Foreign investors in Greece’s housing market face a changing landscape, as the announced increase in property transfer tax to 15% for certain categories of non-EU nationals adds to an already tighter regulatory environment for short-term rentals. For buyers purchasing a property in Greece both for personal use and to generate income through platforms such as Airbnb, the investment equation is becoming considerably more complex.
The first effects are already being felt in the market. Foreign buyers who have identified properties and reached an advanced stage of negotiations are seeking to accelerate the process so they can sign before the new tax regime takes effect. The higher the property’s value, the greater the incentive: an increase from 3% to 15% can add hundreds of thousands of euros to the purchase cost.
The change is particularly significant for the luxury residential market, which has attracted substantial foreign investment in recent years. The Cyclades, Crete, Corfu and the Athens Riviera have become key destinations for wealthy buyers, with Americans and Britons playing a leading role.
JamesEdition data for September 2025 to August 2026 illustrates the scale of their presence. For Greek homes with asking prices above €2 million, the United States accounts for 18.5% of international interest, while the United Kingdom accounts for a further 15.5%. Together, the two markets represent roughly one-third of international interest in this price segment.
A sharp increase in purchase costs
The implications for buyers subject to the new rate become clearer when expressed in euros. For a property with a taxable value of €1 million, a 3% transfer tax amounts to €30,000. At 15%, the tax bill rises to €150,000: an additional €120,000 before any other transaction costs are included.
For a home with a taxable value of €2 million, the difference between the two rates reaches €240,000, rising to €360,000 at €3 million. At the top end of the market, a property with a taxable value of €5 million could carry an additional tax burden of €600,000.
For a foreign investor who has already agreed on a purchase price, the date of signing is therefore far more than an administrative detail. It could determine a difference of hundreds of thousands of euros in the total capital required to acquire the property.
Short-term rentals add another layer
Taxation, however, is only one side of the changing landscape. The other concerns how buyers can use their property after completing the purchase.
Some international demand extends beyond holiday homes bought solely for personal use. Certain buyers view property as an investment, seeking short-term rental income during periods when they are not using it themselves. This is particularly relevant in tourism destinations, where high nightly rates can form a central part of the expected return.
Changes to short-term rental rules in recent years, alongside discussions about further restrictions in areas under significant housing pressure, add another factor for foreign buyers to consider. Assessing the purchase price and potential capital appreciation is no longer enough. Buyers also need to understand whether they can rent out the property, under what conditions, what the tax costs will be, and whether the anticipated return still justifies the capital committed.
This becomes even more significant when acquisition costs rise sharply. An investor required to pay an additional €240,000 or €360,000 solely because of the transfer tax increase needs higher returns or greater future capital appreciation to offset that expense. If opportunities to generate short-term rental income are restricted at the same time, the investment becomes considerably harder to make work.
US buyers account for the largest share of interest below €3 million
The change affects a market in which American interest has grown significantly. For homes listed below €1 million on JamesEdition, US buyers account for 23% of international interest, compared with 10.9% each for British and German buyers.
In the €1 million to €2 million bracket, the US share remains almost unchanged at 22.8%, while in the €2 million to €3 million segment it stands at 22.3%. Across all price brackets below €3 million, the United States therefore consistently accounts for more than one-fifth of international interest.
The picture changes among more expensive properties. Between €3 million and €5 million, the United States represents 17.4% of international interest and the United Kingdom 14.6%. Above €5 million, British buyers take the lead with 17.1%, compared with 15.7% for Americans.
In this highest price bracket, British buyers are also particularly active, submitting around 30% more enquiries per prospective buyer, on average, than their American counterparts.
Two different maps of international demand
The differences extend beyond budgets. American and British buyers also focus on different parts of Greece.
Among Americans searching for homes above €2 million, the Cyclades attract 26% of interest, while Athens and the Athens Riviera together account for 23%. Corfu follows with 15% and Crete with 14%. The Peloponnese and the remaining Ionian Islands each attract 6%.
British interest is more evenly distributed geographically. Corfu leads with 19%, followed by Crete at 18% and the Cyclades at 17%. Athens and the Athens Riviera account for 15%, while the other Ionian Islands attract 12% and the Peloponnese 9%.
These are destinations where second-home ownership and tourism are closely connected. A luxury property in Mykonos, Paros, Corfu or Crete can serve simultaneously as a holiday home, an investment asset and a source of income. Changes to the conditions governing short-term rentals therefore carry particular weight for buyers whose decisions are driven by investment returns.
Median asking prices reach €1.5 million in the Cyclades
Property prices help explain why the tax issue matters so much. Among listings on JamesEdition, the Cyclades have a median asking price of €1.5 million, followed by Corfu at €1.45 million. The corresponding figure is €1.2 million in the other Ionian Islands, €1.1 million in Crete and €1 million in the Peloponnese.
In Athens and the Athens Riviera, the median asking price stands at €900,000, although the wider Attica region has a much larger and more varied inventory. More than half of the Greek homes listed on the platform are located in Attica.
These figures reflect asking prices rather than completed transaction prices, so they do not necessarily represent the amounts buyers ultimately pay.
A more challenging investment equation
For foreign buyers affected by the new regime, the issue goes beyond a higher tax bill at the time of purchase. The entire investment calculation needs to be revisited.
Buyers purchasing a home exclusively for personal use primarily face the challenge of absorbing a higher upfront cost. Those treating the property as an investment face two pressures: a substantial increase in the capital needed to enter the market, and short-term rental rules that are becoming increasingly important to future returns.
This also explains the increased transaction activity expected before the new tax provisions take effect. For buyers already close to an agreement, bringing forward the signing date could mean savings of tens or even hundreds of thousands of euros.
