How is the real estate market in Greece currently developing?

The market is in a strong growth phase. Thanks to a stable political and economic environment, after a period of falling prices, significant price increases and strong momentum have again been recorded for several years now. This continues to offer investors, particularly from abroad, lucrative investment opportunities amid positive long-term growth forecasts.

What legislative changes affect the purchase of real estate?

Economic developments in recent years have led to comprehensive reforms, particularly in real estate tax law and in the digitalization of the authorities. Important procedural innovations include the nationwide, now nearly complete, introduction of the new Land Registry (Ktimatologio) as well as strict statutory requirements for legalizing any unauthorized structures. Thanks to the now mandatory “Electronic Building ID” (Ilektroniki Tautotita Ktiriou), issued by the engineer, real estate transactions have today become significantly safer and more transparent.

Why is it advisable to be accompanied by experts during the purchase?

Due to a lack of familiarity with the specifics of Greek law and local bureaucratic procedures, foreign investors can quickly encounter legal uncertainties. Engaging specialists such as lawyers, tax advisors, architects, and civil engineers is therefore essential to ensure a legally secure transaction. They actively assist with due diligence on the property, drafting contracts, obtaining permits, and financing and tax matters.

Does general information on real estate law replace individual legal advice?

No. General overviews serve merely as an initial orientation and to facilitate the procedure; they are not legally binding. Since every real estate purchase has specific particularities, the facts and circumstances must always be separately examined by specialists for the specific individual case.

What are the main categories of real estate in Greece?

Greek law fundamentally distinguishes between two categories: Within the town plan (Entos Schediou): areas within the planned built-up zone of towns or villages; Outside the town plan (Ektos Schediou): areas outside the built-up zone, subdivided into ordinary agricultural land (general plots used for agricultural purposes) and agricultural land from state land distribution (Klirotemachia: land historically allocated by the state, e.g. to refugees displaced from their homeland after 1922).

What is the difference between a building plot (Ikopedo) and a parcel of land?

A property within the planned built-up zone or within a locality is referred to as a building plot (Ikopedo) and may be built on in accordance with public-law regulations. Land outside the built-up zone, by contrast, is a parcel of land (Agrotemachio). A particular feature of the historical Klirotemachia is that they are generally large in area and, by law, may not be subdivided into smaller parcels.

What building-law restrictions apply to building outside the town plan (Ektos Schediou)?

Unlike in many countries, building outside the built-up zone is, in principle, permitted under certain conditions. The rules governing the building coefficient and the permissible built area (e.g. up to 186 m² of living space for a base plot size of 4,000 m²) depend on the type of use. The following special rules and deadlines must be observed: Plots under 4,000 m²: the minimum size of 4,000 m² was, in principle, introduced as a requirement in December 2022. Since then, smaller plots may only be built on under transitional provisions. Applications for a building permit, preliminary ruling, or buildability certificate may currently still be submitted for this purpose until 30 June 2027. Exceptions below 4,000 m² include plots with frontage onto a national, regional, or municipal road predating 1978 (minimum size 2,000 m², with 25 m of frontage and 40 m of depth), plots within settlement zones predating 1977 (minimum size 2,000 m²), and plots reduced in size by expropriation or road construction. For plots over 4,000 m², the legal situation has effectively remained unchanged (“frozen”) since March 2023, since the presidential decree required to re-regulate building conditions outside the town plan is still pending. Plots resulting from land consolidation and plots for tourist facilities continue to require at least 4,000 m². Regarding access to a road, under the case law of the Council of State (Symvoulio tis Epikrateias), a legally recognized right of way or access to a public road is additionally required. As there is no uniform administrative practice, the building authorities (Ypiresies Domisis) handle this differently.

When is a property legally considered “suitable” (Artio) and “buildable” (Ikodomisimo)?

In order for a building project to be carried out, a property must cumulatively satisfy two criteria: Suitable (Artio) refers to the shape, dimensions, and size of the plot, which must permit economic and structural use; Buildable (Ikodomisimo) means that building is actually permitted under all applicable public-law, building-law, and other special regulations (e.g. forestry or monument protection).

Overview of the Requirements of the Permitting Procedure - KPAG

Note on Currency:

The original text here referred to the legal position as of January 2013. The framework currently in force is governed mainly by Law 4685/2020, Law 4951/2022 and Law 5037/2023. The responsibilities formerly held by DEI and ΔΕΣΜΗΕ now lie with ΔΕΔΔΗΕ / ADMIE and with ΔΑΠΕΕΚ respectively. The former production licence has been replaced, for installations over 1 MW, by the renewable energy producer certificate (Βεβαίωση Παραγωγού ΑΠΕ).

Photovoltaic Installations up to 500 kW

For photovoltaic installations with a capacity of up to 500 kW, the following steps are required:

a) Environmental Permit

Under Law 4685/2020 and Joint Ministerial Decision YPEN/ΔΙΠΑ/11936/836/2021, photovoltaic projects are classified into environmental permit categories:

Installations up to 1 MW generally fall under Category B (standardised environmental conditions – ΠΠΔ), provided they are not located in sensitive areas. A full environmental impact assessment (EIA/ΑΕΠΟ) is not required, only an electronic subjection to the standard conditions.
Installations in sensitive areas (e.g. Natura 2000, forest land) fall under Category A2 or A1 and require a full EIA procedure with ΑΕΠΟ.

b) Installation and Operating Licence

For installations up to 1 MW: a production licence or installation permit from the Periphery is no longer required. Instead, depending on the project category and location, a special certificate or a simple notification is required.
For self-supply installations (net metering / energy offset) up to 1 MW, a simplified procedure applies under Law 4513/2018 and Law 5037/2023.

