The Greek Anti-Money Laundering Authority (AMLA) has launched a large-scale investigation into the country’s Golden Visa program following alarming reports from Chinese authorities about an active pyramid scheme. The investigation, led by Charalambos Vourliotis, an honorary prosecutor of the Supreme Court and head of the authority, focuses on criminal networks engaging in suspicious real estate transactions under the guise of the Golden Visa program.

According to local media, the Anti-Money Laundering Authority has seized two properties owned by Chinese nationals in the Attica region. This action followed the discovery of evidence linking the owners to a pyramid scheme in China involving real estate investments and Golden Visas in Greece.

How the Scheme Operated

The alleged scam was conducted through a network of real estate companies, often involving at least one Chinese partner. These entities collaborated with law firms, Chinese agencies, and intermediaries, earning large commissions from buyers seeking Golden Visas. The scam targeted areas like Piraeus and western suburbs, where the minimum investment threshold for Golden Visas previously stood at €250,000 but could now reach up to €800,000 depending on the property.

Key tactics of the scheme included:

• Intermediaries promising sellers higher prices for their properties.
• Agents convincing buyers to sign contracts at inflated prices.
• Buyers paying as little as €100,000 for properties listed at more than double the actual value.
• Developers listing property prices at €250,000, although the actual value was only €100,000.
• Investors being taxed on the €250,000 price.
• Sellers returning the difference (e.g., €150,000) to intermediaries, who split the amount with foreign and local partners.

While sellers profited, Chinese buyers secured residency permits, and intermediaries earned substantial commissions, investigations have revealed that investors often suffered significant losses.

Alexander Varnavas, managing partner of the Varnavas law firm, noted, “Such fraudulent activities happen worldwide in real estate transactions, and their connection with Golden Visa programs is purely coincidental.” He warned that buyers could easily be scammed through deposit fraud or incomplete transactions.

Reports show that many Chinese investors were defrauded, losing their deposits to developers who never delivered the promised properties. Some Chinese authorities even reported that a few victims had tragically committed suicide.

How Investors Can Avoid Fraud

Varnavas stressed the importance of due diligence to avoid falling victim to scams. He advised investors to work with independent law firms registered with local bar associations from the very beginning of their search. These firms provide proper representation throughout the investment process.

A common mistake, Varnavas said, is that many investors choose to work with professionals closely linked to sellers or agents because they charge lower fees. However, these professionals often have a conflict of interest since their loyalties lie with the sellers or agents recommending them.

Greece’s Golden Visa Program Overview

Despite the challenges, Greece’s Golden Visa program has been highly successful. From 2018 to July 2024, a total of 33,544 applications were submitted, with 21,086 approvals granted by the government.

Chinese nationals lead the applicant pool, accounting for 56% of total applications. Turkey ranks second (7.6%), followed by Lebanon (5.5%) and the United Kingdom (3.7%).

As part of the investigation, authorities are expanding their focus to verify the source of funds used in real estate transactions under the Golden Visa program. The findings revealed a lack of proper vetting, raising concerns about potential money laundering activities.

The Anti-Money Laundering Authority plans to extend the investigation to all transactions within the Golden Visa program, which may lead to further asset seizures and legal actions.

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