Greece’s Golden Visa program, introduced in 2013, has been instrumental in attracting foreign investment by offering residency permits in exchange for property investments.
This initiative allows non-EU citizens to obtain a five-year residency in Greece and visa-free access to the Schengen Zone, making it a popular choice for those aiming to establish a presence in Europe.
Low Initial Investment Attracted Global Investors
Initially, Greece set the minimum investment requirement at just €250,000, one of the lowest in Europe. This accessible entry point attracted investors, fueling growth in the Greek real estate market, particularly in key areas like Athens and the islands.
However, the increased demand also led to a significant rise in property prices, prompting the government to reassess the investment threshold.
Why Greece is Raising the Investment Requirement
Starting in September 2024, Greece will increase the minimum investment requirement for its Golden Visa program to €800,000 in high-demand locations such as Athens, Thessaloniki, Mykonos, and Santorini.
This change aims to address the rapid property price increases that have made housing less affordable for residents. By raising the threshold, the Greek government hopes to balance real estate growth and promote investment in less saturated areas, spreading economic benefits more evenly across the country.
Must Read: Why Are Many Countries Ending Their Golden Visa Programs? Reasons and Impact
Key Changes and Transitional Provisions
Greece’s Golden Visa program will see a significant increase in the minimum investment requirement starting September 2024. This move aims to manage the real estate market’s growth and direct investments towards less saturated regions, promoting balanced development across the country.
- New Investment Requirement: €800,000 in high-demand areas like Athens, Thessaloniki, Mykonos, and Santorini.
- Tiered Approach: €400,000 investment threshold in less sought-after areas to encourage broader development.
Transition Period for Existing Investors
A transitional period exists for current and potential investors. Those who make a 10% down payment by August 31, 2024, and complete the purchase by December 31, 2024, can still benefit from the original €250,000 threshold.
Impact on Greece’s Real Estate Market
Greece’s increased Golden Visa threshold may shift investor interest to other European countries with lower entry points, like Portugal or Spain.
A short-term surge in property sales is expected as investors rush to meet the current lower threshold, while the €400,000 tier may boost investments in less popular regions.
Also Read: Greece Introduces New Taxes and Fees for Tourists and Cruise Passengers in 2024
Opportunities for Foreign Investors
The new changes bring both challenges and opportunities for foreign investors. Despite the increased investment threshold, Greece’s Golden Visa remains appealing due to residency benefits and visa-free Schengen travel.
Greece’s stable economy, rich culture, and strategic location add value, offering a unique chance to enter the European market at the current lower rate by making a 10% down payment by August 31, 2024, and completing the purchase by December 31, 2024.
Conclusion
The upcoming changes to Greece’s Golden Visa program mark a significant shift in the landscape of the country’s real estate market. While the higher investment threshold may reduce the program’s initial allure, it aims to foster more sustainable and equitable growth across Greece.
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