest tax return, birth certificate, passport copy. Some banks may ask you for a “letter of recommendation” from your bank in Israel, which should include details such as your bank account balance, recent account activity, and more. All documents must be translated into Greek. This can also be done through the Greek Embassy in Israel.
Prices vary depending on the condition, size, and exact location of the apartment.
Or, alternatively, a comparison between regions in Greece.
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Once the parties have agreed on the price of the property, a local Greek attorney should draft a contract and, at the same time, conduct a legal review of the property in Greece. A thorough check must be conducted regarding the property’s registration in the Greek Land Registry to ensure that it is indeed registered in the seller’s name and, of course, that there are no debts, liens, or encumbrances registered against it. If you have chosen to make the purchase through an investment firm, this entire process is handled for you, as they have professionals they work with on a regular basis.
Once the checks described in the previous section have been completed and the transaction has been given the “green light,” the property owner and the buyer will sign a contract. A down payment will be made to the seller at the time the memorandum of understanding is signed. In Athens, the standard down payment to the property owner is 1,000 euros for properties valued at up to 50,000 euros. For properties of higher value, a larger down payment will be required. A few days before signing the sales contract, you must transfer the amount intended for the property purchase, as well as associated expenses such as fees for the lawyer, real estate agent, taxes, and so on, to your local bank account in Greece. The bank will issue bank checks payable to the property seller, the notary, and the government land registry offices. If you are working with an investment firm, your transaction advisor will inform you when to transfer the funds to the account and keep you updated on the progress of the other aspects of the transaction.
The most exciting moment has finally arrived: the transfer of the house in Greece into your name. At this stage, you will sign the deed and pay the required fees, including the transaction tax. After signing the deed and making the payment, a bill of sale is issued, officially documenting the transfer of ownership. At this point, you will receive the keys to the property, completing the purchase process.
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The data reflects the residential market; luxury or vacation properties may be significantly more expensive.
Athens
The top destination for real estate investment in Greece is the capital city, Athens. Athens is divided into many diverse neighborhoods, some of which have a more “family-oriented” character, while others are considered “young and student-oriented” neighborhoods. Athens is an impressive academic city, home to no fewer than 13 universities and over 250,000 students. Consequently, demand for apartments from students is high.
Popular Neighborhoods for Investment in Athens: Aglao, Gizi, Kolonos, Spolia, Zografou, Attiki, Kipseli, Peristeri, Ilion, Ilioupoli, Ambelokipi, Patisia, Exarchia, Kolonaki, Fegarti, Neos Kosmos, Kallithea, Vytnicos, Glyfada, Piraeus, Kissariani.
Want to learn more about neighborhoods in Athens that are good for investment? Check out the following article
Thessaloniki
Thessaloniki is Greece’s second-largest city. It is a city with a magnificent port and at least 11 academic institutions, which is why there is a constant demand for rental apartments among students in Thessaloniki. The city is considered lively and youthful in character, and young people can be seen on the streets, in pubs, and at entertainment venues.
Popular Islands for Investment
Chalkidiki, Mykonos, Santorini, Lefkada, Paros, Zakynthos, Corfu, Crete, Rhodes. What all these islands have in common is that they are highly sought-after tourist destinations. Prices are relatively high on some of them (especially Santorini and Mykonos), but the return on investment from purchasing property there is still expected to be high and impressive.
Purchase Tax – The purchase tax rate in Greece is considered relatively low, standing at approximately 3.09% of the property’s value. However, it is important to note that the property’s value is calculated based on the value recorded in the Greek Land Registry, rather than the transaction value itself (the property price). Therefore, this issue requires further examination at the relevant time. By comparison, in Israel, the purchase tax is progressive and, while it starts at 3%, it can rise to 8% or 10%, depending on the property’s value (for a first home only).
Built for a Long-Term Commitment? The Advantages of a Vacation Rental vs. a Long-Term Rental
When you’re ready to buy an apartment in Greece, you must first make a strategic decision: whether you want to invest in a property for long-term rental or for short-term rental—that is, a vacation rental or an Airbnb. Both options are good and profitable, but they require a completely different approach.
In the case of a long-term rental apartment, the rental yield is 5–6 percent. The advantage is that you have “peace of mind” thanks to stable tenants, and you don’t have to worry about the day-to-day maintenance of the property or the rental process itself. In the case of a vacation rental, the return is significantly higher, at 8–12 percent. However, you must regularly manage the property’s maintenance and the rental process for tourists, usually through a property management company. It is important to note that in recent years, tourists have increasingly preferred to stay in Airbnb apartments due to the rising cost of hotel stays, and this is also an important factor to consider.
