An Invitation to International Investors

 Opportunities for Investment in Greek Tourism

A number of factors negatively affecting mortgages and financing worldwide have resulted in declining land prices. This makes for a desirable buyer’s market when it comes to land or property purchase as an investment. However, a buyer must carefully weigh his options as some opportunities are obviously better than others. Greece presents just such opportunities as the increases in land prices over the last few years have now leveled off and are on the decline, resulting in significant bargains to be found.
In addition to declining land prices, the Greek real estate market has some inherent characteristics which should make it hard for any cost minded investor to pass up.

First, the availability of very advantageous plots of land throughout the country which are being offered at reasonable prices. Compare to its Mediterranean neighbors, Greece is still “price friendly” - although it is estimated that in the near future this will no longer be true.

Second, the country is currently in the process of instituting a reliable, centralized, uniform, online land registry. The lack of a land registry was the cause of much confusion in the past. The land registry is already in place in many Greek territories and it is expected to be completed country wide by 2010. This is the landmark year when, according to industry analysts, the price of land will begin to increase once again.

Third, long gone and forgotten are the frivolous incentives offered to investors by the Greek State in the past. The new national plan has on top of its list the development and growth of the Greek tourism sector by the ambitious rate of 50% over the next five years. This will naturally lead to significant and unrepeated opportunities for land investors in Greece over this period. Markets analysts, who are keeping a close eye on the Greek real estate market, predict that land prices in many territories conducive to tourism development, prices will go up during that five year period anywhere from 100% to 150%.

Available data for 2008 clearly reveals an unprecedented interest from international investors and enterprises wishing to take advantage of the opportunities offered by this tourism development in Greece. In fact, our company can attest to this as we have been on the receiving end of many requests for locating investment properties. If we were to give a geographical distribution of the countries of origin of these interested parties, the list would be topped by the UK, Scandinavia, the United Arab Emirates, Russia, Israel and China.
The opportunities are still available and Kefalonia is a prime candidate for investment. Those investors, who act quickly, will certainly reap the greatest returns on their investment.

The Greek Development Law Provides Great Incentives for Investing in the Greek Tourism Sector

Below is a summary of the main provisions Development Law 3299/2004 which apply to investing in tourism sector projects in Greece – and Kefalonia.

Provisions of Greek Law 3299/2004 have stipulated anew the incentives offered for private investment in the country’s economic development and investment for economic development and regional convergence. The incentives are: subsidies and leasing grants; tax relief or exemptions; or cost subsidies for new employment positions created. The investor will have to carefully examine his options and needs, as only one of the above three types of incentives can be used on a single project. As to the amount granted by each of the incentive measures, this depends on:

  • the project character
  • the project location
  • the size of the enterprise making the investment, size being defined by to EU criteria which classify enterprises as small, medium and large
  • Both statistics derived from applications and previous experience show that most investors prefer to receive cash grants and leasing payment subsidies.

Law 3299/2004, as modified and amended in December 2006, stipulates a basic subsidy percentage for all enterprises- - regardless of their size – based on a two-tiered classification system. First, a project is classified as Category 1 or Category 2. The second classification is a geographical one, dividing Greece into Investment Zones A,B, and C.

Kefalonia as a geographical territory falls into Investment Zone B.

The December 2006 modification to Law 3299/2004 stipulates:

"For very small and small enterprises, as set by the EU legislation, as these are designated by EU legislation in effect in each instance, which implement investment plans, an additional subsidy is provided and / or leasing subsidy, which is equivalent up to twenty per cent (20%) of the cost of the subsidized investment. In the case of medium enterprises, the additional subsidy is equivalent up to ten per cent (10%)".

An effective ministerial decree further defines the exact amount of additional subsidy, which is granted to a particular project on the basis of the following criteria:

a) the per capita gross domestic product of the geographical area
b) the unemployment rate of the geographical area
c) the location

If you are thinking about investing in Greece in order to reap the rewards of the fast growing Greek tourism market, it’s about time you acted on it. Contact ZAFIRATOS GROUP and we will be happy to make our experience and expertise available to you.

The opportunities are here, and so are we to facilitate your investment in Kefalonia.

Athens Office: 78 Marathon Street 16673 Panorama, Voula
Tel & Fax: (0030) 210 89 95 499, Mobile: (0030) 6944 344 683, (0030) 6977 090 163
Kefalonia Office: Mavrata Village 28082, Tel & Fax: (0030) 26710 81618, E-mail: divacasa@hol.gr