Lower living costs, a favourable tax regime, milder winters and an increasingly attractive property market are drawing German retirees south. And while the popular islands are getting more expensive, some of Greece's most beautiful corners remain surprisingly accessible.
By Yiannis Damellos and Mars Strangelove Jr.
Art: Gemini, IntelAIgence
November 2, 2026Imagine exchanging a grey winter morning in Germany for breakfast on a terrace overlooking the Aegean. The house is made of stone, the coffee is strong, the village is beginning to wake up, and the sea is close enough to reach before lunch. There is no particular reason to hurry. Retirement, after all, is supposed to be about having time.
For a growing number of Germans, this is no longer simply a holiday fantasy. Greece is becoming a serious destination for people considering where to spend the next chapter of their lives. The attraction is a combination of familiar Mediterranean pleasures and rather practical considerations: lower living costs, a favourable tax arrangement for qualifying foreign pensioners, relatively affordable homes in certain regions and a climate that makes outdoor living possible for much of the year.
A recent report in Germany's Handelsblatt, by correspondent Gerd Höhler, examines this growing interest and identifies several regions where prospective buyers can still find attractive properties without paying the increasingly extravagant prices of Europe's fashionable Mediterranean destinations.
The figures suggest that the movement is becoming more than a passing curiosity.
According to Dutch property agency Elxis – At Home in Greece, approximately 30% of the foreign prospective buyers it assists are looking to purchase a property for permanent residence. Among German clients, roughly one in five is considering making Greece a permanent home.
The cost of everyday life is part of the explanation. Estimates from the consumer-price databases Numbeo and Living Cost put living expenses in Greece approximately 20% below German levels. Add the warmer climate, the possibility of owning a house with outdoor space and the country's tax incentives, and the appeal becomes easier to understand.
There is also a less tangible consideration. According to Elxis managing director Giorgos Gavriilidis, economic and political uncertainty in Germany may be encouraging some people to reconsider their long-term plans.
For some buyers, the idea is not necessarily to pack everything and leave immediately. They purchase a holiday home first, spend increasingly long periods there and eventually make the transition permanent. Dirk Reinhardt, a partner at the Greek-German law firm MSTR Law in Athens, confirms this pattern. Many buyers, he told Handelsblatt, acquire a holiday property with the intention of settling permanently in Greece at a later stage.
The question, naturally, is where.
Crete, the Peloponnese and the Ionian Islands lead the way
Not every beautiful Greek island is equally suitable for year-round living. A place that seems idyllic in August can be considerably less convenient in January, when seasonal businesses close, transport becomes less frequent and everyday services matter much more than beach bars.
That is why prospective retirees are increasingly looking beyond the traditional holiday hotspots.
Crete is currently the most popular destination among German prospective buyers, accounting for 42.9% of the demand recorded by Elxis. The Peloponnese follows with 22.9%, while the Ionian Islands attract 21.5% and the Aegean islands 12.7%.
Crete has several advantages for anyone considering a permanent move. It is Greece's largest island, with sizeable towns, established transport connections, a relatively extensive healthcare network and communities that remain active throughout the year.
Away from the main tourist centres, buyers can still find traditional houses and simpler country properties at comparatively accessible prices. According to property agency Ferimmo, basic rural homes on Crete can be found from approximately €1,800 per square metre.
The Peloponnese offers another possibility, particularly for people who prefer mainland connections and a mixture of coastal and inland living. New villas with swimming pools can start at approximately €3,800 per square metre when purchased during the planning stage, according to Elxis.Infrastructure has also improved. The Moreas motorway connects Athens with the southern Peloponnese, allowing the journey to Kalamata to be completed in approximately two and a half hours.
That may sound like a minor detail, but for someone planning to live in a property throughout the year, access to medical services, shopping, airports and larger towns is every bit as important as the view from the balcony.
The same consideration applies to the Ionian Islands, where established communities, attractive coastlines and connections with the mainland make certain locations particularly appealing.
The Mediterranean dream has a price tag
Greece is not immune to the property boom affecting much of southern Europe. According to the Bank of Greece, residential property prices have increased by almost 60% in nominal terms since 2020. Foreign demand has contributed significantly to the pressure, particularly in fashionable coastal locations and on islands that have become international luxury destinations.
The Athens Riviera is experiencing an especially pronounced construction boom. Its proximity to the capital offers access to hospitals, restaurants, cultural institutions, international transport and a much wider range of services.
But convenience comes at a cost.
Villa in Vouliagmeni
In the coastal Athens suburbs of Glyfada, Voula and Vouliagmeni, newly built high-quality apartments are being offered at approximately €6,000 to €10,000 per square metre. Even established properties in good condition are no longer inexpensive, with prices starting at around €4,000 per square metre.
The Cyclades are another expensive proposition.
On Mykonos, property prices can reach €12,000 per square metre, while exceptional properties may exceed €20,000. Santorini is also firmly in the premium category, with average prices of approximately €7,500 per square metre.
There are, however, less expensive alternatives among the islands. Naxos, Syros, Andros and Tinos offer properties starting at approximately €2,300 per square metre.
For retirees who are more interested in a comfortable home than an internationally recognised postcode, these differences can be substantial.
The Peloponnese remains considerably more accessible. Existing properties in the region generally fall within a range of approximately €2,000 to €2,600 per square metre.
Further north, along the western Greek mainland between Preveza and Igoumenitsa, prices range from approximately €1,750 to €2,500 per square metre.
