How to Finance a Luxury Property in the Greek Islands

The Greek Islands have long captivated international buyers with their breathtaking seascapes, Mediterranean charm, and high investment potential. Whether you’re eyeing a cliffside villa in Santorini, a designer home in Mykonos, or a modern seafront residence in Crete, financing a luxury property in Greece requires a strategic approach — especially for non-residents.

This guide will walk you through the essential steps and options for financing a luxury home in the Greek islands.

1. Determine Your Budget and Financing Goals

Before anything else, define your:

• Target price range (including taxes, legal fees, and maintenance costs)
• Financing needs (full cash purchase vs. partial mortgage)
• Timeline (when you plan to buy and move in or rent out)

Luxury homes in the islands typically start from €500,000 and can exceed several million euros, depending on location, size, and amenities.

2. Cash Purchase vs. Mortgage Financing – Cash Purchase

Many luxury buyers opt for full cash payments. This simplifies the transaction, reduces paperwork, and can give you leverage during price negotiations.

However, for those preferring to leverage their capital, financing through a Greek or international lender is an option — though more complex for foreign nationals.

3. Getting a Mortgage in Greece

While mortgages for non-residents are available, they involve stricter criteria:

• Greek Banks: Some Greek banks offer mortgages to foreigners, particularly EU citizens or those with income in euros.
• Loan-to-Value (LTV): Most banks offer up to 50–70% of the property’s value.
• Documentation Needed:
  • Valid passport
  • Proof of income (tax returns, payslips, or bank statements)
  • Employment or business verification
  • Property appraisal and sales agreement
  • Greek Tax Identification Number (AFM)

Interest rates typically range from 3.5% to 6%, depending on the bank, applicant profile, and repayment plan.

4. International Financing Options

If borrowing from a Greek bank proves difficult, international buyers may consider:

• Home equity loans from their country of residence
• Private banking services (for HNW individuals)
• Developer financing (available in some off-plan or luxury developments)
• Investment-backed lending through international financial institutions

Work closely with your financial advisor to assess cross-border lending regulations and tax implications.

5. Legal and Tax Considerations

• Legal Representation: Hire a Greek real estate lawyer to conduct due diligence, ensure proper title deeds, and structure contracts.
• Property Taxes: Be aware of annual property taxes (ENFIA), acquisition taxes (around 3.09%), and capital gains taxes (if reselling).
• Golden Visa Eligibility: Properties over €250,000, €400,000 (€800,000 in some prime areas) may qualify you for a Greek residence permit.

6. Financing for Rental Income Properties

If you plan to rent out your luxury island home:

• Factor in ROI (rental yield vs. mortgage repayments)
• Register as a short-term rental with the Greek Tax Authority
• Work with a property manager for maintenance and compliance
• Consider furnishing loans or renovation financing if upgrading the property for seasonal rentals

 Conclusion

Financing a luxury property in the Greek Islands is absolutely possible for international buyers, but it requires careful preparation. Whether you’re paying in cash or exploring mortgage options, always partner with local professionals — including a lawyer, notary, tax advisor, and real estate agent — to navigate the legal and financial framework with confidence.

With the right guidance, owning a dream villa or beachfront home in Greece can become a rewarding and strategic investment.