Reservation Deposit When Buying Property in Greece: How Much to Pay and How to Protect Your Funds

You’ve found a villa or apartment in Greece, agreed on the price, and the seller asks for a reservation deposit. It is precisely at this stage that foreign buyers risk making one of the most expensive mistakes: transferring funds first and carrying out property checks later.

In Greece, reservation terms depend on the specific transaction. Therefore, there is no universal “correct deposit amount”. What matters most is not the size of the payment, but the written terms governing its payment and refund. AILIT Group recommends that the reservation document clearly specify the property, amount, timeline, refund terms, and recipient of the funds.

What to Check Before Paying a Deposit

Before transferring any money, the buyer must understand exactly who they are paying and for what. The reservation agreement should clearly specify:

• The property, buyer, and seller
• The reservation amount and timeframe
• Subsequent actions required by both parties
• Conditions for a refund or retention of funds

It is especially vital to stipulate what happens if legal or technical checks reveal an issue: encumbrances, document discrepancies, illegal modifications, permit issues, or the inability to use the property as intended by the buyer.

Legal due diligence and technical due diligence are distinct procedures: a lawyer examines title deeds, registration, and encumbrances, while an engineer checks boundaries, permits, access, and technical compliance.

Refundable or Non-Refundable Deposit?

The terms refundable and non-refundable should never be treated as mere formalities. Refund conditions must be explicitly stated in the agreement.

A dangerous situation arises when paying a non-refundable deposit before completing due diligence or clarifying the banking payment route. AILIT Group strongly advises against transferring large sums or non-refundable deposits until the payment procedure is agreed upon with the bank.

Read more: how to safely transfer money for property purchases in Greece.

What If the Property Is Purchased for a Golden Visa?

Here, verification is particularly crucial. Simply purchasing property does not guarantee that it meets the program’s requirements. The category, price, area, location, and intended use must align with the current Golden Visa conditions.

For example, for special properties with a €250,000 threshold, compliance with the specific program category must be confirmed before paying any deposit.

The Buyer’s Golden Rule

The correct sequence should be:

1. Property selection
2. Price agreement
3. Verification of reservation terms
4. Legal and technical due diligence
5. Verification of the banking payment route
6. Only then, safe money transfer according to the transaction documents

Useful answers regarding documents, AFM, property checks, and expenses are gathered in the AILIT Group FAQ.

Already found a property in Greece and the seller is asking for a deposit? Send AILIT Group the link to the property and the reservation terms — we will help determine what issues need to be checked before payment.

Article reviewed by Alexey Fatuev — expert in construction and real estate development in Greece.