“Golden Visa” of Greece for Investment: Advantages and Obtaining

Golden Visas (GVs) legally stand out from other visas that grant residency. They are awarded exclusively to foreigners making substantial financial investments, with no restrictions on the number of entries or exits from the country. Not many European countries have their programs regulating the issuance of Golden Visas, but Greece does. Greece's program is particularly popular among people from the former Soviet Union. What makes the Greek GV so special? Experts from the renowned European center "GARANT" analyze the situation.

Factors Contributing to the Popularity and Features of Greece’s Golden Visa

Currently, most investors receiving GVs in Greece are Chinese citizens. However, Russians are close behind, and Ukrainians are also eager to invest here to obtain residency. There are both financial and other motivating factors. Greece is geographically close to Slavic countries and shares a common Orthodox faith, similar cultures, and many historical ties. Additionally, the Greek climate, beautiful islands, extensive coastline, and developed recreational areas are highly appealing.

Returning to financial considerations (which are key), let's explore the investment requirements an applicant must fulfill to obtain a Greek GV.

• Purchase real estate valued at €250,000 or more.
• Invest €400,000 to €800,000 in various economic projects or Greek banks. This option is relatively new, introduced less than a year ago, so its effectiveness is still uncertain.

Acquiring a Golden Visa through Property Purchase

This is the most popular route for applicants in Greece. It is important to note that this option, like the entire Greek GV program, is available only to citizens of non-EU countries. The minimum investment amount mentioned above is the lowest among European Golden Visa programs. For example, Portugal requires €350,000, Malta €270,000, and Spain €500,000. Moreover, in these countries, property prices vary depending on the region and whether the property is new or used. In Greece, such distinctions do not exist.

The purchased property can be rented out for profit or sold immediately and replaced with another. The only requirement is that the investor must remain the owner of a property of equivalent value during the entire validity of the GV (five years).

If desired and if the law is followed, the residency permit under the Golden Visa can be renewed after five years, again on the condition that the investment is maintained.

Important! The property purchased can yield significant rental income for the investor. Additionally, property prices in Greece are continually rising, making resale potentially profitable.

Most investors prefer to buy property on the secondary market in Greece because taxes are significantly lower than on new properties. Apartments in Athens and popular tourist areas along the coast are in high demand.

Other Economic Investment Options

These options were added to Greece's Golden Visa Program in mid-2019. Here are some of them:

• Invest €400,000 in any operating Greek company.
• Purchase government bonds worth €400,000 from a local bank.
• Open a deposit account with a Greek bank for at least €400,000 for a minimum of one year.
• Invest €800,000 in various shares or corporate bonds.

The introduction of these options shows that the Greek government is fighting for investors not just by lowering prices but also by diversifying its program.

Benefits of Holding a Greek Golden Visa

The benefits largely overlap with those available to Golden Visa holders in other EU countries. The most important include:

• The ability to secure a haven for yourself, your capital, and your family in case of unforeseen crises in your home country.
• The right to travel freely within the Schengen Area and many other countries worldwide.
• Access to advanced healthcare and social benefits in both Greece and other EU countries. The opportunity to pursue education in Europe.
• The ability to open bank accounts and conduct business in Europe.
• The potential to apply for a Greek passport after at least 10 years, provided additional residency requirements are met.

When applying for a Greek GV, an investor can include minor children or dependents up to the age of 23. Elderly parents can also be included, but the investment amount must be doubled.

The processing time stated by Greek authorities is 4-6 months, but in reality, it often takes longer.

Statistics and Current Information

Greece's Golden Visa Program is now recognized as one of the most successful and rapidly growing in Europe. Its accessibility and relative simplicity have attracted many potential investors, even from neighboring countries like Portugal, Cyprus, and Spain.

Interesting Fact: This surge in demand has led to longer processing times by Greek authorities. Analysts note that the relevant services in the country were simply unprepared for such an influx of investors, a problem that persists.

In 2013, when the program was first launched, only 20 Golden Visas were issued. Now, the total number is approaching five thousand, growing exponentially. In 2018, 359 Russians obtained a Greek GV.

Not only has the number of investment applications increased, but this process has also driven up real estate prices due to increased demand. In some popular areas, property prices in the capital have been rising by 30% annually. Therefore, those wishing to apply for a Greek GV should act quickly!

Approaches to Buying Greek Property within the Golden Visa Program Will Change

Athens plans to revise the conditions of the "Golden Visa" program. The minimum investment amount will now depend on the region.

In 2020, many countries revised the conditions of their investment immigration programs, mainly to mitigate the negative impact of the COVID-19 pandemic and stimulate interest from potential investors. However, in Europe, there was also another factor: the tightening of requirements by various EU regulatory bodies concerning national investment programs.

Greece, with its Golden Visa program, did not remain unaffected by this trend. Although the program's official conditions have not changed, sources close to the government report that new measures are being prepared urgently.

How Financial Investment Flows in the Greek Real Estate Market Were Distributed

The Greek Golden Visa program has been one of the most popular in Europe for the last 5-6 years. The most sought-after option—purchasing real estate worth €250,000 or more—has attracted about €2 billion since the program's launch. These funds have flowed into the Greek real estate market but have been distributed unevenly.

The lion's share of this financial flow went to "sweet" regions: Athens, Thessaloniki, and island and coastal towns, where most of the resort and tourist infrastructure is concentrated. This trend is understandable, as property in these areas is prestigious and yields the highest returns. Property liquidity is also high here.

