Why has Greece become a sought-after real estate Investment Destination?
In recent years, Greece has become one of the most popular destinations for real estate investors from all over the world – and also for Israeli investors. A combination of relatively favorable property prices, regulatory conditions that encourage foreign capital, and strong demand from tourists and students, make the country a particularly interesting investment hub.
Favorable prices for Western Europe
While in countries like France, Germany or the Netherlands prices per square meter are very high, Greece still offers properties at accessible prices – even in Athens and Thessaloniki. For Israeli investors who are looking for investments with good yield potential but do not want to be exposed to astronomical prices, this is a significant advantage.
Strong rental demand
Greece is one of the world’s leading tourist countries, with millions of visitors every year. Alongside the tourists, there is a large population of international students in cities such as Athens and Thessaloniki, creating a steady demand for long-term rentals. This means a property that is rented with almost no emptying periods.
Government support and foreign investors
Golden Visa’s famed program, along with lenient tax reforms and acquisition process easing, is attracting investors from around the world. The Israeli investor also benefits from a relatively simple process, a tax treaty between the countries and English language support for most services.
Bottom line: Real estate investments in Greece have become attractive thanks to a combination of a favorable purchase price, an active rental market and a government policy that encourages foreign capital – an ideal platform for smart investment.
Current Market Trends to 2025-Prices, Yields and Demand
To understand whether the investment is paying off today, it is important to look at the state of the market in 2025. Greece has emerged stronger from the Eurozone crisis, but continues to face the impact of rising interest rates and Europe’s economic challenges.
Home Prices
Between 2018 and 2022, real estate prices in Athens and Thessaloniki rose sharply, sometimes above 30% -40%. In 2023-2024 there was some slowdown due to interest rate increases, but as of 2025 the market has stabilized, with a moderate upward trend. Prices are still low relative to other European capitals – an attractive starting point for an investor.
Demand for rentals in major cities
- Athens: Sustained demand from tourists and local residents. Small apartments in the center are rented almost immediately.
- Thessaloniki: A magnet for students, creating an active rental market even outside the tourist season.
- Islands (Crete, Rhodes, Santorini): A market driven mainly by tourism, with high yield potential in summer, but volatility in winter.
Gross and Net Yields
In the key demand areas the gross return is around 5% -7%, but after taxes, management and maintenance fees the net return is closer to 3% -4%. This is still a higher rate than in many Western European cities.
Impact of regulation
By 2025, Greek authorities are restricting the granting of new licenses for short rentals in some areas of Athens, in order to protect the local housing market. This is an important factor an investor must take into account in building a strategy-whether to focus on long-term rentals, or to choose an area where you can still operate freely in a tourist rental.
Conclusion: The real estate market in Greece in 2025 is more balanced, with stable prices and real yields. An investor who chooses the right property and carefully checks the permits can enjoy ongoing income alongside the prospect of a long-term increase in value.
Regulation and Short Rentals (Airbnb) – What is allowed and What is not allowed
Short-term rental opportunities are one of the reasons many investors are looking at real estate investments in Greece, but it is important to know that the area has become particularly sensitive in recent years. The authorities, especially in the city of Athens, are imposing restrictions to protect the local housing market and prevent prices from rising too sharply for residents.
Restrictions on apartment licensing in Athens
As of 2025, some areas of Athens have a surplus of Airbnb apartments, so the municipality has restricted the granting of new licenses. This means that in some of the most popular neighbourhoods it is no longer possible to issue a new licence for short rent. An investor who buys an apartment in such an area may find that it is limited to long-term rentals only.
Taxation of short rentals
Short rentals are subject to a daily accommodation tax that has been raised in recent years, which reduces the net return. The management of the apartment – cleaning, maintenance and coordination with tourists – should also be added, which further increases the cost.
What happens outside Athens
In Thessaloniki and many of the islands, restrictions are still milder. This means that renting to tourists is easier, and can yield a high return in the summer season. However, sharper volatility in incomes between seasons should be taken into account.
Investor Recommendations
Before purchasing, it is important to check with a local lawyer or city authority:
- Does the area allow an Airbnb license?
- What is the current lodging tax rate?
- Is there a city plan for a policy change in the next two years?
These tests are critical to avoid a situation in which a property purchased for short rental purposes may not generate the expected income.
Tax and Transaction Costs – The Numbers to Know
As with any real estate investment abroad, it is not enough to focus on the price of the apartment or the expected rent. The taxes and associated costs in Greece can make a real difference.
Transfer tax (transfer tax)
When buying a second־hand apartment, there is a purchase tax of about 3%. If it is a new apartment from the contractor, the tax may reach 24% (VAT), unless the property enjoys a temporary exemption – a clause that is updated from time to time.
Annual Property Tax -ENFIA
Property owners in Greece pay an annual tax called ENFIA. The tax rate depends on the value of the property, its size and location, and ranges from hundreds to thousands of euros per year. This is a charge that must be included in any calculation of net yield.
Tax on rental income
Rental income in Greece is subject to progressive tax, which can reach up to 45% depending on the income level. There are lower tax rates for small incomes, but this is also a significant issue that will affect economic viability.
