Mortgages in Greece 2025: A Comprehensive Guide to Real-Estate Financing

Over the past decade, Greece has returned to a central position in the European real-estate market. After a prolonged economic crisis that almost completely froze mortgage lending, the Greek economy has gone through a long process of recovery and stabilization.

In the last year and a half, local banks have renewed mortgage lending for Greek residents. As of today, Eurobank is the only bank in Greece that allows foreign investors to apply for a mortgage – under limited terms and strict criteria, including high annual income and additional collateral.

Today, Greece enjoys a more stable economy, competitive interest rates, and expanding opportunities for international investors. At Beta Real Estate, we have worked with hundreds of investors over the years and developed close relationships with Greek banks and local lawyers. This accumulated experience allows us to deeply understand the complex process and explain it clearly to investors who are not familiar with the Greek market.

In this guide, we’ll walk through the mortgage process in Greece – from the first steps to signing the final loan agreement. We’ll explain who is eligible, whether European citizenship is required, and review current financing options, interest-rate structures, and repayment conditions in the Greek market.

Key Points – Mortgages in Greece 2025

Stable economic growth
Greece’s economy is expected to grow by 2.1% in 2025, with low inflation of 2.5%, creating a supportive environment for real-estate investments.

• Rising property prices
  Apartment prices in central Athens rose by 7.66% in Q3 2024, while Thessaloniki saw a 6.33% increase. On popular islands like Mykonos and Santorini, prices continue to rise at a moderate pace.

• Financing options for foreigners
  Eurobank offers mortgages to foreign investors, with Up to 65% LTV (loan-to-value) ,Repayment periods up to 15 years and Fixed interest rates starting around 2.90% for shorter terms
• Structured purchase process
  Buying a property in Greece typically includes: Obtaining a Greek tax number (AFM) , Opening a local bank account , Legal due diligence on the property , Signing before a notary and Registering the property at the Land Registry / Cadasters
• Additional costs
  Beyond the purchase price, buyers must factor in: Purchase tax: ~3.09% of the property value and Transaction costs (lawyer, notary, registration, appraisal), which can reach 7%–10% of the deal value.

Economic Overview – Greece 2025

Greece continues to show impressive stability and growth in 2025:

• Forecast GDP growth: ~2.1% – more than double the EU average
• Inflation down to ~2.5%, supporting a relatively favorable interest-rate environment
• Residential real-estate prices up by around 7.5% – a continuation of the post-COVID recovery

Growth is driven by:

• Strong tourism
• Increasing foreign direct investment (FDI)
• Robust private consumption
• Return to full investment-grade credit rating after years of uncertainty

The EU Recovery & Resilience Facility (RRF) continues to inject capital into infrastructure and the business sector, creating many opportunities in the Greek property market and strengthening positive sentiment towards investments in Greece.

Real-Estate Price Review – Greece 2025

In Q1 2025, the Greek housing market continued to perform strongly, with an average 9.2% annual price increase compared to the same period last year.

Demand remains high:

• In major urban centers such as Athens and Thessaloniki
• In popular coastal and inland areas

Investors (local and international) are particularly focused on:

• Renovated apartments in city center’s
• Properties near the sea for holiday/rental investment
• Small apartments suitable for short-term rentals

Table: Annual Price Increases – Q1 2025

High-demand areas:

• Athens – The Greek capital remains a major magnet for investors.
  In 2025, apartment prices in Athens continue to rise, with an average price of ~€2,944/sqm, up about 7.7% year-on-year. Areas like Kolonaki, Pangrati and Koukaki offer attractive opportunities, especially considering new infrastructure projects and improved public transport.
• Thessaloniki – Greece’s second-largest city shows a 6.33% increase in property prices. The city is undergoing urban renewal, with new residential and commercial projects attracting investors.
• South Aegean islands – Islands such as Mykonos, Santorini and Rhodes remain highly popular, with average price increases of 6.5%. Strong demand for holiday properties and short-term rentals drives this trend.
• Rural areas – Although the increase is more moderate (4.3%), rural regions offer more affordable entry prices and potential for high yields, especially in areas with eco-tourism or Agri-tourism development.

Main Steps in Buying a Property in Greece

1. Obtaining a Tax Number (AFM) & Opening a Bank Account

To purchase a property in Greece, you need a Greek tax number (AFM) – like a personal tax ID. It is required for any economic activity in the country.

