The 23-year-old striker has joined the Kaftanzoglio Stadium outfit on a free transfer following a five-month spell with Western Sydney Wanderers in the second half of last season.
Iraklis announced the deal on Monday, affording former Australia youth international Bulut a chance to relaunch his career in Europe.
"I admire the Iraklis team, its history and what it represents today," he said in a statement.
"I am grateful and happy that I am doing what I love most as a member of a major club. I pledge to work hard with the other players to continue to move Iraklis forward.
Local media in Greece earlier this week claimed Iraklis were set to pull out of negotiations due to poor results in a fitness test and concerns over Bulut's character.
Those reports appear to be wide of the mark though, with head coach Nikos Papadopoulos heralding the capture of a forward who scored five goals in nine A-League appearances in 2014-15.
"I welcome Kerem Bulut to the big family of Iraklis and I am sure he will do everything to help the team achieve its goals next season," he said.
Capped by Australia at Under-17, Under-20 and Under-23 level, the former Sydney FC youth team player spent three years at Czech club Mlada Boleslav and one season at Turkish side Akhisar Belediyespor, with a loan spell at Karsıyaka.
He has a reputation for getting into trouble off the field, having been charged in relation to gang offences in 2010.
He was again charged by police with intimidation in March over an incident in a fast food restaurant and stood down for one match before being cleared.
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