Capital Gains Tax
On the sale of a property, capital gains tax applies at a rate of about 15%, although there are various exemptions and conditions depending on the holding period. Investors looking for a quick ‘flip’ must take this into account.
Additional Costs
- Notary and lawyer -mandatory by law, at a cost of several thousand euros.
- Brokerage commissions typically range from 2% to 3% of the transaction price.
- Management and maintenance fees -especially in shared buildings and tourist properties.
Numerical example
Buy an apartment in Athens for € 200,000:
- Purchase tax: € 6,000.
- Brokerage and notary fees: about € 7,000.
- Total initial cost: € 213,000.
If the annual rent is 12,000 euros (1,000 euros per month), the gross return is 6%. After deducting ENFIA, rental tax and maintenance costs, the net return may fall to just 3.5% -4%.
Bottom line: Those considering real estate investments in Greece must calculate a real net return, and not be blinded by gross numbers that appear in marketing publications.
Golden Visa- Visa Routes for Investors in 2025
One of the main reasons Greece attracts investors from around the world is the Golden Visa program, which gives real estate investors the right to permanent residency and other significant benefits. In 2025, there will be important changes that must be recognized before a decision is made.
Investment threshold required
The minimum amount of investment depends on the area:
- In Athens, Thessaloniki, Mykonos and Santorini – a higher threshold is required, which currently stands at 500,000 euros.
- In other areas, including large parts of mainland Greece and the least visited islands, the threshold remains at just € 250,000.
This means you can still get into a relatively low-cost plan if you opt for a less ‘hot’area.
What you get on a Visa
- Permanent residency in Greece for the whole family (including spouse and children up to the age of 21).
- Freedom of movement within the Schengen area.
- Ability to own an investment property and enjoy rental income without being a tax resident in Greece.
The Visa Process
After purchasing the property and completing the legal documentation, an application is submitted to the immigration authorities. The process usually takes about 3-6 months, depending on the load and complexity of the case.
Practical Tips for an Investor
- It is worth checking in advance which areas still allow investment in the € 250,000 threshold.
- It is recommended to use a local lawyer who specializes in visas, to ensure that the case is filed fully and without errors.
- Additional costs should be taken into account: government fees, notarized translation and attorney fees.
The conclusion: Golden Visa is a strategic tool not only for generating returns from property in Greece, but also for building housing and freedom of movement in Europe.
Where to invest? Compare cities and key regions
Greece is not a uniform market – the differences between Athens, Thessaloniki and the islands are very large, and each region fits a different investor profile.
Athens-the economic and tourist capital
- Advantages: Strong demand for long-and short-term rentals, a diverse property market, potential for rising values in the centre and the revitalised suburbs.
- Cons: Stricter regulation on Airbnb, rising prices in popular areas.
- Practical tip: Look for new projects in suburbs close to the metro – where prices are still reasonable but strong future demand is expected.
Thessaloniki-City of Students and Culture
- Advantages: Thousands of students create stable demand for rent, more affordable prices than Athens, and the potential for improvement.
- Cons: Smaller market, less demand from international tourism compared to the capital.
- Practical tip: Small downtown apartments near the university are a relatively safe property.
Islands – High potential but volatile
- Advantages: Strong tourist demand in summer, possibility of very high return in short rentals.
- Cons: Acute seasonality, revenue dependent on tourism industry, more complex maintenance.
- Practical tip: Opt for islands with a relatively long tourist season, like Crete or Rhodes, rather than relying solely on the “hype” of expensive destinations like Mykonos.
Useful Tool – Benchmark Tablefor comparison
A smart investor can build a simple table that compares regions:
- Average price per square meter.
- Average monthly rent.
- Gross yield vs. net yield.
- Level of regulation on short rentals.
- Potential future improvement.
Such a table produces a clear picture and makes it possible to understand where the risk is higher and where there is safer growth potential.
Bottom line: Greece’s choice of region depends on whether the goal is a stable income (Thessaloniki, peripheral neighborhoods in Athens) or a higher but riskier return (tourist islands).
Case-Real Estate Deals in Greece in Numbers
To make the abstract picture practical, it’s worth looking at examples that illustrate what an actual investment looks like – with real numbers, taxes and maintenance costs.
2 room apartment in Central Athens
An Israeli investor purchased in 2022 an apartment on 55 square meters at the price of 180,000 euros.
- Monthly rent: € 850 (long-term).
- Gross yield: About 5.6% per year.
- Expenses: Property tax (ENFIA) of € 450, annual maintenance € 800.
- Net return: After taxation and expenses, around 4%.
The upside here is strong demand in the city centre and high capacity stability.
Apartment for students in Thessaloniki
In 2021, a small apartment of 40 sqm near the university was purchased for € 100,000.
- Monthly rent: € 500.
- Gross yield: 6%.
- Expenses: Relatively low maintenance, property tax about € 200 a year.
- Net yield: Close to 5%.
The student market generates certainty and demand even outside of the tourist season.
