Initial Considerations & Legal Foundations for Property Acquisition in Greece
Acquiring Property in Greece: Overview
Greece has traditionally been open to all nationals wishing to acquire property without restrictions, whether for private use, rental income, or investment structuring, without making any distinctions between nationals and non-nationals. Understanding the legal and procedural foundations is essential before initiating any property transaction in Greece.
- ➤ Pre-acquisition legal and tax considerations
- ➤ Initial legal scan and reservation process
- ➤ Appointment of legal representation and Power of Attorney
- ➤ Issuance of Greek Tax ID (AFM) and mobile access
- ➤ Opening a Greek bank account
- ➤ Optional property acquisition through corporate structuring for tax efficiency
Acquiring Property in Greece: Defining your Investment Objectives & Preliminary Legal Advice
- ⚫︎ Clarification of Purpose:
- The first step is to determine whether the acquisition is intended for personal use - such as a holiday residence or eligibility under the Golden Visa scheme - rental income, capital appreciation, or commercial development. Each of these purposes may affect the type of property appropriate, any additional characteristics required of the property or the purchase itself (particularly relevant in Golden Visa scenarios), the legal structure of ownership (whether individual or corporate), and the applicable tax regime.
- ⚫︎ Budgetary Parameters:
- Beyond the agreed purchase price, buyers should account for ancillary costs, which typically add approximately 8%–10% to the total investment cost, calculated on the higher of the contractual price and the state-assessed value used for taxation purposes - the state-assessed value usually being lower than the contractual price. These typically include the Property Transfer Tax (FMA), which amounts to a 3.09% flat rate, Land Registry or Cadastral Office fees, which are typically below 0.6%, Notary fees ranging between 1%–2%, Real estate broker fees, commissions being commonly set at 2% for each party, Legal fees which are negotiated based on the scope and complexity of services required, and additional professional support which may be required on a case-by-case basis. All professional fees are subject to VAT.
- ⚫︎ Preliminary Legal Consultation:
- Engaging our office at this initial stage is essential. We can assess legal feasibility, verifying that the prospective buyer's intended use of the property complies with Greek planning, zoning, and property ownership laws. We also map out the acquisition process, offering a tailored roadmap that accounts for the prospective buyer's nationality, residency status, and intended use of the property. Finally, prospective buyers receive an initial briefing on applicable Greek taxes, any potential inheritance law considerations, and ongoing obligations that may apply following the acquisition.
Acquiring Property in Greece: Establishing Legal Representation & the Power of Attorney (PoA)
For non-resident buyers, appointing us as legal representatives in Greece is not merely advisable – it is indispensable. This enables the transaction to proceed efficiently in their absence, with all required authorisations and filings executed without delay.
Additionally, Greek property law is formalistic. Most rights and obligations must be recorded through notarised acts, and procedural missteps can render a transaction void or materially unenforceable. For this reason, obtaining independent legal counsel – separate from real estate agents or other interested parties – is essential. It is the only effective safeguard for ensuring proper execution and protecting the buyer's legal position.
- ⚫︎ Usual Mandates:
- Our office typically assumes mandates to act on behalf of our clients. This mandate includes issuing a Greek Tax Identification Number (TIN or AFM), interfacing with Greek authorities, performing legal due diligence, negotiating and executing contracts, completing post-transaction registrations and handling Golden Visa applications where applicable. Additional mandates often requested include managing the property post-acquisition via leases, opening a Greek bank account, issuing a Greek mobile phone connection, representing our clients before all courts and authorities, handling payments, and selling property in the future.
- ⚫︎ How to issue a PoA:
- To formalise the authority, a Power of Attorney (PoA) must be executed. The PoA may be signed either in Greece – in which case it must be executed before a Greek Notary Public – or abroad, where it must be signed before a local Notary and subsequently apostilled under the 1961 Hague Apostille Convention or certified via a Greek Consulate. However, it is important to note that consular appointments are often subject to substantial delays, which may impede timely execution.
- ⚫︎ Scope of PoA:
- A Specific Power of Attorney is preferable for one-off transactions, as it allows for clearly defined powers. A General Power of Attorney may be more practical for long-term arrangements but should be limited to real estate and tax powers unless broader authority is explicitly intended.
