Greek Property Yields Versus Mortgage Costs in 2026

From gross to net yield

On these assumptions the property services its own debt with a small margin, which is a reasonable outcome — but it leaves nothing for capital expenditure and depends on full occupancy.

Short-let regulation has changed the base case

Restrictions on short-term letting in central Athens districts have pushed many owners back to long lets, which are more stable but lower-yielding. Underwriting a financed purchase on peak short-let numbers is the most common modelling error we see.

Assume a long-let yield. If short-let income later exceeds it, that is upside rather than a dependency.

Interest deductibility improves the picture — sometimes

Where the property is genuinely let and declared, mortgage interest is commonly deductible against Greek rental income, which materially improves the after-tax cost of borrowing.

The flat-tax option available to qualifying new residents can remove that benefit, because the income it applies to is not taxed in the ordinary way. Which regime you sit in should be settled before the mortgage is placed, not after.

When a Lombard facility beats a mortgage in Greece

• When the seller requires an unconditional, fast completion
• When you would prefer not to have a Greek bank underwrite your global income
• When you want the property unencumbered for a later sale or refinancing
• When the 8–16 week mortgage timeline threatens a contractual deadline

Frequently asked questions