Greece: last chance to gain EU Residency for only €250,000 property investment

The Greek Parliament passed a new Law on 2 April, which introduces substantial amendments to the investor permanent resident permit, generally known as the Golden Visa. The most significant change, which applies as of 31 March 2024, is to increase the minimum value thresholds applicable to foreign real estate investors from €250,000 to:

• €800,000 for properties in high-demand zones including the entire Administrative Region of Attica (the Athens’ metropolitan area), the Reginal Units of Thessaloniki, Mykonos and Santorini, as well as islands with a population of over 3,100 inhabitants.
• €400,000 properties in all other regions of Greece.

The investment must also relate to a single property with a minimum are of 120m2 and Golden Visa holders are prohibited from placing the qualifying property on the short-term rental market. Non-compliance with the use the property use restrictions will result in revocation of the Golden Visa and an administrative fine of €50,000.

The government has permitted two exceptions to these new levels for qualifying conversions and restorations, where the previous €250,000 threshold will still apply regardless of the location and size of the property:

• Properties converted from commercial to residential use, where the conversion work must have been completed before the investor can make a Golden Visa application.
• Restoration or reconstruction of buildings of historical or cultural importance, where the restoration work must have been completed by the fifth year of residency for a Golden Visa holder to apply for renewal.

Transitional Period

Fortunately, the Greek government has implemented a transitional period until 30 September 2024, which will allow foreign investors to make an investment in a qualifying property at, or above the previous minimum value threshold of €250,000 provided that it meets the completion deadline of 31 December 2024.

To obtain a Golden Visa through a property investment of €250,000, applicants are required to meet the following criteria:

• Deposit 10% of the total investment on or before 30 September 2024.
• Complete by paying the balance by 31 December 2024.
• Submit a residency application after making the full investment.

Remote Online Application Process

Greek Golden Visa applications can be submitted online, with no requirements for applicants to visit Greece until their application has been accepted in principle. At this point, they are required to travel to Greece to provide their biometrics as the final stage before receiving their residency cards.

Applicants can provide their chosen Greek lawyer with a Power of Attorney (POA), enabling them to prepare and submit applications via the governmental portal. This makes the entire process much easier and less time-consuming.

It’s also worth noting that unlike other EU residency permits, a Temporary Residence Certificate is issued once the application has been submitted, which provides investors with immediately residency rights.

Property Investors should act now

Whilst an investment of €250,000 in a conversion or restoration project will still qualify for the Golden Visa, most independent investors prefer to invest in a property that is already restored, ready to rent and is managed on their behalf.

These amendments by the Greek government are designed to bring more ‘significant investments’ to the country, reduce the number of Golden Visas granted and to rebalance the real estate market in Greece.

Since inception, Greece has received more than 25,100 Golden Visa applications and granted 17,184, with Chinese investors accounting for almost 60% of all visas issued, followed by 7% for Turkish investors.

The decision by other European countries – notably Portugal, the UK, Ireland, Bulgaria and Cyprus – to close or limit on their Golden Visa schemes, has triggered a rush of interest and investment in Greece.

A report from the Bank of Greece showed that the number of residency-by-investment visas had quadrupled in the last year alone, while 7% of total recent real estate transactions were connected to the Golden Visa programme.

During the first half of 2023, there were more than 4,000 Golden Visa applications using the real estate investment route, compared to 1,444 in the same period the year before.

Changes to Financial Investment thresholds

The amendments have also introduced significant changes, also with effect from 31 March 2024, in respect of the financial investment thresholds under the Greek Golden Visa programme as follows.

• Capital contribution into a business or company registered in Greece, including Public Limited Real Estate Investment Company (REICs) or investment funds – the minimum investment is increased from €400,000 to €500,000.
• Purchase of Greek government bonds with a remaining maturity of no less than three years through a Greek credit institution – the minimum investment is increased from €400,000 to €500,000.
• Fixed Term deposit with a Greek credit institution – the minimum investment is increased from €400,000 to €500,000.
• Purchase of shares, corporate bonds or Greek government bonds that are listed for trading or are actively traded on regulated markets or multilateral trading facilities operating in Greece – the minimum investment is remains at €800,000.
• Purchase of shares in a mutual fund, which is established in Greece or in another country and is intended to invest exclusively in shares, corporate bonds or Greek government bonds that are listed for trading or are actively traded on regulated markets or multilateral trading facilities operating in Greece – the minimum investment is reduced from €400,000 to €350,000.
• Purchase of shares in an Alternative Investment Fund (AIF) established in Greece or another EU Member State that which has the objective of investing exclusively in Greece – the minimum investment is reduced from €400,000 to €350,000.

The Greek Residency by Investment Programme (Golden Visa)

Greece offers its residents and citizens many reassuring benefits, including high levels of safety and security, excellent education opportunities, robust healthcare options and a dependable rule of law.

The key benefits of the Greek Golden Visa programme are:

• The right to reside, settle and stay indefinitely in Greece.
• Currently the lowest cost path to obtain EU Visa via property investment at €250,000.
• An applicant may include dependent children and parents.
• Visa-free travel within the Schengen Zone, for up to 90 days within any 180 days.
• No physical stay requirement.
• Access to high quality educational institutions and medical facilities.
• Those who make Greece their primary place of residence and tax residence can qualify for permanent residence permit after five years and Greek citizenship after seven years.*

*Additional qualifying requirements apply.

Comprehensive Residency and Citizenship Planning Services

Sovereign works closely with applicants during each stage of the planning and implementation process. When combined and managed correctly, the following Sovereign Group services will enable individuals and families to develop and implement a comprehensive, flexible and tax efficient strategy:

• International residency and citizenship programmes
• Tax residency
• Trusts and foundations
• Estate and succession planning
• International retirement plans
• Wealth management
• Corporate structures and banking
• International life and medical insurances.

For further information regarding the Greek Golden Visa and the qualifying investment options, or to discuss your requirements and/or to determine whether you qualify for residency in Greece or any other residency or citizenship programmes, please contact Sovereign’s Residency and Citizenship Planning team below.