Immigration to Greece through property investment has attracted significant attention from overseas individuals, with many traveling to Greece to purchase real estate and gain access to favorable benefits. Is Greek real estate worth investing in? What is the current situation?
I. Greek Property Prices are Generally Rising
After nine years of declining property prices, the Greek housing market is now experiencing strong growth again, driven by improved economic conditions and market expansion measures. In urban areas of Greece, property prices rose by 9.32% year-on-year by the fourth quarter of 2019, far exceeding the 2.35% growth recorded in the same period of the previous year, marking the highest annual increase 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, property prices in urban areas increased by 2.23% quarter-on-quarter (a real increase of 3.46%).
II. Greek Government Enacts Favorable Measures
To revitalize the real estate market, the Greek government has offered residency to non-EU investors who purchase or lease property valued at over 250,000 euros, a policy similar to those proposed by Hungary, Spain, and Portugal. This program is valid for five years. In addition, the Greek government has introduced several favorable measures to promote the development of the real estate market.
1. Suspension of VAT Payments on New Building Permits
In October 2019, the Greek government announced a three-year suspension of VAT payments on any new building permits and unsold properties constructed after January 1, 2006.
2. Reduction of the Single Property Tax (ENFIA)
Individual ENFIA was reduced last year: a 30% reduction for properties valued under 60,000 euros; 27% for those under 70,000 euros; 25% for those under 80,000 euros; 20% for those under 1 million euros; and a 10% tax reduction for properties valued over 1 million euros. A further 10% reduction, on average, will apply to all property owners in 2020.
Investment involves risks, the above information is for reference only