Ferimmo managing director Marios Christodoulou believes Greece remains competitive internationally despite the increases. Existing properties, he told Handelsblatt, are still considerably less expensive than comparable homes in Mediterranean regions of Spain, France and Italy.
Seven per cent tax: An additional reason to move south
Plaka, Athens
The scenery and cost of living are attractive, but Greece has another incentive for foreign pensioners: a special tax regime that can make a considerable difference to retirement finances.
Foreign retirees who transfer their tax residence to Greece and meet the statutory requirements may qualify for a flat 7% income-tax rate on qualifying foreign-source income, including pensions, for up to 15 years.
The arrangement is not automatic. Among other conditions, applicants must generally not have been Greek tax residents in five of the six years preceding their relocation. Their previous country of residence must also have an appropriate agreement with Greece concerning tax cooperation.
Certain categories of income, including some public-sector pensions, rental income and investment earnings, may be subject to additional rules or treaty provisions. Consequently, the 7% arrangement should not be mistaken for a blanket exemption from taxation elsewhere.
Anyone considering the move should obtain specialist advice before making decisions about residency, pensions and property ownership.
Reinhardt, the Athens-based lawyer, also recommends professional assistance with the property purchase itself. Ownership records and property rights can sometimes be complicated, and buyers should establish that the seller has the legal authority to transfer the property.
Documents may need official certification and translation into Greek. A lawyer representing the buyer should supervise the legal checks, the notarial process and the registration of the property in the land registry or cadastral system.
It is not the most romantic part of buying a Mediterranean home, but it is considerably more pleasant than discovering a legal problem after moving in.
A different kind of property buyer
Halkidiki
The nature of the properties attracting interest is also changing.
Luxury villas with swimming pools remain popular, but there is growing demand for smaller newly built homes of up to approximately 100 square metres.
For a retiree, a large house requiring constant maintenance may be less appealing than a comfortable property with a terrace, a manageable garden and enough space for visiting family.
Sea views remain desirable, of course, but buyers are increasingly considering practical questions: Can the house be reached easily throughout the year? Are medical services nearby? Is the local community active outside the tourist season? Can the property be heated and maintained during the winter?
These considerations are particularly relevant because the price of new holiday homes has risen sharply.
According to Ferimmo, newly built holiday houses with gardens and swimming pools averaged €4,675 per square metre in 2025, almost 35% more than in 2022.
The market is therefore becoming increasingly divided between expensive new developments and older properties that may offer better value, provided buyers are prepared to undertake the necessary renovation and legal checks.
Ferimmo reports that searches for Greek properties from Germany have increased by 70% over the past two years, while sales to German customers have tripled.
The agency identifies Crete, the Peloponnese, Thessaloniki and neighbouring Halkidiki as particularly attractive locations for people seeking places that can be inhabited throughout the year.
Christodoulou also points to a broader change in the motivations of buyers. Economic and political uncertainty in Germany, he argues, is encouraging people to look for capital preservation, legal security and greater predictability in southern Europe.
In his view, Greece's economic recovery and relative political stability have strengthened its appeal. The country's economy has grown for six consecutive years at almost twice the EU average rate, according to the figures cited in the report.
Pelion: Greece's best-kept retirement secret?
For those who would rather avoid the more expensive islands and crowded coastal resorts, Christodoulou has a particular recommendation.Pelion.
Located in eastern Thessaly, between the Pagasetic Gulf and the Aegean Sea, the mountainous peninsula offers a combination that is difficult to find in many other Mediterranean destinations: dense forests, traditional stone villages, mountain landscapes, secluded beaches and clear blue water.
It is a place where a morning can begin in a mountain village and end with a swim in the sea. Its traditional settlements, winding roads and architecture give it a character quite different from the heavily developed holiday resorts.
In Greek mythology, Pelion was associated with the summer retreats of the Olympian gods. Its forests were also said to be inhabited by centaurs, and the mountain was home to Chiron, the wise centaur who taught heroes including Achilles.
Today, its appeal is considerably more earthly.
According to Ferimmo, traditional country houses in Pelion can still be found for less than €2,000 per square metre, making the region one of the more affordable alternatives for retirees seeking a permanent home in Greece.
The combination of mountain and sea is particularly attractive to people who do not necessarily want to spend their retirement beside a beach or in a crowded tourist town. Pelion offers a quieter lifestyle, with opportunities for walking, swimming, exploring traditional villages and enjoying the changing seasons.
It is also an alternative to the increasingly expensive property markets of Mykonos, Santorini and the Athens Riviera.
Christodoulou describes Pelion as an absolute insider's tip for retirees.
And perhaps that is precisely its attraction. Not every retirement dream needs an infinity pool, a fashionable marina and a property price that resembles a telephone number.
Sometimes, a traditional house, a mountain view, a nearby beach and a village that remains alive throughout the year are more than enough.
For Germans considering a different kind of retirement, Greece is offering an increasingly convincing proposition. The choice ranges from the established infrastructure of Crete to the open landscapes of the Peloponnese, the Ionian coastline and the quieter villages of Pelion.
The sun is certainly part of the attraction. But the bigger appeal may be the possibility of exchanging a more expensive, hurried lifestyle for one in which time, space and everyday pleasures become a little more accessible.
And for someone who has spent decades working, that may be the most valuable investment of all.
Sources and reporting: Gerd Höhler, Handelsblatt, October 31, 2026, “Rente unter Palmen – Lohnt sich Griechenland als Alterswohnsitz?”; Elxis – At Home in Greece; Ferimmo; Numbeo; Living Cost; Bank of Greece. Additional background on the German press coverage: Deutsche Welle.
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