End of the real estate party? Greece pushes Israeli investors - and the tax on housing is on its way up

Greek Prime Minister Kyriakos Mitsotakis signaled this week his intention to raise the purchase tax on foreign investors from 3% to 15%, specifically citing Israelis, Chinese, and Turks as contributors to rising housing prices. The proposal, against the backdrop of a housing crisis and elections, could halt the wave of Israeli real estate purchases in Greece, which led foreign purchases in Athens and Thessaloniki in 2025.

Greek Prime Minister Kyriakos Mitsotakis signaled this week that the real estate party for foreign investors in Greece may be coming to an end. Against the backdrop of a growing housing crisis and approaching elections, Mitsotakis announced his intention to dramatically raise the purchase tax on real estate transactions for citizens from non-EU countries from 3% to 15%. In his speech, he specifically mentioned Israeli, Chinese, and Turkish investors as contributors to rising prices. According to Remax data, in 2025 Israelis led foreign real estate purchases in Athens and Thessaloniki, followed by buyers from Turkey, Lebanon, and China. In other parts of Greece, Israelis rank fourth in foreign purchases, after Germans, Bulgarians, and French. Meanwhile, in Cyprus, another preferred destination, new restrictions on foreign investors are being promoted to curb rising apartment prices. If the declarations mature into legislation, the implications for Israeli real estate investors will be significant, and could end the real estate party in the nearby and affordable destination that has strengthened since the coronavirus.