About Greece

Living There 

There is no shortage of sights to behold in Greece. From Delphi’s Temple of Apollo to the ancient Minoan ruins of Knossos in Crete, you will find yourself immersed in ancient beauty as Greek mythology comes alive all around you. With over 1,400 Greek Islands, of which Crete is the largest, there is a seemingly limitless amount to explore and yet Greece is far more than just its ancient roots. The nightlife, whether in the bustling streets of Athens or of the more traditional kind in the country, is always lively. There are the party islands of Mykonos and Páros to offer something for the more energetic reveller as well as countless glimmering island beaches for those seeking relaxation. The glorious Mediterranean climate of Greece ensures hot summers and mild winters. 

Economy 

Greece has a strong economy that continues to show prolific growth well above that of the EU average. Sustained partly by heavy investment in infrastructure for the 2004 Olympic Games in Athens, this growth could slow in the coming years but remains impressive. Unsurprisingly, tourism continues to be one of Greece’s most important economic sectors. One of the most pressing issues related to this is the task of reducing the government deficit for which targets have been put in place. Extensive restructuring and privatisation exercises to meet the EU’s Growth and Stability Pact is currently underway and a number of reform programs have been put in place to counter problems such as high unemployment and a flagging public sector although their implementation is slow owing to strong opposition. 

Politics 

Greece is a parliamentary democratic republic whereby the Prime Minister is head of the government who exercise executive power. Legislative power is vested in both the government and the Hellenic Parliament. The Greek governmental structure is similar to that found in many Western democracies and has been described as a compromise between the French and German models. The Prime Minister and cabinet play the central role in the political process, while the president performs some executive and legislative functions in addition to ceremonial duties.

Buying Process 

There are no major restrictions for foreign nationals wishing to purchase property in Greece. Once you have found the property in which you would like to invest you will need to make a formal offer. Once accepted, your lawyer will draft an initial purchase agreement to be signed by both parties. This will also require the payment of a 10% deposit in order to secure the property. Following a title search, both parties will need to sign a contract deed and the property must be registered with the Registry of Mortgages. 

Investment Facts and Guide 

Property is largely undervalued in Greece providing excellent investment opportunities with mainland areas seeing annual appreciation of up to 25%. Property prices will vary considerably however, with location and generally properties on popular islands like Crete, Corfu, and Rhodes are more expensive than those in inland areas of the mainland. With a strong tourism industry and a dearth of locations in which to invest, Greece remains a strong choice for property investment. 

Price per Square Foot 

House prices in one of Greece’s most popular islands, Crete, remain relatively low by the standards of other popular European locations. Holiday homes and villas are sold at around £63 (€84) to £105 (€139) per sq. ft. This is much lower than the prices of coastal Spanish properties at £174 (€232) to £209 (€279) per sq. ft. Properties in Athens, too, are relatively inexpensive with city centre condominiums priced at around £98 (€130) to £129 (€172) per sq. ft. 

Rental Yields 

Yields from properties in Athens range from 5.5% - 7%, while similar properties in the suburbs have relatively higher yields, ranging from 6% - 7%. Yields on seaside properties on the main islands range from 5% - 6%. The rental cost of these properties is seasonal, reaching its peak between June and September during which period yields can climb as high as 30%. 

Mortgages 

Based upon the valuation or purchase price of your property (whichever is lower), you can borrow up to 80% of the value for your purchase (or re-mortgage of an existing property for the purpose of home improvement). There are no non-status/self-certification mortgage facilities available in Greece and lenders will not take into account any proposed rental income from the property you wish to purchase. Your loan will be based on your personal (or joint) 'net' pay, and is calculated on an affordability basis. For you to be considered by lenders in Greece, your total out-goings must not exceed 35% of your net monthly income.

Rental Income Tax 

Rental Income is taxed as normal income and the progressive rates of between 15% and 40% (depending on the income band) are applied. Whilst rental income does carry a 1.5% surtax, income-generating expenses are deductible from the gross income. 

Capital Gains Tax 

For properties purchased after 1st January 2006, the rate of Capital Gains Tax depends on how long the property was held. The rate drops progressively from 20% for properties held up to 5 years, 10% for between 5 and 15 years, and 5% for between 15 and 25 years. For properties held longer than 25 years capitals gain is not taxed.