Brief summary:
Greece attracts investors thanks to its thriving tourism industry, real estate prices that are relatively low compared to the rest of Europe, favorable tax policies, urban renewal, and developing infrastructure. In Athens and on the islands, strong demand makes it possible to explore various rental models.
Greece is a game-changer for Israeli investors thanks to several notable advantages that make it an attractive investment opportunity—one that leaves no room for mistakes. Many people are unaware of this, but under the tax treaty between Greece and Israel, Israeli investors are subject solely to Greek tax law, with no double taxation and no need to pay additional taxes in Israel. What’s the catch? There isn’t one. You pay an exceptionally low purchase tax of just 3.09%, and there is a full exemption from the Israeli capital gains tax of 25% for the first three apartments.
Compared to other European countries, Greece’s lenient tax policy is designed to encourage foreign investment. The unique conditions it offers investors, combined with real estate prices that have not yet reached their peak, significantly increase the profit potential for buyers.
After years of waiting: Greece is allowing locals to take out mortgages for the first time
One of the most notable changes in the Greek real estate market is the improvement the government has made to the financing options it offers to locals. In the past, buyers were required to provide 100% of the down payment for the property, which made it difficult for many to enter the investment market. With the recovery of the Greek economy and the improved stability of the banks, Greece introduced a program in 2023 allowing locals to obtain mortgages. This positive step will enable more buyers to enter the real estate market and may significantly impact a rise in property prices as a result of increased demand. Currently, the trend is still in its infancy, and many Greeks are still sitting on the fence due to the interest rate environment; thus, for Israeli investors, there is an ideal window of opportunity to enter the market just before the major growth. Soon, the option to take out mortgages will also open up to investors, which will lead to another significant surge in property prices.
Additional reasons for the increase in property values in Greece include the country’s accelerated urban renewal processes, investment in public infrastructure, and a marked rise in the number of tourists visiting each year. For Israeli investors, this is the ideal time to invest, just before a significant rise in property values that offers the opportunity for a quick flip or a long-term profitable investment.
Low prices, high returns – Athens meets all the criteria
Athens, the capital of Greece, is considered the country’s largest and most important city. This port city connects to all destinations in Europe and attracts approximately 8 million tourists a year, about a quarter of all tourists visiting Greece. By comparison, Israel as a whole welcomed approximately 4.5 million tourists in 2019, which was considered a record year. Athens also enjoys stable demographic growth and affordable property prices compared to other major European cities, such as Berlin or Madrid. While real estate prices are still low compared to these cities, returns on properties—both residential and commercial—are relatively high, offering impressive profitability for investors.
Additional advantages Athens has over other cities in Greece include high hotel occupancy rates—which, as mentioned, exceed 90% annually—and the approximately 250,000 students living in the city. Property owners can choose whether to rent the property long-term and enjoy a stable, secure return, or rent it short-term to increase the potential return accordingly. All of these factors make Athens one of the leading destinations for real estate investment in Europe in 2026.
Greek charm with Israeli service: Palmo has cracked the code
Palmo, an Israeli real estate development company, specializes in creating unique investment opportunities in Greece through a model of acquisition and redevelopment. The decision to focus on Athens has cemented the company’s solid reputation as a leaderin real estate investment in Greece and as a firm with in-depth knowledge of the Athenian market. Palmo has acquired more than 40 buildings in Greece and has over 300 properties in its urban renewal portfolio. Its in-depth knowledge of the market enables it to offer buyers high-quality deals with above-average return potential and makes real estate investments in Greece accessible to the Israeli public.
The transaction structure offered by Palmo is simple: buyers purchase the property through an Israeli team and receive rental payments directly into their Israeli bank account. The company handles every stage of the purchase from start to finish and also serves as the management company that manages the property for investors, handling ongoing maintenance and tenant placement. Simple, accessible, and down-to-earth—buyers receive full support in Hebrew.