c) Building Permit

For most ground-mounted photovoltaic installations, a permit for small-scale works (ΕΕΜΚ) from the competent building authority (ΥΔΟΜ) is required, under Article 29 of Law 4495/2017.
Exceptionally, a full building permit is required where the components used (e.g. certain tracker systems) no longer fall under the rules for small-scale works.

d) Grid Connection

Submission of the application for a grid connection offer to ΔΕΔΔΗΕ (operator of the Greek electricity distribution network), which has replaced the former DEI in this function.
Signature of the grid connection agreement with ΔΕΔΔΗΕ.
For connection to the transmission network: ADMIE is responsible.

e) Agreement on the Sale of Electricity / Operating Aid

Signature of an operating aid agreement (ΣΛΕ) with ΔΑΠΕΕΚ (Renewable Energy and Guarantees of Origin Operator), which has replaced the former ΔΕΣΜΗΕ.
Alternatively, for self-generators: an offsetting agreement under the net metering / energy offset regime.

Photovoltaic Installations with a Capacity from 500 kWp to 1,000 kWp

For photovoltaic installations with a capacity of 500 kWp to 1,000 kWp, the following applies:

a) Renewable Energy Producer Certificate (formerly: Production Licence)

Under Law 4951/2022, the former production licence was abolished for installations up to 1 MW. For the 500 kWp–1 MWp range, neither a production licence nor a producer certificate is required (the latter applies only to installations over 1 MW).
Registration in RAE’s register for renewable energy is, however, required.

b) Environmental Permit

Installations of 500 kWp–1 MWp generally fall under Category B (standardised environmental conditions), unless located in sensitive areas, where an ΑΕΠΟ is required (Category A2).
The procedure is carried out electronically via the Electronic Environmental Register (ΗΠΜ).
Where an ΑΕΠΟ is required, responsibility lies, depending on category, with the competent Decentralised Administration or with ΥΠΕΝ.

c) Installation Permit

For installations of 500 kWp–1 MWp: under Law 4951/2022, for installations not subject to the ΑΕΠΟ obligation, a separate installation permit from the Periphery is no longer required. The environmental permit (ΠΠΔ or ΑΕΠΟ) already incorporates the relevant environmental operating conditions.
Where an ΑΕΠΟ is required, the procedure includes the opinions of the participating authorities (forestry office, directorate for rural development, ephorate of antiquities, etc.).

d) Building Permit

As for installations up to 500 kW: generally a permit for small-scale works (ΕΕΜΚ) under Law 4495/2017, exceptionally a full building permit.

e) Grid Connection

Submission of the application for a grid connection offer to ΔΕΔΔΗΕ or ADMIE, depending on the voltage level of the connection.
Signature of the grid connection agreement.

f) Operating Aid Agreement / Agreement on the Sale of Electricity

Signature of an operating aid agreement (ΣΛΕ) with ΔΑΠΕΕΚ following successful participation in a competitive tender procedure (auction) held by RAE under Law 4414/2016.

g) Operating Licence

Under Law 4951/2022, the operating licence for installations up to 1 MW has been considerably simplified and replaced by a notification of commencement of operation to the competent authority, in place of the former procedure for the grant of a permit by the Periphery.

Photovoltaic Installations with a Capacity of over 1,000 kWp (1 MWp)

(A new category not present in the original 2013 text – added here for completeness.)

For installations over 1 MWp:

A renewable energy producer certificate from RAE is required (replacing the former production licence).
An ΑΕΠΟ is required (Category A1 or A2, depending on capacity and location).
An installation permit from the competent Periphery is required.
Participation in a competitive tender procedure (auction) is required to obtain an operating aid agreement.
An operating licence from the competent Periphery is required.

Disclaimer:

The information above is provided for information purposes only and does not constitute legal advice. The Greek legal framework for renewable energy changes frequently. For each specific project, it is recommended to check the legal framework currently in force and to consult a specialised legal or professional adviser.

FAQ

1. Why is photovoltaics considered an attractive investment in Greece?

Photovoltaics has developed into one of the most attractive investment opportunities in Greece, in principle accessible regardless of the investor's nationality. It offers access to stable returns and a now well-established legal framework in the Greek market.

2. What are the key advantages of such an investment?

Long-term returns: after the one-off investment, a project generally secures ongoing returns for many years – for installations with a feed-in tariff/premium, typically over a contract term of around 20 years.
Low effort: comparatively low maintenance costs; neither the operator's own labour nor the hiring of staff is strictly required.
Location independence: operation does not require the entrepreneur's permanent presence or on-site management.

3. What role does Greece's location play?

The main factor is the strong solar irradiation, regarded as a key success factor of the investment. The electricity generated is, depending on the support model, either marketed directly or remunerated through a contract-for-difference system (feed-in premium), which has largely replaced the earlier fixed feed-in tariffs for new projects.

4. How is the permitting procedure in Greece structured today?

The procedure was fundamentally reorganised by Laws 4685/2020 (Phase A) and 4951/2022 (Phase B) and is designed to avoid typical project risks. A central role continues to be played by the binding grid connection offer:

It must be obtained before the installation permit.
This provides binding advance confirmation of whether a grid connection at the desired location is technically possible and economically viable.
This prevents “stranded projects”, where installations are built but can never be connected.

The competent regulatory authority since 2023 has been ΡΑΑΕΥ (formerly RAE); grid connection and market processing are handled via ΔΕΔΔΗΕ (distribution network) and ΔΑΠΕΕΠ (formerly LAGIE) respectively.