Greece’s Shift in Golden Visa Program Amidst Housing Crisis
In a significant move, Greece has escalated the investment requirements for its Golden Visa Greece program in an effort to address the country’s deepening housing crisis. This initiative, which has been a magnet for foreign investment since its inception in 2014, originally offered a renewable, five-year residence permit to foreigners in return for a 250,000-euro property investment. Now, the Greek Finance Ministry has announced an upward revision of these investment thresholds.
What Changes Have Been Made?
Effective from March 31, the new rules stipulate an investment of up to 800,000 euros in areas considered highly desirable, including Attica (encompassing Athens), Thessaloniki, Mykonos, Santorini, and islands with populations exceeding 3,100. For other regions, the minimum investment begins at 400,000 euros.
How Does This Affect Property Size and Type Requirements?
Under the new regulations, investors are obliged to purchase properties with a minimum size of 120 square meters. However, for those interested in historic properties or industrial buildings converted into living spaces, the investment remains pegged at 250,000 euros.
The Driving Force Behind the Change
This amendment arrives on the heels of data from the Bank of Greece, which highlighted a 20 percent increase in rents since Greece emerged from its nearly decade-long financial turmoil in 2018. The intention behind the revised Golden Visa Greece program is clear: to mitigate the soaring housing costs and make long-term rental homes more accessible to residents.
Record Demand Despite Growing Concerns
Despite these changes, the allure of Greece’s Golden Visa program has not waned. Last year witnessed a record 10,214 applications for initial visa acquisitions or renewals, with a total of 5,701 permits issued in 2023 alone. The investment influx reached a staggering one billion euros over the year, reflecting the program’s continued appeal. However, there are reservations about the effectiveness of these new measures, with the Association of Public Limited Companies and Entrepreneurship (SAE/E) expressing skepticism:
“It is highly doubtful that the government will achieve its goal of reducing house prices and increasing the availability of homes for long term rental.”
Will the Adjustments Benefit the Real Estate Market?
The Greek property market and construction sectors faced severe challenges during the financial crisis starting in 2008. Approximately 20,000 permanent residence permits have been granted to real estate investors to date, with Chinese nationals leading the pack – 6,405 obtained residence permits in 2021 according to migration and foreign ministries.
The heightened investment requirement for the Golden Visa Greece program is a double-edged sword. On one side, it aims to alleviate the housing crisis by redirecting the flow of investments to higher-end properties and potentially lowering the pressure on the housing market. Conversely, concerns linger regarding the attainability of these goals, given the soaring demand and the program’s attractiveness to foreign investors.
For more detailed information on the Golden Visa Greece program and the latest requirements, be sure to visit the official Greek immigration site.
The effectiveness of these measures in soothing the housing pressures while maintaining the attractiveness of Greece as a destination for foreign investment remains to be seen. Nonetheless, these changes mark a significant pivot in the country’s strategy to balance investment incentives with the well-being of its citizens.
This Article In A Nutshell:
Greece’s Golden Visa program shifts with new rules raising property investment to 800,000 euros in sought-after locations. Provoked by soaring rents, the initiative targets accessibility. Despite record interest, doubts remain on curbing housing costs. Greek real estate market faces challenge. Will higher investments truly benefit citizens and investors alike? Time will tell.
— By VisaVerge.com
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