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Overview of Investment Risk and Compliance in Greece

For foreign nationals and international entities, investing in Greece during the 2025/2026 period offers opportunities within the Eurozone, yet requires a comprehensive understanding of the localized regulatory environment. While Greece has significantly digitized its administrative processes, compliance remains a multi-layered requirement involving national legislation and European Union (EU) directives.

The Greek investment landscape is primarily governed by the Strategic Investment Law and the Migration Code (Law 5038/2023). Investors must account for risks related to bureaucratic timelines, evolving tax obligations, and specific sector regulations, particularly in real estate and renewable energy.

athens business district buildings
Athens Business District Buildings

Regulatory Compliance Framework

Compliance is the cornerstone of securing residency and protecting capital in Greece. The Hellenic Republic enforces strict Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols in alignment with EU standards.

Financial Transparency and AML

All large-scale transactions, particularly those related to the "Golden Visa" program, must be conducted through the Greek banking system or recognized EU credit institutions. Cash transactions for real estate acquisitions are strictly prohibited and will result in the rejection of residency applications.

  • Source of Funds: Investors must provide documented proof of the legal origin of their capital.
  • Bank Account Opening: While non-residents can open accounts, the process involves extensive documentation, including tax returns from their country of origin.

Tax Identification Number (AFM)

The Arithmos Forologikou Mitrou (AFM) is mandatory for any economic activity in Greece, including buying property or opening a utility account. It is issued by the Independent Authority for Public Revenue (AADE). Foreigners without a permanent residence in Greece must appoint a local Tax Representative.

Real Estate Specific Compliance

As of 2025, new zoning laws and forest map regulations (Dasikoi Xartes) have been fully implemented. Before any purchase, a technical audit is required to ensure the property does not conflict with protected zones or archaeological sites.

legal documents stamp
Legal Documents Stamp

Identified Investment Risks

Investing in a foreign market entails inherent risks. In Greece, these are categorized into legislative, administrative, and market-specific factors.

Legislative Volatility

The legal framework for foreign investment, particularly the Golden Visa program, has seen significant changes in 2024 and 2025. For instance, the minimum investment threshold for real estate in high-demand areas (including Athens, Thessaloniki, and popular islands) has risen to 800,000 EUR ($864,000 USD, Jan 2026), while other areas remain at 400,000 EUR ($432,000 USD, Jan 2026).

Administrative Delays

Despite the "Digital Transformation" initiative, certain decentralized administrations (Apokentromeni Dioikisi) experience backlogs in processing residence permits. Processing times can range from 2 to 12 months, depending on the region.

Operational Risks in Short-term Rentals

New regulations introduced in 2025 impose restrictions on short-term rentals (e.g., Airbnb) in specific municipal districts of Athens to combat housing shortages. Investors intending to generate yield through tourism should verify if the property is located in a restricted zone where no new short-term rental licenses are being issued.

construction site planning
Construction Site Planning

Due Diligence and Practical Steps

To mitigate risk, foreign investors are advised to follow a standardized due diligence process before committing capital.

Compliance is not a one-time event but an ongoing requirement. Annual tax filings are mandatory for all property owners in Greece, regardless of whether they earn income in the country.
  • Lawyer: Performs a title search at the Land Registry (Ypothikofylakeio) or National Cadastre (Ktimatologio) to ensure no liens, mortgages, or legal claims exist.
  • Engineer/Architect: Verifies that the building complies with its construction permit and that no "arbitrary" (illegal) structures exist on the site.
  • Notary Public: In Greece, the Notary is a government-appointed official who oversees the legality of the transaction, but they do not represent the individual interests of the buyer.

Associated Costs

Investors should budget for transaction costs, which typically range from 7% to 10% of the property value. This includes:

  • Property Transfer Tax: 3% of the objective or purchase value.
  • Notary Fees: Approximately 1% plus VAT.
  • Legal Fees: Usually 1% to 2% plus VAT.
  • Cadastre Registration: Approximately 0.5% to 0.8%.

Useful Resources

For verified information on investment incentives and official procedures, refer to the following institutions: