Introduction to Greece’s Golden Visa Program
The Greece Golden Visa Program, launched in 2013, is designed to encourage foreign investment and stimulate the Greek economy. This initiative allows non-European Union nationals to gain residency in Greece through significant investments, primarily in real estate. Since its inception, the program has gained immense popularity, positioning Greece as a favorable destination for investors seeking both residence and investment opportunities within the EU.
The primary objective of the Greece Golden Visa Program is to attract foreign capital into the country, which has faced economic challenges over the years. By facilitating the purchase of property, particularly in attractive locations, the government aims to bolster the real estate market while offering a pathway for individuals to live, work, and study in Greece and travel freely across the Schengen Zone. Investors are drawn not only to the potential returns of real estate investments but also to the quality of life and vibrant culture that Greece has to offer.
The previous legal framework governing the Greece Golden Visa Program established specific criteria regarding the types of investments eligible for residency permits. Initially, investors required a minimum investment of €250,000 in real estate. This lower entry point set the program apart from similar initiatives in other European countries, contributing to its appeal. Additionally, it allowed for family members to benefit from the residency permit, thus expanding its attractiveness to potential applicants.
Nevertheless, as with any investment opportunity, it is essential for foreign investors to remain informed about the evolving legal landscape that governs the Greece Golden Visa Program. With recent legislative changes, understanding the full scope of the program, including compliance requirements and potential obstacles, is critical for a successful investment journey in Greece.
Overview of New Law Golden Visa 5100/2024 and Its Impact
The recent introduction of Law 5100/2024 marks a significant shift in Greece’s Golden Visa program, particularly impacting Article 64, which directly pertains to foreign investors. The amendments made by this law aim to streamline and enhance the existing framework set forth by earlier regulations including Article 100 and paragraph 49 of Article 176 of Law 5038/2023. The adjustments introduced are intended to facilitate the application process and clarify existing ambiguities within the prior laws.
One of the notable changes in Law 5100/2024 is the re-evaluation of the investment thresholds and the types of properties that qualify for the Golden Visa. This reflects Greece’s commitment to remain competitive within the global market for real estate investment options. Investors seeking residency through property acquisition can expect more precise guidelines, which could potentially lead to increased interest in the program. By clearly delineating eligible property categories, the amendments aim to eliminate confusion and promote a wider range of investment opportunities.
Additionally, the law introduces legal nuances that may impact the overall investor experience. For instance, the flexibility around the property types may attract not only traditional buyers of residential properties but also those looking at commercial or mixed-use real estate. Such an expansion in allowed property types can help diversify the pool of potential applicants, thereby contributing to Greece’s economic recovery and growth.
The implications of Law 5100/2024 for the Greece Golden Visa program are significant. Investors will need to familiarize themselves with the updates to ensure compliance and optimize their investment strategies. The law’s focus on clarifying existing regulations ultimately fosters a more transparent and attractive environment for foreign investment in Greece, solidifying the country’s position as a favorable destination for those seeking residency through their investments.
Key Changes in Real Estate Purchase Limits in New Low Golden Visa
The recent amendments to Greece’s Golden Visa program mark a significant shift in the landscape of real estate investments. Under the new law effective September 2024, the limits concerning the minimum purchase price for real estate properties have been altered to better align with market conditions and to reflect the government’s ongoing efforts to manage the real estate sector effectively. The new stipulations indicate a graduated scale for different geographic areas, with major urban centers and tourist destinations now requiring higher investment thresholds compared to less populated regions.
For instance, investors interested in acquiring properties in cities such as Athens and Thessaloniki might find that the minimum purchase requirement has increased to ensure that investments contribute meaningfully to the economy while also addressing concerns about housing availability. Conversely, areas with less demand might still offer lower thresholds, providing more accessible entry points for investors. This creates a unique dynamic where local and foreign investors will need to strategically assess their investment choices based on the new parameters outlined by the law.
Additionally, this law presents an opportunity for investors to diversify their portfolios. By understanding the new criteria, parties looking to capitalize on the Greece golden visa may explore opportunities in lesser-known locales which could offer both attractive property values and lower initial outlay. Furthermore, it encourages investors to focus on properties with growth potential, especially in up-and-coming areas that may yield favorable returns in the long run.
In conclusion, the recent changes to the real estate purchase limits under Greece’s Golden Visa program necessitate a recalibration of investment strategies for both domestic and foreign investors alike. Understanding the nuances of these adjustments is vital for those aiming to navigate the evolving landscape while maximizing their investment outcomes.
Future Implications for Investors and Legal Considerations
The recent changes to Greece’s Golden Visa Program, set to take effect in September 2024, bring about a range of consequences for both current and prospective investors in the Greek real estate market. As individuals consider applying for or maintaining their residence permits, they must be cognizant of the potential challenges introduced by the new regulations. Enhanced scrutiny during the application process may require investors to provide more comprehensive documentation demonstrating the legitimacy and source of their investments. This shift underscores the importance of meticulous preparation and legal compliance in securing a golden visa.
