Ιnvesting in Real Estate

90% of all millionaires on earth have succeeded because they own Real Estate.

ANDREW CARNEGIE

The power and the benefits of the Greek Golden Visa are undeniable. The freedom that comes with the Residency acquired is unmatched.

Let's examine the other aspect of the Greek Golden Visa endeavor. Investing in Real Estate;

The logic behind investing in a property for rent is simple. You select the right property, buy it, and then rent it to a third party in order to earn a steady income each month.

An important (and sometimes even catalytic) step in making the above process work efficiently is the renovation of the property if we are talking about a second hand unit. Otherwise, new development is always advantageous. This will help you to find a tenant more easily but also to increase the rent as its value will be higher.

Purchasing a Property for Rent is a method of investing in Real Estate which aims to increase your Cash Flow.

It requires high capital to enter the market and offers you a Real Estate POV being the owner of an entire property. This gives you more control over your investment but, at the same time, lower risk dispersion.

According to the provisions of article 111 of law 4446/2016 (A '240) and article 39A of law 4172/2013 (A' 167), as Short-Term Lease is considered any rental of real estate lasting less than one year and which is handled through an "electronic sharing economy platform".

In simple terms?

If you rent your apartment through Airbnb, Booking or any other Online platform for less than a year, then you have a short-term tenant. The potential of maximizing your Return on Investment, in a touristic country such as Greece is limitless. Greece is advantageous as it hosts travelers all year long, with summer being the peak season.

Long Term Lease

If, on the other hand, you rent your apartment or house through the classic lease route and outside of any of the aforementioned platforms, then it is considered that the rent is long-term. In this case the tenant has a 3year 'protection' period by the tenants' law.

Investment Profitability

For the investment to be profitable, the net rental income must be higher than the cost of the mortgage, the cost of the home and any additional taxation.

Net Rental Income > Mortgage + Home Expenses + Extra Taxes

But beware:

If you are aiming to get a Golden Visa in Greece, your purchase cannot be financed (mortgage) by a Greek Bank. Should you decide to lease long term, there are no Home Expenses as common bills/utilities in this case are being borne by the tenant.

Net Rental Income means that rent tax has been deducted from the rent you received.

The income taxation scale currently (2022) in Greece is as follows:

0-12.000 -> 15%

12.001-35.000 -> 35%

An Additional Taxation that you should not forget and should include in the above equation of profitability is the Unified Property Tax, which is paid annually.

That is why D&A Invest directs its clientele to safe, sound investments, in locations and projects that can generate realistic and steady yields.