FAQ

Yes, as a Swiss citizen, you can purchase property in Greece. Greece allows the acquisition of real estate by non-EU citizens; however, there are some specific regulations to consider:

No General Restrictions

• Swiss citizens can generally buy property in Greece, similar to EU citizens.

Restrictions in Border Areas

• In certain border regions (e.g., islands near Turkey or strategically significant military areas), non-EU citizens require special approval from the Greek Ministry of Defense.

Tax Identification Number (AFM)

• You need a Greek Tax Identification Number (AFM – Αριθμός Φορολογικού Μητρώου), which must be obtained from the relevant tax authority.

Greek Bank Account

• It is advisable to open a Greek bank account, as many transactions in Greece are processed through local banks.

Notarial Certification

• The purchase contract must be signed in the presence of a notary in Greece.
• Additionally, registration in the land registry is required.

Golden Visa Option

If you purchase property in Greece, you may qualify for a residence permit (Golden Visa). However, from 2024 onwards, new minimum investment thresholds apply:

• In major cities such as Athens, Thessaloniki, and highly populated islands, a minimum investment of €800,000 is required.
• In all other regions of Greece, the minimum investment rises to €400,000.

Overview of the Key Requirements and Documents

1. Tax Identification Number (AFM – Αριθμός Φορολογικού Μητρώου)
• Every buyer must obtain a Greek Tax Identification Number (AFM).
• This can be applied for at a Greek tax office with a valid passport.
• If you cannot be present, a lawyer can handle this for you with a power of attorney.
  
2. Greek Bank Account
• It is advisable to open a bank account with a Greek bank.
• Most payments, including the purchase price, taxes, and additional fees, are processed through this account.
  
3. Purchase Contract & Notary
• The purchase of a property must be notarized.
• The notary drafts the purchase contract and verifies all legal details.
• A translator may be required if you do not speak Greek.
  
4. Land Registry Check by a Lawyer
• It is highly recommended to hire a real estate lawyer.
• The lawyer verifies ownership rights and ensures the property is free of encumbrances.
• The notary handles the registration with the Land Registry (Ktimatologio).
  
5. Property Transfer Tax & Fees
• Before signing the purchase contract, the property transfer tax (3.09% of the purchase price) must be paid.
• Additional costs include notary fees, legal fees, and real estate agent commissions.
  
6. Residence Permit for Golden Visa
• If you qualify for the Golden Visa (minimum investment of €400,000 or €800,000, depending on the region), you must also provide:
• A valid passport
• Proof of property investment
• Health insurance coverage for Greece
  
7. Transfer & Registration in the Land Registry
• After payment and contract signing, the property is officially registered in the Land Registry.
• The final handover of the property to you takes place after registration.

Is a Lawyer Required When Buying Property in Greece?

In Greece, it is not legally required to hire a lawyer for purchasing property. However, it is strongly recommended, especially for foreign buyers. Here are the key reasons why having a lawyer is essential:

Why Hiring a Lawyer is Advisable

1. Verification of Ownership Rights

• The lawyer checks whether the property is free of encumbrances and whether the seller is the legal owner.
• They review the Land Registry (Ktimatologio) to ensure there are no mortgages, liens, or legal disputes attached to the property.

2. Checking Building Permits

• The lawyer ensures that all construction and usage permits comply with Greek laws.
• This is particularly important for older properties or those located in tourist areas.

3. Contract Review and Legal Advice

• The notary drafts the purchase contract, but they do not conduct a detailed legal review.
• A lawyer clarifies contract terms, resolves any uncertainties, and protects your interests.

4. Power of Attorney for Absentee Buyers

• If you cannot travel to Greece, your lawyer can act on your behalf with a power of attorney.
• They can handle administrative procedures, tax registration (AFM), and opening a bank account.

5. Compliance with Legal Restrictions

• In certain border regions or restricted areas (e.g., islands near Turkey), non-EU citizens require special approval.
• A lawyer ensures all necessary permits are obtained.

6. Negotiations and Legal Support

• A lawyer can negotiate with the seller, real estate agent, or notary to help you secure fair conditions.

Conclusion

Hiring a lawyer is not legally required, but it is an essential safeguard against legal and financial risks. The cost of a lawyer (typically 1-2% of the purchase price) is a worthwhile investment to protect your interests and ensure a smooth purchasing process.

Is a Notary Required for Purchasing Property in Greece?

Yes, a notary is mandatory for purchasing property in Greece. The notary plays a central role in the buying process, ensuring that the contract is legally valid.

What Are the Responsibilities of a Notary in a Property Purchase?

1. Drafting the Purchase Contract

• The notary prepares the notarized purchase contract, based on the agreement between the buyer and the seller.
• They ensure that the contract complies with Greek law.

2. Legalization and Certification

• The notary certifies and notarizes the purchase contract, making it legally binding.
• Without notarization, a property purchase in Greece is not legally valid.

3. Verification of Ownership

• The notary checks whether the seller is the legitimate owner of the property.
• They verify the Land Registry (Ktimatologio) to confirm that the property is properly registered.
• However, this does not replace the detailed legal examination conducted by a lawyer, so hiring a lawyer is strongly recommended.

4. Calculation and Payment of Property Transfer Tax

• Before signing the purchase contract, the buyer must pay the property transfer tax (3.09% of the purchase price).
• The notary ensures that this payment is made correctly and officially confirmed.

5. Registration in the Land Registry

• After notarization, the notary ensures that the property is registered in the buyer’s name at the Land Registry (Ktimatologio).
• Only after registration is the buyer officially recognized as the property owner.

6. Interpreter Requirement for Non-Greek Speakers

• If the buyer does not speak Greek, the notary may require the presence of a sworn interpreter.

Conclusion: Yes, a Notary is Mandatory in Greece

• Without a notary, a property purchase is not legally valid.
• The notary ensures that the contract is legally binding and that the property is properly registered in the Land Registry.
• Notary fees typically range from 1–2% of the purchase price.

Income Tax Obligations When Buying Property in Greece as a Swiss Citizen

As a Swiss citizen, you may be subject to income tax in Greece under certain circumstances when purchasing a property. Your tax obligations depend on how you use the property. Below are the key points:

1. No Income Tax for Private Use

• If you use the property exclusively for personal residential purposes and do not generate rental income, you are not subject to income tax.
• However, you are required to pay the annual property tax (ENFIA).

2. Income Tax on Rental Properties

If you rent out your property, either long-term or as a vacation rental (e.g., Airbnb, Booking.com), your rental income is subject to Greek income tax.

Income Tax Rates on Rental Income (2024):

• Up to €12,000 per year → 15% tax
• €12,001 – €35,000 per year → 35% tax
• Above €35,000 per year → 45% tax

Additional Notes:

• No social security contributions are required.
• If you operate short-term rentals (e.g., Airbnb), you must register your property in the Greek tax system for vacation rentals.

3. Tax Declaration Requirement in Switzerland

• In Switzerland, you must declare your foreign property in your Swiss tax return.
• Rental income earned in Greece may affect your tax rate (progression calculation) in Switzerland, depending on your place of residence.
• Thanks to the double taxation agreement (DTA) between Switzerland and Greece, you will not be taxed twice.

4. Selling the Property – Capital Gains Tax

• If you sell the property for a profit, capital gains tax may apply.
• Currently, there is no capital gains tax (speculation tax) in Greece, but this rule may change in the future.

Conclusion:

No income tax if you use the property only for private residence.
Income tax on rental income between 15% and 45%, depending on annual earnings.
Declaration of the property is required in the Swiss tax return.
No capital gains tax on sale – currently tax-free.