Guidance from an investment firm during your purchase process: Pros and Cons
Anyone interested in purchasing an apartment in a foreign country faces the dilemma of whether to use an investment firm or to "take the plunge" and handle the process on their own. When buying a home in Greece, it is important to have in-depth knowledge of the local real estate market, preferred investment areas, relevant tax and property laws, and a connection to Greek culture in order to secure a fair and favorable deal. To help you make a decision, we have compiled the pros and cons of using an investment firm:
The benefits of working with an investment firm:
* Quick and efficient property search in high-demand areas
* Familiarity with the market, which also allows for bargaining if necessary
* Understanding of Greek laws and the bureaucratic procedures involved in buying a home in Greece
* Bringing all professionals together under one umbrella (lawyers, interpreters, Greek real estate agents, and others)
* Peace of mind for the buyer throughout the process
* Saves time and energy during the shopping process
On the other hand, the main—and only—drawback of working with an investment firm is, of course, the brokerage fee. However, a smart and secure purchase can save you exactly that amount of money, if not more, and also speed up the process significantly.
More properties, fewer worries: The benefits of a property management company after purchasing a property in Greece
When it comes to buying property in a foreign country, the perennial question arises: should you hire a property management company to handle maintenance and tenant issues that arise from time to time, or manage it yourself? On the one hand, there are costs associated with hiring a management company. On the other hand, taking on this role entirely by yourself involves a significant investment of time and energy, especially when there is a language barrier involved. So, how do you decide?
First of all, it is important to distinguish between a short-term rental property and a long-term rental property. In the case of the former, it is absolutely essential to enlist the help of a property management company, as it is nearly impossible to manage a property that is constantly occupied by travelers and tourists. If you’re considering the second option, you should assess whether your daily routine and schedule actually allow you the time to handle everything related to the property, its maintenance, and responding to tenants. Management fees and the scope of responsibilities included in the payment can vary from company to company, so it is definitely recommended to conduct market research and compare different property management companies.
The project comprises 34 hotel-style apartments in a prime location in the heart of Athens.
Built to hotel standards for short-term rentals. High returns on short-term rentals
The Nea Chalkidona neighborhood offers easy access to the city's famous attractions.
The Petrona Neighborhood: A Profitable Investment in a Strategic Location in Athens
Peristeri is the top choice for families and young couples looking for a place to settle down.
The Victoria neighborhood is where it's all happening. Its cultural life never stops.
Chrysopoulou: In one of Athens’ most attractive and sought-after neighborhoods—Kipseli.
A property expected to appreciate in value, located in one of Athens’ most attractive and sought-after neighborhoods—Spolia.
The Iliofoli neighborhood is known for the high quality of life it offers its residents, thanks to the variety it provides.
Plaka has been called the “Neighborhood of the Gods” for many years due to its proximity to the Acropolis, which was the home of the Greek gods. The neighborhood is located right at the foot of the Acropolis, which is why it earned this nickname that reflects its mythological heritage.
A long-term rental apartment yields a stable return of 5%–6%, with consistent tenants and minimal maintenance. In contrast, a vacation rental or Airbnb yields a higher return of 8%–12%, but requires ongoing management, frequent maintenance, and handling tenant turnover. In recent years, tourists have increasingly preferred apartments over hotels due to rising vacation costs, which reinforces the viability of investing in vacation rentals.
To purchase property in Greece, you will need a valid passport, an extract from the Israeli Ministry of the Interior, proof of a bank account opened in Greece, a Greek tax identification number (AFM), and proof of ownership of a bank account. To open a bank account in Greece, you will also need your most recent pay stub, your most recent tax return, a birth certificate, and some banks may request a letter of recommendation from your Israeli bank. All documents must be translated into Greek.
Israel and Greece have signed a double taxation treaty, which exempts you from paying purchase tax, capital gains tax, and property tax in Israel. The Greek government offers property tax (ENFIA) discounts—for example, a property valued at 80,000 euros will receive a discount of approximately 25%. In addition, there is a capital gains tax exemption for owners of up to three apartments, and the purchase tax in Greece is only 3.09%, significantly lower than in Israel, where the tax can reach up to 10% depending on the property’s value.
Athens is the top destination for investment, with 13 universities and 250,000 students creating a steady demand for apartments. Popular neighborhoods include Aglao, Gizi, Kolonos, Zografou, and Kallithea. Thessaloniki, the second-largest city, offers 11 academic institutions and is considered a young and vibrant city. Alternatively, investing in tourist islands such as Mykonos, Santorini, Crete, and Rhodes can yield high returns from short-term rentals, although prices on some of the islands are higher.
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