Greek Mortgages

Greece is one of the European markets offering relatively attractive entry opportunities, particularly for holiday or second homes. The country combines Mediterranean lifestyle, tourism infrastructure, and investor interest with a property and legal framework that has become increasingly stable in recent years. While earlier market phases were marked by volatility and price corrections, the current cycle shows steady demand from both domestic and international buyers.

Greece in the European Context

Greece occupies a unique position among European real estate markets. The country offers moderate entry prices, strong tourism potential, and attractive coastal and island regions. The market has developed toward greater stability, with more reliable legal and administrative structures. For investors, Greece represents a sustainable segment rather than a speculative market—an addition to established destinations with a distinct profile.

Buying Property in Greece

There are generally no legal restrictions preventing foreigners from purchasing property in Greece. Exceptions apply to certain border areas (such as along the northern Greek-Turkish frontier or specific private islands), where a permit from the Ministry of Defense or the local administration may be required. The Greek land registry records all ownership rights and encumbrances. Buyers, or their legal representatives, conduct due diligence to identify liabilities, outdated permits, or illegal structures. Greek property law includes clear provisions on condominium ownership and registered rights such as liens or easements. Property acquisitions are subject to transfer tax and other taxes (such as ENFIA). Rental income must be declared within the Greek tax system. In regulated tourist zones such as central Athens, new legal restrictions have been introduced on short-term rentals, including limits on the issuance of new permits.

Financing in Greece

For foreign tax residents seeking real estate financing in Greece, the process typically involves several stages. It begins with a pre-approval, during which the bank assesses creditworthiness and financing capacity before a purchase agreement is required. The next step defines the financing structure, including loan-to-value (LTV), term length, and interest model (e.g., initial fixed-rate period). For international buyers, maximum loan-to-value ratios are usually lower, typically around 60 to 65 percent of the property’s market value. Once financing approval is granted, the purchase is notarized and registered in the land registry (Ktimatologio / Υποθηκοφυλακείο). For new constructions or renovation projects, disbursements are often made in stages according to construction progress, reducing risk for both lender and borrower. Loan terms for non-residents are typically limited to 15–20 years, depending on age, income, and bank policy. Some institutions offer initial fixed-rate periods (e.g., three years) followed by variable rates linked to Euribor.

Property Financing in Greece Compared Internationally

In markets such as Spain or Portugal, LTV ratios of 70 percent or more are relatively common for foreign buyers, whereas Greek banks tend to limit financing to 60–65 percent. Loan terms are also typically shorter in Greece; while many European markets allow non-resident borrowers to structure loans over 20–25 years, Greek lenders often cap the term at around 15–20 years.