LEGAL UPDATE: CLARIFICATIONS REGARDING THE NEW GOLDEN VISA REGIME

greek golden visa

Further to the recent changes in the Migration Code, which amended the criteria for the application for residence permits for investors in real estate (better known as the Golden Visa regime), a circular was issued on 25/09/2024 by the competent department of the Ministry of Migration and Asylum, which is addressed to the local migration authorities, and which provides clarifications on the interpretation and application of the new law.

The main points of the circular are summarized below.

Regions under the 800.000 euros regime

In accordance with the applicable provisions, the minimum amount of investment in real estate is 800.000 euros in the following regions:

  • Prefecture of Attica (Athens region and suburbs)
  • Prefectural Unit of Thessaloniki,
  • Prefectural Units of Mykonos and Thira (Santorini)
  • All islands with a population of over 3100 residents

It is clarified that Evia constitutes an island region, and thus falls within the scope of 800.000 euros.

For the remaining regions of Greece, the minimum amount of investment is 400.000 euros.

New requirement of a minimum 120 square meters

In accordance with the new applicable provisions, the investment may be effected to only one single property, in all cases. There is also, in certain cases, a condition of minimum surface area, applicable to build properties or properties for which a building permit has been issued, where it is required that  the minimum surface of the main living area is 120 square meters.

This condition does not apply to non- built properties or properties for which no building permit has been issued (i.e. land plots).

Conversion of non-residential properties into residential properties

The recent amendments in the Golden Visa law, also introduced the possibility to invest through the purchase of real estate, with a minimum value of 250.000 euros, where the main living areas of such property are converted into a residential property. Similarly, the investment is effected in a single property, without restrictions in relation to the minimum surface of the main spaces (i.e. the minimum requirement for 120 square meters does not apply), and the change of use (i.e. the conversion of the property into a residential property) must have been completed before the submission of the application for residence permit.

The newly issued circular clarifies, that the change of use (conversion of property into a residential property) must have been completed after the entrance into force of the relevant legal provisions (i.e. after 05.04.2024). It is important to note however that the change of use may be undertaken by the buyer (investor) or the seller.

The above apply also to the cases where an industrial building (or section thereof) is converted into a residential property, provided however that for the past 5 years no business was established and operating therein.

Specifically for the cases of conversion of industrial buildings (or sections thereof or land plot within which an industrial building is located) it is clarified that are included also properties which result from interventions or additions (in height or extension) to industrial buildings, provided that the use thereof as well is converted into residences or the addition of independent buildings in land plots in which there are industrial buildings the use of which (industrial buildings) is converted into residences.

Listed buildings- buildings requiring reconstruction or restoration

Another change introduced in 2024 in the Golden Visa regime, is the possibility to invest, for a minimum amount of 250.000 euros, into a property requiring restoration works. The recently published circular clarifies that this case includes also investment in properties which derive from interventions or additions (in height or as extension) to buildings which are listed buildings, or buildings requiring reconstruction or restoration works, or the addition of new independent buildings to land plots containing listed buildings, or buildings requiring reconstruction or restoration.

It is clarified that the investment is effected to a single property, but the minimum requirement of 120 square meters surface does not apply.

For this particular type of investment, the first renewal of the residence permit is conditional upon the full completion of the restoration of the real estate. The transfer of the property before completion of the restoration or reconstruction works is void.

Investment in a single property

As mentioned above, under the new provisions, the minimum amount of investment must be effected in a single property.

For the determination of this criteria (the minimum amount of investment in a single property, not the minimum surface), it is clarified that the property may include other spaces (beyond the principal living areas, such as storage rooms, parking spaces) which must (cumulatively): a) be purchased by the investor through the same purchase agreement, b) be in the same building and c) constitute ancillary spaces (either attached the to property, or as independent horizontal properties).

It is however worth noting that for the calculation of the minimum 120 square meters (where this is required), those spaces are not taken into account, as the 120 sq.m. requirement concerns principal living areas. Those ancillary spaces are taken into account only for the determination of the minimum amount of investment.

Prohibition to lease the investment properties under short- term leases

Under the newly applicable legislation, it is prohibited to lease the properties acquired for the application for residence permit under the short-term lease regime of sharing economy or to sub-lease them.

Additionally, the properties the use of which is converted into residential may not be used as registered address or branch office for a business.

However, it is clarified that:

  • The prohibition to lease or sub-lease the properties acquired within the Golden Visa framework, concerns only short-term leases or sub-leases withing the regime of sharing economy.

Sharing economy, is defined as any model, where the digital platforms create an open market for the temporary use of properties or services, often provided by private individuals.

Short- term lease, is defined as the lease or sub-lease of a property, for a specific duration which is shorter than 60 days, and provided that no other services are provided, beyond the stay and bedding equipment.

As such, the prohibition does not include long-term leases or subleases to touristic businesses, for the professional use of the property, provided that additional services are provided (e.g. hotel), and provided that the property does not fall under the category of property converted into a residence.

  • The prohibition to lease or sublease, does not include properties which were acquired under the previous legal regime, as well as properties where the investment is completed during the transitional period.

For more detailed information, on the applicable rules for Golden Visa, please see here.

Finally, a new circular and ministerial decision are to be issued, in order to address additional concerns and determine the supporting documents which must be filed for the residence permit application.

* This publication does not constitute legal advice. It is provided for informational purposes only. For particular questions, please contact us.

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