What is it that keeps the prices in the Greek real estate market at high levels and the demand “hot”?
The interest of foreign investors – in addition to the stock market, corporate and government bonds – also manifests itself in the Greek real estate market and this is evident from the property prices and from the strong demand recorded in the market. The pandemic does not seem to have interrupted the course of Greek real estate, which seems to be immune to the pandemic.
Why investing in Greek properties is preferred
What are the reasons why foreign investors choose Greece? Investors seem to view the Greek market warmly due to the relatively low prices compared to those of Western Europe and the important role played by tax incentives and the Golden Visa program.
More specifically, the cost of investment in Greece is lower compared to other states of Northern & Western Europe, when the cost of investing in real estate in many cases exceeds €10,000/sq.m. if it is the center of the capital. Also, any natural person from abroad who transfers his tax residence to Greece is subject to a special regime, as long as he invests in real estate, businesses, securities, shares, shares in legal persons or legal entities based in Greece, at least 500,000 euros and indeed within 3 years old. Those who enter the special regime, pay a flat-rate tax every tax year, regardless of the amount of income acquired abroad, 100,000 euros for a 15-year period.
Configured real estate prices
According to the report of the Bank of Greece, even in the midst of a pandemic, real estate prices are increasing rapidly. In 2020 they recorded an increase of 4.2% on an annual basis, compared to 7.2% in 2019 and 1.8% in 2018. A positive fact is that property prices even after the above increases remain at a level of 25% lower than with the peak of the market in 2007, creating investment opportunities, while in many cases creating the climate of the “second” investment opportunity for returns.
Golden Visa program
2019 was a record year for the Golden Visa program with 3,504 permits. Although it was a difficult year, the interest remained undiminished. In 2021, according to relevant research, Greece has an additional advantage besides being cheaper compared to other EU countries, a property investment limit of €250,000, which it sets as a basic condition, now based on the annual Henley Passport Index for 2021, the Greek passport ranks eighth, as it offers access to 184 countries of the world without the need for a visa.
Tax incentives
As we said, any natural person from abroad who transfers his tax residence to Greece can be subject to a special regime if he invests.
Aimed at wealthy pensioners abroad, those who join the Non Dom 2 program pay, every tax year and for a 15-year period, an independent tax at a rate of just 7% on all their income earned abroad. The basic condition is that foreign pensioners should transfer their tax residence to Greece and stay in the country for more than six months a year. In addition, our country aims at self-employed foreigners who will come to stay and work in Greece, exemption from income tax and solidarity contribution for 50% of income, as well as exemption from the presumptions of living for housing and car. A two-year stay in the country is a condition, while the favorable status will last for 7 years.
The suspension of VAT on buildings with a construction permit from 01.01.2006 onwards, the suspension of capital gains tax on the transfer of real estate until 31.12.2022 as well as the 40% tax deduction for expenses related to receiving services for energy, operational and aesthetic upgrading of buildings, not only concern domestic investors but also foreigners.
Growing tourism industry
Tourism is a branch of the tertiary sector that is constantly developing at a global level. Greece can be indisputably the “bone of contention” in the global tourism economy. The participation of the tourism industry in the domestic GDP of our country is increasing year by year, while at the same time, Greece is in first place in the preference of travellers from European markets.
Greece ranks 7th in terms of traffic internationally
According to a related survey carried out in September 2020, our country ranks 7th in terms of traffic worldwide, after very large countries (Spain, France, Italy, Germany, United Kingdom, USA). In the markets – visitors from European countries – Greece ranks 6th, while in non-European markets, it ranks 10th, following in addition to the aforementioned countries and Asian destinations (Thailand, Japan), as well as Mexico.
The tourism sector, due to the conditions, creates investment opportunities that foreign investors will certainly not leave unexploited. Even in the midst of a pandemic, 16 new hotels located in the main axes of Athens have been completed and are expected to open to welcome the first guests.
85% of the Greek territory is a tourist destination
With more than 16,000 km of coastline, with approximately 6,000 larger and smaller islands and islets, and with a now established position in the global tourism market, Greece presents excellent investment opportunities in this sector.
Facilities & infrastructure
Greece is currently ranked 25th in the World Economic Forum’s global ranking for the competitiveness of countries in tourism, among 140 economies, according to the Travel and Tourism Competitiveness Index. It is worth noting that at the level of individual indicators, Greece ranks 13th in Health and 18th in Air Transport Infrastructure and Tourism Services Infrastructure.
Cultural heritage & natural beauty
Greece is one of the richest countries in Europe in terms of the number of historical monuments and their importance. Our country counts 18 “World Heritage” monuments, a significant number of museums and archaeological sites, as well as many churches and places of religious interest, which places it in the top ten destinations with historical and cultural importance.
At the heart of investors’ interest
The competitive advantages of Greece, such as the rich cultural heritage, the natural beauty of the place and the geographical diversity attract significant investments in the tourism sector, strengthening the image of our country as a tourist destination of global scope and as a tourist market with excellent investment opportunities.
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