Good news for tech-savvy investors! Greek Prime Minister Kyriakos Mitsotakis revealed on September 8 that Greece will expand its Golden Visa programme to include a new investment route. Announcing the initiative at the 88th Thessaloniki International Fair, Mitsotakis said that investors can now obtain a five-year residence permit by investing at least €250,000 (Rs 2.3 crore) in local startups, according to Bloomberg.
What is the Greek Golden Visa programme?
The Greek Golden Visa programme offers a pathway for non-EU nationals to gain permanent residency through investment. Traditionally, this has included options such as purchasing real estate, investing in government bonds, or making business investments. The real estate route remains popular, providing potential returns of 3-5% annually. This programme is noted for its flexibility, minimal residency requirements, and the possibility of immediate rental income from acquired properties.
Doors open for tech-savvy investors
Christos Th. Vardikos from the international law firm Vardikos & Vardikos told IMI, an investment migration newspaper, that the €250,000 investment route could “open doors for tech-savvy investors looking to engage with Greece’s growing startup ecosystem.”
Heena Arora Agarwal, Founding Managing Partner at Fundvice, explained to Business Standard that “such programmes create activity in the key fields of real estate business, tourism, and entrepreneurship while at the same time creating and improving infrastructure and employment opportunities.” She added, “A well-designed investment migration framework brings long-term value to society with concrete returns towards achieving sustainable economic growth and positioning Greece as an appealing spot for global investors.”
New rules
While the new €250,000 investment route is designed to attract tech-focused investors, Greece has simultaneously increased real estate investment thresholds for the Golden Visa programme. As of September 1, 2024, the minimum investment required in prime locations like Attica, Thessaloniki, and popular islands with over 3,100 residents has risen from €490,000 to €800,000.
“The increase in the minimum investment for Greece’s Golden Visa programme may reduce the number of applicants from middle-income families who previously found the €250,000 threshold more accessible. However, it may attract wealthier investors who seek a secure European base and are willing to invest more for enhanced lifestyle benefits,” Varun Singh, MD of XIPHIAS Immigration, an immigration consultancy, told Business Standard.
“The change could also impact the real estate market, pushing demand toward less popular areas still qualifying for the lower investment amount, while driving up prices in high-demand regions requiring €800,000,” he added.
Minimum investment thresholds
Previously, real estate investments in high-demand areas such as Athens, Mykonos, and Santorini required a minimum of $541,327. This amount has now been increased to $866,180. For all other regions in Greece, the minimum investment has risen from $270,663 to $433,062.
Investors who signed a pre-contract or private purchase agreement by September 30, 2024, with a minimum investment of $270,663 or $541,327 (depending on the location) can still qualify under the old rules if they complete the investment by December 31, 2024. The Greek finance ministry has yet to specify if these new restrictions will affect properties owned by existing Golden Visa residents.
Options for lower investments
Despite the new rules, the programme still offers two €250,000 real estate investment options: converting commercial properties to residential use or restoring listed buildings.
Housing crisis in Greece
Greece’s economic recovery from the 2010 debt crisis has been marked by a surge in housing demand, particularly in major cities and tourist hotspots, leading to rising rents. In response, Mitsotakis outlined measures to tackle the housing shortage in his Thessaloniki speech. Property owners with vacant homes will be exempt from rental income taxes for three years if they rent out their properties. This incentive also applies to those currently renting through short-term platforms like Airbnb if they switch to long-term leases.
Conversely, taxes will increase for properties transitioning from long-term to short-term rentals. Additionally, no new properties will be allowed for short-term rental in three Athens neighbourhoods for at least one year.
First Published: Sep 09 2024 | 4:56 PM IST
