Technical Due Diligence in Greece: What It Covers and What It Costs

Foreign real estate investment in Greece reached record levels in 2025, driven by institutional buyers, private equity, family offices and high-net-worth individuals are all active in the market, drawn by yield compression in Western Europe, the Golden Visa programme and a property cycle that is still in its growth phase relative to comparable Mediterranean markets. Athens prime residential yields run between 3.5% and 5.0%. Crete and the tourism islands produce 5% to 8% on residential and tourism assets. Mykonos and Santorini villa rentals reach 7% to 12% at the upper end.

None of those yields are realised without knowing what you are acquiring. Technical due diligence is the instrument that tells an investor the actual condition of the asset, the cost of bringing it to the required standard, and the capital it will require over the holding period. It is not optional at scale. It is the document that determines whether the acquisition price reflects the asset or reflects the seller's presentation of it.

What Technical Due Diligence Is and Who Needs It

Technical due diligence is a structured, engineering-led assessment of a property's physical condition, permit compliance and capital expenditure profile. It differs from a standard property inspection in scope, methodology and output. A property inspection answers the question of whether a building has material defects at the point of purchase. Technical due diligence answers a broader set of questions: what is the asset's current condition, what will it cost to maintain and improve over the holding period, where are the permit and regulatory exposures, and what does the technical risk profile mean for the acquisition price.

The output of a technical due diligence mandate is a written report in English structured for investment committee review, financing conversations, acquisition negotiation or portfolio reporting. It is not a buyer's comfort document. It is a decision-grade instrument.

Private buyers acquiring residential property typically need a property inspection. Investors, funds and institutional buyers acquiring above €500,000, and any buyer acquiring commercial, hospitality or multi-unit residential assets regardless of size, need technical due diligence.

The Three Pillars of Greek Property Due Diligence

A complete pre-acquisition due diligence process in Greece rests on three independent pillars running in parallel.

Legal Due Diligence

Legal due diligence is conducted by a Greek property lawyer. It covers title search and ownership chain verification at the Hellenic Cadastre, encumbrance check including mortgages, liens and easements, planning compliance and zoning conformity, tax clearance of the seller and confirmation of ENFIA obligations, and in corporate acquisitions, a full review of the target entity including the special real estate property tax under Article 15 of Law 3091/2002, which applies at 15% of property value to companies holding Greek real estate without a qualifying exemption.

The 2026 reforms introduced three new requirements that every legal due diligence scope must now address. First, the digital property registry transition requires active reconciliation between the new digital records and historic paper-based title documentation during the transition period, as discrepancies exist and must be identified before closing. Second, binding inheritance contracts (klironomikí sýmvasi), a new category of encumbrance taking full effect in September 2026 as part of Greece's largest inheritance law reform in 80 years, should be considered within acquisition due diligence scopes. They do not appear in traditional encumbrance searches and may require an explicit search protocol depending on the transaction structure and timing. Third, the cash-rent ban affects lease audit procedures for income-producing assets, where historic cash-payment rental arrangements now carry compliance exposure that must be quantified.

Technical Due Diligence

Technical due diligence is conducted by an independent engineering-led firm with no commercial relationship with the seller or selling agent. It covers the structural system and seismic compliance relative to the age and construction method of the building, the building permit file cross-checked against the physical structure, identification and cost estimation of any unauthorised constructions under Greek Law 4495/2017, the building envelope including roof, waterproofing membranes, facades and drainage, all mechanical, electrical and plumbing systems, ancillary structures, and a ten-year capital expenditure projection that converts the condition findings into a scheduled cost model.

The structural assessment in Greece is not a generic condition check. Greece sits across multiple seismic zones, with Crete, Rhodes and parts of the Aegean in Zone 4 and Attica in Zones 2 and 3 under the updated hazard classification. Buildings constructed before the 1985 seismic code revisions under Law 1396/1983 require specific structural verification that goes beyond visible inspection. Coastal properties across all zones face accelerated rebar corrosion that does not surface visibly until remediation costs are substantial.

Financial Due Diligence

Financial due diligence covers ENFIA property tax liability and the basis of calculation, tax clearance certificates confirming no outstanding obligations transfer with the asset, utility debt verification since outstanding water and municipal charges transfer to the new owner under Greek law, and for income-producing assets, a rent roll audit and lease compliance review including the cash-payment exposure introduced by the 2025 ban on cash rental transactions.

What Technical Due Diligence Covers in Greece Specifically

The permit file cross-check is the element most specific to the Greek market and the one most frequently underscoped in assessments produced by firms without Greek market experience. Greek Law 4495/2017 establishes five categories of unauthorised construction and a regularisation framework with a current deadline of 31 March 2028 under Law 5261/2025. Category 5 constructions have no regularisation pathway. For assets with Category 5 exposure, the technical due diligence report must quantify the demolition liability and its implications for the asset's usable area, planning rights and value.

Regularisation fines for Categories 1 to 4 run from €200 to €2,000 per unauthorised square metre depending on zone, building category and construction date, with a 40% surcharge on all current submissions. For a mid-sized commercial asset with 80 square metres of unauthorised construction in a high-value Attica zone, regularisation exposure at current rates exceeds €100,000 before legal and engineering costs. This figure belongs in the acquisition model before price is agreed, not in a post-closing discovery.

The ten-year CapEx projection is the second element that separates technical due diligence from a standard inspection. It assigns a remaining service life to every major building component and projects the cost and timing of replacement or significant intervention. Roof membrane replacement on a mid-sized commercial or hospitality asset: €60 to €120 per square metre. Full MEP system replacement: €15,000 to €60,000 depending on scope. Structural retrofitting on a pre-1985 reinforced concrete building: €15,000 to €80,000. These figures convert uncertain future cost into a scheduled liability that feeds directly into acquisition pricing, hold period modelling and exit valuation.

