Athens has become a focal point for small and medium-sized investors. Here are 10 reasons why.
A recent study dedicated to the attractiveness of Athens' housing market for real estate operation investors places Athens fourth among a range of European cities. Data collected by the investment company ProfitLevel indicates that in Athens, it takes about 21.4 years to amortize corresponding investments. This duration is calculated based on the cost of property acquisition and rental rates.
The Greek real estate market was heavily impacted by the 2018 economic crisis. Since then, prices per square meter have been increasing by 9% annually. The country's temporary financial difficulties have laid the groundwork for investment opportunities. Non-EU citizens now have the chance to invest in Greece by owning a house or an apartment at a time when property prices are still low, and demand is on the rise. The Golden Visa offers an opportunity to invest and gain residency or citizenship in a country with a pleasant climate. With its seas and beaches, the warm season lasting from May to October, and winter temperatures rarely dropping below 10°C, Greece is an appealing destination.
A series of reforms and the efforts of the Greek people are slowly but steadily restoring the country's economic situation. This is evident in economic indicators that are noticeable even to the average person in markets, streets, and daily life.
Greece now enjoys the full confidence of international investors, demonstrating good growth rates and recovering quickly from the downturn of previous years. The yield on Greek sovereign debt is currently lower than in the USA, marking a significant achievement. The government insists on early repayment of IMF loans. International rating agencies, such as Fitch, have upgraded Greece's rating from BB- to BB. All these factors testify to the country's economic growth and the effectiveness of its fiscal and budgetary policies.
The Hellenic Republic is restoring its investment status and attractiveness.
Greece, renowned for its tourism, offers lucrative opportunities for investors eyeing rental income from real estate. In Athens, properties yield an average profit of about 4.5% per year, while in Corfu, the return ranges from 4-5%, as reported by Numbeo. To legally earn income from properties and manage their maintenance, investors are required to open a bank account in Greece.
The tax implications for foreign investors in Greece depend on their country of residence and the amount of time spent in Greece. If an individual continues activities outside Greece, international income may not be taxable in Greece, and they can benefit from certain tax advantages.
The Hellenic Republic also offers tax incentives to foreigners residing in the country as tax residents. There are various encouragement programs available for retirees, digital nomads, and other foreign nationals.
Greece has double taxation agreements with the UK, USA, and Russia, ensuring that foreigners pay taxes on Greek property only in Greece. Another critical point is that obtaining a residency permit in Greece does not automatically make an investor a tax resident unless they reside in the country for more than 183 days a year.
Greece's Golden Visa program extends residency not just to the foreign applicant but also to their immediate family members, including:
The Greek Golden Visa allows the individual or their family to live in Greece without restrictions on the length of stay. There is no minimum stay requirement. Residency in Greece opens access to state medical and educational benefits.
One compelling reason to invest in Athens' real estate is the immediate opportunity for commercial utilization and rental upon acquisition. This means that as soon as you purchase a property in Greece, you can start generating income by renting it out. This aspect is particularly advantageous for investors who are keen on quick returns and wish to leverage the property as a source of steady income.
Athens, with its constant flow of tourists and expatriates, presents a fertile ground for short-term rentals, especially through platforms like Airbnb. The flexibility to use the property commercially right after purchase provides investors with a swift path to capitalize on their investment, making it an attractive option for those seeking both immediate and long-term financial gains.
A key advantage of investing in Greek real estate is the ability to renew your residence permit indefinitely, as long as you maintain property ownership. This feature offers a significant degree of flexibility and peace of mind, especially for those who may not wish to reside in Greece continuously. Unlike some other residency programs, Greece does not impose a mandatory stay requirement to renew your residence permit. This makes it an ideal choice for investors seeking residency rights without the obligation of permanent relocation.
Greece also offers investors the opportunity to establish a joint stock company, paving the way for engaging in various business activities within the country. This opens doors to a broader spectrum of investment and entrepreneurial ventures, extending beyond just property investment. This capability is particularly beneficial for those looking to diversify their investment portfolio or expand their business footprint into the European market.
Investing in Greek real estate also allows the opening of both personal and corporate bank accounts in Greek banks. This facilitates easier management of financial transactions related to property investment, business operations, and personal expenses. The process of setting up these accounts is typically straightforward and adds an extra layer of financial management efficiency for international investors in Greece.
Greece stands out for having one of the lowest investment thresholds for real estate in Europe. This makes it an accessible option for a broader range of investors. Whether you're a first-time investor or looking to expand your portfolio, the Greek real estate market provides a cost-effective entry point. This low barrier to entry is a significant draw, especially when compared to other European countries with higher investment requirements.
In addition to the primary investor, a wide circle of relatives can also acquire residency rights in Greece. This extended eligibility often includes the investor's spouse, children, and sometimes even parents. This feature adds substantial value to the investment, making it not just a financial decision but a family-oriented choice as well. It's an excellent opportunity for those looking to secure a future in Europe for their loved ones.
Investors in Greek real estate can immediately put their property to commercial use, including renting it out, right after purchase. This offers a quick start to generating income, particularly attractive for short-term rentals like Airbnb. The ease with which investors can transition their newly acquired property into a revenue-generating asset is a significant advantage, aligning perfectly with investment goals that prioritize immediate returns.
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