Investing in Greece : now is the right time !
A healthy economy
After more than 10 years of austerity, 3 memoranda from the European Union and the IMF, Greece is doing better ! According to the Bank of Greece, during these years of crisis, real estate prices fell by 46%.
With a solidified and now healthy banking sector, the real estate market has been picking up slowly for 2 years : prices increased by 7.2% in 2019; the second quarter of 2020, despite the lockdown, shows an increase of 4.1% compared to the same quarter of 2019 (Bank of Greece). Faced with a market that offers good visibility, the land of the Olympian gods is a safe investment today.
Investing in Greece : Athens
Athens is a picturesque city, overlooked by the Acropolis and Mount Lycabettus; it enjoys a very rich cultural life and lively neighborhoods; it is a quiet city where people live safely. The prices of real estate properties vary from 1,500 to 5,000 euros per m2. There are rare exceptions in the up-market district of Kolonaki, and in some high standing residences where the price per m2 can go up to 8000 euros. However, the preferred districts of French investors and other foreigners residing in Greece are those, among others, of Pangrati, Mets, Koukaki, Exarchia … more authentic and still offering a lot of properties to renovate at very affordable prices.
Finally, the new municipality has invested in cycle paths, green spaces and cleanliness; it has thus put in place a long-term plan to develop infrastructures and improve quality of life, making Athens a European capital that has nothing to envy from others.
Do you dream of the Cyclades and its white and blue islands?
The lively and fashionable? Mykonos and the volcanic Santorini are the most popular with prices ranging from 2,000 to 8,500 euros per m2 and offer the longest tourist season.
On the other hand, islands like Paros, Naxos, or Amorgos (the island of the movie “The Big Blue”) have great potential and are more affordable with prices ranging from 1,500 to 5,000 euros per m2.
The same is true on the mainland, particularly in the Peloponnese.
Be careful however, for a residence on the water’s edge, the costal laws having changed, it will be necessary to plan a higher investment! A house situated a little higher up with a plunging view (on the water) will be easier to maintain and much more affordable.
What costs should you expect when buying ?
The transfer costs amount to 3%, to which are added the legal fees (2-3%), the notary fees and the agency fees of 2 to 4%. Greece being in the process of building up its land register, a lawyer is essential to control property titles.
It should also be noted that there is no capital gains tax or rental tax to date!
What tax regime when you buy to rent?
Real estate income is taxed at 15% up to € 12,000, at 35% between € 12,000 and € 35,000 and then at 45% for an annual rental income over € 35,000.
A profitable investment on all fronts!
The richness of Greece is also the remnants of its history, the warm welcome of its people, excellent Anglo-Greek relations historically, the beauty of its landscapes, its climate and its geographical proximity (3h30 by plane from London).
Lydia Papandreou
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