Understanding the Legal and Tax Implications for Israeli Investors in Greece

People from all over the world are interested in investing in Greek real estate, and an increasing number of Israelis are considering a move into this Mediterranean paradise. Greece is an appealing investment destination thanks to its rich history, stunning landscapes, and developing real estate market. Even so, Israeli investors need a deep understanding of the complex tax and legal implications of any significant international investment in order to make truly informed decisions. Although prices are still roughly 14% below their 2008 peak — indicating considerable potential for appreciation — growth is happening quickly. Combined with rising construction costs, the supply-demand gap continues to push prices upward; this is accordingly an excellent time to explore the options. Greece Invests specializes in helping Israeli investors navigate this rewarding but complex journey.

1. Overview of the Greek Real Estate Market

The Appeal of Real Estate in Greece

The Greek real estate market is making a strong comeback. Forecasts indicate that by 2030, roughly €45 billion in investment will flow in, mainly toward building new apartments and renovating existing properties. This wave is creating abundant opportunities for domestic and foreign investors alike. Already in the first quarter of the year, Greek housing prices rose 14.5% — the fastest growth rate in 30 years — well above the eurozone average. Although prices have risen rapidly, they remain roughly 14% below the 2008 peak, a figure suggesting significant room for further gains. The supply-demand gap, combined with rising construction costs, continues to push prices upward. Now is a good time to examine the market.

Greek Real Estate for Israeli Investors

Driven by financial, cultural, and geographic considerations, Israelis rank among the leading nationalities interested in Greek real estate. The geographic proximity between the two countries makes travel and property management easier. The appeal is reinforced by Greece’s favorable economic conditions and the potential for strong long-term returns. Beyond investment, many see Greece as a second home, a base for remote work, or a destination for a peaceful retirement, thanks to the Mediterranean climate, moderate cost of living, and sought-after quality of life. Another draw is Greece’s Golden Visa program, which offers a path to EU residency along with mobility and a range of benefits.

2. The Legal Framework for Israeli Investors in Greece

It’s worth understanding the law before purchasing a property. Although the Greek legal system is considered relatively straightforward, international investors need to understand precisely how it works.

Ownership Rights for Foreigners

The property-purchase process in Greece is generally straightforward even for foreign nationals. EU citizens enjoy full ownership rights. For non-EU citizens (including Israelis), restrictions apply only in designated border-adjacent areas (such as certain islands in the eastern Aegean, the Dodecanese, parts of northern Greece, and certain areas of Crete and Rhodes), where purchase approval from the local prefecture council is required. This process includes a security background check and typically takes about 26 months. In the rest of Greece — including well-known areas like Athens, Mykonos, and Santorini — anyone may purchase property. The rules treat Israelis as international investors, which works to their advantage.

Key Legal Matters

The property-purchase process in Greece includes the following steps:

• Obtaining a Greek Tax Identification Number (AFM): Mandatory, and can be issued quickly, sometimes via a proxy lawyer (power of attorney).
• Opening a Greek bank account: Not always mandatory for payment purposes (transfers from foreign accounts are possible), but strongly recommended for managing ongoing property-related expenses. Physical presence is usually required to open one.
• Hiring a lawyer: This is the most important step. A Greek lawyer will conduct comprehensive legal due diligence, including checking the chain of ownership at the local land registry/mortgage office for at least the last 20 years. This check confirms clean title, that the property is free of liens/attachments/claims, and that it complies with zoning and building law. It also verifies there are no building violations or permit breaches, that valid building permits exist, and that an Energy Performance Certificate has been issued.
• The role of notaries and real estate agents: In Greece, the notary acts as a public official who verifies the legality of the transaction, advises the parties, calculates the property’s “objective value,” prepares the deeds, and maintains public property records. Unlike some other countries where the notary holds funds in escrow, in Greece payment is usually transferred directly from the buyer’s account to the seller’s. Real estate agents guide the investor through the market, helping locate properties and negotiate.
• Signing a preliminary agreement: Once due diligence is complete, a preliminary agreement is signed, typically along with a deposit of about 10%.
• Paying the purchase tax: The property transfer tax — currently 3.09% of the objective or agreed value (whichever is higher) — is paid before the final agreement.
• Final agreement before a notary: The agreement is signed in the presence of the notary, the lawyers, and the seller.
• Registering the rights: The buyer’s lawyer registers the transaction at the land registry/Cadastre to complete the transfer of ownership.
• New owner’s obligations: Registering the rights in the Cadastre, declaring the property via Form E9 through the Taxisnet system, and paying the annual property tax (ENFIA).

