Buying a rental property in Greece from the UK isn’t as complicated as you might think, but it does require navigating a different legal system and understanding the specific requirements for foreign buyers. The Mediterranean lifestyle, strong rental yields, and growing tourism market make Greece an attractive investment destination, though you’ll need to approach the purchase methodically to avoid costly mistakes.
Secure your AFM tax number first
Before you can even think about viewing properties or making offers, you need a Greek tax identification number, known as an AFM. This nine-digit number is your gateway to any official transaction in Greece, from opening bank accounts to registering utilities and, crucially, purchasing property.
UK buyers can apply for an AFM at their nearest Greek tax office or have a lawyer arrange it remotely with power of attorney. The process typically takes a few days, and you’ll need valid identification documents. Since Brexit, UK citizens are treated as non-EU nationals, which means you may need to appoint a Greek tax representative to handle ongoing obligations.
Choose your region strategically
Location determines everything in rental property investment. Athens has experienced a property boom but certain neighbourhoods now face restrictions on new short-term rental registrations. Islands like Crete, Rhodes, and Santorini offer strong tourism appeal but come with seasonal fluctuations in rental demand.
The Peloponnese and mainland coastal areas provide a better balance between tourism and local rental markets. Consider accessibility for guests, proximity to airports, local infrastructure, and whether you’re targeting summer tourists or year-round tenants. Each region has different property values and rental potential, so research thoroughly before committing.
Obtain short-term rental licensing
If you’re planning to operate your property as a holiday rental, Greek law requires registration with the national short-term rental registry. Regulations have tightened considerably, with new standards taking effect that require properties to meet specific safety requirements including electrical certificates, liability insurance, and fire safety equipment.
Some Athens districts have implemented licensing freezes on new short-term rentals, and daily rental taxes have increased substantially during peak season. Properties operating without proper licensing face significant penalties, so compliance isn’t optional. Working with a
A Greece-based consultancy like Elxis that handles property sales, advisory services, and legal compliance can streamline this complex process and ensure you meet all regulatory requirements from the start.
Understand the financing landscape
Most UK buyers purchase Greek property outright because securing Greek mortgages as a foreign national is challenging. Greek banks require substantial deposits, have stringent income verification requirements, and the process can take months.
If you’re planning to finance the purchase, start conversations with international banks that operate in both countries well before you identify a property. Some UK banks offer international property mortgages, though rates may be less favourable than domestic lending.
Factor in currency exchange considerations, as fluctuations between pounds and euros can significantly impact your total investment.
Navigate the purchase process with professional help
Greek property transactions follow a different legal framework from UK conveyancing. After identifying a property, you’ll sign a pre-contract agreement and typically pay a deposit. A notary then conducts the final transaction, which includes reading the entire contract aloud in Greek.
Your lawyer should verify cadastral records to confirm ownership, check for outstanding debts or encumbrances, ensure building permits are in order, and confirm the property has proper land registry documentation.
Skip these checks at your peril, as inherited debts and permit issues can become your problem after purchase. Transfer tax runs at just over three percent of the purchase price, with notary and legal fees adding additional costs to your budget.
Arrange property management
Unless you’re planning to relocate to Greece, you’ll need reliable property management for your rental. Management companies typically charge between ten and twenty percent of rental income, handling everything from guest check-ins to maintenance issues and cleaning between bookings.
Choose a company with strong local knowledge, transparent accounting practices, and experience managing properties similar to yours. Many UK owners underestimate the importance of having boots on the ground in Greece, particularly when dealing with maintenance emergencies or guest complaints.
Address UK-Greece tax considerations
Rental income from your Greek property creates tax obligations in both countries. Greece taxes rental income at progressive rates, while the UK taxes your worldwide income as a UK resident. You’ll need to declare Greek rental income on your UK self-assessment return, though double taxation agreements mean you can typically claim credit for taxes paid in Greece.
Keep meticulous records of all income and expenses, as both tax authorities may request documentation. Some UK buyers form a Greek company to hold rental properties, which can offer tax advantages but adds complexity and annual compliance costs. Consult with accountants experienced in cross-border property taxation before finalizing your structure.
Endnote
The Greek property market offers genuine opportunities for UK buyers seeking rental income, but success requires careful planning, professional guidance, and realistic expectations about both returns and responsibilities. Take your time, do your homework, and build a reliable team of local professionals to support your investment.
