Greece has recently implemented revisions to its Golden Visa programme, which offers residency permits to foreign investors. Below are the key changes introduced by the government:
Higher Minimum Investment Thresholds:
Previously, investments in prime locations like Athens, Mykonos, Santorini, and islands with a population exceeding 3,100 required a minimum of $541,327. This figure has now increased to $866,180. For all other regions in Greece, the minimum investment has risen from $270,663 to $433,062.
Exceptions Still Apply:
Properties undergoing conversion from commercial to residential use or those designated for listed building restorations retain the lower minimum investment threshold of $270,663.
Transitional Period:
Investors who signed pre-contracts or private purchase agreements before September 30, 2024, with a minimum investment of $270,663 or $541,327 (depending on location) can still qualify under the previous rules if they complete their investment by December 31, 2024. These changes aim to refine the Golden Visa programme, potentially steering investments towards higher-value properties.
Overview of the Greek Golden Visa Programme:
The Greek Golden Visa programme provides a pathway for non-EU nationals to obtain permanent residency through various investment routes, primarily real estate purchases. This option offers potential annual returns of 3-5% and is known for its flexibility, lack of residency requirements, and immediate rental income potential.
Impact of Recent Changes on Investors:
The updated regulations introduce a tiered investment model. In key regions like Attica, Thessaloniki, and specific islands, the minimum investment threshold has been set at $866,180, while it stands at $433,090 for all other regions of Greece. Moreover, the programme now restricts investors to purchasing a single property of at least 120 square metres, with a prohibition on its use for short-term rentals.
Rationale Behind the Changes:
The adjustments to the Golden Visa programme come amidst Greece’s economic recovery post-2010 debt crisis, which has coincided with a housing crisis in major urban areas and tourist hotspots. The amendments aim to moderate foreign investment impacts on the housing market, which have contributed to escalating property prices and rents.
Addressing Housing Challenges:
Despite attracting significant interest with over 25,100 applications and 17,184 permits issued, primarily to Chinese investors, the programme’s impact on the housing supply remains limited. Analysts highlight the need for incentives to stimulate new housing construction, estimating a demand for approximately 200,000 new units nationwide to alleviate pressures on the market.
In conclusion, while the changes to Greece’s Golden Visa programme are intended to recalibrate foreign investment dynamics, the broader challenge of housing affordability necessitates comprehensive solutions beyond regulatory adjustments.