Should you invest in real estate in Greece?
A smart and successful real estate investor and / or entrepreneur will always look for the golden opportunity.
If an investor understands economics and statistics a little bit, it would be good to know that the fall of one is usually the potential for the rise and growth of the other. And that’s the crux of the explanation of why investing in real estate in Greece and earning a safe income with a high return on a rental property, is wise.
So why invest in real estate in Greece…?
All over the world it is known that Greece, our friend, who also shares with us the other bank of the Mediterranean, is, and has always been, a pilgrimage site that is considered exotic for tourists from all over the world, thanks to its dozens of stunning islands, its golden sunshine and Mediterranean breeze, The archaeological sites, restaurants and taverns scattered along the coasts serving them the best of Mediterranean cuisine: fish, cheese, olive oil, wines and ouzo most often and of course its music and warm people.
But, this beauty, goodness and abundance sadly reversed in 2010, during a severe crisis, which almost reached the insolvency threshold. Greece, which prospered financially and was even accepted in 2001 as a member of the EU, collapsed and suffered a severe recession, in fact experienced a crisis that almost caused them to leave the EU.
A crisis, which has caused a “period of austerity” that affected each and every one of the residents’ lives, their livelihoods, their quality of life, unemployment rates and the shortage of products caused many to go bankrupt from their assets. Of course, these implications have also given a direct signal to the real estate market. Housing prices in Greece have dropped between 30% and 50%.
In 2015, when the Greek government signed an agreement with all its subjects, it slowly began to recover, balanced and stabilized economically, which also allowed it to continue its stay and membership in the EU.
Today, at this time, on one hand, the Greek economy is starting to balance and is showing stability but on the other, a change in the real estate market has begun. It’s an opportunity to enjoy all this high yielding investment before housing prices rise again.
Analysts, predict that in the next two years Greece will finally emerge from the economic crisis and at the same time housing prices will rise.
Hence, a person who will invest in real estate in Greece today will enjoy the fruits of his labor tomorrow, under the vine leaves and the Greek breeze.
By nature, most understand that Greece is a fertile ground for investment and real estate success.
So why is Greece considered the rising star in real estate investment?
- Housing Price – The economic crisis led to a massive decline in housing prices of 30% -50%.
- Economic stabilization – The economic measures that Greece has taken following the economic crisis have begun to give its positive results. Today, Greece is on a trend of economic stability and improvement and economic forecasts predict that the crisis will come out of the crisis in the next two years.
- Tourism – Every year, Greece attracts millions of tourists to 32 million a year. Hence, high demand for hotel rooms, guest rooms and homes for rent in Airbnb.
- Tourism period – The duration of the tourist season in Greece is very long and is deployed almost throughout the year.
- Students – The number of Greek and foreign students is steadily increasing every year, which creates a very high demand for apartments for rent in the university areas.
- 6. EU membership – Eurozone membership gives it all the benefits of a country belonging to the European block as well as a stable euro currency.
- Golden Visa – There is an option to obtain a Golden Visa for 5 years of citizenship with an option for an investor to invest in an asset with an investment amount of around € 250,000 which is the lowest in all of Europe.
- High rates of return – Statistics show that the annual rate of return on residential real estate investments averages between 9% and 12%.
- Low Purchase Tax – The purchase tax is 3% regardless of the amount of assets.
- Appreciation tax exemption.
- Tax avoidance treaty – There are tax benefits for each country which is a treaty state with Greece.
- Convenient taxation method – the tax to an external investor is only for the profits earned in activity in Greece. Also, the method of taxation is progressive which is determined in relation to income and starts at 15%.
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