Greece, located between Turkey and Italy, offers a scenic landscape as well as a variety of property investment options.
With a sluggish local demand for real estate, property prices have dropped by nearly 15 to 30% in the last five years; this trend, combined with expected ROls of six to eight percent, have made Greece an attractive investment prospect for international investors, including Pakistanis.
A significant advantage of buying property in Greece is that it allows buyers to remain in the country on a permanent residency that eventually leads to citizenship.
If you are looking to buy property in Greece, factor in the following: Residential and commercial properties located on the Greek mainland or the islands can be purchased.
You are not required to be physically present in Greece to buy property as this can be arranged through attorneys who usually charge a fee of approximately $17,000. Buyers are required to pay a VAT of 24% (of the sale value) on all new property purchases.
If the property is rented out, rental incomes are taxed at 11 to 33%. A Capital Gains Tax (CGT) of 15% is charged on all property sales, payable by the seller.
Popular islands where the demand and value of property increase by nearly 13 to 15% every year include Corfu, Crete, Kefalonia, Mykonos, the Peloponnese, Rhodes and Zante.
Within Athens, areas attracting the maximum investment are Ano Glyfada, Gazi and Panormou.
Investment options expected to offer the highest ROI include: Apartments Purchase price range: $1,500-2,000 per square foot Monthly rental range: $800-900 per square foot Houses (most are between 100 and 200 square yards) Purchase price range: $1,700-4,000 per square yard Monthly rental range: $1,500-2,000 per square yard
By Uzma Khateeb Nawaz. Information provided by Sherwood Properties, Greece.