Utrecht, Netherlands: The sale of just one newly built holiday home to foreign buyers can bring a total benefit of over €1 million (€1.09 million) to the Greek economy over a 10-year period. This amount is calculated based on both the initial purchase price and related costs (€440,040), as well as the consumer spending and maintenance expenses (€651,500) that a foreign owner is expected to incur over a decade. This conclusion is based on an analysis by Elxis – At Home in Greece, which aims to highlight the economic impact of such transactions.
For this calculation, the company—specializing in holiday home sales to foreign buyers—considered a 120 m2. villa with a swimming pool and a 500 m2 garden. “This is a typical property bought by our clients, who mainly come from Western Europe and countries like the Netherlands, Belgium, Germany, Switzerland, the United Kingdom, and France,” says Mr. George Gavriilidis, CEO of Elxis. Such a property currently costs €400,000. The property transfer tax amounts to €12,360, while land registry fees and notary costs add another €8,800 to the buyer’s expenses. The lawyer’s fee is €4,000, and the real estate commission (3%) is estimated at €14,880. Therefore, the total cost—and the immediate economic input from the property purchase alone amounts to €440,040.
However, according to Mr. Gavriilidis, “in recent years, an increasing number of foreign buyers are also renting out their properties, besides using them for their own pleasure and vacations. The total usage is estimated at around seven months per year, with rental periods covering about 12 weeks annually, mostly during the summer months.” Under such conditions, visitor accommodation spending is estimated at €29,400, while the owner’s personal expenses (consumption, leisure) add another €21,250. Maintenance costs (technicians, pool, garden) amount to €10,000 annually, plus €4,500 per year for property management (rentals, etc.) by a professional. Thus, usage, maintenance, and rental activity generate additional inflows to the local economy, totaling €65,150 annually, or over €650,000 in a span of 10 years.
As such, the local economic footprint from the use of a single holiday property in regions such as Crete, Rhodes, and the Peloponnese, or even in less popular tourist destinations, can be highly significant. “A holiday home has a major impact, starting from its construction and continuing through its use over time. Dozens of professions and activities benefit directly and indirectly, beyond the tax revenues and other state income,” says Mr. Gavriilidis. According to Elxis’ analysis, the professionals who benefit include builders, contractors, technicians, restaurateurs, producers, retailers, fuel suppliers, maintenance workers, managers, cleaners, car rental companies, tour guides, activity organizers, as well as those involved in property transactions—lawyers, notaries, and engineers.
In this context, local authorities can seize this opportunity to boost the regional economy. “Collaboration with investors and professionals, support through infrastructure upgrades, such as roads, sewage and water supply networks, promotion of areas outside major urban centers, and facilitation of permits and procedures are some of the initiatives that local governments could undertake to benefit a significant part of their economy,” concludes Mr. Gavriilidis.
About Elxis
Elxis – At Home in Greece is a leading provider of real estate and legal services in the Greek market. With offices in Thessaloniki and Crete in Greece, as well as Utrecht in the Netherlands, Elxis’s team of highly qualified property professionals has over 30 years of experience in managing residential property investments. The company covers the needs of its international clientele in the best way possible, with a team of seven legal experts, as well as with personnel whose native language is English, Dutch, and German.
