Last chance to buy real estate for €250,000 (before August 31, 2024)

Greece Residency: Last Chance to Invest in Property for €250,000 (Before 31/08/2024)

The Greece Golden Visa Program, officially known as the Greece Investment Residency Program, is an investor residency program that offers foreign investors the opportunity to obtain permanent residency in Greece and the Schengen Area countries.

The program has attracted significant interest from global investors due to its attractive benefits, including exemption from personal income tax on income earned outside of Greece, freedom of movement within the Schengen Area, excellent educational opportunities for children.

On March 31, 2024, the Greek government has officially announced an increase in the minimum investment requirement for the Golden Visa program in certain high-potential areas. Under the new regulations, the investment levels will be divided into two categories:

• Region 1: Includes the Attica administrative region (including the capital Athens), Thessaloniki, Mykonos, Santorini, and islands with a population over 3,100. The minimum investment for this region is €800,000.
• Region 2: Includes all other regions in Greece. The minimum investment for this region is €400,000.

In addition, the Greek government has also introduced two exceptions to the new investment threshold, applicable to investors interested in renovating or converting properties:

Conversion of commercial property into residential property: Investors can purchase a commercial property for €250,000 and then convert it into residential property for their own habitation. The conversion must be completed before applying for the Golden Visa.

Restoration of listed architectural structures: Investors can purchase and restore or completely rebuild properties included in the list of historically or culturally significant architectural structures designated by the Greek government. The minimum investment in this case is also €250,000. However, investors must complete the renovation before the 5th year of residence if they want to renew their Golden Visa.

Please note:

• To qualify for the €250,000 investment level, investors must make a 10% deposit of the property value before September 2024 and complete the full payment within 2024.
• The minimum investment property size for both areas is 120m².

Impact of Changes in the Greek Golden Visa Program

The anticipated impact of increasing the minimum investment for the Greece Golden Visa program:

Advantages

Attract investment to potential areas: The hike in minimum investment could encourage investors to channel funds into Greece’s key economic development areas, contributing to infrastructure development, job creation, and boosting economic growth in these regions.

Limit the number of “ghost” investors: A higher investment threshold can help screen potential investors, weeding out those who participate in the program solely for visa purposes without intending to invest and reside in Greece.

Enhance the program’s value: Increasing the investment amount can contribute to elevating the value and prestige of the Greece Golden Visa program, attracting high-quality investors with the potential to contribute to the country’s development.

Generate government revenue: The funds generated from the investments of program participants will serve as a crucial source of state budget revenue, enabling the Greek government to allocate more resources to healthcare, education, security, and other sectors.

Disadvantages:

Higher investment may make the program less appealing. The increased investment could make the program less attractive to some potential investors, particularly those with limited budgets. This could lead to a decline in the number of program participants, affecting the Greek government’s investment attraction goals. Additionally, it could impact Greece’s competitiveness compared to other countries with Golden Visa programs that have lower investment requirements.

Important Considerations When Investing in Greek Golden Visa Real Estate

Besides the outstanding advantages, the Greek Golden Visa program also comes with some important restrictions on owning real estate that investors should be aware of:

Restrictions on short-term rentals

Investors are not allowed to include properties participating in the Golden Visa program in the short-term rental market, which includes platforms like Airbnb.

The main purpose of the program is to encourage investors to buy houses to live in the long term, contributing to promoting the housing market and developing local communities. Short-term rentals can affect this goal and cause a number of problems such as noise, garbage, security and order, etc.

Restrictions on the use of converted real estate

Real estate that has been converted from a commercial to residential model is not allowed to be used to register corporate office headquarters.

This regulation aims to ensure transparency in the use of real estate and prevent the abuse of the Golden Visa program for business purposes without the intention of actually living in Greece.

Consequences of regulatory violations

Failure to comply with Golden Visa real estate ownership regulations can lead to serious consequences for investors, including:

• Revocation of Greek residence permit: This is the heaviest penalty that can result in the investor and his family being forced to leave Greece.
• Administrative penalties: Investors may be subject to fines of up to €50,000 for each violation.

Recommendations from experts

As the number of applications to the Golden Visa program is expected to skyrocket in the near future, experts encourage interested investors to quickly make a decision to open the application.

Filing early will save investors waiting time and minimize the risk of being affected by regulatory changes or investment levels in the future.

Conclusion

The Greek Golden Visa program, after adjusting the investment level, remains an attractive option for investors who want to settle in Europe and enjoy the many benefits that come with it. However, investors need to carefully consider new changes in investment levels, eligibility as well as their financial ability before making a decision to participate in the program.