Brief summary:
The strengthening of economic ties between Greece and Israel is bolstering Israeli investors’ confidence in the Greek market. Collaborations in the fields of tourism, energy, trade, and technology are contributing to a sense of stability and encouraging overseas real estate investments.
The deepening of economic cooperation between Israel and Greece in recent years marks a new high point in a long-standing relationship, with a particular focus on real estate investments, trade agreements, and tourism, all of which are growing in scale. In recent years, Israeli investors have become major players in the Greek real estate market, capitalizing on unique opportunities and achieving high returns. How can the development of relations between the two countries be characterized? What is the impact of these collaborations on the Greek real estate market? And when did Greece become a popular tourist destination for Israelis?
Greek-Israeli relations have evolved significantly over the years, from cool relations to a strong strategic partnership. Initially, relations were limited due to Greece’s support for the Arab side in the Arab-Israeli conflict—Greece even voted against the Partition Plan in 1947, primarily because of economic interests with Arab countries. After years of limited and at times even hostile relations, in 1990 ties between the countries progressed from “diplomatic representation” to the opening of embassies. In 1992, Greek Prime Minister Konstantinos Mitsotakis made his first official visit to Israel, and in 2000, Greek President Kostis Stephanopoulos made his first official visit to Israel.
Over the past 15 years, against the backdrop of geopolitical changes in the Mediterranean basin and the economic challenges Greece has faced, relations between the two countries have undergone a significant transformation. What began as a basic diplomatic and economic relationship has evolved into a deep strategic partnership, combining economic, energy, and tourism interests. In 2010, a significant rapprochement between the countries began with the visit of Prime Minister George Papandreou to Israel and the visit of Israeli Prime Minister Benjamin Netanyahu to Greece. That same year, Deputy Foreign Minister Danny Ayalon traveled to Greece, where he agreed with his Greek counterpart to expand bilateral ties between the countries. That same year, the countries signed an aviation agreement replacing an old one from 1952 and regulating aviation procedures between the countries.
In 2013, the first G2G (intergovernmental conference) was held, during which Greek Prime Minister Antonis Samaras arrived in Israel on an official visit with an expanded government delegation. In addition, new cooperation agreements were signed between the two countries that year. In 2016, the first trilateral conference between Greece, Cyprus, and Israel was held in Nicosia.
In 2020, Greek Prime Minister Kyriakos Mitsotakis visited Israel along with six of his ministers “to symbolize the strategic partnership between our countries and the deep emotional bond between Greeks and Israelis,” Mitsotakis explained. “Greece and Israel have successfully managed this unprecedented health crisis, and my visit here is a testament to that success. We are celebrating 30 years since the establishment of full diplomatic relations. The summit of the prime ministers symbolizes the two countries’ choice to continue advancing their relationship. This cooperation is reaching unprecedented heights. There is tremendous potential here for action in many areas: tourism, investment, defense, technology, innovation, and health. Cooperation is essential for strengthening the stability, security, and prosperity of our peoples.”
In the context of the visit, Israeli Prime Minister Benjamin Netanyahu added that "There are other areas for cooperation, such as aquaculture and tourism—1.2 million Israeli tourists visit Greece every year."
In 2021, a memorandum of understanding was signed in Nicosia to connect Israel to the European power grid, in the presence of the energy ministers of Israel, Cyprus, and Greece. The Euro-Asia subsea power cable will be laid across the Mediterranean Sea for a distance of approximately 1,500 km and will connect the power grids of the three countries.
The ministers also agreed to cooperate on environmental protection and the promotion of renewable energy in accordance with the Paris Agreement, to jointly advance cooperation and the exchange of technical expertise in the energy sector in general and cybersecurity in particular. Following the signing, Energy Minister Yuval Steinitz stated that “the undersea power cable will enable us to receive backup power from the European mainland’s power grids during emergencies and will support our ability to significantly increase our reliance on solar power generation.”
The Development of Economic Relations Between Israel and Greece
Economic relations between the countries are currently based on three key aspects. The first and most significant is the Israel-Greece-Cyprus energy triangle, signed in 2016, for the production of natural gas from the Tamar, Leviathan, and Aphrodite fields. This agreement has created an important foundation for long-term cooperation in the energy sector, leveraging the comparative advantages of each country.
In 2020, an agreement was signed between Greece, Cyprus, and Israel to lay the EastMed gas pipeline, which will enable the export of natural gas from Israel and Cyprus to Europe. At the signing ceremony, Israeli Prime Minister Benjamin Netanyahu said that “This is a historic day because it marks the establishment of cooperation between Greece, Cyprus, and Israel—a true alliance in the Eastern Mediterranean that is both economic and political, and that contributes to the security and stability of the region, not against anyone but for the sake of our shared values and the benefit of our citizens.”
The Greek Prime Minister said in his speech at the summit, “We have signed a good agreement that signifies strategic cooperation in a region in need of security and peace. EastMed is a path to peace for all the countries in the region.” Energy Minister Yuval Steinitz said after the ceremony that “this cooperation will strengthen relations between the countries, serve as a milestone in the creation of a natural gas hub in the Middle East, and make the State of Israel a significant player in the European energy sector.”
