Greece: Golden Visa Cost Soars, New Rules Await Clarification

Greece, one of the few European countries still offering “golden visa” programs, is tightening its requirements by raising the investment threshold.

This move marks a significant change in the program, potentially altering the investment immigration scene in the Mediterranean nation. However, amidst the announcements and speculation, the exact rules and their implications remain unclear

Rising Investment Thresholds

In a bid to address concerns surrounding inflated property prices and strained resources, Greece’s Prime Minister, Kyriakos Mitsotakis, has announced plans to substantially raise the investment threshold for the golden visa program.

Initial investments for the Greece Golden Visa which once stood at €250,000, surged to €500,000 in select regions in recent years. Now, the threshold could soar to as high as €800,000, signaling a significant barrier for prospective investors.

Rationale Behind Reforms

The proposed amendments come amidst mounting pressure on housing availability and affordability, particularly in bustling urban hubs like Athens and idyllic island paradises such as Mykonos and Santorini.

Skyrocketing rents, coupled with concerns over the strain on local resources, have prompted policymakers to reevaluate the program’s impact on the socioeconomic fabric of the country.

Also Read: Why Are Many Countries Ending Their Golden Visa Programs? Reasons and Impact

Unveiling New Goden Visa Rules

Under the proposed regulations, areas grappling with housing shortages and escalating rental prices will witness the highest investment thresholds. Conversely, regions where housing remains relatively affordable may retain lower entry barriers.

Additionally, there’s a push to diversify investment options beyond real estate, potentially opening avenues for government bonds and shares to qualify for the golden visa.

Benefits vs. Burdens

While the program generates significant revenue for Greece (€4.3 billion, 2021-2023), concerns persist. Short-term rentals strain resources, and some advocate abolishing the real estate option entirely.

Others, like Themistoklis Bakas of E-Real Estates Network, suggest targeted reductions and a focus on new builds to minimize impact on existing housing stock.

The Unwritten Chapter

While the cost increase is confirmed, the exact implementation and potential rule changes remain unclear. This uncertainty leaves investors and stakeholders in a wait-and-see mode.

Looking Ahead

Greece’s golden visa program walks a tightrope between attracting investment and ensuring sustainable development. As it navigates this path, clarity on the new rules and a focus on balancing economic benefits with local community well-being are crucial.