Greece Set to Fivefold Property Acquisition Tax for Non-EU Investors

The Greek real estate party is coming to an end for foreign buyers. Greece, which has become a favored destination in recent years for Israelis seeking affordable real estate investments and attractive yields, is set to become significantly less appealing following a major tax overhaul.

In early September, Greek Prime Minister Kyriakos Mitsotakis announced his intention to raise the property acquisition tax for citizens from non-European Union countries from 3% to 15%—a fivefold increase. In his speech announcing the move, he explicitly singled out Israeli investors, alongside Chinese and Turkish nationals, as contributors to rising apartment prices in the country, which have made it difficult for local citizens to purchase their own homes.

The Financial Impact on Real Estate Investments

An Israeli investor purchasing an apartment in Athens for €150,000 currently pays an acquisition tax of €4,500. Under the new rules, that figure will jump to €22,500. For a €300,000 apartment, the tax will surge from €9,000 to €45,000—an additional €35,000. Anyone purchasing a residential property for €800,000 will pay €120,000 in tax, compared to €24,000 today.

These are substantial sums that threaten to turn once-lucrative transactions into far less profitable ventures. These calculations do not include municipal tax additions and other closing costs. The sweeping change is scheduled to enter into force in July 2027.

"Anyone who can complete a purchase and close it quickly, should do so. The obvious solution is to establish a Greek company to buy the apartment, but I do not recommend this yet because it remains unclear what the final legislation will dictate," says real estate expert and former MK Ilan Leibovitz.

Regulatory Tightening and the Golden Visa

In the past, foreign nationals could acquire property in Greece for €250,000 and receive a golden visa, granting residency status with renewal options. However, as foreign investors flooded the market, property and rental prices skyrocketed. Local citizens, facing mounting housing affordability pressures, pushed the government to intervene.

In response, Greece began curbing foreign real estate investments. The investment threshold for obtaining a golden visa in Athens and other high-demand areas was raised to €800,000. Simultaneously, restrictions were imposed on registering new short-term rental apartments in central Athens and Thessaloniki.

During the Thessaloniki International Fair on September 5, Mitsotakis unveiled the property tax hike. The measure is designed to cool foreign demand while boosting state revenues from the transactions that do proceed. According to data from the Greek Ministry of Migration for August, the golden visa program has granted residency permits to 12,664 Chinese nationals, 5,104 Turks, 1,169 Lebanese, 1,010 Iranians, and 849 Israelis.