Is Greek Real Estate Worth Investing in for Citizenship by Investment?

The Greek Golden Visa program has attracted significant attention from international investors, many of whom are purchasing properties in Greece to access its favorable benefits. Is Greek real estate worth investing in? A look at the current state of the Greek property market provides the answer.

I. Widespread increase in Greek property prices

After nine years of declining prices, the Greek housing market is experiencing a robust resurgence fueled by improved economic conditions and market expansion measures. In urban areas of Greece, property prices saw an annual growth rate of 9.32% by the fourth quarter of 2019, significantly higher than the 2.35% increase recorded during the same period the previous year, marking the highest growth since the fourth quarter of 2006. According to the Bank of Greece, after adjusting for inflation, property prices rose by 9.39%. In the third quarter of 2019, urban property prices grew by 2.23% quarter-on-quarter (a real growth of 3.46%).

II. Greek government implements favorable measures

To revitalize the real estate market, the Greek government offers non-EU investors the opportunity to obtain residency through the purchase or lease of property valued at more than €250,000, similar to policies proposed by Hungary, Spain, and Portugal. This program is valid for five years. Additionally, the Greek government has introduced further measures to promote the development of the real estate market.

1. Suspension of VAT on new building permits

In October 2019, the Greek government announced a three-year suspension of VAT payments for any new building permits issued after January 1, 2006, as well as for unsold properties.

2. Reduction of the Single Property Tax (ENFIA)

Individual ENFIA payments were reduced last year: a 30% reduction for properties valued under €60,000; 27% for properties under €70,000; 25% for properties under €80,000; 20% for those under €1,000,000; and a 10% tax for properties valued over €1,000,000. On average, a further 10% reduction will apply to all property owners in 2020.