5 min.

Purchasing Property in Greece: The Total Cost

Published on
December 6, 2023

Many beginner investors mistakenly believe that the cost of buying European property is solely the amount advertised as the purchase price. In this article, we will uncover all the additional expenses that accompany the process of acquiring European real estate.

How Much Does Property Cost in Europe?

The term “European real estate” is incredibly diverse. Property prices vary significantly across different European Union countries and even within individual nations.

For example, France is one of the top 10 countries worldwide with the most expensive residential real estate. In 2023, the average cost per square meter in the heart of Paris is 12,400 euros. In other areas of the French capital, the cost  is lower, but still substantial - around 8,700 euros.

Portugal, thanks to a surge in real estate demand, is quickly catching up to these numbers. Property prices in Portugal have risen by 10% or more each quarter for one and a half years up until the beginning of this year. This growth trend continued, albeit at a slightly slower pace. As a result, the average cost per square meter across the country reached 1,629 euros by October this year, surpassing the similar metric in Spain. In Lisbon, housing costs can reach up to 10,000 euros per square meter.

Greece: A Magnet for International Investors in the EU

Greece stands out as an attractive destination for foreign investors among EU member states. In the country's most expensive regions – Athens and its suburbs, the Cyclades, Kefalonia, and Lefkada – residential real estate prices per square meter range from 2,200 to 3,500 euros. However, regions like Florina, Kilkis, and Kozani offer more affordable options, with prices as low as 600-700 euros per square meter.

Advertised Price Is Just the Beginning

This is a critical point every investor should remember. The process of purchasing European real estate involves several mandatory expenses that can significantly increase the final cost of acquisition.

Let's delve into these expenses using a real-life example of purchasing an apartment in Neos Kosmos, a district near the historical center of Athens.

The property was listed for sale at 255,000 euros. According to Greek law, property purchases are subject to a tax of 3.09% of the property's value, which in our case amounted to 7,900 euros. The buyer also paid a real estate agent's commission of 2.5%, along with lawyer fees and notarial charges of 1.2% each. In total, these three types of expenses in our case amounted to 12,648 euros. Adding the registration fee (0.8%) and the cost of setting up short-term rental operations (1.4%), which was the purpose of the acquisition, the overall investment cost increased by more than 26,000 euros, or 10.2%.

Post-Purchase Considerations: Understanding Ongoing Costs in Greece

The investment journey doesn't end with the property purchase. Property ownership in Greece comes with the responsibility of paying an annual real estate tax, known as ENFIA. This tax ranges from 0.001 to 13 euros per square meter, with the rate depending on the property's location, size, and age. Additionally, owners of Greek properties are also required to pay a municipal tax annually, which varies from 0.025% to 0.035%, again based on the region.

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