I bought a home in Greece (or I’m fantasizing about buying one) and I want to rent it out. What does it take to rent out a home in Greece? What taxes will I pay and what income can I expect? Can I hire someone to help me rent out my home in Greece? In this guide, we share everything you need to know about renting out a home in Greece.
Expected Income on a Rental Home in Greece
The rental income on a home in Greece varies greatly based on the region of Greece where the home is located. Important factors determining the price of renting include sea views, distance from tourist sites, walkability, distance from the airport, date of construction, and the outdoor/pool area.
Depending on the villa, its finishes, and its furniture, a villa can rent in the high season for roughly 80-120€ per night and bedroom. There are various rental management companies which charge 10-30% commission, depending on the services that are included (ie. Housekeeping, pool and garden cleaning, guest communication, marketing and tax registration).
Taxes on Rental Homes in Greece
If you plan on renting out your property, you will need to pay tax on rental income in Greece. For individuals, progressive tax rates apply to rental income and are calculated per owner on the gross rental income of the property.
- Up to a rental income of €12,000: 15 percent
- Between €12,001 & €35,000: 35 percent
- Greater than €35,000: 45 percent
Benefits of Co-Ownership
In general, it benefits couples to buy with two names rather than one, because the above tax rates apply per owner.
With two buyers, the tax brackets are as follows:
- Up to a rental income of €24,000: 15 percent
- Between €24,001 & €70,000: 35 percent
- Greater than €70,000: 45 percent
In cases of high-income rental properties, it is almost always best to purchase property as a company because you can deduct expenses, costs, and the depreciation of the building. Company tax in Greece is 22% and will decline in the coming years. To see how you can purchase as a company, contact us. Our legal team would be glad to help you explore this option.
Rental Best Practices
These tips will help you get the most out of your rental property in Greece if you plan to rent it out yourself without the use of a rental management company.
Price for Profit
Price for profit, not for occupancy. Pick a realistic price and know that a high-quality, higher priced rental is easier to manage in the long term. Look at the competition to see what they charge, and figure out what makes your property unique. You can use your unique selling point to sell at a higher price compared to the competition. Some examples are designer electronics, luxury linens, services like a housekeeper, concierge, or anything that makes your rental unique.
Be Specific
Give your guests as much information as possible without boring them. Describe not just the rooms but also the condition they are in. If potential guests send you inquiries, take note of what they ask. Are they asking about local beaches? About restaurants nearby? About where to park? All these questions need to be answered in your description.
Visit Regularly
Every few weeks, take 20 minutes to visit your property and see what kind of condition you find it in. Regular inspections are good because they can help you find problems before they grow. In addition, buy luxury and high quality items. What used to be considered a luxury item – like Nespresso capsules, high-thread linens, and entertainment systems, are now an expected norm.
Get Professional Photos
Hiring a professional photographer is probably the best investment you can make. They have the right equipment and knowledge to give you the best results. Remember that according to studies, professional quality photos can make your property sell 32% faster compared to low quality pictures. If you prefer to take photos yourself, here are the best tips for taking your own high-quality property photos.
Prioritize the Outdoor Space
Especially in Greece, it pays to invest in the exterior space of the property. The guest should ideally be able to everything (eating, lounging, cooking, showering, and even sleeping) outside. Think that’s an exagerration? Some property owners in Greece invest in sunbeds that are over 600 euros. As a good example of outdoor living, look at the villa below, which has an outdoor area with a shower, dining space, grill, and lounge space with luxury sunbeds.
Energy Performance Certification
This is not a recommendation but a requirement. If you are renting out your home, you are obligated to include the EPC in the rental agreement. “Energy Performance Certificates”, simply put, measure the energy efficiency of buildings in Greece.
An EPC is calculated from a number of factors, like the construction materials, the type of boiler, insulation, and heating systems. Once an EPC is issued, it lasts for a period of ten years. If your home doesn’t have an EPC (or it is simply outdated), and you plan on renting out your home, read about how to apply for an EPC in Greece.
How to Get Good Photos for Rentals
This section is perfect for you if you plan to take your own photos.
1. Know Your Selling Points
Is your home good for travelers? Is it ideal for families, bachelors, or pets? Is it for digital nomads in Greece or couples visiting for their honeymoon? Before you take pictures, think about the story you want to tell when selling your home.
2. Declutter and Clean Up
This may seem self-explanatory, but surprisingly some people skip this step. Clean up your house before even thinking about unpacking your tripod. Prepare like you would for an open home – clean surfaces, remove clutter, wash your dishes, and make the beds. You might think this is first nature, but believe us – we’ve seen it all! Don’t include family photos or personal items, because potential buyers will have a hard time imagining it as their own space.
3. Make a Good First Impression
Cutting the grass, cleaning the front door area, trimming bushes or trees, and removing bikes from the driveway are simple ways to make your home appealing at first glance. Add flowers to empty flowerpots to go the extra mile.
4. Let in the Light
A bright, airy room is more appealing than a dungeon. Natural light is always better than artificial light. Open the blinds and take pictures during the day. Take off the curtains if you need to, or take a picture with a longer exposure.
5. Choose a Wide Angle
Pick an angle that captures the room at its largest. Don’t make anything distorted, but use a wide-angle lens if you have one. Stand in the corner of the room for best results. As a rule of thumb, don’t use portrait mode. Landscape mode captures a larger area.
6. Keep the Camera Level
Surprisingly, 50 percent of properties which are on the market for upwards of 1 million Euros feature poor-quality photographs. Prospective homeowners won’t like to see crooked photos, no matter how nice the house is. Check your framing before you start taking pictures.
Rental Management Companies
Renting out your property in Greece is a smart investment and can be a great source of income. It comes with responsibilities, though. You need to market your rental, take your own photos, take applications, do accounting, and make repairs. If you don’t like the idea of all the extra work, you should hire a property manager.
Working with a property management company saves you from many headaches – screening tenants, doing inspections, and organizing repairs are just a few examples. Using a property management company in Greece also improves tenant retention, saves money on repairs, and helps you market your home.
Notos Estate Management
One example of a high-quality property management company is Notos Estate Management.
Notos is known for its 5-star service, offering top-notch rental management services for private villa owners in Crete. Working with a property management company like Notos can drastically improve your return on investment on your property in Greece.
Maintenance For Rental Homes
Annual maintenance on your rental home in Greece will make sure your renters are impressed by your home’s amenities.
Pool & Garden
Maintaining a pool and garden can cost between 150 and 350 euros per month. Of course, these costs can change based on the style of the pool and the size of the garden.
Annual Upkeep
Most homes in Greece (and anywhere else, for that matter) require updates like painting, polishing, and repairing over the course of years of use. In Greece, it is recommended to repaint pergolas or wooden items which are exposed to the sun, so that they continue looking like new. Costs for annual upkeep can vary from 1,000 to 4,000 euros per year, depending on the quality of construction and furniture.
For a complete explanation of buying costs, see here.
