Rental Yields in Greece: Where Investors Get the Best Returns

Introduction

Greece’s real estate market has captured the imagination of global investors—thanks to its world-famous islands, vibrant cities, and a resurgence in tourism. For those seeking steady income and capital appreciation, understanding Greece’s rental yield landscape is crucial. This guide explores where you’ll find the best returns, current market trends, legal essentials, and tips to maximize your investment as a foreign buyer.

Understanding Rental Yield in Greece

Rental yield is the annual rental income as a percentage of the property’s purchase price. In Greece, yields vary widely—depending on location, property type, and rental period (short-term vs. long-term).

• Short-term rentals (Airbnb, vacation lettings) often bring higher yields, especially in tourism hotspots.
• Long-term rentals (year-round tenants) offer stability, appealing particularly in urban areas.

Typical Rental Yields in 2024:

• Athens (Central): 4–7%
• Popular Islands (Mykonos, Santorini): 5–10%+ (seasonal fluctuations)
• Secondary Islands and Mainland: 3–7%

Top Regions for High Rental Returns

1. Thessaloniki

• City at the Heart of Northern Greece: Thessaloniki is a dynamic city with deep historical roots and a vibrant 21st-century energy. As Greece’s second-largest city and a major educational center, it draws year-round demand from students, professionals, and tourists.
• Rental Market Highlights:
  • Short-term Rentals: Airbnbs and serviced apartments in the city center (Ladadika, Ano Poli, Kalamaria) are increasingly popular, seeing average occupancy rates above 80% in spring and summer.
  • Long-term Rentals: Strong, stable yields due to the international student population, expats, and business travelers.
• Yield Range:
  • Modern city apartments: 4–7% gross annual yield
  • Renovated historic homes or premium new builds: Sometimes higher, especially with luxury amenities.
• Growth Factors:
  • An expanding tech and business sector
  • Upgrades to the seafront and new cultural developments, boosting tourism and short-term rental demand
  • Thriving nightlife, gastronomy, and convenient access to both the city and surrounding tourist destinations

2. Corfu

• Cultural Island Gem: Corfu blends stunning nature, a cosmopolitan vibe, and history, attracting a sophisticated international clientele, particularly from the UK, Germany, and Northern Europe.
• Rental Market Highlights:
  • Short-term Rentals: Villas and high-spec holiday homes (especially in the northeast “Kensington-on-Sea” region) command premium rates during the high season (May–October).
  • Luxury Waterfront Properties: Often booked out months in advance, with weekly rents reaching into the thousands for exclusive villas.
  • Longer-term Rentals: Growing off-season market from digital nomads, retirees, and remote workers.
• Yield Range:
  • Premium coastal villas: 5–10%+ gross annual yield (with effective management)
  • Holiday apartments/townhouses: 4–7%
• Growth Factors:
  • Direct international flights and a strong tourism brand
  • Demand for luxury experiences and large properties with privacy and amenities
  • Opportunities to refurbish older homes for higher yield

3. Halkidiki

• Northern Greece’s Resort Coastline: Halkidiki’s three peninsulas offer a diverse set of opportunities, from lively beach communities to quiet, pristine hideaways. With its proximity to Thessaloniki’s airport, it’s a favored summer retreat for both Greeks and international visitors.
• Rental Market Highlights:
  • Short-term Rentals: Summer villas, seafront homes, and apartments are exceptionally popular, especially in Kassandra and Sithonia. Large family groups and luxury travelers look for properties with pools and direct sea access.
  • Tourist Season: Typically runs May to September, but spring and autumn “shoulders” are increasingly busy.
  • Longer-term Rentals: Especially attractive to remote workers, retirees, or Greeks living abroad looking for seasonal homes.
• Yield Range:
  • Seafront villas and new-builds: 5–9% gross annual yields
  • Townhouses or smaller apartments: 4–7%
• Growth Factors:
  • Expanding luxury resort infrastructure (new marinas, golf courses, spa resorts)
  • Rising international promotion and growing recognition in the luxury travel market
  • Steady appreciation as infrastructure improves and demand diversifies

Luxury Properties vs. Budget Investments

• Luxury Villas (Mykonos, Corfu, Athens Riviera):
  • Premium rental rates, especially in summer.
  • High-end travelers seek privacy, amenities, and concierge services.
• Urban Apartments (Athens, Thessaloniki):
  • Greater occupancy stability—students, expats, professionals.
  • Easier property management and year-round demand.
• Budget/Value Segments (Secondary Islands, Small Cities):
  • Lower initial investments, surprisingly robust seasonal yields.
  • Ideal for investors looking to diversify or enter at a lower price point.

Short-Term Rentals & Tourism Boom

Tourism reached record highs in Greece post-pandemic, with millions flocking to the islands and cities each summer. This surge has:

• Drastically increased demand for quality vacation rentals (Airbnb, Booking.com, etc.)
• Led to high occupancy rates (80–95% in high season on top islands)
• Created an opportunity for savvy investors to capture lucrative short-term cash flows

Tip: The most successful properties feature sea views, swimming pools, and modern amenities.

Legal Aspects of Letting Property

Registering Your Rental

• Short-term rental properties must be registered on the Greek Independent Authority for Public Revenue (AADE) platform.
• Each property receives a “Property Registration Number” for legal listing.

Taxation

• Airbnb/Vacation rentals: Taxed 15–45% (progressive) on net rental income.
• Long-term rentals: Similar tax brackets apply, but with greater allowable expenses.

Licensing

• No hotel license needed for most private rentals under 5 properties; more extensive setups may require additional business registration.

Local Regulations

• Some municipalities (e.g., in central Athens or Santorini) are introducing stricter rules—check current local laws before purchase.

Current Market Trends & Data

• Urban areas (especially Athens) see rising long-term rents due to digital nomad influx, students, and a post-pandemic return to city life.
• Islands remain highly seasonal but continue to fetch Europe-leading nightly rates in summer.
• Capital appreciation is returning—property prices have risen 30%+ in Athens since 2020, with faster growth in select island markets.
• New construction and renovations are booming, providing fresh opportunities and creative spaces attractive to renters.

Tips for Maximizing ROI

1. Professional Management: Partner with local agencies for cleaning, guest services, and maintenance—crucial for short-term rental success.
2. Stand Out: Invest in quality interiors, great photography, and highlight unique amenities (private pool, historic features, sea views).
3. Market Year-Round: Target digital nomads and off-season travelers with discounts or longer stays.
4. Legal Compliance Is Key: Stay ahead of new registration/tax rules; reputable legal advisors are essential.
5. Reinvest for Growth: Consider adding value with renovations, or reinvesting profits into emerging markets for portfolio diversification.

Conclusion

Greece offers one of the best climates for real estate investment in Southern Europe—particularly for rental income seekers. Whether your sights are set on a cosmopolitan Athens apartment, a luxury beach villa, or a hidden island retreat, smart investments can deliver robust rental yields alongside the joys of Greek property ownership.