Greece’s Golden Visa program, introduced in 2013, has been a significant driver of foreign investment in the country’s real estate market. The program grants five-year residency permits to non-EU citizens who invest in Greek real estate, with the initial minimum investment set at €250,000.
Recent Changes and Developments:
Increased Investment Thresholds: As of September 1, 2024, the Greek government raised the minimum investment amounts to address housing market.
Investments must be in a single property with a minimum size of 120 square meters.
- A minimum of €250,000: When you are investing in specialized real estate dedicated to the conversion of commercial properties into residential use or the restoration of registered buildings, regardless of location or size, you only need to purchase 250,000 Euros worth of real estate in Greece.
- A minimum €400,000: If you wish to apply for a Golden Visa by purchasing property in Greece in rural areas or in less densely populated cities and islands, your purchase need to be 400,000 Euros or more, provided that the investment is in a single property of at least 120 m2.
- A minimum €800,000: If you plan to apply for a Golden Visa by purchasing property in Athens, Thessaloniki and islands with more than 3,100 inhabitants, your purchase need be 800,000 Euros or more.
Market Impact:
Surge in Applications: Despite the increased investment thresholds, the program remains attractive. In October 2024, initial applications rose by 12% compared to the previous year, totaling 12,577. Chinese nationals lead the applicant pool, followed by citizens from Turkey and Lebanon.
Real Estate Market Dynamics: The anticipation of changes has led to a surge in property sales, with investors rushing to secure properties before the new rules take effect. This activity has contributed to rising property prices, particularly in high-demand areas.
Expert Concerns:
Real estate professionals have expressed concerns that the increased investment thresholds and potential elimination of the real estate route may lead to market distortions and unintended consequences. They argue that the Golden Visa program did not significantly contribute to the housing shortage, as properties sold were often rented out at competitive rates.
Conclusion:
Greece’s Golden Visa program is undergoing significant transformations aimed at addressing housing market challenges and redirecting foreign investments toward more productive sectors. Prospective investors should stay informed about these developments and consider alternative investment options within Greece’s evolving residency-by-investment landscape.