Villa on tourist island (Crete)
An investor has bought a small villa with a pool for € 350,000, with the aim of renting out to tourists in the summer.
- Seasonal income: 25,000-30,000 euros in three to four summer months.
- Gross yield: around 7% -8% (but depending on the tourist season).
- Expenses: high maintenance (pool, cleaning, local administration), accommodation tax and Airbnb operation.
- Net yield: in practice around 4% -5%, with risk of volatility.
Advantage-high profit potential; disadvantage – dependence on tourism and weather.
The conclusion: Every market in Greece offers a different profile: Athens for stability, Thessaloniki for fixed income with low costs, and the islands for high but volatile returns.
A Checklist and a Return Calculator for an Israeli Investor
To succeed in investing in Greece, it is important to have practical tools to help make data-based decisions.
Investor Checklist
- Legal examination – Ownership of the property and registration in Tabu.
- Tax assessment-Purchase tax, ENFIA, tax on rent, capital gains tax.
- Regulatory Review – Can I rent for a short term? What are the limitations in the specific city/island?
- Maintenance expenses-management fees, electricity, water, insurance.
- Calculation of net yield – do not settle for gross.
- Financing-Checking whether you need a local mortgage or full equity.
- Management Company-Choosing a local body that will handle the property and the tenants.
Yield Calculator-Useful Tool
With a simple calculator you can enter:
- Purchase price includes taxes and transaction costs.
- Monthly rent is expected.
- Fixed expenses (ENFIA, maintenance, management).
- Annual tax on income.
The result will show the annual net return, and will also allow simulation – for example what happens if there are two empty months, or if the rent drops by 10%.
Want to invest wisely in Greece?
Every investment begins with a dream – a dream of a secure, stable and prosperous future. At Oasis Real Estate we believe that real estate goes far beyond property – it is a strategic move to build a real economic future.
Our team specializes in identifying real estate opportunities in Israel and abroad, including real estate investments in Greece. We accompany our clients from the first stage – research, legal testing and planning – to managing the property and achieving the actual return.
If you are considering investing in an apartment in Athens, Thessaloniki or a tourist island, we will be happy to provide you with personal guidance, based on experience and knowledge in the field, in order to turn your dream into a real opportunity for continued growth.
Get in touch with Oasis Real Estate’s experts today – and we’ll start together on the way to a smart and safe investment in Greece.
Real Estate Investments in Greece-Common Questions and Answers
- Why is Greece attracting foreign real estate investors?
Greece offers relatively favorable property prices for Western Europe, strong rental demand in cities like Athens and Thessaloniki, and a Golden Visa program that grants residency to investors.
- Can foreign investors buy apartments in Greece without restrictions?
Yeah. The law allows foreigners to buy real estate, but requires an orderly registration and a local tax number. In some areas close to the borders, special permission is required.
- What is the Purchase tax in Greece?
In most second־hand transactions, the tax is about 3% of the value of the property. New assets from the contractor may apply VAT at the rate of 24%, unless there is a temporary exemption set by the state.
- What is an ENFIA tax?
ENFIA is an annual property tax paid by all property owners. Its height depends on the size of the apartment, its location and the value of the property, and ranges from hundreds to thousands of euros a year.
- What taxes apply to rental income?
Rental income is subject to a progressive tax that can reach up to 45% depending on the income level. There are lower tax rates for modest incomes.
- Is there a capital gains tax on the sale of a property in Greece?
Yeah. The tax rate is about 15%, although there are exemptions and different conditions according to the duration of the holding and residency of the seller.
- What are the additional costs of buying an apartment?
Take into account notary and lawyer fees, brokerage fees of about 2% -3%, notary translation costs and sometimes monthly management fees in common buildings.
- What is the Golden Visa Program?
It is a scheme that allows real estate investors for a minimum amount of € 250,000– € 500,000 to receive residency in Greece and freedom of movement in Schengen countries, including family members.
- Where to invest – Athens, Thessaloniki or the islands?
Athens offers a stable and vibrant market, Thessaloniki is suitable for a student market with high demand, and the islands provide high but seasonal returns and greater volatility.
- Are there restrictions on short rentals (Airbnb)?
Yeah. In Athens conditions have worsened and authorities are restricting new licences in some areas. In the islands and other cities the restrictions are less stringent, but lodging taxes apply.
- What is the average return on real estate investment in Greece?
Gross returns range around 5% -7% in the central regions, but after taxation and maintenance expenses the net return is usually 3% -4%.
- Can I get local funding to buy a property?
In practice, Greek banks provide limited financing to foreigners, sometimes requiring full equity. Many investors choose to finance the deal through personal sources.
- What documents are needed to purchase an apartment?
Required Greek tax number (AFM), local bank account, approved purchase agreement, tabo registration and full notarized documentation.
- How long does it take to close a purchase deal?
Usually between two and three months, depending on the speed of the notary’s checks, the seller’s availability and the opening of the local account.
- For whom are real estate investments in Greece suitable?
The investments are suitable for investors looking for relatively solid net returns, low entry-price assets and possible value addition in the medium term.