Moreover, investors should be aware of the evolving landscape surrounding property value thresholds and regional restrictions, as these may impact their investment strategies. With an emphasis on areas experiencing significant urban development, the choice of location will be critical in ensuring compliance and maximizing the potential for asset appreciation. Experts foresee that investors may need to adopt a more diversified approach, exploring opportunities beyond traditional hotspots in pursuit of favorable returns on investment.
Legal considerations cannot be overlooked. Prospective applicants are encouraged to consult with legal professionals who specialize in immigration and property law. Navigating the complexities of the new program may entail understanding how these regulations intersect with existing property rights and obligations. The potential for changes in tax liabilities or additional fees associated with property purchases should also be factored into investment decisions.
Furthermore, the long-term implications of broader economic trends and political developments in Greece will inevitably play a role in shaping the golden visa market. Investors must remain agile and informed, recognizing that proactive engagement with both legal counsel and market analysis will be essential in adapting to this new regulatory framework. Keeping abreast of changes will not only enhance their investment prospects but also ensure compliance with Greece’s evolving immigration policies.
The Main Text of the New Low Golden Visa 2024
NEW LAW FOR THE GOLDEN VISA INVESTORS – OWNERS OF REAL ESTATE
01.09.2024
Download PDF of NEW LAW FOR THE GOLDEN VISA
With Article 64 of Law 5100/2024 (Residence permit linked to investments in real estate – Replacement of article 100 and par. 49 of article 176 of law 5038/2023}, the provisions concerning the limits for purchasing real estate and obtaining a residence permit are amended Golden Visa.
In particular, as follows from Article 64, “2.a) In particular, for the Region of Attica, the Regional Unit of Thessaloniki of the Region of Central Macedonia, the Regional Units of Mykonos and Thira of the Region of the South Aegean and for the islands with population, according to last census, over three thousand one hundred (3,100) inhabitants, the minimum acquisition value of the real estate at the time of its acquisition, as well as the total contractual rent for the cases of entering into a long-term rental agreement or timeshare rental of tourist accommodation, are now Set at the amount of eight hundred thousand (800,000) euros. In addition, it is stipulated that in the case of an investment through the purchase of real estate in the aforementioned areas, it is carried out in a single property, while if it is a structured real estate or a property for which a building permit has been issued, a minimum surface area of one hundred and twenty (120) square meters is required meters”.
b) For the rest of the country’s regions, the minimum acquisition value of the real estate at the time of its acquisition, as well as the total contractual rent for the cases of entering into a long-term lease contract or timeshare rental of tourist accommodation, are determined at the amount of four hundred thousand (400,000) euro.
Likewise, it is stipulated here that in the case of an investment through the purchase of real estate, it is carried out in a single property, while if it is a structured real estate or a property for which a building permit has been issued, a minimum area of main premises of one hundred and twenty (120) square meters is required”.
So, the new data is as follows:
- Investment amount from €800,000 and above in Athens (ALL ATTICA REGION), Thessaloniki (ALL THESSALONIKI REGION), Mykonos, Santorini and islands with a population of more than 3,100 inhabitants
- For the rest of Greece, an investment amount of €400,000 and above
- Investment in one (1) property only
- Minimum surface area of 120 sq.m.
Two (2) express exceptions are defined in paragraphs c and d:
c) Especially in cases of investment through purchase in real estate and since its main premises are changed to a residence, the minimum value of this acquisition at the time of its acquisition is set at two hundred and fifty thousand (250,000) euros. The conditions of the first paragraph also apply in cases of investment through purchase in real estate consisting of an industrial building or part of an industrial building or within which an industrial building is located, exclusively if in the last five (5) years at least, it has not been established in it and in industry operation.
The investment of the previous paragraphs is carried out in a single property and the change of use must be completed before submitting the request for the granting of the investor’s permanent residence permit.
d) Especially in cases of investment through the purchase of real estate consisting of a listed building or part of a listed building to be restored or reconstructed or within which a listed building is located, the minimum acquisition value at the time of its acquisition is set at two hundred and fifty thousand (250,000) euros. The investment of the first paragraph is carried out in a single property…”.
Therefore, based on paragraphs c and d, we see that the minimum investment amount remains at €250,000 in the following cases:
- Property where change of use to residence is permitted
- Property that is an industrial building or part of an industrial building, as long as it has not operated as such in the last five (5) years
- Listed building or part of listed building to be restored or reconstructed and once the restoration or reconstruction is completed
- This exception concerns the entire Greek territory
In addition, an important change brought about by Law 5100/2024, in par. 74, is the following:
“Properties that are fully owned and acquired by citizens of third countries for the initial granting or renewal of an investor’s residence permit are prohibited from being rented out short-term in the context of the sharing economy, as well as from being sublet.
In addition, real estate acquired by full ownership and ownership by citizens of third countries for the initial grant or renewal of an investor’s permanent residence permit under the conditions of paragraph c) of paragraph 2, may not be used as a company headquarters or branch…”.
