Benefits of real estate investing in Attica, Greece

Attica real estate investment — A Greek paradise for foreign investors.

In recent years, the Attica region of Greece has become an increasingly popular destination for foreign investors, attracting buyers from Russia, China, UAE, USA, Turkey and many other countries. This trend is due to a number of factors, including the region's rich history, its cultural significance and its role as a major tourist center. In this article, we will take a closer look at the benefits of investing in real estate in Attica and the reasons for the growing demand from foreigners.

Historical and cultural attractions.

One of the main advantages of Attica is its rich historical heritage and cultural significance. This region was the cradle of one of the greatest civilizations in the history of mankind — Ancient Greece. It is home to such famous landmarks as the Acropolis, Parthenon and many other architectural monuments that attract tourists from all over the world.

Popular neighborhoods among foreign buyers.

The most attractive areas of Attica for foreign investors are the southern parts of Athens, especially the area around the Athens Riviera. This picturesque coastal area is known for its beaches, parks and rocky shores, offering idyllic scenery and a high quality of life. The center of Athens and the coastal areas are also in high demand due to their proximity to infrastructure, restaurants, stores and tourist attractions.

Variety of offers in the real estate market.

Attica offers a wide range of both commercial and residential real estate, making it attractive to investors with different goals and budgets. From luxury apartments in prestigious neighborhoods to income-producing houses and commercial space, the Attica real estate market is able to meet the most diverse needs of buyers.

Changes in immigration laws.

Recent changes in Greek immigration legislation have made the process of obtaining a residence permit (the so-called “Golden Visa”) for foreign investors easier and more attractive. It is now possible to obtain a residence permit in Greece by purchasing real estate in certain regions, including Attica. The minimum investment amount to obtain a “Golden Visa” in Attica is 250,000 euros. However, for some prestigious areas, such as the center of Athens and the Athens Riviera, the minimum threshold is higher at €800,000. This residence permit entitles you to free movement within Schengen countries and the possibility of obtaining Greek citizenship in the future.

Economic growth and investment climate.

In addition to cultural heritage and favorable immigration conditions, Attica attracts foreign investors due to the sustained economic growth and improved investment climate in the region. According to the Greek authorities, construction in Attica has increased by 10.5% over the past year, indicating strong demand for real estate. This growth is due to several factors, including the presence of international companies and investors in the region, the development of the tourism industry and the improvement of the overall economic situation in the country. The Greek government is also actively working to create favorable conditions for foreign investment, which increases the attractiveness of the country in general and Attica in particular.

Cost of living and real estate maintenance.

Despite the numerous benefits of investing in Attica real estate, it is important to consider the relatively high cost of living in this region. According to experts, the monthly cost per person in Attica can be about 810 euros. This is significantly higher than in Russia and some other countries. In addition, property maintenance costs such as taxes, utilities, insurance and maintenance should be taken into account. These costs can vary significantly depending on the size and location of the property, as well as its type (residential or commercial). Nevertheless, many investors find that the benefits of owning real estate in Attica outweigh the potential additional costs. The high liquidity and potential for growth in the value of properties in this region make it an attractive long-term investment.

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Conclusion.

Attica is without a doubt one of the most attractive regions in Greece for foreign investors interested in buying real estate. In addition to its cultural heritage, economic growth and favorable investment environment, Attica also attracts foreign buyers with its well-developed infrastructure and amenities. The region boasts modern transportation systems, including subways, bus routes and a well-developed road network. Attica is home to several major international airports, such as Athens Eleftherios Venizelos International Airport, providing convenient air connections to many countries around the world. This is especially important for those investors who plan to visit their properties on a regular basis. In addition, the region offers a wide range of medical facilities, schools, restaurants, shopping centers and other infrastructure necessary for a comfortable life. This makes Attica an attractive place not only for investment, but also for permanent residence.

Prospects for growth of the real estate market.

