The government’s final regulation for property purchases and sales for the purpose of obtaining Golden Visa in our country is brought to light by “business stories”.
With a legislative provision that is being prepared and is expected to be submitted in the near future by the Minister of National Economy and Finance Kostis Hatzidakis, the Golden Visa regime for interested investors is significantly tightened.
A major reversal occurs not only in terms of the value limits of the properties to be offered, but also in special provisions for the characteristics that the properties offered (e.g. surface area) under the Golden Visa program, i.e. the residence permit and free movement in Schengen countries without restrictions.
Now, in order to obtain the “golden passport”, investors will have to buy with 800,000 or 400,000 euros (depending on the region) a property that must also have a surface area of 120 square meters or larger.
But with these restrictions, thousands of properties are “released” that can be returned to the market or to traditional rentals.
The new data does not only affect those who are interested or are one step away from buying and selling real estate, but the entire real estate market in our country.
But especially the residents of areas, municipalities or islands, where real estate prices had recently experienced an explosive rise, due to the massive “invasion” of investors from abroad, in order to obtain Golden Visa from Greece.
Under the new regime, in order to obtain a Golden Visa, one will have to invest in a property with a surface area of at least 120 sq.m. What does this mean?
That it excludes from the scheme studios and small houses that were and continue to be bought in droves by Chinese, Turks and investors from third countries. Why was this restriction introduced?
Obviously to prevent many from buying houses with a view to disposing of them on short-term leases, a use that will not be prohibited – in the end – for Golden Visa investors. The question, of course, is who will pitch Airbnb properties of 120 sq.m or more.
With 800,000 euros
The value of the investment now varies depending on the region in particular:
Investment 800,000 euros to buy property in the Attica Region, the Thessaloniki Region, Mykonos and Santorini and islands with a population of more than 3,000 inhabitants:
With the increase of the threshold in regions of high investment interest, things are… grim! In particular, the Golden Visa will require the purchase of a property worth 800,000 euros, compared to 500,000 euros and 250,000 euros currently in force depending on the municipality.
Currently, the 500,000 euro limit applies to areas of the Northern Sector of Attica, namely Penteli, Kifissia, Metamorfosi, Halandri, Agia Paraskevi, Vrilissia, Nea Ionia, Heraklion, Cholargos, Papagos, Pefki, Lycovrisi and Maroussi.
In the Southern Sector, the Municipalities of Agios Dimitrios, Alimos, Glyfada, Elliniko – Argyroupolis, Kallithea, Moschatos – Tavros, Nea Smyrni and Paleo Faliro and in the Central Sector, the Municipalities of Athens, Philadelphia – Chalkidona, Galatsiou, Zografou, Kaesariani, Byron, Ilioupolis, Daphne – Ymittos.
In the other municipalities in the Attica Region, the lower limit of 250,000 euros applies, which is a “refuge” for lower investment. That is why … over-tripled, overturning the data in municipalities such as Egaleo, Peristeri, Ilion, but also Piraeus.
Also, the entire region of Thessaloniki, but also Thera, Mykonos and the following islands, are also in the 800,000 euro category: Ithaca, Kythira, Spetses, Poros, Skopelos, Milos, Skiathos, Karpathos, Leros, Ikaria, Tinos, Andros, Paros, Aegina, Thassos, Kalymnos, Lemnos, Naxos, Syros, Lefkada, Kos, Samos, Kefalonia, Salamina, Zakynthos, Chios, Lesvos, Corfu, Rhodes and Evia.
With 400,000 euros
Invest 400,000 euros to buy property in the rest of Greece: As for the rest of the country’s municipalities, the limit will be increased from 250,000 euros currently to 400,000 euros.
It is worth noting here that the last increase made in the Golden Visa limits depending on the region (500,000 euros and 250,000 euros) has turned part of the investors to the search for properties in various regions throughout the geographical area of the country.
With the new data, things are getting more difficult even at the lower investment scale, but the chances of finding a property to buy or rent are increasing.
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Special properties
Investment of 250,000 euros for the purchase of “special” properties throughout Greece: The current low investment threshold of 250,000 euros remains for only two cases, which effectively “premiumize” specific properties, regardless of the region they are located in:
Conservation properties that will be restored. Industrial properties that will be converted to be habitable.
The reconstructions must be done by the investor and certified by the State for the property to qualify for the low purchase threshold.
According to the latest figures, the funds that flowed into the country from abroad through the Golden Visa approached 4.4 billion euros, with 14,875 applications submitted and 7,387 approved.
The first in the ranking for the purchase of real estate through the Golden Visa are the Chinese, while a significant increase is recorded in the three years 2021-2023 from Middle Eastern countries and the United Kingdom.
The top ten at the end of 2023 is made up of the following: China, Turkey, Lebanon, Lebanon, Iran, UK, Egypt, USA, Israel, Russia and Ukraine.
It is surprising, however, that to date some 20,000 permanent investor residence permits have been granted for a similar number of properties, of which only 6% actually make use of the property.