For a detailed risk checklist covering the full technical and legal scope, see the 21-point Greece property risk checklist.

What Technical Due Diligence Costs in Greece

Technical due diligence fees in Greece are structured as fixed mandates based on asset size, type, complexity and geographic location. For a standard residential acquisition above €500,000, fees start from €8,500. For commercial, hospitality or multi-unit residential assets, fees scale with the scope of the MEP assessment, the number of buildings within the portfolio and the complexity of the permit history.

Travel costs, site time, permit document retrieval, engineering assessment, report preparation and English-language delivery are covered within the fixed fee. The mandate is commissioned by the buyer, the report belongs to the buyer, and no element of the scope or findings is routed through the selling party.

The fee is not a cost in isolation. It is a cost set against the exposure it quantifies. A technical due diligence mandate that identifies €150,000 in regularisation and CapEx exposure on an asset priced at €1.2 million changes the acquisition price, the financing structure and the hold period model. That change in position is worth considerably more than the mandate fee.

BEFORE YOU COMMIT TO AN ACQUISITION IN GREECE

Send the listing, floor plans, permit file or technical documentation before signing anything.

We perform preliminary remote acquisition reviews for investors evaluating assets in Greece and the Mediterranean.

This early-stage review identifies the likely technical risk profile of the asset, permit inconsistency indicators, structural exposure relative to construction age and seismic zone, and whether a full TDD mandate is justified before commitment.

The review is independent, English-language and delivered directly to the buyer.

Submit the asset details here: kgnordic.com/contact

Technical Due Diligence vs Property Inspection

The distinction matters because conflating the two leads to underscoped assessments on assets that require full TDD and overspecified mandates on straightforward residential acquisitions.

A property inspection is appropriate for private buyers acquiring residential property up to approximately €500,000 where the primary question is condition at point of purchase. It answers a defined set of questions about the physical building and its permit status. The property inspection service covers this scope.

Technical due diligence is appropriate for any acquisition above €500,000, any commercial or hospitality asset regardless of size, any Golden Visa qualifying property where the asset is held as an investment over a minimum five-year period, and any portfolio acquisition where the aggregate technical risk profile must be documented across multiple assets. The output is structured for investor use, not for a straightforward purchase decision.

The property condition assessment article covers the CapEx projection methodology in detail. The guide on how to check for illegal constructions in Greece covers the permit verification methodology that forms one component of the full TDD scope.

What the TDD Report Is Used For

A technical due diligence report produced to the correct standard serves multiple functions within the same acquisition process. It provides the technical basis for price renegotiation where findings identify material exposure not reflected in the asking price. It satisfies the technical component of lender due diligence requirements for acquisition financing. It forms part of the investment committee submission for fund acquisitions. It establishes the technical baseline for asset management and CapEx budgeting post-acquisition. And it provides documentation for insurance underwriting, particularly for assets in seismic zones or coastal enforcement areas.

For Golden Visa acquisitions, it provides the investor with a documented technical position on an asset that must be held for a minimum of five years, and where short-term rental income is prohibited, making capital value preservation and long-term yield the primary return drivers.

The buying property in Greece risk checklist outlines the full range of technical and legal risk categories that apply across the Greek market. The TDD service covers the full mandate scope, from preliminary remote review through to final report delivery.

Acquiring Property in Greece?

Before contracts are signed, we assess structural condition, permit compliance, unauthorised construction exposure, MEP systems, waterproofing cycle risk and ten-year capital expenditure across the asset.

For investors unable to assess the asset locally, we provide independent technical due diligence, remote document reviews and buyer-side engineering assessment across Greece and the Mediterranean. Every report is in English, structured for investment decision-making and delivered before you commit.

Submit the asset location and acquisition details here: kgnordic.com/contact

Frequently Asked Questions

Q: What is technical due diligence in real estate?

Technical due diligence is an independent assessment of a property's physical condition, permit status, building systems, technical liabilities and future capital expenditure requirements before acquisition.

Q: How is technical due diligence different from a property inspection?

A property inspection focuses on identifying visible defects and technical issues in a specific asset. Technical due diligence has a broader investment focus and evaluates compliance, condition, risk exposure and future capital requirements to support acquisition decisions.

Q: What does technical due diligence typically cover?

A technical due diligence scope typically includes permit compliance, structural condition, building envelope assessment, MEP systems, life-safety systems, deferred maintenance, technical liabilities and a multi-year capital expenditure forecast.

Q: How much does technical due diligence cost in Greece?

The cost depends on asset type, location, size and complexity. Commercial assets, hospitality properties, mixed-use developments and conversion projects generally require a broader scope than standard residential properties.

Q: When is technical due diligence necessary?

Technical due diligence becomes essential when acquiring commercial property, development assets, hospitality projects, conversion schemes or any transaction where technical risk could materially affect value, financing, operations,future development plan, or properties targeted for the Anakainizo renovation programme.

Q: Can technical due diligence identify permit discrepancies?

Yes. A core objective is to verify that the property's physical condition, approved drawings, permits and recorded documentation are aligned, and to identify discrepancies that may create legal, technical or financial risk.

Q: Is technical due diligence relevant for Golden Visa investments?

Yes. While many Golden Visa acquisitions focus on legal eligibility, technical due diligence helps identify hidden liabilities, permit issues, construction risks and future capital expenditure requirements before funds are committed.