Property in Athens with a residency permit
Purchasing properties in Athens, Greece, offers numerous opportunities to foreign investors. It allows profitable investment, the acquisition of a second home in a country with developed infrastructure, and the chance to obtain a residence permit. The Golden Visa programme, designed for foreigners investing in residential or commercial properties, makes the Greek capital one of the most attractive destinations for those seeking access to the European Union.
Currently, the minimum cost of property in Athens required to obtain a residence permit is €500,000. However, from 31 August 2024, this threshold will rise to €800,000. The updated residency programme introduces several significant restrictions for foreign buyers:
- Firstly, to obtain the visa, the investor may only purchase one residential unit with a minimum area of 120 m². This means that popular compact studios, small apartments in Greece, and houses cannot be used for residency applications.
- Secondly, visa holders are prohibited from renting out the property on a short-term basis. Non-compliance with this rule may result in the cancellation of the visa and a fine of up to €50,000. However, it is not yet clear whether these new restrictions will apply to those who have already obtained a Golden Visa in the past.
The Greek government has also introduced two exceptions where the minimum investment amount remains at €250,000. The first exception involves the purchase of historic buildings for restoration, which must be completed within 5 years to retain the residence permit. The second exception relates to the renovation of commercial real estate, where the property is converted into residential premises. All construction work must be completed before the application to obtain a Golden Visa in Greece by property investment is submitted. These exceptions uphold the current investment conditions across all regions and eliminate minimum size requirements on the property.
Residence permit in Greece by buying property in Athens
Buying real estate in Athens with the intention of obtaining residency requires a detailed approach, beginning with selecting the right property and obtaining legal advice. After signing the contract and making a deposit, the buyer should:
- Open a bank account in the country and obtain an individual tax number (AFM).
- Finalise the purchase and confirm payment.
- Gather all the necessary documents to submit to the immigration service to apply for a residence permit, confirming the investment.
A long-term residence permit allows the holder to legally reside in the country, travel to Schengen Area countries without additional visas, and eventually apply for citizenship. To do so, one must live in the country legally for 7 years.
This programme is not the only way to legally reside in Greece. Those not planning to invest in real estate might consider the Digital Nomad Visa in Greece.
Investment real estate in Athens
Purchasing properties in Athens for investment presents an appealing opportunity to foreign investors. This is due to the steady rise in prices and the potential for high returns. According to recent data, property prices in Athens increased by approximately 9% in Q1 2024 compared to the previous year, highlighting the high profitability of such investments.
Demand for rental real estate in Athens remains strong. The yield from short-term rentals of an apartment or villa in Greece can reach 5–7% annually, and long-term rentals also show steady growth. However, it is important to note that those planning to profit from short-term rentals will not be able to obtain a residence permit.
The most popular neighbourhoods of the capital remain Koukaki, Kolonaki, Plaka, and Monastiraki. These areas are in high demand from both tourists and locals, making them attractive for the rental business. Koukaki, for instance, is located near the Acropolis and is popular among tourists, ensuring stable income from short-term rentals. Kolonaki and Plaka attract investors due to their prestige and rich infrastructure.