Repatriating Funds: Moving Money Out of Greece After Selling Property

Reading time: 15 minutes

Table of Contents

• Introduction
• Understanding Greek Financial Regulations
• Steps to Repatriate Funds from Greece
• Tax Implications of Repatriating Funds
• Legal Considerations and Documentation
• Currency Exchange Strategies
• Timeframes and Potential Delays
• Alternative Methods of Fund Transfer
• Impact on Greek Economy
• Conclusion
• FAQs

Introduction

As the Greek property market continues to evolve, many foreign investors find themselves in the position of selling their properties in peloponnese and other regions, subsequently facing the challenge of repatriating their funds. This process, while seemingly straightforward, is laden with complexities due to Greece’s unique economic situation and regulatory environment. In this comprehensive guide, we’ll navigate the intricacies of moving money out of Greece after a property sale, providing you with the knowledge and strategies to execute this financial maneuver efficiently and legally.

Understanding Greek Financial Regulations

Greece’s financial regulations have undergone significant changes in recent years, particularly in response to the country’s economic crisis and subsequent recovery efforts. These regulations are designed to balance the need for economic stability with the rights of property owners and investors to manage their assets freely.

Capital Controls: A Historical Perspective

In 2015, Greece implemented strict capital controls to prevent a bank run and stabilize its financial system. While these controls have since been lifted, their impact on the financial landscape remains significant. Understanding this historical context is crucial for grasping the current regulatory environment and the lingering caution in the Greek banking sector.

Current Regulatory Framework

Today, the process of moving large sums of money out of Greece is more streamlined than during the height of the crisis, but it still requires careful navigation of bureaucratic procedures. The Bank of Greece and the Ministry of Finance oversee these transactions, ensuring compliance with anti-money laundering (AML) regulations and tax laws.

Steps to Repatriate Funds from Greece

Repatriating funds from a property sale in Greece involves a series of steps, each crucial for ensuring a smooth and legal transfer of your money.

1. Completion of the Property Sale

The first step is the successful completion of your property sale. This involves finalizing all legal documents and receiving the full payment into a Greek bank account. It’s essential to work with a reputable Greek lawyer who specializes in real estate transactions to ensure all aspects of the sale are properly handled.

2. Gathering Necessary Documentation

Before initiating the fund transfer, you’ll need to compile a comprehensive set of documents, including:

• The original property purchase agreement
• The recent sale agreement
• Proof of payment of all relevant taxes (including property tax and capital gains tax)
• Your Greek tax identification number (AFM)
• Identification documents (passport or national ID)
• Bank statements showing the receipt of funds from the property sale

3. Notifying Your Greek Bank

Once you have all necessary documents, inform your Greek bank of your intention to transfer the funds abroad. Most major Greek banks have dedicated departments for handling large international transfers, especially those resulting from property sales.

4. Compliance Check and Approval

The bank will conduct a thorough compliance check to ensure the transfer adheres to all Greek and international financial regulations. This process can take several days to a few weeks, depending on the complexity of the transaction and the bank’s current workload.

5. Execution of the Transfer

Upon approval, the bank will execute the transfer. Depending on the amount and the receiving country, this may be done through a single transaction or multiple smaller transfers to comply with certain regulatory limits.

Tax Implications of Repatriating Funds

Understanding the tax implications of repatriating funds from a Greek property sale is crucial for proper financial planning and compliance.

Greek Capital Gains Tax

As of 2023, Greece imposes a capital gains tax on property sales. The current rate is 15% on the profit made from the sale. However, there are various exemptions and reductions available, particularly for long-term property owners or those reinvesting in Greek real estate.

Withholding Tax on International Transfers

Greece may apply a withholding tax on large international transfers, which can range from 0% to 15%, depending on existing tax treaties between Greece and the receiving country. It’s crucial to consult with a tax professional familiar with both Greek and your home country’s tax laws to understand your specific obligations.

Tax Reporting in Your Home Country

Once the funds are repatriated, you may need to report this income in your home country. The tax treatment will vary depending on your country’s laws regarding foreign-sourced income and any double taxation agreements with Greece.

Legal Considerations and Documentation

Navigating the legal landscape when repatriating funds from Greece requires meticulous attention to detail and comprehensive documentation.

Anti-Money Laundering (AML) Compliance

Greek banks are required to adhere to strict AML regulations. This means you’ll need to provide clear documentation of the source of funds, including the entire history of the property ownership and sale process. Any discrepancies or lack of clarity can lead to significant delays or even rejection of the transfer.

Declaration of Foreign Assets

Depending on your home country’s regulations, you may need to declare these repatriated funds as foreign assets. This is particularly important for countries with strict foreign asset reporting requirements, such as the United States with its FBAR (Foreign Bank Account Report) regulations.

Legal Representation

Given the complexity of international property transactions and fund transfers, it’s highly advisable to retain legal representation both in Greece and in your home country. A Greek lawyer can navigate local regulations and banking procedures, while a lawyer in your home country can advise on the implications of receiving large sums from abroad.

Currency Exchange Strategies

When repatriating large sums from a property sale, currency exchange becomes a critical factor that can significantly impact the final amount you receive.

