Short answer:
Investing in overseas real estate allows Israelis to diversify their risks, gain exposure to markets with lower entry prices, and enjoy returns that are not solely dependent on Israel. Greece stands out for its proximity, tourism, and favorable tax regime.
"Don’t put all your eggs in one basket" —a familiar saying that almost everyone has heard at least once in their life, whether from their father, mother, or, in some cases, from the professor teaching Introduction to Economics B. Comfort and routine often lead us to push aside the need to create alternatives and a safety net for hard times, because our natural tendency is to think, “It’ll be fine,” and “Why should I get involved in new adventures?” However, when it comes to real estate investments, this saying couldn’t be more true.
Buying an apartment in a foreign country is a smart move, both strategically and financially. In some cases, it may even be crucial and constitute a basic necessity—a means of ensuring peace of mind amid a chaotic and unpredictable reality. When it comes to investing overseas, the first and most obvious option that comes to mind is Greece, and for good reason. The island nation has several notable advantages over other countries, making it one of the most prominent and sought-after destinations for Israelis and investors from around the world.
What are the profits and returnson real estate investments in Greece? And what are the benefits of diversifying real estate investments? Here are the answers.
An apartment worth the initial mortgage principal—wouldn't you take it?
The real estate crisis in Israel has remained stable for many years, and a solution is not in sight. Ever since the price surge began, back in 2009–2010, apartment prices have continued to rise consistently, in some cases even doubling. What are the chances that the government will take significant steps to lower housing prices? These days, it is primarily preoccupied with figuring out how to manage the economic fallout from the war that has erupted in our lives—a conflict expected to affect everyone’s wallet, not to mention the national budget deficit. So, unfortunately, when it comes to the real estate market in Israel, there is currently little reason to be overly optimistic. On the other hand, with about 400,000 shekels—which in Israel is usually enough only for the down payment on a first mortgage (depending, of course, on the apartment’s location and size)—you can purchase a property in Greece without the burden of a mortgage or loans.
High return potential
Investing in real estate in Greece is particularly worthwhile because of the attractive and profitable returns the property offers. In Israel, by contrast, the surge in housing prices and relentless increases have made returns on real estate investments less and less attractive. Yield is calculated by dividing the purchase price of the property by the annual rental income it generates. Since apartment prices in Israel have risen faster than rental rates, the actual yield has declined.
According to a report by the Central Bureau of Statistics, in 2024 the average rental yield on apartments in Israel stood at 3.1%, while in Tel Aviv the average yield was even lower than 3%. Ten years ago, the yield stood at 3.4%, and 20 years ago—4.6%. In contrast, the return on real estate in Greece is considered high, standing at about 5–6% per year for long-term rentals, while for short-term rentals (Airbnb), the return reaches about 7–12% per year. The winning combination of low purchase costs alongside high and attractive yields is one of the main reasons that make Greece particularly attractive to real estate investors.
A Diverse Selection of Properties
One of the advantages of investing in real estate in Greece is the wide range of investment property types available, ranging from residential apartments and student rental apartments to Airbnb and vacation rentals, for which demand is growing steadily due to Greece’s status as a global tourism powerhouse. The versatility of these properties makes purchasing an apartment as an investment a viable option for every budget and every type of investor, depending on their individual capabilities and preferences.
Taxes, Only the Other Way Around
While real estate investors in Israel are required, as of 2026, to pay an 8–10% purchase tax on their second and subsequent apartments, Greece actually offers tax incentives designed to attract investors, including foreign investors.
First, Greece and Israel have signed a tax treaty that prevents double taxation on the same income and eliminates the need for tax equalization in Israel. In addition, the purchase tax in Greece is exceptionally low at 3.09% and, unlike in Israel, does not depend on the number of properties. Added to this is a progressive (tiered) tax policy on rental income, as well as the option offered by Greece to register various properties in the names of multiple family members. Finally, in Greece, you will also receive a capital gains tax exemption when selling the apartment.
When comparing Greece’s tax incentive policies to those in Israel—which, to put it mildly, are not investor-friendly (taxes on second homes and a series of interest rate hikes that make it difficult to obtain a mortgage)—it seems there’s no need to elaborate on why investing in Greece is so lucrative.
Bouzouki for the Soul: Peace of Mind Just a Short Flight Away
Buying an apartment in Greece—especially given the complex and sensitive security situation in our small country—can serve as a safe haven to “clear your head” and recharge your batteries—because who among us doesn’t need that from time to time? Even just the peace of mind that comes from having a place where you can relax from the pressures of daily life is enough to make this investment worthwhile and worthwhile.
In fact, this is a win-win situation. An apartment in Greece, as long as there’s no real need for it, functions on a day-to-day basis as an income-producing property in every sense of the word, generating a return and recouping the investment through monthly rent payments. However, the X-factor is the financial, real-estate, and emotional anchor it can provide for us—how do you say it? Just in case anything goes wrong.
Finally, we cannot overlook the geographical aspect. Any investment in overseas real estate involves many concerns stemming from the physical distance and a lack of knowledge and experience regarding the culture, language, recommended investment areas, and the country’s laws—including tax laws, of course. Therefore, our team at “Palmo” offers comprehensive guidance and support from start to finish, and can not only locate the right and most cost-effective property for you but also assist with all the associated bureaucratic procedures, including, of course, property management after the purchase.
