Athens lawyer, explains what retirees need to know before they sign
Greece has long maintained a special legal regime governing real estate transactions in certain parts of its territory, and the origins of this framework are deeply rooted in history and geopolitics. During the Cold War, and amid recurring periods of tension with neighbouring states, most notably Turkey, the Greek government grew increasingly concerned about the possibility of large-scale land acquisitions by foreign interests in strategically sensitive locations. Islands in the eastern Aegean, as well as northern border regions, were viewed as areas where ownership patterns could carry genuine security implications. The law was therefore conceived not as an obstacle to ordinary homebuyers or retirees, but as a mechanism allowing the state to monitor and, where necessary, restrict property transfers in zones considered vulnerable because of their proximity to neighbouring countries or important sea routes.
By Alexandros Kassandrinos
The earliest legislative expression of this concern dates to Law 1366/1938, which imposed a sweeping prohibition on any inter vivos transaction establishing real or contractual rights over property in border areas, a ban that applied to Greek citizens and foreign nationals alike, without distinction. Although that provision has since been repealed, it set the philosophical tone for a regulatory tradition that has never been fully abandoned. Today, the relevant framework is found in Law 1892/1990, as substantially amended by subsequent legislation, and it continues to shape the practical realities of property acquisition for non-European buyers across a significant portion of Greek territory.
Which Areas Are Affected?
The law defines border regions with considerable precision. According to Article 24 of Law 1892/1990, as replaced by Law 4278/2014 and currently in force, the designated areas include the prefectures of Dodecanese, Evros, Thesprotia, Kastoria, Kilkis, Lesvos, Xanthi, Preveza, Rodopi, Samos, Florina and Chios, as well as the islands of Santorini and Skyros. A number of former provinces are also covered: Nevrokopi in the former prefecture of Drama, Pogoni and Konitsa in Ioannina, Almopia and Edessa in Pella, and Sintiki in Serres, along with the former communities of Othonoi, Mathraki and Ereikoussa.
One point that frequently catches foreign buyers off guard is that the concept of “border area” is not confined to regions adjoining Greece’s land frontiers. Several highly popular Aegean island destinations, including Rhodes, Samos, Chios and Lesvos, fall within the restricted zones. Many prospective buyers discover this only after the purchasing process has already begun, sometimes after a preliminary agreement has been signed. It is equally worth noting what falls outside these restrictions: Thessaloniki and Halkidiki, for instance, are no longer classified as border regions and may therefore be purchased without triggering this particular set of rules.
EU Citizens and Non-EU Citizens: A Critical Distinction
The current law draws a sharp line between buyers according to their nationality or corporate seat. Citizens of European Union member states, as well as nationals of European Free Trade Association countries, benefit from EU rules on the free movement of capital and property acquisition. As a result, they generally face no special obstacles and may proceed with a purchase in a border area in much the same way as they would elsewhere in Greece.
The position of non-EU nationals is fundamentally different. Under Article 25 of Law 1892/1990, as replaced by Law 3978/2011, any inter vivos legal transaction by which a real or contractual right is established in favour of a natural or legal person whose nationality or registered seat lies outside the EU or EFTA is prohibited where the property is situated in a border region. This prohibition is not merely administrative: transactions concluded in violation of the law are declared absolutely null and void under Article 30 of the same act, with criminal and disciplinary liability extending to the notaries who draft such deeds. In practice, this means that buyers from the United Kingdom following Brexit, as well as nationals of the United States, China, Turkey, and all other non-EU states, must obtain prior authorisation before any such acquisition can be validly completed.
The Authorisation Procedure
The prohibition is not absolute. Non-EU buyers may apply to have it lifted through a formal administrative procedure set out in Article 26 of Law 1892/1990. The application must state the intended use of the property and is submitted to a specialised committee established within each Decentralised Administration for a five-year term. This committee is chaired by the General Secretary of the relevant Decentralised Administration and includes representatives from the Ministries of National Defence, Economy, and Citizen Protection. A positive decision requires a majority vote of all members, with the additional condition that the representative of the Ministry of National Defence must vote in favour — a requirement that underscores the fundamentally security-driven logic of the entire framework.
In practice, most applications submitted by foreign retirees, holiday home buyers, and Golden Visa investors are eventually approved. Authorities will typically examine the applicant’s passport, criminal record, and source of funds, along with the exact location and description of the property. Topographical plans are frequently required. The process, however, is not swift: it commonly takes several months from submission to decision, and the outcome cannot be guaranteed in advance.
Practical Complications for Buyers
The procedural requirements translate into a range of practical difficulties that anyone considering a property purchase in these areas should anticipate. Many sales contracts in border regions are signed on a conditional basis, with completion expressly subject to the granting of state authorisation. Notaries and banks exercise particular caution in these transactions, since a completed purchase lacking the required permit is not merely irregular, it is legally non-existent. Lenders may be reluctant to advance funds, and the overall timeline for a transaction can stretch well beyond what buyers typically expect.
It is also worth bearing in mind that the law’s scope extends beyond direct property transfers. The prohibition covers not only the outright acquisition of ownership but also the establishment of any real or contractual right over the property, and it applies as well to the transfer of shares or changes in the identity of partners in companies that own real estate in border areas. This means that corporate structures cannot simply be used to sidestep the requirement.
For many foreign investors and retirees, the rational response to these constraints is to redirect their search toward areas that fall outside the restricted zones. That is a perfectly legitimate approach, and one that Greece’s property market, with its enormous geographical variety, can readily accommodate. For those set on a particular location within a border region, however, the message is clear: seek specialist legal advice early, allow adequate time for the authorisation process, and ensure that no binding commitments are made before the legal position is fully understood.
ALEXANDROS KASSANDRINOS
alexandros@kassandrinoslaw.com
35 Ypsilantou Street, Kolonaki, 106 76 Athens Attica Greece
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