- ⚫︎ Minimum mandate:
- At minimum, a Power of Attorney for real estate acquisition should expressly authorise issuance of a Greek Tax Identification Number and the associated TAXIS login credentials required for tax and state services; the execution of all conveyance agreements, including both preliminary sale agreement and final notarial deed; the lodging of the deed with the competent inscribing authorities; the submission of the mandatory E9 property declaration to the Greek tax authorities; and the management of utility transfers and municipal registrations, where applicable.
Acquiring Property in Greece: Obtaining a Greek Tax Identification Number & Greek Mobile Connectivity
- ⚫︎ Acquiring a Greek TIN is a prerequisite for any property ownership in Greece:
- An AFM (TIN) is mandatory for any individual or entity engaging in financial activities or holding assets in Greece, including property acquisition. Our office can issue a TIN on behalf of our clients from the competent Tax Office in Greece, typically requiring a certified copy of all pages of the passport. Additional information, including full parents' names, full address, foreign Tax Identification Number / VAT, valid email address and mobile phone number will also be requested.
- ⚫︎ Greek mobile phone connection:
- Acquiring a Greek mobile phone connection is not legally required or generally expected. However, when combined with the TIN and TAXIS login credentials, it enables full access to Greece's digital government services. Many transactions – such as issuing solemn declarations or retrieving certificates – require a one-time password (OTP) sent via SMS to a Greek number for identity verification. Obtaining a cheap prepaid SIM card is straightforward and typically requires a valid passport and the AFM certificate but in some cases, proof of address may also be requested. Recently, the Tax Authority announced support for international mobile numbers too, but this has not yet been independently confirmed.
Acquiring Property in Greece: Benefits of Opening a Greek Bank Account
Though not strictly mandatory, opening a Greek bank account is highly advised, even at the stage of acquiring property, as it facilitates the payment of taxes and public fees – particularly if our client's banking account is outside the Single Euro Payments Area (SEPA). Additionally, if the primary bank is not within SEPA, a Greek account ensures compatibility for seamless cross-border transactions across 36 countries, including most of the European continent and the UK.
Nonetheless, Greek banks, being part of the European banking system, are notably conservative and as such are subject to strict anti-money laundering (AML) rules, routinely requesting full proof of source of funds, especially from non-EU nationals or holders of non-SEPA accounts. If our client's bank offers a Know Your Customer (KYC) verification service, those records may help expedite the onboarding process or even waive certain document requests.
- ⚫︎ Process:
- While opening a Greek bank account remotely with a Power of Attorney is possible, some Greek banks may still require a video call and, less commonly, the physical presence of the applicant for initial onboarding. Our office guides clients through the most efficient method.
- ⚫︎ Documents:
- Additional certified documentation from abroad may also be requested or adjusted according to country of origin. The exact documentation requirements vary by bank and may also change over time. Periodical reverification of details may now be achieved with state digital services, upon OTP authorisation via mobile connection.
Miscellaneous Bank Documents
◍ Greek Tax Identification Number (AFM)
◍ Passport or EU Identification Card
◍ If in Greece: Proof of legal entry may also be requested, this being usually displayed by a visa on the passport, a border control stamp, or personal permits, as applicable
◍ A document issued by a foreign Tax Authority, where Tax Identification Number is stated
Proof of Income Bank Documents
◍ Last updated income tax slip (for natural persons) or Income tax return (for legal persons/entities), including submission receipt and tax payment note (for legal persons and trading professionals)
◍ Certificate on no requirement to submit a tax return (when either of the above two documents is not available)
◍ Any other document proving your income (e.g., employer's certificate stating the total annual income or official Bank's financial statement - for residents outside Greece)
Proof of Home Address Bank Documents
◍ A document issued by a Tax Authority, where Tax Identification Number/VAT is stated
◍ Recent utility bill (energy, telecommunications, water supply, etc.)
◍ Last updated income tax slip (for the current home address)
◍ Home or business premises lease contract, filed to a tax office
Proof of Business Address Bank Documents
◍ Recent employer's certificate
◍ Copy of latest salary statement
◍ Recent certificate of profession
◍ Valid Professional Identity Card
◍ Social Insurance Institution Receipt
Acquiring Property in Greece: Initial Property Review & Property Reservation
Searching, identifying and, if needed, reserving a property suitable for the intended purposes is crucial.
