In an attempt to address the growing challenges in the housing market, Greek Prime Minister Kyriakos Mitsotakis announced on Friday that the government is considering increasing the minimum investment required for foreign individuals to qualify for the Greece Golden Visa. According to the government, the potential change is designed to specifically address certain areas, increasing house and rental prices with increased demand for housing.
Mitsotakis conveyed to lawmakers in Athens, “We are in talks about further elevating the investment threshold, encompassing regions where there is a notable strain on rental markets.”
Greece already doubled the investment threshold for the Greek Golden Visa via property investment last year in popular destinations like Athens, Thessaloniki, Mykonos, and Santorini. Presently, investors in these locations must commit a minimum of €500,000 in investment to qualify for the coveted ‘Golden Visa’ program, while the threshold in other parts of the country remain at €250,000.
The Prime Minister alluded that in cities and islands experiencing acute housing market pressures, the threshold could potentially be raised to as high as €800,000, but that in areas where rental pressures are relatively stable, the threshold may increase from €250,000 to €500,000.
If you are looking to secure your Greek Golden Visa in 2024 before these changes take place, then contact our team to analyse the property market and present you with attractive investment opportunities according to both your needs and the existing regulations.
The Greece Golden Visa
Since its establishment in 2013, the Golden Visa program has attracted substantial interest, with Greece receiving over 25,100 applications and granting 17,184 permits to individuals seeking residence in the country. Chinese investors have been predominant in the program, representing nearly 60% of all visas issued, followed by Turkish investors at 7%.
Prime Minister Mitsotakis underscored the program’s significant contribution to state revenues, stating that it has generated “more than €2 billion since it started.”
In summary, the Greece Golden Visa has also continuously received an increasing amount of investment each year and was significantly impacted by the ending of the Real Estate option in the Portuguese Golden Visa.
Greece, along with Latvia currently offers the most cost-effective Golden Visa real estate pathway in the European Union at only 250k. The Greece Golden Visa provides visa-free access to the Schengen Area and a potential pathway to citizenship. The Greece Golden Visa is a 5 year permanent residency permit that can be renewed indefinitely upon maintaining a qualifying investment. Greece imposes no minimum stay requirements for investors and has some unique taxation incentives such as 7% tax on pensions and a lump sum taxation system for HNWI’s.
Also Read:- Greece Golden Visa Program Guide
What to Expect from the Greece Golden Visa?
Prime Minister Mitsotakis expressed that his government is exploring a model reminiscent of the previous real estate option in Portugal. He proposed maintaining a lower limit of EUR 250,000 for properties in regions that currently do not face housing pressure particularly into properties that require rehabilitation/refurbishments. In his words, “If, for instance, there is no housing pressure in Pella or Kozani, two sparsely populated provincial municipalities, why not encourage more demand and channel investments of possibly EUR 250,000 to these areas?”
He further commented on the opposition’s suggestion to require Golden Visa investors to engage in long-term rentals for their apartments, thereby prohibiting short-term rentals like Airbnb. Mitsotakis noted that he found this proposal “interesting” and expressed his intention to discuss it with his government colleagues.
In Conclusion, the Greece Golden Visa looks set to stick around for a good few years, there will likely be huge inflows of applicants as a result of this news and it will be interesting to see how the program evolves over the next few years. Whether these changes actually make a difference to housing market issues or make them worse is another question. There is an arguement to be made that by increasing the minimum investment the golden visa will lose its appeal and as a result less new properties will be developed in Greece thus causing further increases in prices as demand continues to increase and supply is reduced.
How to Acquire your Greece Golden Visa Before the Changes
The first step is to understand the most suitable property for your investment goals. It is fundamental to have a specialized team to assist you throughout portfolio review, developers meetings and the legal process of your application.
