The real estate market in Greece has witnessed a significant transformation in recent years, attracting the attention of international investors. This article explores the growing interest of Israeli investors in Greek properties and highlights the potential returns available in the Greek market. Additionally, it provides insights into the process of purchasing property in Greece, addressing concerns about safety and the associated costs. Furthermore, we briefly touch upon the topic of buying property in Israel to provide a comprehensive perspective on real estate investment opportunities in both countries.
Contents
Israelis Investing in Real Estate in Greece
In the wake of Greece’s severe financial crisis and subsequent decline in urban property prices, Athens and Thessaloniki have emerged as promising investment destinations. Many Israelis have recognized the potential for high returns in the Greek real estate market, which stands in contrast to the soaring property prices in Israel. Israeli investors have made substantial investments in various sectors, including hotels, malls, apartment blocks, as well as individual flats and apartments in the heart of Athens and Thessaloniki. These investments present opportunities for renovation, rental income or resale.
Safety and Legality of Purchasing Property in Greece
Prospective buyers often inquire about the safety and legality of purchasing property in Greece. The notarial contract and certification by a civil engineer help ensure that properties are legally built and transferred by the rightful owners. A thorough legal search is conducted to confirm the absence of encumbrances, such as mortgages, on the property. The Land Registry in Greece, particularly in major urban centers, is well-established, facilitating swift and efficient registration of property deeds. The increasing foreign investments in Greece further demonstrate the transparency and security of the legal procedures and transactions involved.
Procedure and Costs of Buying Property in Greece
The process of purchasing property in Greece is relatively straightforward and entails minimal expenses. First, foreign investors must obtain a Greek Tax Number, which allows them to conduct transactions in Greece. This procedure is simple and typically takes around 30 minutes. Subsequently, the notary prepares the contract and addresses any related issues. During this phase, the buyer is required to pay a transfer tax of 3% based on the property’s objective value. After conducting technical and legal searches and seeking professional advice, the contract is ready to be signed. The signed contract, serving as the property deed, is then registered with the Land Registry (“Tabo”). The overall transaction costs, including fees for lawyers, notaries, agents and the transfer tax, amount to approximately 8.5% to 9% of the property’s purchase price. Additionally, a value-added tax (VAT) of 24% applies to all services in Greece.
Real Estate Income Taxation in Greece
Income derived from buying and reselling property is currently not taxed for individuals; however, starting from the coming year(s), a 15% income tax will be imposed. On the other hand, companies are subject to a 29% tax on such income. Rental income generated by individuals is taxed on a progressive scale, with rates ranging from 15% to 45%, depending on the income bracket. In the case of property rentals by legal entities, such as companies, a flat tax rate of 29% is applicable as it is considered income from business activities.
Buying Property in Israel
While the focus of this article is on real estate in Greece, it is worth mentioning the opportunities available for individuals interested in purchasing property in Israel. The Israeli real estate market offers a range of residential and commercial properties. However, it is essential to conduct thorough research and engage local professionals to navigate the complexities of the Israeli real estate market. From Tel Aviv’s bustling cityscape to the scenic coastal towns and historical sites, Israel presents diverse investment options. Prospective buyers should consider factors such as property prices, legal requirements and market trends before making investment decisions.
Conclusion
Investing in real estate presents an enticing opportunity in Greece, particularly for Israeli investors seeking high returns. The Greek market’s transformation, combined with the transparent legal procedures and well-established Land Registry, ensures safety and security in property transactions. While there are associated costs, the process of purchasing property in Greece is straightforward. Additionally, the taxation of property income in Greece varies depending on the type of income and the entity involved. It is essential to seek professional advice to navigate the evolving taxation regulations. By exploring real estate opportunities in Greece and Israel, investors can make informed decisions and capitalize on the potential of these dynamic markets.
Summary
This article examines the growing trend of Israeli investment in Greek real estate, particularly in Athens and Thessaloniki, following Greece’s financial crisis. The market offers attractive opportunities due to lower property prices compared to Israel’s soaring real estate costs. The article outlines the purchase process in Greece, emphasizing its safety through notarial contracts and the Land Registry system. Associated costs include a 3% transfer tax and approximately 8.5-9% in transaction fees. The Greek tax system currently does not tax individual property resale income, though this will change to 15% in the future, while rental income is taxed progressively. The article concludes by briefly discussing real estate investment opportunities in Israel.
