Real Estate Auctions In Greece: NPL Resolution, E-Auction Procedures, And Foreign Investor Access

Introduction

In the aftermath of Greece's financial crisis, the country's banking sector accumulated one of the highest ratios of non-performing loans (NPLs) in the European Union. To restore financial stability and reduce the burden of bad debt, Greek authorities and financial institutions have intensified the sale and auctioning of collateralised real estate assets. The introduction of electronic auctions has made the process more transparent and accessible, including that for international investors. This article outlines the NPL framework driving these auctions, explains the e-auction system, and describes how foreign buyers may lawfully participate.

1. The Greek NPL Landscape

Non-performing loans are credit exposures more than 90 days past due or considered unlikely to be repaid without collateral liquidation. According to the Bank of Greece, NPL ratios that exceeded 45% in 2016 have fallen below 8% by 2024, largely due to securitisation programs and collateral enforcement. The Hercules Asset Protection Scheme (Law 4649/2019) enabled banks to transfer large NPL portfolios to special-purpose vehicles backed by government guarantees.

As these portfolios continue to be resolved, thousands of mortgaged properties are entering the auction process. These sales serve both macroeconomic and financial-stability objectives: cleaning bank balance sheets while reopening the real estate market to new capital.

2. Legal Framework for Real-Estate Auctions

Real-estate auctions in Greece are governed primarily by the Greek Code of Civil Procedure (Articles 993–1004) and Law 4512/2018, amending Law 4335/2015, which mandated electronic auctions. Auctions may be initiated by creditors following a final enforcement title and are conducted by certified notaries acting as auction officers.

The process follows a strict sequence: seizure of property, public announcement, auction day, and adjudication. The framework ensures due process for debtors and creditors, establishes minimum bid thresholds, and provides legal remedies in case of procedural irregularities. All documentation, announcements, and results are recorded electronically, enhancing procedural transparency.

3. The e-Auction System

Since 2018, all real-estate foreclosures in Greece are executed via the official e-auction platform www.eauction.gr. The system allows registered participants to bid remotely in a secure digital environment supervised by the Ministry of Justice.Each auction is published publicly at least 45 days in advance, including property details, estimated value, and starting price. Participants must deposit a percentage of the starting bid—typically 30%—to qualify. Auctions proceed in real time within predefined hours, and bids are automatically validated by the platform. Once concluded, the highest bidder receives an award protocol, leading to property transfer upon full payment of the purchase price and relevant taxes within 10 working days (CCP Art. 1001).Since 2024, notarial deeds are issued electronically (Law 5076/2023), accelerating transfer.

4. Participation of Foreign Investors

Foreign individuals and companies can legally participate in Greek e-auctions.

Requirements include:

• Tax registration: Obtain a Greek tax identification number (AFM) through the tax office or via a legal representative.
• Representation: Appoint a Greek lawyer or notary to handle procedural filings, deposits, and post-auction formalities.
• Due diligence: Verify ownership status, encumbrances, zoning restrictions, and tax obligations before bidding.
• Deposit and financing: Bidders must transfer the required deposit from an EU or compliant bank account; full payment follows within 10 working days after adjudication.

Property transfer is formalised through a notarial deed and registration in the Hellenic Cadastre. EU citizens face no ownership restrictions; non-EU citizens may have minor limitations in border areas but generally enjoy full property rights.

5. Market Trends and Ethical Considerations

The expansion of the auction market has attracted institutional investors, funds, and private buyers seeking undervalued assets. Properties sold through NPL portfolios or enforcement procedures often start at below-market prices, though competition has increased significantly since 2022.From an ethical standpoint, transparency and fairness remain central. Presenting auctions solely as profit opportunities risks ignoring their social implications. Responsible participation requires adherence to legal standards, respect for debtor rights, and attention to due-process safeguards. Investors are advised to focus on lawful acquisition and long-term development rather than short-term arbitrage.

Conclusion

Greece's real-estate auction system has become a core instrument in the reduction of NPLs and the modernisation of its credit market. The e-auction framework provides transparency, legal certainty, and equal access for domestic and foreign participants. For international investors, understanding the procedural and ethical dimensions of this system is essential to lawful and sustainable participation in one of Southern Europe's most dynamic property markets.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.