By Isaac (Yitshak) Mann, founder of Greece Invests, living in Greece for almost five years
Almost every first conversation I have with an investor from Israel reaches the same question at some point: why real estate investment in Greece and not another apartment in Israel? It is a reasonable question. At home everything is familiar, and the property is close by. I have lived in Greece for almost five years, so I am clearly not objective. Still, I tried to compare the two options on the four topics that come up in almost every conversation: tax, yield, entry costs and remote management.
| Topic | Israel | Greece, South Evia |
|---|---|---|
| Purchase tax | 8% on an additional apartment, 10% above about NIS 6 million | About 3% today. An increase to 15% has been announced for apartments and residential homes from July 1, 2027, for buyers who are not EU citizens, not on land |
| Rental yield | 2.7% to 3.2%, long-term rental, according to Bizportal | 6% to 7% gross expected, short-term rental, company estimate |
| Annual property tax | None. There is municipal property tax (arnona) | ENFIA |
| Management | Close by and in a familiar language | Through a local management company |
Purchase tax and rental tax: real estate investment in Greece vs Israel
In Israel, someone who buys an additional apartment pays purchase tax of 8% from the first shekel, and 10% on the part above about NIS 6 million. The threshold is updated every year. On an apartment worth NIS 3 million, that is NIS 240,000, before a lawyer and a broker.
In Greece, the property transfer tax today is about 3%, or exactly 3.09% once the municipal surcharge is added. The Greek government has announced an increase to 15% from July 1, 2027, but it is worth reading the details. The increase applies only to apartments and residential homes. Land is not included, and neither are companies and commercial property. According to what has been published so far, the increase targets private buyers who are not EU citizens, so someone who holds a European passport is probably not affected. Building a villa on a plot you already own is not a real estate transaction, so there is no purchase tax on it. For now this is only an announcement, the law has not passed, and the final wording may change.
On rental income tax, in Israel most apartment owners choose between an exemption up to a monthly ceiling and a track of 10% of gross income. In Greece, rental income is taxed in brackets, and the first bracket is 15% on the first €12,000 a year. An Israeli resident must also report the income from Greece in Israel. There is a special 15% track, where only depreciation may be deducted and there is no credit for the tax paid in Greece, and there is the regular track where the Greek tax is offset. Israel and Greece have a double taxation treaty. Which track pays off more depends on the amounts and the personal situation, and that should be checked with an accountant.
Where is rental yield higher: real estate investment in Greece or Israel?
According to an analysis published by Bizportal in September 2026, a rental apartment in Israel today yields 2.7% to 3.2% a year. In some cities in the center it is even less. With the Bank of Israel interest rate at 3.25%, as of September 2026, many investors ask themselves why hold an apartment and not a deposit.
Those who look for a higher yield in Israel sometimes also consider commercial real estate investment in Israel, but there the tenants, the contracts and the risks are different.
In South Evia, in the Karystos area where we work, our estimate for a villa with a pool rented short-term is an expected annual yield of 6% to 7% gross, before management fees and taxes, and an expected appreciation of 7% to 9% a year. These are company estimates, and no one can guarantee them. Real estate investment in Greece through short-term rental depends on the season and on the quality of management, and a weak year can lower the numbers. It is also worth remembering that the Israeli figure refers to long-term rental, so the comparison is not one to one.
How much does purchasing a property in Greece cost compared with an investment apartment in Israel?
In Israel, beyond purchase tax, there are lawyer fees, a broker commission and VAT on both. The entry price itself is high. It is hard today to find an investment apartment in a high-demand area for less than a few million shekels, and most investors need a mortgage to get in.
For real estate investment in Greece, according to Global Property Guide, the buyer pays, beyond the transfer tax, notary fees of about 0.8% to 1%, lawyer fees of about 1% to 2%, and registration fees of about half a percent. The amount needed to start is also lower. In the Karystos area a plot starts from €60,000, and a turnkey villa with a pool ranges from €225,000 to €700,000, depending on the size and the plan you choose.
There are also ongoing costs. In Greece you pay an annual property tax called ENFIA, which is calculated by the location, size and age of the property. In Israel there is no annual property tax on an apartment, but there are municipal property tax and building committee fees, and these are usually paid by the tenant.
How to manage a property in Greece when you live in Israel
Here Israel has a clear advantage. At home you can get to the apartment when there is a leak and talk to the plumber in Hebrew.
In Greece you cannot do without someone local. Short-term rental of a villa is run through a local property management company, which handles bookings and routine maintenance. The rental income goes directly to the villa owner. We do not manage the rental ourselves. We accompany the purchase, planning and construction, and that is where our role ends.
The construction stage is where distance can be costly. Someone who builds a villa remotely needs a person on site to check the work and deal with problems with the contractor. This is why we accompany construction on site, and the funds are released in stages through an Israeli trustee lawyer.
Real estate investment in Greece: frequently asked questions
Does the new purchase tax in Greece apply to land?
No. The increase from 3% to 15%, announced from July 1, 2027, applies only to apartments and residential homes. Land, companies and commercial property are not included. According to what has been published, it targets buyers who are not EU citizens. For now it is an announcement and not a law.
Is purchase tax paid on building a villa on a plot in Greece?
No. Building a villa on a plot you already own is not a real estate transaction, so there is no purchase tax on it.
Who manages the rental of the villa?
A local property management company, which handles bookings and maintenance. The rental income goes directly to the villa owner.
Does an Israeli resident need to report rental income from Greece in Israel?
Yes. You can choose the 15% track with no credit for the Greek tax, or the regular track where the tax paid in Greece is offset. It is worth choosing the more profitable track together with an accountant.
Who is real estate investment in Greece right for, and who should stay in Israel?
Someone who wants a property that is close, in their own language, and is willing to accept a lower yield for that peace of mind, will do well in Israel. Real estate investment in Greece requires dealing with bureaucracy and relying on a local team. In return the initial investment is lower, the expected yield is higher, and you also get a villa with a pool for a few weeks a year.
For those who are hesitating, I recommend first of all coming to see the area, and then going over the numbers with an advisor who does not profit from either side.
This article is for general information, and is not investment, tax or legal advice. I am also an interested party, as the founder of a company that markets plots and villas in the Karystos area. Before making a decision, it is worth sitting down with an accountant who knows both countries.