Need legal assistance? The legal team at Greece Invests guides you through a smooth, secure purchase process from start to finish.

Residency and Citizenship Options

For non-EU investors, Greece’s Golden Visa program remains a significant incentive. The minimum real estate investment is €250,000 for a five-year (renewable) residence permit, though in high-demand areas like Athens and Santorini the thresholds are higher — up to €800,000, and €400,000 in other regions — with exceptions for preserving listed buildings or converting commercial properties to residential use.

Golden Visa benefits include:

• Free, visa-free entry to Schengen countries.
• No minimum stay requirement in Greece — full flexibility.
• Access to the Greek healthcare system.
• Potential for strong returns, with the option to rent out the property.
• Eligibility for the Non-Dom tax track, which offers significant tax advantages.
• The option to include family members (spouse, children up to age 21, and dependent parents) in the application.

3. Tax Considerations for Israeli Investors in Greece

To make the most of investments and comply with the law, it’s important to understand the tax implications.

Overview of the Greek Tax System

Real estate investors in Greece are exposed to several taxes:

• Property Transfer Tax: The buyer pays 3.09% of the property’s value at the time of purchase.
• Annual Property Tax (ENFIA): A uniform annual tax levied on individuals and legal entities holding real estate in Greece. It includes a base tax per property and a supplementary tax for taxpayers whose aggregate property value exceeds €200,000. The rate for legal entities is 0.55% of total asset value.
• Capital Gains Tax: Capital gains from the sale of real estate by individuals are generally subject to a 15% tax. However, this tax has been suspended annually and is exempt until December 31, 2026. The suspension has been in effect since 2013 and is expected to remain until other real estate taxes are reformed. Once the suspension ends, a 15% tax will apply to the gain — the difference between the sale price and the adjusted purchase price (accounting for improvements and inflation). Non-residents are treated the same as residents. For companies, capital gains are taxed under corporate tax at a rate of 22%.
• Wealth Tax: There is no separate wealth tax, but the supplementary ENFIA component effectively functions as a tax on real estate value above certain thresholds.
• Inheritance Tax: Levied in Greece on the transfer of real estate and movable property. Rates vary based on the value of the assets and the relationship between the deceased and the heir, with reliefs for spouses and children.

Taxation of Rental Income

Rental income from Greek properties is taxable. For individuals, the tax is progressive based on cumulative rental income:

• 15% on income up to €12,000.
• 35% on the portion of income between €12,001–€35,000.
• 45% on the portion of income above €35,000.

Property owners must report rental income. Deductible expenses that reduce taxable income can be claimed, such as an automatic 5% of gross rent for maintenance, and 60% of renovation and energy-upgrade costs (up to €16,000 over three years). Local property taxes are also deductible. For companies, rental income is included in taxable income subject to the 22% corporate tax rate.

Capital Gains Tax

As noted, the 15% capital gains tax on real estate sales by individuals is suspended until December 31, 2026. This means sellers during this period do not pay the tax. Once the tax is reinstated, it will apply to the gain from the property sale. There are no special exemptions based on holding period or the seller’s place of residence, beyond the general suspension.

Wealth and Inheritance Taxes

Greece does not impose a separate wealth tax in the conventional sense, but the supplementary ENFIA component effectively serves as a tax on real estate wealth: individuals whose total objective asset value exceeds €200,000 are subject to a supplementary tax of 0.1%–1.15% on the excess amount. Legal entities are subject to a supplementary tax of 0.55% on the total value of their assets.

Inheritance tax is determined by the value of the transferred assets and the relationship between heir and deceased. First-degree relatives (parents, spouses, children, grandparents, and grandchildren) have an exemption threshold of up to €300,000, above which progressive rates apply (for example: 0% up to €150,000, 1% on €150,001–€300,000, and so on).

The Israel-Greece Double Taxation Treaty

The double taxation treaty between Israel and Greece is of great importance to Israeli investors. Its purpose is to prevent double taxation on income and assets, so that income generated in one country is not taxed again in the other. Regarding real estate income, the treaty generally determines which country holds the primary taxing right and how relief will be provided (via credit or exemption). This means Israeli investors earning rental income or proceeds from selling property in Greece can claim a tax credit in Israel for tax paid in Greece, thereby avoiding double payment on the same income. It’s strongly recommended to consult a tax expert familiar with international taxation and the treaty’s specific provisions.