In addition, buyers usually open a local bank account to handle: Payment of taxes ,Transaction fees and Mortgage installments and other financial obligations

2. Property Examination & Legal Due Diligence

A critical stage is legal due diligence: Your lawyer checks: Ownership and title ,Land Registry / Cadasters records ,Existing mortgages, liens or encumbrances . The goal is to ensure the property is legally clean, free of debts and legal issues.

3. Signing the Purchase Contract

Once due diligence is complete and the property is approved: The purchase contract is signed in the presence of a lawyer and a notary.The notary (required by Greek law for all real-estate deals) verifies: The legality of the contract and That both parties understand and accept the terms

4. Registration at the Land Registry / Cadasters

After signing, the property is registered in the buyer’s name in:The local Land Registry orThe Cadastral Office.

This registration is mandatory in Greece and serves as official proof of ownership, protecting the buyer against future claims.

5. Payment of Purchase Tax
6. Standard purchase tax in Greece is about 3% of the property value ,for some newly built properties (post-2006), VAT rules may apply instead. Proof of tax payment is required to complete the registration .Payment must usually be made from a Greek bank account, in line with local regulations.

6. Additional Transaction Costs

You should also factor in: Notary fees,Lawyer fees ,Land Registry / Cadasters fees andAppraisal costs (if required) .Total additional costs typically range between 8% and 10% of the purchase price.

Indicative Cost Table – Property Purchase in Greece

Additional points:

• Pre-sale agreement: In some cases, a preliminary agreement is signed before the final contract, defining payment terms and closing date.

• Mortgage & interest conditions: Foreign investors can finance purchases via mortgage, subject to bank criteria. It’s important to clarify eligibility, rates and terms in advance.

• Tax compliance: Buyers must submit tax declarations and confirm there are no outstanding tax liabilities, in line with Greek law.

Types of Mortgages & Financing Solutions in Greece

Greek banks offer several types of mortgages with different conditions, tailored to both residents and foreign investors. For non-residents, criteria tend to be stricter and the conditions slightly less flexible.

Main Mortgage Types

Fixed vs Variable Interest

Fixed rate

• Stays the same throughout the mortgage term
• Pros: maximum predictability, easy long-term planning
• Cons: typically, higher initial rate

Variable-rate

• Linked to Euribor (Euro interbank rate)
• Pros: usually lower initial rate
• Cons: payment may increase if rates go up in the future

Common Additional Fees

Comparing Financing in Greece vs Israel

There are significant differences between the Greek and Israeli mortgage markets.

• In Greece, foreign investors typically receive:
  • Around 50%–65% financing (LTV), depending on profile and bank
  • Residents may receive up to ~70%–80% LTV
• In Israel, residents can generally obtain:
  • Up to 75% financing for a first home
  • Around 50% for a second home

Comparison Table

Changes in Taxation – Short-Term vs Long-Term Rentals

Greece is actively trying to regulate the rental market and ensure more housing availability for locals, especially in big cities. Key measures:

• Tax incentives:
  Owners who convert their property from short-term to long-term rental may receive tax benefits for three years.
• Restrictions in high-demand areas:
  In central urban areas (like central Athens), the government is limiting the number of new short-term rental licenses to protect local housing supply.
• Higher taxation for short-term rentals:
  Income from short-term rentals (e.g. Airbnb) may be taxed at higher effective rates, especially for higher income brackets.

Tax Benefits for Foreign Investors in Greece

Greece offers several tax schemes designed to attract foreign investors:

• Non-doom regime:
  A flat €100,000 annual tax on worldwide income for eligible foreign tax residents, regardless of the actual amount of foreign income.
• Double taxation treaties:
  Greece has tax treaties with many countries (including Israel) to avoid double taxation.
• Possible relief on rental income:
  Under certain conditions, foreign investors may qualify for tax relief or favorable treatment on rental income.

These frameworks can make Greece particularly attractive for global investors seeking both real-estate exposure and tax optimization.

Mortgage Process in Greece – Step by Step

Buying with a mortgage in Greece involves a structured set of stages:

1. Choosing a Bank & Reviewing Mortgage Products

• Compare:
  • Fixed vs variable rates
  • Maximum LTV
  • Term length
  • Specific conditions for non-residents
• For foreigners, Eurobank is currently the primary option for mortgage financing.

2. Submitting the Application & Collecting Documents

Typical required documents:

• Proof of income – payslips, tax returns, bank statements
• Property documents – purchase agreement, title extract (Tabu), plans
• Personal documents – passport, Greek tax number (AFM), sometimes Greek social insurance number (AMKA)

3. Property Appraisal & Due Diligence

• The bank orders an appraisal by a certified valuer
• The valuation determines:
  • Maximum loan amount
  • Risk profile of the property
• The bank also verifies that there are no legal issues affecting the collateral.