The second aspect is the framework of advanced trade agreements. In 2010, bilateral trade between the countries totaled $412 million, compared to $610 million in 2017. This impressive growth reflects the deepening of business ties between the countries and the increasing diversification of trade sectors. In 2022, an agreement was signed between the export councils of the two countries, aimed at expanding business opportunities.
The third aspect, which has become particularly significant in recent years, is the tax treaty between Israel and Greece, signed in 1995 and entered into force in 1999, which serves as an important legal framework governing financial relations between the two countries. Its main purpose is to prevent double taxation and establish clear rules for the taxation of income and assets related to both countries. This treaty, which was originally intended to facilitate business activity between the countries, has become a key tool in encouraging Israeli investment in the Greek real estate market.
The treaty establishes key principles in the area of taxation, granting Greece the exclusive right to tax real estate located within its territory. According to the English text of the treaty, Israeli investors in Greece are required to pay taxes only in Greece and not in Israel. In addition, the treaty establishes a mechanism for the exchange of tax-related information between the two countries.
The provisions set forth in the agreement have made investing in Greece particularly attractive to Israeli investors, especially in the real estate sector. The reduced tax rates include a 3.09% purchase taxon buying a home in Greece, a VAT exemption on properties over six years old, a reduced 9% tax on rent up to a ceiling of €12,000 per year, and a capital gains tax exemption for owners of up to three apartments.
Another significant development occurred in 2021, when Greece adopted the OECD’s MLI. This convention streamlines the implementation of the standard provisions in existing tax treaties and strengthens cooperation among countries in the area of taxation.
The Impact of Partnerships on the Greek Real Estate Market
The recovery of the Greek economy in recent years, reflected in steady GDP growth, has created new opportunities for investors. The significant decline in inflation, from 9.6% in 2022 to 3.5% in 2023, has bolstered confidence in the Greek economy and made theGreek real estate market particularly attractive.
The "Golden Visa" program, which grants residency in exchange for an investment of €500,000, along with significant tax benefits such as an 8% purchase tax and a 15% tax on rental income, has created a supportive framework for foreign investment in the Greek real estate market. Programs of this kind attract Israeli investors who are looking not only for investment opportunities but also for housing options in Greece.
In addition, Israelis are purchasing properties for personal use or for short-term rentals, which is driving up demand for vacation apartments and boutique hotels. In addition, economic cooperation has led to an increase in foreign direct investment, which has contributed to Greece’s economic growth and the improvement of local infrastructure—a development that attracts even more foreign investors, including Israelis.
In addition, there is a trend toward urban renewal in Athens and Thessaloniki, with Israeli investors involved in projects to develop and renovate older properties, leading to an increase in property values and an improvement in the quality of life in these areas.
Israeli Real Estate Investments in Greece
The improvement in diplomatic relations between the two countries in recent decades has given Israeli investors greater confidence in their investments. When combined with rising prices in the Israeli housing market, the tax treaty, and incentives offered to Israeli investors in Greece, the growth trend in Israeli investment in the Greek real estate market is particularly impressive.
In 2025, Israeli investors led foreign real estate purchases in Greece, constituting the largest group of buyers, with a roughly 70% increase in Golden Visa approvals in August 2024 and a further 42% increase in July 2025 compared to June.
Despite the many opportunities, there are also risks associated with investing in Greece, such as potential economic instability or changes in tax laws. However, many view the Greek market as an attractive opportunity, especially given the relatively high returns.
Trends in Israeli Tourism to Greece
Greece is a global tourism powerhouse—over 30 million tourists visit Greece each year, tourism accounts for approximately 20% of Greece’s GDP, and tourism revenue in 2023 stood at approximately 20 billion euros.
Israeli tourism to Greece has become a significant factor in the local economy. Greece continues to be one of the leading and most popular destinations for Israeli tourists—it is considered a nearby, safe, and friendly destination with stable flight connections. Furthermore, the tourism market in Greece aligns with Israeli preferences, such as all-inclusive resorts and water parks.
621,000 visitors from Israel arrived in Greece in 2024 (3.9 million overnight stays, €419 million in revenue). In 2025, Greece became the number one destination for Israelis, with over 2.2 million passengers departing from Israeli airports (primarily Ben Gurion), representing an increase of approximately 33% in its share of total international passengers. Athens recorded a 51% increase in Israeli arrivals from January to July 2025 (202,000 compared to 134,000), including 1,052,064 from July to September. Thessaloniki remained a leading destination (11% of overnight stays in 2024, a similar trend in 2025).
The outlook for the future points to continued growth in economic relations between the two countries, with an emphasis on joint projects in the fields of tourism, renewable energy, and agricultural technology. Israeli-Greek cooperation continues to develop and deepen, optimally combining the comparative advantages of both countries: Israel’s human and technological capital on the one hand, and Greece’s geostrategic and tourism resources on the other.
