Various countries throughout Europe, including Portugal, Spain, and Greece have implemented the Golden Visa program. This program allows foreigners to invest in real estate in exchange for a residence permit without the requirement to reside permanently in the country.
However, due to the housing crisis and pressure from the European Union, European countries are making changes and even canceling their Golden Visa programs.
Because of this, on March 31, 2024, Greece introduced a new program that tightened the conditions for purchasing real estate and granting the Golden Visa to foreign residents. This program aims to promote sustainable development and economic strengthening within the country. To read more about Golden Visa cancellations in different European countries click here.
Investment Levels in the Golden Visa Program + Additional Requirements
As part of the changes, investment levels have been created to tighten the eligibility criteria to purchase real estate under the Golden Visa program. The levels are as follows:
First Level – High-demand regions (Mykonos, Santorini, Attica, Thessaloniki, and other islands with more than 3,100 residents). A minimum investment threshold of 800,000 Euros in real estate is required.
Second Level – Other regions; a minimum investment threshold of 400,000 Euros is required.
Third Level – Special cases: Properties converted to residential use (if the conversion occurs before applying for a residence permit) and/or national properties that are in need of restoration. A minimum investment threshold of 250,000 Euros is required.
Additionally, other eligibility requirements for obtaining the visa include:
- Prohibition of short-term rentals – For example, you cannot rent the property as an Airbnb.
- Investment stability – In order to achieve a renewable residence visa for more than five years, the investment must remain profitable and intact.
- Prohibition of commercial use – For example, registering the property as a business address is prohibited.
Non-compliance with these regulations may result in retraction of the residence and a possible fine of around 50,000 euros.
Timeline for Real Estate Investments Under the Current Program
Real estate investors interested in a Golden Visa under the current (more lenient) program must make a minimum deposit of 10% of the property price before September 30, 2024, and pay the full amount by December 31, 2024. In this case, the minimum investment threshold is only 250,000 euros. This is a relatively low investment threshold for obtaining the visa in comparison to the new regulations.
Changes in Other Investments
In addition to the real estate investment changes mentioned, there are several other important changes in criteria eligibility regarding non real estate investments. First, a minimum threshold investment of 500,000 euros in; local funds, large Greek corporations, purchasing government bonds, and fixed-term deposits in Greek credit institutions. Moreover, a minimum investment of 350,000 euros in mutual and AIF funds will be required.
Due to the worsening housing crisis and high rental prices in populated areas of Greece, the Greek government, alongside with other governments in Europe, has decided to try and minimize the damage and rehabilitate the country’s real estate market. The state of the housing market in Greece has made it very difficult for Greek residents to find suitable housing at reasonable prices, partly due to the influx of foreign wealthy investors in real estate.
Although the Golden Visa program has attracted investors from all over the world, bringing a total of 9 billion euros in investments by the end of 2021, the government is taking significant steps to change the program and tighten its conditions, as explained above.
The dynamic changes in the Greek tax system, and the changes in the characteristics of the different types of residence visas, may raise many questions for foreign investors. Therefore, it is important to consult with a professional who is up-to-date on these changes in order to choose the right investment sources for your circumstances. To schedule an introductory call, contact us.