4. Mortgage Approval & Loan Terms

After review:

• The bank issues preliminary approval with:
  • Loan amount
  • Interest structure (fixed/variable)
  • Term (e.g. 15–30 years)
  • Fees and conditions

5. Signing the Loan Agreement & Disbursement

• The mortgage contract is signed (usually before a notary and with legal representation)
• The bank disburses the funds:
  • Either directly to the seller
  • Or to an escrow / notary account, according to the contract

Important tips:

• Work with an experienced Greek real-estate lawyer and notary
• Make sure you fully understand:
  • Early repayment penalties
  • Indexation (if variable)
  • All additional fees
• Build a full budget that includes:
  • Property price
  • Tax
  • Fees
  • Insurance
  • Ongoing costs

Banks in Greece – Types, Access for Foreigners & Israelis, and Account Opening

Greek banking can be divided into three main groups:

1. Local commercial banks – Piraeus Bank, Alpha Bank, National Bank of Greece (NBG), Eurobank
2. Foreign banks – e.g. HSBC, Citi
3. Digital banks – N26, Revolut and similar

Overview Table

Note: As of now, Eurobank is the only Greek bank offering mortgages to foreign investors, and under relatively strict terms.

FAQ – Common Questions About Mortgages in Greece

Is there something like a “pre-approval” in Greece, like Israel?

Yes. Some Greek bnks issue a kind of preliminary approval after receiving your basic documents.
It’s not a binding final approval, but it gives a good indication of the likelihood of final approval, subject to the property appraisal and additional checks.

What is the typical monthly payment on a €100,000 mortgage?

It depends on term and rate. Example:

• Fixed rate: 3%
• Term: 20 years

Monthly payment would be roughly €555.
With a variable rate, this amount can go up or down depending on Euribor and market conditions.

How long does the mortgage approval process take?

Typically, 1–3 months, depending on:

• Complexity of the deal
• Completeness of your documentation
• Internal timelines at the bank

The more organized you are with documents, the faster the process.

Do Greek sellers prefer cash buyers or buyers with mortgages?

In general, as in most markets, sellers prefer cash buyers because:

• The process is faster
• There is less uncertainty

However, buyers with mortgages are not automatically rejected, especially if they already have pre-approval from the bank.

What insurances are required?

Most banks will require:

• Property insurance – to protect the collateral
• Life insurance – in some cases, to cover the outstanding balance in case of death

These costs should be included in your overall budget.

Are my assets in Israel relevant to my mortgage application?

Yes. Assets and income in Israel can form part of your financial profile:

• Rental income
• Owned properties
• Salary and business income

You will usually need:

• Bank statements
• Tax returns
• Asset statements

Sometimes with notarized translation into Greek or English.

What are the basic eligibility criteria for a foreign investor?

Typical basic requirements:

• Minimum age 25
• Full mortgage repayment by around age 65
• Greek AFM tax number
• Greek bank account
• Minimum annual income of around €30,000 (varies by case)
• Clean credit history and stable income

What are average mortgage interest rates in Greece?

Ranges vary, but generally:

• Around 3.5%–7.5%, depending on:
  • Fixed vs variable
  • Profile
  • LTV
  • Term

Fixed rates provide stability; variable rates are linked to Euribor and may rise or fall during the loan term.

What is the maximum LTV a foreign investor can get?

For foreign investors:

• Typically, up to ~65% of the appraised property value
• Sometimes lower, depending on:
  • Risk profile
  • Income
  • Collateral

This means you should plan for significant equity (at least 35% plus all transaction costs).

What is the maximum repayment term?

• Usually between 6 and 30 years
• Older borrowers may be limited to shorter terms
• Longer terms = lower monthly payments, but higher total interest cost

How can I improve my chances of approval?

• Show stable, sufficient income over several years
• Provide detailed bank statements and tax returns
• Demonstrate additional assets and a strong net worth
• Prepare all documents in advance and in the required format

Do I have to open a bank account in Greece to buy a property?

Legally, not always – but in practice, highly recommended:

• Makes mortgage repayment and tax payments much easier
• Simplifies rental-income collection
• Many payments (tax, utilities, etc.) are smoother via a local account

If needed, Beta Real Estate can connect you with partners who handle AFM issuance and bank-account opening.

If my loan is not approved, will I still have significant expenses?

If the application is rejected, you may still have some minimal costs, such as:

• Translation and notarization of documents
• Apostille fees and official certifications

But there should not be any major extra costs beyond what was already spent on the application and initial checks.