Key takeaways
- Understand your borrowing capacity and total budget before you fall in love with a property.
- Check a property's legal title and Electronic Building Identity early — before you pay a reservation deposit.
- Budget for the full cost of buying, not just the price — many buyers allow roughly 9–10% of the purchase price for transaction costs.
- The Greek buying process differs from the one at home — know who does what, and build your team before you commit.
- Existing debts affect how much a Greek bank will lend you, wherever those debts are held.
- Organise your AFM (Greek tax number) and documents early, before you find a property.
- A financed purchase usually takes months, not a single holiday — start preparing before you book your flights.
1. Choosing a property before understanding your borrowing capacity
One of the most common mistakes buyers make is finding their dream property before understanding how much they can actually afford to borrow.
It's easy to start browsing apartments in Athens, villas in Crete or seaside homes along the Athenian Riviera and assume that finance will be straightforward. In practice, Greek banks assess borrowers differently from lenders in many other countries, and the amount you can borrow depends on far more than your salary.
Banks may consider factors including:
- Your net income and employment arrangements
- Your country of tax residency and the currency you earn in
- Your existing debts and financial commitments
- Your age and the proposed loan term
- Your available deposit and additional purchase costs
- The property's valuation and suitability as security
- The lender's specific eligibility and lending criteria
If you earn in a currency other than the euro, exchange-rate risk can also affect how a Greek bank assesses your income.
Why this matters: you could find a property you love, negotiate a price, and then discover the bank won't lend the amount you expected. A lower-than-expected valuation can open another funding gap, leaving you to contribute more cash than planned.
How to avoid it. Understand your borrowing capacity and total purchasing budget before committing to a property. A preliminary assessment should weigh your income, existing debts, available deposit, estimated purchase costs and the lending policies of the banks that may suit your circumstances. If you plan to use a Greek home loan, seek an appropriate pre-approval before making binding commitments — remembering that pre-approval is not a guarantee of final approval, and the property will still need to satisfy the lender's requirements.
2. Failing to check the property's legal status early
A property can look perfect during an inspection and still carry legal or building issues that delay or prevent a sale.
This matters particularly in Greece, where a property's legal records, planning compliance and physical condition all need to be checked as part of the buying process. Two key areas are the property's title and its Electronic Building Identity (known in Greek as the Ilektroniki Taftotita Ktiriou).
Your independent lawyer should investigate the ownership and legal status, and a qualified civil engineer should assess the building documentation and compliance. Potential problems include:
- Unauthorised extensions or renovations
- Enclosed balconies that don't match the approved plans
- Storage areas converted into living spaces
- Inconsistencies between the property's physical condition and its records
- Outstanding mortgages, liens or other claims
- Inheritance disputes or complications involving multiple owners
- Missing or outdated building documentation
The Electronic Building Identity is important because discrepancies can require further engineering work, updated documentation or legalisation procedures before a transaction can proceed — and these can delay a purchase by weeks or months.
How to avoid it. Engage an independent Greek property lawyer early, and arrange for a suitably qualified engineer to review the documentation. Before paying a reservation deposit, establish what checks have been completed, what remains outstanding, and what protections you have if a problem is found. Your lawyer should also advise on the appropriate contractual conditions and the consequences of withdrawing. Never assume a property is legally compliant simply because it's advertised for sale or has been in the same family for generations.
3. Underestimating the additional costs of buying
Another common mistake is budgeting only for the advertised purchase price.
If you're buying a €300,000 property, you need to allow for more than the €300,000 itself. Depending on the transaction, additional expenses can include property transfer tax, notary fees, legal fees, land registration costs, estate agent fees and mortgage-related expenses. You may also need to budget for engineering assessments, translations or document certification.
As an illustrative starting point, buyers often allow roughly 9–10% of the purchase price for additional transaction costs — though the actual figure can be materially different depending on the property, whether finance is involved, any applicable tax reliefs and the professionals' fees. On a €300,000 property, a 10% allowance is another €30,000 — meaning you could need around €330,000 in total funding before allowing for renovations, furnishings, moving costs or ongoing ownership expenses.