4. Practical Steps for Israeli Investors

Choosing the Right Investment Property

When choosing the right property, location, market trends, and legal considerations should all be weighed. Santorini, Mykonos, and Crete are excellent for short-term vacation rentals, while Athens and Thessaloniki are better suited to year-round long-term rentals. It’s important to examine rental yields across different areas; emerging neighborhoods may offer higher yields than established premium areas.

The Legal Due Diligence Process

For a secure transaction, involving a local lawyer is essential and non-negotiable. Legal due diligence includes a comprehensive investigation:

• Rights and ownership: Checking title deeds to confirm clean ownership and to identify any mortgages, attachments, or liens.
• Land Registry: Confirming the property is properly registered with the Hellenic Cadastre.
• Building permits and zoning law: Verifying valid building permits exist, confirming there are no violations, and checking compliance with zoning/building regulations.
• Tax and insurance certificates: The seller must provide required tax and insurance certificates.

This comprehensive legal review is essential before signing any preliminary agreements or making deposits.

Managing the Investment

Managing a property from another country can be challenging, but solutions exist in Greece. Many foreign investors hire professional property management companies, which typically provide:

• Marketing and advertising the property on international platforms.
• Tenant sourcing and screening (background checks).
• Rent collection and financial reporting.
• Property maintenance and repairs.
• Liaising with local authorities and ensuring tax compliance.

Familiarity with local rental market dynamics — including average rental rates and seasonal demand — is critical to maximizing occupancy and profitability.

5. Addressing Potential Challenges

Although Greece offers excellent investment opportunities, investors should also be aware of potential risks.

Common Legal Pitfalls for Israeli Investors

• Skipping essential legal checks can lead to costly surprises, such as discovering hidden liens, ownership disputes, or building violations — due to lack of due diligence. To complete full due diligence, always rely on a local lawyer.
• Unfamiliarity with local zoning and building regulations can restrict the property’s future use or development.
• Unlike several other countries, Greece has no uniform standard for “professional property inspections.” Especially with older buildings, it’s advisable to budget for and commission an engineer’s/surveyor’s inspection to avoid unexpected repair costs.

Tax Complexity for Foreign Investors

• Tax obligations can vary significantly depending on whether the investor is considered a Greek tax resident or a non-resident. It’s important to clarify this in advance.
• For investors financing from abroad, currency fluctuations can affect the final cost and profitability.
• Tax laws may change. Stay updated or consult a local tax advisor to avoid non-compliance.

How to Reduce Risk and Maximize Returns

• Comprehensive research: Understanding market trends, location characteristics, and potential rental yields.
• Engaging local professionals: Working with a trusted team of Greek lawyers, tax advisors, and real estate agents.
• Clear financial planning: Accounting for all associated costs — purchase taxes, legal fees, notary fees, ongoing property taxes (ENFIA), and possible property management fees.
• Consider the Golden Visa: If long-term residency and mobility within the Schengen area are desired, the Golden Visa program provides an orderly path to that.
• Property insurance: Insuring the property — especially against natural disasters — can reduce risk exposure and may even lead to a reduction in ENFIA.

6. Expert Recommendations

Consulting with Greece Experts

Israeli investors can make the most of opportunities in the Greek real estate market through smart planning and professional guidance. This includes identifying properties with high appreciation potential, choosing optimal tax structures for investment goals, and professional property management to maintain consistent returns.

Leveraging Investment Opportunities

Through careful planning and guidance from professionals, Israeli investors can get the most out of the market: identifying properties with strong appreciation prospects, building tax plans tailored to their goals, and managing properties efficiently to ensure consistent cash flow and income over time.

Greek Real Estate for Israeli Investors

Israeli investors can generate significant profits from purchasing real estate in Greece. The Golden Visa program offers excellent returns alongside lifestyle benefits. However, to navigate the investment journey safely and profitably, a deep understanding of the legal and tax environment is essential. Making informed decisions is key to handling foreign ownership rights and the complexity of the purchase process, and to understanding the range of tax implications and potential challenges.

We strongly recommend that all Israeli investors work with local experts in Greece. Assembling a trusted team of legal and financial experts in this dynamic, evolving market will provide you with valuable regulatory guidance, help reduce risk, and help maximize returns.

Contact Us

Interested in exploring investment opportunities in Greece? Contact us now for personalized guidance navigating the Greek real estate market for Israeli investors, understanding the Greek Golden Visa investment, and maximizing returns while addressing issues such as capital gains tax on Greek real estate, foreign ownership of Greek property, and tax on rental income in Greece for non-residents. Let Greece Invest help you take a smart, safe, and strategic step into the Greek real estate market.