Personal Experience: Purchasing Apartments in Thessaloniki for Rental Income with Guarantee

At the beginning of 2024, our client from Moscow, who has bought a house in Greece under the Golden Visa program several years ago and successfully rented it out during the season through a managing company, decided to invest part of his funds in Greece to obtain a stable monthly income in EU. The choice was made to purchase some small apartments in the very center of Thessaloniki with guaranteed rent. All these apartments are rented on the daily basis as hotels. To optimize taxation, it was settled to purchase several objects in the name of the wife, who at that time has already had an account opened in the Greek bank, and then several in the name of the husband, for whom we succeeded to open bank account in the Greek bank of Piraeus for this purpose.

What gets the client:

During the year we have purchased 5 apartments in two fully renovated residential complexes in the city center, which are used and serviced as hotels. Apartments of the area 34-52 sq.m. are fully furnished, equipped with all appliances and are on the tenant's balance sheet, so our client pays only rent tax. Apartment prices range from 80 up to 110 thousand euros, income from 450 to 550 euros per month. So now the clients receive a bit more than 2500-thousand-euro monthly income.

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The projects are located in the most attractive part of the old town in Ladadika, close to all infrastructure, with good transport accessibility, close to art galleries, theaters, restaurants, etc.

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The strategy was chosen to invest in some exact complexes in the center with a net revenue (after taxation) of 5% per year. At the same time, the client earns on the rise in real estate prices (at least 5-6% per year). After 3 years, the lease can be extended with a review of the lease rate.

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As usual when investing in similar projects, the demand for them is sufficiently large and decisions need to be made quickly. In this case, the client trusted us completely, and the procedure of choosing and purchasing was completed online.

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Obviously, when you are investing in such projects at the very early stage you will get not only high income but also there are high risks. We faced the issue with the terms of renovation and for the moment we are sure it is delayed for 4-6 months. Nevertheless, according to the contract, the client is protected from delays by the penalties: after a 2-month delay of delivery of the whole project the constructor starts paying compensation to the owner in the amount of a guaranteed rental of 650 euros per each apartment.

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The purchase was made remotely, by power of attorney from the client and his wife, since this is not the first transaction with us and he trusts us to sign and execute contracts without his presence. Also the lease agreements were signed remotely.

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Full support of the client by RES-Greece experts: we helped to choose the best objects for investment, we opened a bank account for them in Greek bank, issue documents, maximize the client's safety at the investment stage and close the deal remotely. Lease contracts were also signed. Next year they are planning to buy one more apartment for the client and three more for his adult daughter.

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