How to avoid it. Prepare a complete purchase budget before you make an offer. It should include:
- The deposit or equity contribution
- Estimated property transfer tax, subject to any applicable exemption
- Lawyer and notary fees
- Land registry or cadastral registration costs
- Estate agent fees, where applicable
- Bank fees and mortgage registration expenses, if borrowing
- Any engineering work or legalisation costs identified during due diligence
- A contingency for unexpected expenses
Ask your lawyer and notary to confirm the applicable costs for your particular transaction. If you're borrowing, also consider the bank's valuation: if it values the property below the agreed price, you may need to contribute more cash than planned.
4. Assuming the Greek buying process works the way it does at home
If you've bought property before in your home country, you might expect the Greek process to be broadly similar. There are some familiar concepts, but the professionals involved, the documentation and the transaction procedures can be quite different.
In Greece, several professionals may be involved in a single purchase:
- Lawyer — conducts legal due diligence, reviews contracts and protects your interests
- Notary — a public official who performs the statutory functions of preparing and executing the transaction documents
- Civil engineer — assesses the building documentation and compliance
- Accountant — assists with tax matters, including your Greek tax number and relevant obligations
- Bank or finance broker — helps establish financing options and manages the loan application
- Buyer's agent — can assist with property searches, inspections, negotiations and coordinating the purchase
These roles are distinct. The notary, for example, is a public official performing statutory functions — not a substitute for your own independent legal adviser. You also need to understand the contractual process: when a preliminary agreement may be used, when deposits become binding, and what must happen before completion.
How to avoid it. Build your professional team before you commit to a property, and make sure you understand who is responsible for each part of the transaction and when their work needs to be done. Use an independent lawyer who represents your interests, and ask questions whenever a document or obligation isn't clear. If you're buying with finance, coordinate the legal process with your lender's requirements — a transaction can stall if the legal checks, bank valuation and loan approval aren't sequenced correctly.
5. Not accounting for existing debts when applying for a Greek home loan
If you live overseas and want to buy in Greece, you might assume your income will be the main factor in your borrowing capacity. In reality, your existing financial commitments can significantly affect how much a Greek bank is willing to lend.
Depending on the lender's policy, your existing home loan, car loan, personal loans and credit card commitments may all be relevant. Greek lenders assess your capacity to service the proposed loan alongside your existing obligations, and they may adjust foreign-currency income to account for exchange-rate risk. This means two buyers earning exactly the same salary could qualify for very different loan amounts.
For example, imagine two overseas households with the same monthly income after tax. One has no existing debt; the other has a substantial existing mortgage repayment. Even though their incomes are identical, the second household may have considerably less capacity to service a Greek home loan — and in some cases, existing commitments can prevent a buyer from qualifying for the amount they need.
How to avoid it. Give a complete and accurate picture of your financial position when assessing your eligibility for Greek finance. Be prepared to disclose:
- Existing mortgage balances and repayments
- Car loans and personal loans
- Credit card limits and relevant commitments
- Other financial liabilities
- Your income, employment arrangements and available savings
- Evidence of your deposit and the source of your funds
Don't assume an overseas liability is irrelevant simply because it's held in another country. Your broker or lender can help you understand how your commitments affect your borrowing capacity, and whether there are practical steps worth considering before you apply.
6. Leaving your Greek tax number (AFM) and documents until too late
Buying property in Greece involves administrative steps that overseas buyers should organise well before they find a property. One of the most important is obtaining a Greek tax identification number, known as an AFM (Arithmos Forologikou Mitroou).
Your AFM is used for a range of Greek tax and property-related transactions — you'll generally need it to progress a purchase and meet the relevant tax requirements. Depending on your circumstances, you may also need a Greek bank account, identity documents, proof of address and evidence of the source of your funds.
If you're applying for Greek finance from overseas, banks may request supporting documents such as:
- A valid passport and other identification
- Proof of your residential address
- Recent payslips and an employment letter
- Tax returns and official income or assessment documents
- Bank statements
- Existing loan statements and credit card information
- Evidence of your deposit and source of funds
- Additional financial statements if you're self-employed
Some documents may need certification, an apostille or other formalities, and banks will carry out their own identity and financial checks. Leaving all of this until you've found a property can cause unnecessary delays — especially if documents have to be obtained from overseas.
How to avoid it. Start preparing your documentation as early as possible. Obtain your AFM, understand the requirements for opening a Greek bank account, and ask your lender or broker for a tailored document checklist. Keep copies of your financial records, and retain evidence showing how your purchase funds were accumulated and transferred. If you plan to complete remotely, ask your lawyer which steps can be handled under a power of attorney and which require your personal attendance or extra verification.
