Greece Golden Visa Program: Benefits and Forecasts

Athens Plans to Revise the Conditions of the “Golden Visa” Program. Now, the Minimum Investment Price Will Depend on the Region.

In the past year, 2020, many players in the investment immigration market have revised the conditions of their programs. This was mainly done to mitigate the negative impact of the coronavirus pandemic and to stimulate interest from potential investors. However, in Europe, another factor was at play – the tightening of requirements by various EU regulatory bodies regarding national investment programs.

Greece, with its "Golden Visa" program, has not remained unaffected by this trend. Although the official conditions of the program have not yet changed, sources close to the government report that new measures are being urgently prepared.

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

To begin with, it’s worth noting that the Greek Golden Visa program has remained one of the most popular in Europe over the last 5-6 years. The most popular option for applicants has been the purchase of real estate worth at least €250,000, which has attracted around €2 billion since the program's launch. This money has flowed into the Greek real estate market but has been distributed very unevenly.

The lion's share of this financial flow went to the “prime” regions: the cities of Athens and Thessaloniki, as well as the islands and coastal towns, where nearly all resort and tourist infrastructure is concentrated. This trend is understandable, as properties in such locations are prestigious and generate the most profit. Additionally, the liquidity of real estate is high in these areas.

Meanwhile, the northern and northwestern parts of the country, far from the seas and predominantly agricultural, have been deprived of these investment flows, and the real estate market there is still feeling the effects of the deep recession Greece plunged into in 2007.

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

The government’s upcoming changes aim to address this imbalance. Specifically, the following is expected:

• Lowering the minimum investment threshold for purchasing real estate in struggling regions. It should be noted that Greece's main competitors — Spain and Portugal — have long and successfully implemented similar strategies. Moreover, the current minimum threshold of the Greek program at €250,000 is already the lowest in the Golden Visa market. If this amount is further reduced in struggling regions, the Greek Golden Visa will be unparalleled in cost!

• In addition to the required investment amount, applicants will be required to provide a certificate of the property's value they intend to purchase. This step, according to the authorities, will significantly reduce the likelihood of fraud in real estate transactions, for which the European Commission has frequently criticized Greece.

• Providing investors purchasing real estate in lagging regions with some additional tax benefits.

Interesting! In Light of These Plans, Athens Recalled the Initiative of the Portuguese Government

The Portuguese government has already developed a bill that should prohibit the sale of real estate under the Golden Visa program in popular regions such as Lisbon and its suburbs, Porto, and the Algarve. Portuguese officials argued that investment flows were unevenly distributed, exacerbating the situation in Portugal's agricultural regions. This bill sparked fierce debate within Portugal. Opponents of the changes argued that now, amidst the crisis caused by the pandemic, is not the time to introduce such amendments.

Naturalization: Exams Will Become More Difficult…

It is known that at the beginning of 2020, Greece announced the imminent launch of a new program allowing investors to obtain citizenship directly, bypassing the stages of residence and permanent residence permits. However, the outbreak of the COVID-19 epidemic thwarted these plans. Furthermore, the European Parliament Commission launched a “crusade” against national citizenship-for-investment programs, accusing governments of turning EU citizenship into a tool for fraudsters and financial speculators.

Malta and Cyprus were among those affected, and Greece, to “avoid adding fuel to the fire,” announced a temporary suspension of its new program. Now, as before, Golden Visa holders can only obtain citizenship after 8-10 years, first going through the stage of permanent residence. Changes are also expected here. The exams and interviews, which were previously required during the naturalization process, will become more difficult starting in May next year.

The following is expected to be introduced:

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

In Conclusion

It should be noted that the Greek Golden Visa program, thanks to the possibility of remote processing, has significantly mitigated the impact of the coronavirus pandemic on the local real estate market.

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).

Greek Golden Visa: Positive Changes and Predictions for the Near Future

On December 23 of last year, the Greek government approved several amendments to the Golden Visa issuance law. They have already come into effect and are aimed at making it as easy as possible for foreign investors to obtain a “golden” residence permit in the country, taking into account the realities created by the coronavirus pandemic.

