In the last decade, more and more Bulgarians prefer to spend their summer holidays in Greece rather than on the Bulgarian Black Sea coast. Thanks to the favorable conditions, many holidaymakers show interest in purchasing property in our southern neighbor, either for personal use or as an investment.
The Greek real estate market is diverse, with a wide range of properties available for purchase or rent. In recent years, the market has been expanding with a particular focus on properties related to tourism.
As with any real estate transaction, consulting with an experienced lawyer is invaluable when buying real estate in Greece. After numerous inquiries from our clients on the topic, we decided to compile this article with important information that will be useful if you decide to take this step.
If you have questions about a specific case or need assistance with a transaction, do not hesitate to contact us. The team at “Danailova, Todorov and Partners” is made up of professionals who will answer all your questions and provide you with top-level legal assistance. The firm is distinguished in the prestigious international ranking “Legal 500” in the field of real estate and construction.
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Property Prices
Greece offers a wide variety of properties, and its beautiful beaches are a significant attraction for potential buyers. Many Bulgarians are drawn to Greece not only for its favorable conditions but also for the stunning coastline that provides an ideal location for holiday homes and investment properties. Whether you are considering purchasing a villa with a sea view or an apartment near the shore, the beautiful beaches of Greece enhance the appeal and value of the real estate. Popular destinations such as the islands of Mykonos and Santorini, as well as the Halkidiki Peninsula, boast some of the most beautiful beaches, making them highly sought after by property buyers.
In Greece, you can find various housing options - apartments, houses, and villas. Prices vary significantly depending on the location, size, and condition of the property. In popular tourist destinations such as the islands of Mykonos and Santorini, prices are usually significantly higher due to demand. This is also true for major cities like Athens and Thessaloniki, while in less touristy and rural areas, prices are more affordable.
Bulgarian buyers most often look for properties in the northern part of Greece due to the relatively short distances from Sofia and other major cities. The Halkidiki Peninsula is a particularly preferred area for both short-term holidays and property purchases. Prices are generally higher for properties located near the coast or with a sea view.
According to data from the Greek Association of Realtors, the average price per square meter for properties in Halkidiki in 2021 was 1936 euros. Actual prices range from around 50,000 € to 500,000 € for apartments on the peninsula, while houses can cost from around 100,000 € to over 1,000,000 €. In Thessaloniki, the average price last year was 1672 €/sq.m., but in developed areas of the city such as the center and the neighborhoods of Ladadika, Ano Poli, and Neapoli, real estate is more expensive.
Data for 2022 indicate that the average price is rising, but foreign investments have increased by 61% compared to the previous year. The Greek market is very dynamic and remains more accessible than those in Italy and Spain. In November 2022, the average price per square meter for residential properties was 2225 €, an increase of 11.08% compared to November 2021 (2003 €/sq.m.). The highest average price in the last two years was reached in October this year - 2283 €/sq.m.
Things to Consider Before Buying Property in Greece
Before proceeding with a real estate purchase in Greece, it is crucial to thoroughly research the property you have chosen. Some things to keep in mind include the location and accessibility of the property, its condition, and any potential rental income it may generate. It is advisable to seek advice and assistance from a local real estate agent or lawyer who can help you navigate the process before making a purchase.
Many property owners do not speak foreign languages, and if you do not know Greek, you may not be able to communicate effectively during negotiations. In any case, it is strongly recommended not to sign documents that you cannot read and understand to avoid potential fraud.
If you use an intermediary to purchase the property, look for an established specialist with a good reputation. Before signing a contract with the mediator, clarify the terms of payment of the commission - the amount, how, and when it will be paid.
Property and Seller Research
Preliminary inspection of the property you want to buy can save you many problems in the long run. We recommend hiring a specialist to conduct a thorough check of:
- the tax status of the property and the seller: unpaid taxes may have accumulated over the years, which could become your obligation after the sale.
- ownership of the property: it is important to know that the seller is the legal owner, and there is no risk of the sale being declared invalid.
- the intended use of the property: what it can be used for and under what conditions.
- the quality of construction of the property (for houses and apartments): the condition of many properties in Greece does not meet modern standards. If you are looking for a vacation property, be especially careful with buildings constructed after 2020.
We advise you not to leave a deposit or down payment before conducting the above checks. Additionally, ensure that the person accepting the prepayment is a trustworthy and reliable individual.
What You Need to Know Before Buying Property in Greece
The first major legal requirement for property buyers in Greece is to have a Greek tax number, known as the “Arithmos Forologikou Mitroou” (AFM) number. It is an identifier for both individuals and legal entities. To obtain an AFM, you must be a Greek citizen or have a valid residence permit in Greece.
You must complete the necessary application process and provide all required documents (form, identification document, and proof of residence in the country). The application can be submitted online or in person at a local tax office.
Another important detail is that cash payments are strictly regulated by the tax authorities in Greece. It is advisable to use electronic payment methods (bank transfers or credit card payments) whenever possible, as this makes the transaction more secure and traceable. If you need to make a cash payment exceeding the legal limit, you will need to provide additional documentation or information to support the transaction. The maximum amount that can be paid in cash for real estate purchases is 500 euros.
In addition to the above, it is also important to note that when purchasing property in Greece, the new owner is required to submit annual tax returns and pay taxes in the country. The duration of your stay in Greece per year is important - if it exceeds 183 days (about 6 months), legally, you will be considered a permanent resident and will become a taxpayer in the country.
For more information, you can contact our specialists, we will be happy to help!
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