Buying an Old Property to Renovate in Athens and Thessaloniki: Renovation Permits, Preservation, Timelines and Pitfalls

1Why do investors buy old properties to renovate in Athens and Thessaloniki?

Because for a second-hand property the starting price is lower, and the tax on purchase is transfer tax of 3.09% (as of October 2026) and not VAT of 24%. The renovation is where the investor creates the value. But in both cases, an apartment in a multi-unit building from the 1960s and 70s in Athens neighbourhoods or an old building in central Thessaloniki, success depends on three questions that must be asked before the purchase: what permits the renovation will require, whether the property is subject to preservation restrictions, and whether it contains illegal construction that will block the work.

2What permit is needed to renovate an apartment in Greece?

It depends on the type of work and the budget. Law 4495/2017 distinguishes three levels. The table summarizes them:

Two important notes. First, the EUR 25,000 threshold is measured by the total budget of the works. If, during the validity of the ΕΕΔΜΚ, you add works that take the amount above the threshold, the approval must be updated, and sometimes you must move to a full permit. Second, if the property already has a valid building permit, you do not issue an ΕΕΔΜΚ but update the existing permit. In a "comprehensive" renovation of an old apartment, with a kitchen, bathrooms, systems, windows and a layout change, it is easy to cross the threshold without noticing.

3What changes when the property is listed or in a protected area?

In buildings declared monuments or listed buildings (διατηρητέα), and in traditional settlements, landscape areas, archaeological sites and historic sites, the requirements are stricter. For example, exterior painting, replacing railings, plaster repair and facade restoration in other materials require an ΕΕΔΜΚ even without scaffolding, and facade plans are required. Some works also require prior approval from additional bodies, such as the Ministry of Culture or the Architecture Council (Συμβούλιο Αρχιτεκτονικής), and these approvals are attached to the application.

In practice, in the historic areas of Athens and Thessaloniki, where some of the most attractive properties for renovation are located, the procedure is longer and depends on parties that are not under the investor's control. If the property is listed or located in a protected area, this must be established before the purchase, together with the restrictions on facade, materials, height and use. Otherwise the business plan is built on assumptions that may not be approved.

4Can you renovate a property that has illegal construction?

As a rule no, and this is the most common pitfall. Law 4495/2017 prohibits transactions in properties with unregularized violations. The permitting procedures for works also assume an existing lawful situation. Many old apartments include enclosed balconies, rooms on the roof or internal changes that were not updated in the permit. Before the purchase, an independent engineer must compare the permit and plans with the situation on the ground, and check whether the violations can be regularized and in which category. As of October 2026, the regularization deadlines for violations in categories 1 to 4 have been extended to 31.3.2028. For category 5 violations there has been no open track since 2020. On this topic we have a separate guide on illegal construction and the engineer's certificate.

5What are the project stages and the timeline?

The timeline of a renovation project in Greece is determined mainly by licensing and approvals, and not by the pace of the work. The stages we plan with:

1. Pre-purchase review: a legal check of ownership and pledges, an engineering check of conformity with the permit and of the structure, and clarification of the preservation status and restrictions. An initial estimate of the scope of the works and their classification by licensing level.
2. A purchase contract with conditions: where there are violations or doubt about preservation, completion of the transaction is conditional on the findings, or on regularization at the seller's expense.
3. Design: an architect or engineer prepares the plans. If approvals from preservation bodies are required, they are submitted at this stage, and they are usually the longest stage.
4. Licensing: an electronic engineer's confirmation, an ΕΕΔΜΚ or a full permit, according to the classification. An ΕΕΔΜΚ is issued immediately after submission. A full permit is subject to review by the planning authority.
5. Execution: choosing a contractor who meets the reporting and social security requirements. The planning authority checks that social security contribution reports (e-ΕΦΚΑ) have been filed for the project's working days.
6. Closing the file: closing the project with the planning authority, updating the property's documentation and orderly retention of all invoices.

6What other pitfalls are worth knowing?

• A budget that crosses the threshold: a plan that began as an ΕΕΔΜΚ and expanded may require a full permit in the middle of the work.
• Assumptions about short-term rental: in some central areas of Athens, restrictions on new registration of short-term rental apartments have been imposed in recent years. A business plan based on short-term rental must be checked against the rules in force at the specific address. See our guide on short-term rental.
• Golden Visa: according to reports, the reduced threshold of EUR 250,000 is retained for converting commercial properties to residential and restoring listed buildings, subject to conditions. See our dedicated guide.
• Higher transfer tax from 2027: as of October 2026 a bill raising the transfer tax on residential apartments for individuals from outside the Union, from 1.7.2027, is in public consultation. The reported rate is 15%. The date on which the deed is signed may be significant.
• Unreported contractors: payment "in cash and without an invoice" exposes you to problems with the planning authority and social security, and erases costs that you will want to prove in the future.

7The Israeli aspect: documenting costs, financing and reporting

In a renovation project managed from Israel, documentation is an asset. Orderly invoices, a written contractor agreement and bank transfers will serve you on the day of sale, when you will need to prove the property's cost including the improvement. This is also important for computing tax in Israel, because a gain on the sale of a property abroad is subject to reporting and tax in Israel, subject to a credit under the tax treaty between Israel and Greece. It is worth coordinating the holding structure and the manner of documentation with an Israeli accountant even before the purchase. In transferring funds for the renovation it is recommended to work from a Greek bank account in the owner's name, and with payments according to milestones tied to actual progress.

8What to do before signing, and how we accompany the process

As lawyers who are also active developers, we examine a renovation property through both lenses. Before the purchase we coordinate a legal, engineering and planning review, including preservation status and illegal construction. We classify the planned works by licensing level, and build a realistic timetable that takes into account the required approvals. In the purchase contract and the contractor contract we anchor conditions, milestones and responsibility. The goal is for the business plan to be built on what can actually be carried out in the property.

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The information in this guide is general in nature and does not constitute legal or tax advice on any specific transaction. Every transaction is assessed on its own facts.