Balancing the Scales: Financing, Taxes, and Currency Exchange

The financial aspect of buying property in Greece involves several key considerations. This chapter aims to guide Hellenes living abroad through the various financial elements, including financing options, understanding the tax implications and benefits, and managing currency exchange rates.

Financing Options for Hellenes Living Abroad

  1. Mortgages in Greece: Explore mortgage options available in Greece for non-residents. Understand the terms, interest rates, and requirements for obtaining a mortgage from Greek banks.
  2. Financing from Home Country: Investigate whether taking out a mortgage or loan in your country of residence is a viable option. This might be preferable due to familiarity with the banking system or more favorable terms.
  3. Cash Purchases: For those who have the means, cash purchases can simplify the process and may offer more negotiating power for price reductions.
  4. Other Financing Avenues: Look into alternative financing methods such as developer financing for off-the-plan properties, or joint investments with other buyers.

Tax Implications and Benefits

  • Property Transfer Tax: Understand the property transfer tax, which is payable upon purchase. The rate can vary depending on the property and its location.
  • Annual Property Taxes: Be aware of the yearly property taxes in Greece, which depend on factors like property value and location.
  • Tax Benefits for Foreign Investors: Greece offers certain tax benefits for foreign investors, including potential tax breaks or deductions. These incentives are often subject to change, so staying informed is crucial.
  • Inheritance Tax Considerations: Familiarize yourself with Greece’s inheritance tax laws, especially if you plan to pass the property on to family members.

Managing Currency Exchange Rates

  • Exchange Rate Fluctuations: Understand how fluctuations in currency exchange rates can impact the cost of your property investment. The time between the agreement to buy and the final purchase can see significant changes in rates.
  • Currency Exchange Services: Explore currency exchange services that offer competitive rates and tools to lock in rates or alert you to favorable changes.
  • Bank Accounts in Greece: Consider opening a bank account in Greece for ease of transactions and to manage payments related to the property more effectively.