Once highly desired, island properties in Greece now remain unsold as costly taxes imposed on luxury properties by the government are putting off even wealthy buyers.
Owners of homes worth €400,000 must pay the higher taxes. An additional levy is put on properties worth €5 million and more. This has caused many sellers and developers to lower the prices of their properties on the market -- in some cases marked down by as much as 45%.
The Greek economy is expected to contract by 4% this year. Foreign and even local buyers have moved on to other European countries for the moment, such as France and England, where Greek buyers have snapped up 6% of property purchases worth £2 million and above.