The “Blue Certificate” – A Green Light for the Investor

Potential applicants now have the opportunity to complete nearly all Golden Visa procedures without leaving their place of residence. To do this, the client must first sign a special agreement (POA) with a Greek law firm, essentially a general power of attorney. This agreement can be signed at the Greek consulate or embassy in the applicant’s home country.

Based on the POA, the law firm will be able to take all necessary steps on behalf of the client to obtain the Greek Golden Visa. As a result, the main investor and their family members will receive by mail the so-called “blue certificate” – a temporary residence card.

With this document, the investor and dependent family members can enter Greece within one year from the date of issuance. This visit will be necessary to submit biometric data. After completing this procedure, the client will receive a residence card (Golden Visa) within a maximum of two months.

Why Did Greek Authorities Adopt Such Liberal Changes?

It's no secret that Greece's main competitor is Portugal’s similar program. Both started just a year apart (Portugal in 2012, Greece in 2013). Initially, Portugal issued significantly more Golden Visas, but around 2017, Greece caught up with its competitor and even surpassed it in the following two years. This is clearly shown in the following graph.

In 2020, Greece quickly lost its lead to its “neighbor in the investment market.” This loss of momentum, now expressed in numerical terms, is recorded in the following diagram.

Although some analysts, based on this data, quickly predicted problems for Greece’s Golden Visa, such forecasts are hardly justified. Athens' program still attracts interest from applicants, and the flow of those wishing to obtain a "golden" residence permit here has not diminished. This is also evidenced by the experience of our company, GARANT.in.

The Number of Applications Remains High

First of all, I suggest you pay attention to one important feature. The diagram above, like many other statistical data that generated analysts' pessimism, reflects the number of actual approvals for the Golden Visa. Indeed, last year, there were few in Greece.

To obtain a residence card, one had to visit Greece in person. It should not be forgotten that the vast majority of applicants were traditionally citizens of China, Turkey, the Middle East, and the former Soviet Union. Last year, it was challenging for applicants from these countries to travel to Greece to submit their biometrics. Many applicants who submitted documents before the pandemic began were unable to do so.

As a result, many cases got "stuck" in a queue: applications were submitted in the usual volumes but remained under review, awaiting the applicant's arrival.

Greek Authorities Optimize the Work of State Immigration Services

Here I touch on the second reason that led to the delay of Greece's program in 2020. During the rapid growth in demand, from 2017 to 2019, many foreign companies emerged in the local market with the right to sell real estate and, on this basis, issue Golden Visas. Most of the time, these were Chinese companies attracting their compatriots to Greece. During the pandemic, they stopped operating, creating a temporary vacuum in the market.

Greek immigration officials did not respond to the problem promptly and only addressed it by the end of the year. Now, in early spring, it is already evident that the state apparatus has overcome the situational difficulties and is working effectively. I firmly believe that this will be reflected in the statistics of Golden Visa approvals in the coming months.

The Outcome Is Optimistic

The temporary setback has provided additional impetus for the development of the Greek program. There is no doubt that Athens has learned from its last year's lag. These are not just words: they are confirmed, in particular, by the new measures I mentioned at the beginning of the article. They will allow:

• To minimize and simplify all procedures for obtaining Golden Visas;
• To visit Greece for biometrics in a more liberal manner;
• To move most procedures online, with the possibility of receiving residence cards by mail.

Greek immigration authorities have ceased their dependency on Chinese intermediary companies, and now the state apparatus works effectively despite the lockdown. Our clients receive Greek residence cards, allowing them to move freely throughout European countries without waiting for the borders with Russia to open.

Greece’s “Golden Visa”: Program Success in 2021

The Greek Golden Visa in 2021 demonstrates the program's success and has become a favorable alternative for our clients. Its accessibility, quick processing, and excellent tax benefits make it attractive for global investors seeking residency options.

The Greek government's decision to allow nearly all procedures to be conducted online, coupled with liberal changes, has significantly streamlined the process. This flexibility, coupled with the allure of the beautiful Greek landscape and lifestyle, will undoubtedly keep the program popular in the foreseeable future.