“Golden visa” refers to the residence permit for investors in real estate in Greece.
As of April 1st 2024, the new Immigration Code has entered into force, pursuant to which in certain specific regions of Greece, the minimum amount to invest in real estate in order to qualify for a Greek residence permit, is increased to 500,000 €. Up until now, the amount was 250 000 € (the lowest in Europe) for properties located anywhere in Greece.
Additionally, the Greek Government has just voted, on 02/04/2024 further changes to the Golden Visa regime. These changes form part of the general governmental policy to increase the number of properties available to be used as residences.
A. The current Golden Visa Regulations: the rules applicable under the new Immigration Code which is in force as of April 1st 2024
Investors in real estate may apply for a 5-year residence permit (Golden Visa) in Greece. The residence permit may be renewed for as long as the conditions for the investment are fulfilled.
The main applicant (investor) may be accompanied by the members of his/ her family, that is:
- His/ her spouse
- The children under the age of 21 years old
- The ascendants (parents) of both spouses
The investment in real estate may be effected in one of the following ways:
– Acquisition of real estate property in Greece, the value of which must be at least 250 000 euros, or 500 000 euros, for properties located in certain specific regions. The investment may be effected either directly by the investor or through a fully owned company having its seat in Greece or another EU member state. or
– Long term lease of a combined tourist facility or timeshare lease of a touristic facility, the amount of which must be at least 250 000 euros or 500 000 euros, for properties located in certain specific regions, or
– Acquisition at full ownership through inheritance (intestate or through a will) or through parental gift, of real estate property the objective value of which is at least 250 000 euros or 500 000 euros, for properties located in certain specific regions, provided that the applicant is an adult.
It is worth noting, that where the investment amount is set to 500,000 euros, it is required that the investment be effected to a single property only. Where the minimum amount invested may be 250,000 euros, the investment may be effected to one or more properties.
See here the regions in which the minimum investment amount is 500,000 euros.
B. The new amendments to the Golden Visa regime voted on 02/04/2024 which shall be applicable as of September 1st 2024
The amendments which were voted affect both the minimum value of the investment and the size and type of the investment property.
The minimum value of the investment and the type of property
The amended law provides for the possibility to invest either 800,000 euros, 400,000 euros or 250,000 euros.
More Specifically:
- 800,000 euros
The amount of investment (either through purchase, long-term lease of composite touristic facility or timeshare) in the following territories, is set at a minimum of 800,000 euros:
- Prefecture of Attica
- Prefectural Unit of Thessaloniki, in the Prefecture of Central Macedonia
- Prefectural Unit of Mykonos, in the Prefecture of Southern Aegean
- Prefectural Unit of Thira (Santorini), in the Prefecture of Southern Aegean
- Greek islands having a population above 3100 residents.
Where the investment is effected through the purchase of real estate, it must consist of a single property.
Where the investment is effected in part of the property (co-owners), the minimum value of the part acquired must be 800,000 euros.
- 400,000 euros
The minimum investment amount (either through purchase, long-term lease of composite touristic facility or timeshare) in any other part of Greece, is set at 400,000 euros.
Where the investment is effected through the purchase of real estate, it must consist of a single property.
Where the investment is effected in part of the property (co-owners), the minimum value of the part acquired must be 400,000 euros.
- 250,000 euros
The minimum amount of investment through purchase of real estate is 250,000 euros, in the following two specific cases:
- Where the investment concerns the purchase of a property where the declared use of the main spaces of such property are changed to residential. This applies also to investment in an industrial building or part of an industrial building or a property in which there is an industrial building, provided that no business was seated in that building for the past 5 years. Again, the investment must be effected to only one property, and the change of use of the property must be completed before the submission of the application for residence permit. The government thus aims to increase the investment in properties which shall end up as becoming residences.
- Where the investment is effected in connection with a property consisting of a preservable (landmark) building, or a portion of such a building under restoration or renovation or a property in which is located a landmark building. The investment is effected to only one property. Additionally, the law restricts the transfer of such property by the investor before the completion of the entire restoration or renovation of the building. An additional condition is required for the first renewal of the residence permit obtained under this type of investment, which consists in the completion of the renovation or restoration.
The size of the property
According to the new provisions of the law, and notwithstanding the region where the property is located, where the property consists of a built property or a property (land plot) where a building permit has been issued, the minimum surface of the main spaces must be at least 120 square meters.
This condition does not apply to the specific cases detailed above of a) investment in a property with change of use or b) a landmark property under restoration.
Other (new) conditions
With the aim to reinforce the objective of the Government to create more residential properties, the law further introduces a number of new conditions and penalties.
Restrictions in connection with the lease:
Investors in real estate properties are allowed to lease the property acquired for the purposes of Golden Visa. Under the new law, it is however forbidden to lease or sublease the properties under the regime of short- term leases (such as Airbnb). Long- term leases are still allowed.
Restrictions in connection with the use:
Under the amendments of the new law, it is further forbidden, where the property was acquired under the 250,000 euros regime of properties which shall be subject to a change of use, to use such properties as registered address or branch office of a business.
Penalties:
It is provided, under the amended provisions that the following penalties shall apply:
- A penalty of 50,000 euros and revocation of the residence permit apply where the above restrictions are not respected (i.e. in case the property is leased under a short- term lease or in case the property is used as a registered address or branch office of a business).
- A penalty of 150,000 euros is applied in case the property acquired under the regime of restoration or renovation is not fully renovated or restored.
- A penalty of 150,000 euros and revocation of the residence permit apply where the property acquired under the regime of renovation or restoration is transferred before the completion of such renovation or restoration.
Entry into force and transitional period
The amended provisions were voted on 02/04/2024 and shall apply as follows:
- Investors shall be able to complete their investment under the previous regime (the one currently applicable) until 31st December 2024, provided that before 31st August 2024:
- They have paid a deposit amounting to at least 10% of the agreed purchase price or the total amount of the lease amount or payment of the full purchase price.
- They have signed a preliminary (reservation) agreement regarding the property in connection with the deposit amount.
- In case the purchase of the property agreed upon is not completed until 31st December 2024, then the investor shall be allowed to complete the investment by purchasing another property or properties, under the terms of the current regime (applicable before the entry into force of the amendment provisions) until 30th April 2025.
The residence permits issued to investors under the provisions of the previous legislation remain in force and may be renewed, provided that the conditions required by the regime applicable at the time that they were originally issued still apply. This means that existing Golden Visas will continue to be renewed under the provisions of the previous laws applicable at the time when they were issued.
For additional information, please do not hesitate to contact us.
*The above is for informational purposes only and does not constitute legal advice.