7. Trying to buy during a short holiday
This is one of the biggest mistakes overseas buyers make. You might plan to visit Greece for four or five weeks over summer, inspect a few properties, and return home as a homeowner.
It's possible to find a suitable property during a short visit, but completing an entire purchase in that window can be difficult — particularly if you need a Greek home loan. A financed purchase may involve several stages:
- Obtaining your AFM and preparing the necessary documentation
- Assessing your borrowing capacity and exploring financing options
- Searching for properties and arranging inspections
- Negotiating the purchase price and terms
- Completing legal and technical due diligence
- Obtaining formal loan approval and satisfying the bank's requirements
- Executing the contracts and completing the transaction
- Registering the deed and finalising the release of funds
Some stages overlap, but others depend on earlier steps being finished, and problems with building documentation, ownership records or bank requirements can extend the timeline further. A financed purchase can take several months from first search to completion. Rushing it can pressure you into decisions before the necessary checks are done — or you might spend the whole holiday inspecting properties and leave without finding the right one.
How to avoid it. Start preparing before you book your flights. You can often complete important preliminary steps while still at home, including:
- Obtaining your AFM
- Preparing your financial documentation
- Exploring Greek home loan options
- Establishing a realistic purchasing budget
- Researching target areas and regions
- Shortlisting properties
- Arranging remote inspections
A qualified local team can help coordinate inspections and give feedback before you travel. If you find a suitable property, your lawyer can explain the due diligence process and contractual protections before you commit — and, where permitted, a properly prepared power of attorney may allow a representative to handle certain steps on your behalf.
Your Greek property buying checklist
Before making an offer on a property in Greece, ask yourself these questions.
Finance and budget
- Have I established my borrowing capacity, if I need a loan?
- Do I understand how my income and existing debts may affect my application?
- Have I calculated my deposit, transaction costs and contingency?
- Have I considered the impact of exchange-rate movements?
Legal and technical checks
- Have I engaged an independent Greek property lawyer?
- Have the property's ownership and title been checked?
- Has a qualified engineer reviewed the building documentation?
- Do I understand the terms and consequences of any reservation deposit or preliminary agreement?
Documentation and preparation
- Have I obtained my AFM?
- Do I understand the requirements for opening a Greek bank account?
- Have I prepared the documents my lender requires?
- Have I retained evidence of the source of my purchase funds?
- Have I allowed enough time for the transaction?
If you can't confidently answer these, it's worth addressing the gaps before committing to a purchase.
Frequently asked questions
How much should I budget on top of the purchase price?
As an illustrative guide, many buyers allow roughly 9–10% of the purchase price for transaction costs such as transfer tax, notary, legal, registry and (if borrowing) bank fees. The actual figure varies with the property, whether finance is involved and any tax reliefs, so ask your lawyer and notary to confirm the costs for your specific transaction.
Do I need my Greek tax number (AFM) before I start?
You'll generally need an AFM to progress a purchase, so it's best arranged early — ideally before you find a property. Leaving it until later is a common cause of delay for overseas buyers.
Can I complete a purchase during a two-week holiday?
It's difficult, especially with finance. A financed purchase can take several months from first search to completion. You can do a lot of the preparation from home first — AFM, documents, budgeting and shortlisting — so your trip is part of a prepared strategy rather than the starting point.
Will a Greek bank lend me the full purchase price plus costs?
Usually not. Transaction costs generally need to be funded separately from the mortgage, and if the bank values the property below the agreed price you may need to contribute more cash than planned. Build your budget around the total cost of acquiring the property.
Do my existing debts affect how much I can borrow?
Yes. Greek lenders assess your capacity to service the new loan alongside your existing commitments — home loan, car loan, personal loans and credit cards — wherever they're held, and may adjust foreign-currency income for exchange-rate risk.
Buying property in Greece doesn't have to be complicated
Buying property in Greece can be hugely rewarding — whether you're investing, buying a holiday home or planning a permanent move. The key is understanding the process, setting a realistic budget and getting the right support before you make major financial commitments.
At GreekHomeLoans, we help buyers understand their potential Greek home loan options and plan a realistic budget before they start their property search. Our free online fact find is a simple place to begin.
Need help buying property in Greece?
Full buyer advocacy — property sourcing, professional introductions, and coordination with lawyers, accountants and trusted local partners across every stage of the purchase — is offered through our separate company, GH Buyers Agency.