New Regulations on Greek Golden Visa Investors Need to Note

New Regulations on Greek Golden Visa Investors Need to Note

The Greek Golden Visa program has undergone significant adjustments, effective from Sunday, March 31, 2024, including changes in the minimum investment amount, types of real estate, and residency requirements. To understand the new regulations regarding the Greek Golden Visa, let's delve deeper into the details through the article below.

New regulations on the use of assets for the Greek Golden Visa

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New policy on Greek Golden Visa

The new policy on the Greek Golden Visa has been announced by the Greek Ministry of Finance on March 21, 2024, and is set to be voted on in Parliament. The key adjustments related to real estate investment under the Greek Golden Visa program include:

For a minimum investment of 400,000 EUR or 800,000 EUR

The minimum investment of 400,000 EUR or 800,000 EUR will be adjusted according to different regions, and each investment only applies to the purchase of a single real estate property with a minimum area of 120m2. Specifically:

  • 800,000 EUR investment: Includes the entire Attica administrative area (including Piraeus and most of the capital area), Thessaloniki, Mykonos, Santorini, and islands with a population over 3100 people;

  • 400,000 EUR investment: Applies to the remaining areas of Greece.

For a minimum investment of 250,000 EUR

The minimum investment of 250,000 EUR applies to two exceptional cases. Moreover, this investment can be made in any area of Greece without the requirement for property size/area. Specifically:

  • Converting commercial real estate to residential: Investors can choose a commercial property valued at 250,000 EUR and convert it to residential. The conversion process must be completed before the Golden Visa application is submitted.

  • Renovating and restoring real estate: Investors can choose historically or culturally significant properties from a designated list for renovation and restoration. The renovation must be completed before the fifth residency period if the investor wishes to renew the visa.

New regulations on the minimum investment for the Greek Golden Visa

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Investors need to understand the new regulations on the Greek Golden Visa

From March 31, 2024, new regulations for investment types to obtain the Greek Golden Visa have important adjustments as follows:

  • The minimum investment increased from 400,000 EUR to 500,000 EUR for the following activities:

    • Equity contribution to companies headquartered in Greece for the purpose of capital increase or bond issuance.

    • Investment in Real Estate Investment Companies (REICs) intending to invest exclusively in Greece.

    • Investment in closed-end funds.

    • Purchase of Greek Government bonds with a minimum term of 3 years.

    • Fixed-term deposits in Greek credit institutions.

  • The investment threshold for buying shares, corporate bonds, or government bonds traded on regulated markets in Greece remains at 800,000 EUR.

  • The investment threshold for mutual funds and alternative investment funds (AIFs) is reduced from 400,000 EUR to 350,000 EUR. These funds specifically invest in company shares/bonds or government bonds allowed for trading in Greece.

Regions subject to new regulations of the Golden Visa program

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Regions subject to new regulations

As previously announced, the changes in investment thresholds for the Greek Golden Visa program apply only to certain areas. Since the new policy announcement, the number of Greek Golden Visa applications has increased significantly.

Currently, the policy of doubling the real estate investment amount applies to the following areas:

  • Athens: Most areas in Athens will apply the new policy. Specifically, investors need to spend at least 500,000 EUR on real estate when participating in the Golden Visa program.

  • Attica: Cities in Attica such as Vari, Voula, Vouliagmeni.

  • Macedonia: The city of Thessaloniki.

  • Aegean: Both the islands of Mykonos and Santorini.

Therefore, the new policy of the Greek government for the Golden Visa program only applies to these areas. For the rest of Greece, the minimum investment remains at 250,000 EUR. Additionally, investors who deposit 10% of the property's value before July 31, 2023, will receive special incentives.

According to information, foreigners currently account for 85% of real estate buyers in Greece. Since 2017, the amount of investment in real estate under the Golden Visa program has reached 3.27 billion EUR. Greek property values grow by 1.2% annually, and the average annual rental yield is 4.3%.

Restrictions on the use of assets under the Greek Golden Visa

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Greece applies new regulations on asset use under the Golden Visa 

Golden Visa investors are not allowed to use properties for short-term rentals (such as AirBnB). Additionally, they cannot use properties converted from commercial real estate to residential as the headquarters of a registered company.

Failure to comply with these restrictions may result in the revocation of residency permits and administrative fines of 50,000 EUR. However, the bill is unclear on whether these restrictions apply to already approved properties owned by Golden Visa investors.

The Greek government has also established a transition period for those interested in investing in the Golden Visa program. Investors who submit Golden Visa applications will be subject to the current investment threshold (250,000 EUR for all types of real estate), provided they pay 10% of the investment amount before September 30, 2024, and complete the investment by December 31, 2024.

If unable to complete the investment on time (despite the deposit), investors will have until April 2025 to complete the purchase of another property and still qualify under the current threshold.

Impacts of the new Greek Golden Visa regulations on investors

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Impacts of the new regulations on investors

The new changes to the Greek Golden Visa in 2024 may affect investors as follows:

  • Investors with substantial capital can easily meet the new investment requirements and have more real estate options. Conversely, investors with limited funds may find it more challenging, especially in densely populated areas.

  • Changes impact investors considering investing in Greece. They should carefully review the new adjustments before making investment decisions.

However, the Greek Golden Visa program remains an attractive option for investors seeking residency rights in Greece and the Schengen Area. With these new changes, it is important for investors to understand the requirements and regulations to ensure eligibility for the program.

Amidst the anticipated increase in the Greek Golden Visa investment threshold, the program's flexibility and exceptional benefits will continue to attract global investors. This is a golden opportunity for those seeking European citizenship through residency investment in Greece.

If you are interested in the new Greek Golden Visa regulations and want to learn about work and residency opportunities in Greece or other European countries, please contact the Quốc tich thứ hai team for specific support and advice. Website: https://quoctichthuhai.com/ is one of the leading companies in Europe, providing European real estate expert services and products to Asian investors, with many years of experience in residency investment consulting. We bring true value to customers, with a success rate of up to 98%, making your European dream within reach!

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