At the same time, the northern and northwestern regions of the country, far from the seas and predominantly agricultural, have been deprived of these investment flows, and the real estate market here is still experiencing the consequences of the deep recession that Greece entered in 2007.

Where in Greece Should You Buy Property?—This Question Will Now Become Especially Important

The upcoming government changes are expected to address this imbalance. In particular, the following measures are anticipated:

• Lowering the minimum investment threshold for purchasing real estate in troubled regions. Notably, Spain and Portugal, Greece's main competitors, have long and successfully practiced a similar tactic. Moreover, the current minimum threshold for the Greek program of €250,000 is already the lowest in the Golden Visa market. If this amount is further reduced in troubled regions, the Greek Golden Visa will become unbeatable in terms of cost!
• In addition to the investment amount, applicants will be required to provide a certificate of property value. Authorities believe this step will significantly reduce the risk of fraud in real estate transactions, for which Greece has been repeatedly criticized by the European Commission.
• Offering investors who purchase property in underdeveloped regions some additional tax incentives.

Interesting Fact: In light of these plans, it is worth recalling Portugal's government initiative. Portugal has already developed a bill that would prohibit the sale of real estate for Golden Visa purposes in popular regions like Lisbon and its suburbs, Porto, and the Algarve. Portuguese officials argued that investment flows were unevenly distributed, exacerbating the situation in agricultural regions. This bill has sparked fierce debate within Portugal, with opponents arguing that now, during the COVID-19 crisis, is not the time to introduce such amendments.

Naturalization. Exams Will Become More Difficult…

At the beginning of 2020, Greece announced plans to launch a new program that would allow investors to directly purchase citizenship, bypassing the residency and permanent residency stages. However, the COVID-19 pandemic derailed these plans. Moreover, the European Parliament Commission has launched a "crusade" against national citizenship-for-investment programs, accusing the governments of interested countries of granting EU citizenship to various fraudsters and financial speculators.

Malta and Cyprus have faced criticism, and Greece, to avoid further scrutiny, announced a temporary suspension of its new program. Now, as before, a Golden Visa holder can only obtain citizenship after 8-10 years, first going through the permanent residency stage. Here, too, changes are expected. The exams and interviews, which were already part of the naturalization process, will become more difficult starting in May next year. The following measures are planned:

• A written language exam in the form of a test containing 100 questions;
• A comprehensive test of 300 questions covering knowledge of Greek history, culture, geography, and politics.

In conclusion, it should be noted that the Greek Golden Visa program has mitigated the impact of the COVID-19 pandemic on the local real estate market by allowing remote applications.

Experts note that there have been noticeable changes in the structure of property buyers this year. Previously, among foreign investors, the majority were buyers interested in properties costing around 50-60 thousand euros (to later rent out these properties), but now the majority are those who seek to obtain a Golden Visa in Greece through real estate. They see it as a way to improve their quality of life (freedom of movement, a place for seclusion, a 'backup airfield' in case of emergencies).

After Two Years of Waiting for Golden Visas in Greece, 35 Investors Are Preparing a Class Action Lawsuit

Thirty-five Chinese investors, who invested in Greek real estate and applied for Golden Visas two years ago, are preparing a lawsuit against the Greek state, demanding compensation and the immediate issuance of residence permits.

According to legal provisions concerning Greece's “Investor Visa,” the processing period should take no more than two months. The group of Chinese investors claims that the Decentralized Administration of Attica – the region where they submitted their applications – has been holding their cases for two years. The investors complain about bureaucrats who repeatedly return with demands for additional documentation, thereby resetting the two-month timer – as reported by Ekathimerini.

In December, the group of 35 applicants sent an extrajudicial letter to the Decentralized Administration, demanding the immediate issuance of residence permits and the identification of the officials responsible for the prolonged procedure. In the letter, they also threatened to file a lawsuit if the situation was not resolved. The situation was not resolved, and now the group is ready to take legal action against the Decentralized Administration of Attica, seeking compensation.

On February 6th, Minister of Migration Policy Notis Mitarakis, in a circular, urged the competent authorities to expedite the processing of applications, pointing out that delays could undermine trust in the country. To prevent the bureaucrats' tactic of requesting additional documentation as a way of extending the process, the ministry also specified the exact documents required for processing applications.

Experiencing an unprecedented increase in the number of applications for the program over the past two years, Greece's Decentralized Administrations have found themselves unable to handle this surge in interest. In October, it was reported that immigration services in Attica (the Greater Athens region) were not scheduling appointments for applicants due to a high workload. “Accepting a greater number of investors is fundamentally impossible, neither in a year nor in two,” said Alexandros Risvas, head of Risvas & Associates at the time.

In an attempt to improve the situation in 2019, Greek authorities allowed investors to submit their applications to any decentralized office, not just the region where the applicant is investing. Agents quickly figured out how to take advantage of the policy update by submitting their clients' applications to more provincial offices, such as in Chania and other cities in Crete. However, even decentralization was not enough for the offices to process all applications in time; just recently, in January, the nearest available dates at the immigration office in Piraeus were in March 2021, 14 months later.

Several immigration lawyers have expressed their dissatisfaction with the fact that the staff at the Decentralized Administrations, with whom they interact daily, often exhibit bureaucratic, inefficient behavior, causing Greece to lose billions of dollars in investments.