- ⚫︎ Property Identification:
- This typically involves collaboration with real estate agents or direct engagement with owners or developers.
- ⚫︎ Initial Legal Review:
- It is crucial that legal counsel reviews available options given the client's intended purposes prior to any other action. For example, not all properties are suitable for commercial leasing or acquiring a Golden Visa, just as not all plots of land are viable for constructing a building. At this early stage, only the most evident legal incompatibilities are flagged – yet even this filtered insight proves essential in eliminating unsuitable options efficiently.
At Tsiricos Boutique Law Office, our approach extends beyond the standard advisory opinion. We typically conduct an initial legal scan of the property's status – targeted, but document-based – which is often sufficient to uncover major defects or alert us to areas requiring immediate clarification or caution. This early-stage examination differs materially from the in-depth legal due diligence carried out later, but provides a first layer of protection and client value by catching critical risks before the process advances. A technical opinion from a civil engineer or topographer may also be considered at this stage, particularly for plots or properties where the zoning, boundaries, or buildability may pose concerns. Where a client intends to instruct such a professional later, early engagement and coordination with us is strongly advised.
- ⚫︎ Preliminary Sale Agreement:
- Upon identifying a desired property, a Preliminary Sale Agreement may be signed with a deposit, typically about 5%–10% of the agreed sale price. This non-binding document, unless duly notarised, outlines key terms and includes certain penalties for non-performance, serving more as a safeguard for the seller taking the property off the market – that the buyer will proceed, rather than protecting the buyer from the property being sold elsewhere. For this reason, unless circumstances demand it, our office does not lead with the norm of signing a Preliminary Sale Agreement almost immediately.
Acquiring Property in Greece: Early Tax Considerations that could affect your decisions
Any rental income derived from property situated in Greece is subject to Greek income tax. Investors anticipating high annual rental yields or significant property-related expenses are strongly advised to consider acquiring property through a Greek corporate vehicle appropriate to their investment profile. Our office provides end-to-end services for leasing properties and company incorporation & compliance.
- ⚫︎ Progressive tax rates for individuals:
- ◍ 15% on annual income up to €12,000
- ◍ 25% on income from €12,001 to €35,000
- ◍ 45% on any income exceeding €35,000
- ◍ Property expenses are not deductible.
- ⚫︎ Corporate Structure Benefits:
- ◍ 22% corporate flat-rate on all income
- ◍ Capital retention & investment earnings
- ◍ Property expenses, including ENFIA (albeit at a higher rate), are fully deductible.
Accordingly, pre-acquisition tax structuring is critical for investors seeking to optimise long-term net returns on Greek real estate.
Subject to specific conditions and structuring, applicants under the Greek Golden Visa programme may fully benefit from acquiring property through a corporate structure without prejudicing their eligibility.
Acquiring Property in Greece: First Steps FAQ
What are the total costs beyond the purchase price?
Expect approximately 8-10% additional costs including Property Transfer Tax (3.09%), registry stamp duty, notary fees, real estate agent fees and legal fees.
Do I need to be physically present in Greece?
No, you can complete the purchase remotely through a Power of Attorney allowing us to handle everything on your behalf.
Is a Greek Tax Identification Number required?
Yes, a Greek TIN (AFM) is mandatory for any property ownership. We can issue this for you.
Should I open a Greek bank account?
While not mandatory, it's highly recommended for paying taxes and fees, especially if your bank is outside the SEPA zone.
How is rental income taxed?
Individual tax rates are gradual; 15% (up to €12,000), 25% (€12,001-€35,000), and 45% (above €35,000). Corporate structures offer a flat 22% rate with deductible expenses. All rental income derived from real estate located in Greece is subject to Greek taxation, irrespective of the owner's tax residence.
Are all properties suitable for Golden Visa?
No, we review properties against your specific objectives to ensure compatibility with Golden Visa requirements.
What is included in your legal services?
Minimum service includes anything required for you to acquire a property depending on your exact situation. Typically, this includes Power of Attorney, TIN issuance, due diligence, presale agreement, contract negotiation and execution, registrations, and Golden Visa applications where applicable.