Foreign Investments in Greece: Options and Benefits

Advantages of Investing in the Greek Economy

This section is a brief review of the most considerable benefits of making investments in Greece, based on numerous reports from foreign investors and expatriates in this country.

 Permanent Residency in Europe

A comparatively quick and hassle-free way of obtaining a residence permit in a European country seems to be by far the most common reason for investing in the Greek economy, especially in its property market. That permit allows you to enjoy the relatively high standard of living that Europe is famous for and travel across the Schengen Zone freely as well.

 Investment Policies

Since the last economic crisis, the Greek government has exerted considerable effort in making foreign direct investments as simple and attractive as possible to stimulate the monetary flow into the country. That concerns especially the reduction of regulations and restrictions for FDI and the significant cuts on taxes applicable to foreign investors.

 Mortgage Rates and Property Value

Greek banks offer comparatively lenient mortgage terms, and the rates do not exceed 7.5%, sometimes even going as low as 3.5%. You must only be at least 25, open an account in a Greek bank and apply for a Greek tax number.

The actual property is quite affordable by European standards, and you can even purchase a spacious house in some parts of the country for as little as €200K. Besides, the Greek real estate market provides excellent rental yields and capital appreciation.

Furthermore, the real estate tax is only 1.15% for the property worth more than €2 million, being less than 0.5% for the overwhelming majority of purchases on the private property market. 

The following sections focus on the three most attractive sectors of the Greek economy for foreign investments, namely its small-to-medium business, financial and real estate sectors.

Commercial Enterprise in Greece

According to the recent statistical distribution of the foreign direct investments in Greece, the most attractive sectors seem to be:

• The tourist industry, where top-class holiday accommodation and amenities provide the most lucrative opportunities

• Services, from catering and entertainment to finances and logistics

• Manufacturing, particularly the food, machinery, chemical and high-tech production

The income tax will be 45% at the highest (for the income of more than €100,000 per month), and you will not have to pay it at all if your revenues are less than €12,000 per month. Besides, your foreign income will not be subject to taxation if you spend less than half a year in the country.

Greek Stocks and Bonds

The Greek government also welcomes foreign monetary flow into its financial sector, providing considerable perks and tax exemptions in return. And if you invest €400,000 in government bonds, you will receive a permanent residence permit in just a couple of months and will be eligible to apply for Greek citizenship in seven years. 

Greek Real Estate

The most favoured sector among foreign investors in Greece is its real estate. Both private and commercial property prices compare well with other European countries, and the government provides fairly lenient terms for acquiring a permanent residence permit in the country for investing as little as €250,000.

The processing time is only a couple of months, and your family members receive the resident status as well. You only have to submit your passports and medical insurance, open a Greek bank account and receive a Greek tax number. And the only restriction set by the government is that you do not buy property near the country's borders or military bases. 

Best Regions for Investments

For the readers interested in the possibilities of investing in the Greek real estate sector, this section provides a list of the currently most attractive locations in the country, considering the quality of living in the region and the potential profits from leasing private property there. 

10. Grevena

Located near the Greek section of the European Route, Grevena is a capital of an economically viable province actively involved in agriculture and forest industry. Apart from that, its cold and snowy winters and hot and dry summers maintain constant traffic of tourists throughout the year. 

9. Kastoria

This small town ranks high among tourists, famous for its fantastic Byzantine architecture, beautiful lakes, limestone mountains, excellent cuisine and comfortable weather conditions. Kastoria has a well-developed infrastructure sustained by its prosperous tourist industry and several hundred fur dealers. 

8. Acarnania

The least populous province in Western Greece, Acarnania is the prime location for enjoying gorgeous mountains, peaceful riverbanks, myriads of ancient monuments, and comparatively decent rental yields too. 

7. Magnesia

While private property in Magnesia province costs a lot less than in other seaside regions in Greece, the rental yields are relatively high, making investments in its real estate market a very lucrative enterprise. Incidentally, the word 'magnet' comes from the region's name, and the magnesium industry has been flourishing here away from the coastline since ancient times. 

6. The Cyclades

This most famous Greek archipelago is also home to the most expensive property in the country, and the high yields and capital appreciation match the prices perfectly well. Living anywhere on the Cyclades is being right in the middle of everything Greece has to offer, from historical monuments and cultural venues to stunning landscapes and the infinite variety of national dishes. 

5. Larissa

One of the most populated cities in Greece, Larissa is a transport node of national significance, connecting most parts of the country with its highways and railroads. It also has one of the highest gross domestic products, being a prime agricultural region in Greece, and its cereal and meat production contribute over 5% of the country's GDP. Apart from that, Larissa has the highest number of restaurants and bars per person in Greece. 

4. Kozani

This small town is one of the most important educational and cultural centres in Greece, producing over 40% of the country's electric energy at the same time. Kozani is also famous for its multiple industries, including wines, spices, mineral production and banking services. In addition, its highly diverse nightlife and the greenest suburbs in Greece attract tourists and visitors throughout the year. 

3. Karditsa

This city of schools and bicycles is one of the cosiest university towns in the country, surrounded by the most breathtaking mountain valley views in Central Greece. Private property is quite affordable here, and if you intend to let it out, you may safely expect relatively high and stable yields virtually guaranteed by the city's large student population. 

2. Florina

A step-up from the previous locations in terms of its ratio of rental prices to property values, Florina is, in fact, the second-best place for investments in the Greek real estate sector. Being one of the coldest places in the country, it enjoys stable traffic of tourists to its numerous ski resorts. And when summer comes, the town blooms into one of the largest and most kaleidoscopic marketplaces in Greece. 

1. Chalkidiki

The Chalkidiki peninsula is an absolute champion of profitable investments in the Greek commercial and private property market to date. The province also happens to be one of the most developed parts of the country, home to superb architecture, rich culture and incredibly convenient and diverse infrastructure.

In addition to its high standard of living, Chalkidiki enjoys heavy traffic of tourists and visitors in the summer, offering them luscious hills, white sand beaches, green-blue waters and top-quality wines, olives and honey. And even though the private property is considerably more expensive here than at other locations, except for the Cyclades, the archipelago still boasts an impressive 22% annual yield, after all. 

The table below compares these locations in terms of their average property and rental prices and annual yields for 2021-2022. 

Conclusion

Greece provides foreign nationals with relatively attractive investment opportunities to the optimal satisfaction of both parties. Which sector of its economy you choose to invest in will depend on your purposes and budget. You can consult the Greek Consulate and online investment agencies for more specific and up-to-date information on the topics described in this article.