Golden Visa: Latest updates in Greece

The Greek Golden Visa program, which has been one of the most popular residency-by-investment programs in Europe, has seen significant regulatory updates in 2024. These changes, introduced by the Greek government, are primarily focused on raising the minimum investment thresholds and tightening the rules regarding property usage, which are expected to impact new applicants and potentially existing visa holders.

Investment Threshold Increases

1. New Regional Thresholds:

- €800,000 Threshold: This applies to properties located in high-demand areas such as the Attica region (including Athens), Thessaloniki, Mykonos, and Santorini. Additionally, this threshold is also applicable to any Greek island with a population exceeding 3,100 residents. The steep increase from previous thresholds is intended to regulate the influx of investment in these popular regions, which have seen substantial demand from foreign investors.

-€400,000 Threshold: This applies to properties in the rest of mainland Greece and smaller islands. The aim here is to encourage investment in less densely populated and less tourist-centric regions, which can benefit more from foreign capital inflows.

2. Transitional Period:

- €250,000 Legacy Threshold: There is a temporary provision allowing investors to secure the old minimum investment threshold of €250,000. To take advantage of this, investors must make a 10% deposit by September 30, 2024, and complete the full investment by December 31, 2024. This transitional period provides an opportunity for those who have been planning to invest but are not prepared for the sudden increase in the required investment amount.

Property Usage Restrictions

In addition to the increased financial requirements, the government has also imposed stricter rules on how properties purchased through the Golden Visa program can be used:

1. Short-Term Rental Ban Properties acquired through the program can no longer be used for short-term rentals, such as those listed on platforms like Airbnb or Vrbo. This restriction aims to ensure that properties are used for long-term residency or as genuine holiday homes, rather than contributing to the saturation of the short-term rental market, which has been a contentious issue in popular tourist areas. Violations of this rule could result in severe penalties, including the revocation of the Golden Visa and fines up to €50,000.

2. Exceptions and Special Cases:

- Commercial-to-Residential Conversions: Investors can still qualify for a Golden Visa with a €250,000 investment if they purchase a commercial property and convert it into a residential one. This option remains valid across all regions of Greece, irrespective of the new thresholds.

- Restoration of Historical Properties: Similarly, properties that are of historical or cultural significance can be purchased and restored for a reduced minimum investment of €250,000. This policy is designed to preserve Greece's cultural heritage while still attracting foreign investment.

Impact on the Market and Future Implications

These changes represent a significant shift in the Greek government's approach to its residency-by-investment program. The increased thresholds are likely to reduce the volume of new applications, particularly in the highly sought-after areas like Athens and popular islands, as only wealthier investors will be able to meet the new requirements. Conversely, the government is attempting to redirect investment to less popular areas, potentially leading to more balanced economic growth across the country.

For current and prospective investors, the transitional period offers a final window of opportunity to lock in the lower investment threshold, making it crucial for those interested to act swiftly. Legal and financial advisors specializing in Greek immigration are already preparing to guide clients through this process, ensuring that they can benefit from the existing, more favorable terms before the full implementation of the new rules.

In summary, the updated Greek Golden Visa program is now more restrictive in both financial and operational terms, reflecting the government's efforts to manage foreign investment more effectively and address local concerns, particularly in over-saturated real estate markets.