According to expert forecasts, the real estate market in Attica will continue to show steady growth in the coming years. Several key factors will contribute to this:

1. Tourism growth: Greece remains one of the most popular tourist destinations in Europe, and Attica, as a region with a rich cultural heritage and picturesque landscapes, will continue to attract a large number of visitors. This, in turn, will stimulate demand for residential and commercial real estate.
2. Foreign Investment Inflow: The favorable investment climate and the Golden Visa program will continue to attract foreign investors to Attica. This will not only increase demand for real estate, but will also lead to the development of related infrastructure and job creation.
3. Urbanization: As the Greek economy, and Attica in particular, grows, internal migration from rural to urban areas is expected to increase. This will create additional demand for residential real estate in the major urban centers of the region.

Thus, investing in Attica real estate can bring long-term benefits due to the potential for growth in the value of properties and the possibility of stable rental income.

Tips for foreign investors.

When investing in Attica real estate, it is important to consider the tax aspects for both Greek residents and non-residents. Proper tax planning will help maximize the return on investment and avoid unnecessary expenses. For Greek residents, the main real estate taxes are property tax (ENFIA) and rental income tax. Property tax is calculated based on the assessed value of the property and can range from 0.15% to 1.15% depending on the value and type of property.

Rental income is taxed at a rate of 15% to 45% depending on the amount of income. However, there are tax deductions and exemptions that can reduce the effective tax rate. Non-residents who own real estate in Attica are also subject to rental income taxes and property taxes. In addition, capital gains tax is levied on the sale of real estate at a rate of 15% on the amount of the increase in value.

It is important to note that there are double taxation treaties between Greece and some countries, which may affect the tax liabilities of investors. For effective tax planning, it is advisable to consult qualified tax advisors or lawyers experienced in dealing with foreign investors in Greece.

Possible Risks.

Like any other investment, investing in Attica real estate involves certain risks and challenges that must be considered.

1. Currency fluctuations: Since real estate in Attica is sold in Euros and many foreign investors transact in other currencies, changes in exchange rates can significantly affect the real value of the investment.
2. Political and economic instability: Greece experienced a serious economic crisis in the past decade, and although the situation has stabilized, the possibility of new shocks in the future cannot be ruled out.
3. Risks associated with renting: For those who plan to rent out properties, there are risks associated with finding reliable tenants, paying rent on time and maintaining the property in proper condition.
4. legal and administrative barriers: It can be difficult for foreign investors to understand Greek legislation and bureaucratic procedures related to buying, owning and managing real estate.

One effective way to manage risk when investing in Attica real estate is to diversify your investment portfolio. This allows you to spread risk across different types of assets and reduce your dependence on one particular market segment. For investors interested in Attica real estate, diversification can include the following elements:

1. Different types of real estate: instead of focusing solely on residential or commercial real estate, it is worth considering investing in both segments. This will balance the risks and provide a stable income.
2. Location of properties: instead of focusing on one area of Attica, you can buy several properties in different parts of the region. This will reduce the dependence on local factors affecting the value of real estate.
3. Investing in other regions of Greece: in addition to Attica, regions such as Crete, Peloponnese and the Aegean islands may be attractive for investment. Diversification between different regions will reduce the risks associated with the economic situation in a particular area.
4. Alternative investments: for even greater diversification, you can consider investing in other assets such as stocks, bonds, cryptocurrencies or startups. This will reduce your dependence on the real estate market.

When putting together a diversified investment portfolio, it is important to consider your financial goals, investment horizon, risk appetite and other individual factors. It is also advisable to regularly review and adjust your asset allocation, if necessary, according to changing market conditions.

Services of professional advisors.

Given the complexity of the foreign real estate investment process, many foreign investors prefer to engage the services of professional advisors. In the case of real estate in Attica, these may include the following professionals:

1. Local realtors and real estate agencies: they are deeply familiar with the local market and can provide up-to-date information on prices, trends and the most attractive areas for investment.
2. Lawyers and notaries: their services are necessary to ensure the legal clarity of transactions, verification of documentation, registration of ownership and compliance with all formalities in the purchase of real estate.
3. Tax consultants: they will help optimize tax planning, take into account all applicable taxes and exemptions, and ensure compliance with tax laws.