Timing the Exchange

The EUR/USD exchange rate, along with other major currency pairs, can fluctuate significantly over short periods. Monitoring these rates and timing your transfer can potentially save (or cost) thousands. Consider working with a currency specialist who can provide insights into market trends and optimal transfer timing.

Forward Contracts

For those concerned about currency volatility, forward contracts offer a way to lock in an exchange rate for a future date. This can provide certainty in your financial planning, albeit at the cost of potentially missing out on favorable rate movements.

Multi-Currency Accounts

Some international banks offer multi-currency accounts, allowing you to hold funds in euros and convert them to your home currency at a time of your choosing. This can be particularly useful if you’re not in immediate need of the funds in your home currency.

Timeframes and Potential Delays

The process of repatriating funds from a Greek property sale can vary significantly in duration, influenced by several factors:

Bank Processing Times

Greek banks typically require 5-10 business days to process large international transfers, assuming all documentation is in order. However, this can extend to several weeks if additional verifications are needed.

Regulatory Approvals

For particularly large transfers, additional approvals from Greek regulatory bodies may be required, potentially adding weeks to the process.

Documentation Issues

Incomplete or unclear documentation is the most common cause of delays. Ensuring all your paperwork is comprehensive and clearly presented from the outset can significantly expedite the process.

Seasonal Factors

Be aware that Greek banks may operate with reduced capacity during major holiday periods, particularly in August and around Christmas/New Year. Planning your transfer to avoid these periods can help minimize delays.

Alternative Methods of Fund Transfer

While traditional bank transfers are the most common method for repatriating large sums, alternative options may be worth considering in certain circumstances:

International Money Transfer Services

Companies specializing in international money transfers often offer more competitive exchange rates and faster processing times than traditional banks. However, they may have limitations on transfer amounts and may not be suitable for very large sums.

Cryptocurrency

While controversial and subject to significant regulatory scrutiny, some investors explore cryptocurrency as a means of moving value across borders. This approach carries significant risks, including legal and financial, and should only be considered after thorough research and professional consultation.

Phased Transfers

In some cases, breaking the total sum into smaller, regular transfers over time may be advantageous. This can help in managing currency risk and may alleviate some regulatory scrutiny associated with large, one-time transfers.

Impact on Greek Economy

The repatriation of funds from property sales by foreign investors has broader implications for the Greek economy:

Capital Outflows

Significant outflows of capital can put pressure on the Greek banking system and potentially impact the value of the euro. However, the Greek government and central bank closely monitor these flows to maintain economic stability.

Real Estate Market Dynamics

As foreign investors sell properties and repatriate funds, it can influence the supply and demand dynamics in the Greek real estate market. This can have ripple effects on property values and local economic conditions.

Investment Climate

The ease (or difficulty) with which foreign investors can repatriate funds from property sales can significantly impact Greece’s attractiveness as an investment destination. A smooth, transparent process encourages future foreign investment, while obstacles can deter potential investors.

Conclusion

Repatriating funds from a property sale in Greece is a complex process that requires careful planning, thorough documentation, and often, professional assistance. While the regulatory environment has improved since the height of the Greek financial crisis, investors must still navigate a maze of financial regulations, tax implications, and potential delays.

By understanding the steps involved, preparing comprehensive documentation, and considering various transfer and currency exchange strategies, you can significantly smooth the process of moving your funds out of Greece. Always remember to consult with legal and financial professionals familiar with both Greek and your home country’s regulations to ensure compliance and optimize your financial outcomes.

As Greece continues to position itself as an attractive destination for foreign real estate investment, the processes for repatriating funds are likely to evolve. Staying informed about these changes and maintaining a flexible approach will be key to successfully managing your Greek property investments in the years to come.

FAQs

1. How long does it typically take to repatriate funds from a Greek property sale?

The process can take anywhere from 2-8 weeks, depending on the complexity of the transaction, the completeness of your documentation, and the efficiency of the banks involved. Large transfers or those requiring additional regulatory approvals may take longer.

2. Are there limits on how much money I can transfer out of Greece?

There are no specific limits on the amount you can transfer out of Greece from a legitimate property sale. However, larger transfers may require additional documentation and approvals, which can extend the processing time.

3. Do I need to pay taxes in Greece before repatriating the funds?

Yes, you must settle all relevant taxes, including property taxes and capital gains tax, before initiating the transfer. Your Greek bank will require proof of tax payment as part of the transfer process.

4. Can I use a non-Greek bank account to receive the funds from my property sale?

While it’s possible to receive funds directly into a non-Greek bank account, it’s generally advisable to first receive the funds into a Greek bank account. This simplifies the process of proving the source of funds and complying with Greek financial regulations.

5. What are the main risks associated with repatriating large sums from Greece?

The primary risks include potential delays due to regulatory scrutiny, unfavorable currency exchange rates, and the possibility of triggering tax obligations or reporting requirements in your home country. Working with experienced professionals can help mitigate these risks.

Article reviewed by Charlotte Bennett, Senior Corporate Strategist | Mentor to Next-Gen Leaders | Navigating Business Transitions, on March 22, 2025