In Greece, the government is tightening the rules for granting “golden visas”. Launched in 2014, this program allows wealthy foreigners to obtain a permanent residence permit, provided they invest in real estate. But Greece is going through a serious housing crisis and from March 31, 2024, obtaining this visa will therefore cost more.
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The amount of investment required to obtain a “golden visa” thus increases from 250,000 euros to 800,000 euros in the most popular Greek regions. This is the case for Attica around Athens, for Thessaloniki or Mykonos, and in all other islands with more than 3,100 inhabitants. In other regions, the threshold is now 400,000 euros. In other measures announced by the government, housing acquired thanks to this residence permit must not be less than 120 m2 and can no longer be rented for short periods. The ministry has also put in place measures to encourage the conversion of buildings into housing and the protection of historic buildings.
The “golden visa” program, launched during the economic crisis in 2014, aimed to revive the sluggish construction sector and curb the fall in property prices. But ten years later, the country faces a serious housing crisis. According to the bank of Greece, rents have soared by 20% since 2018 while at the same time, the number of “golden visas” has continued to increase. Nearly 6,000 have been granted in 2023.
Keep investors
By tightening the allocation rules, Kostis Hatzidakis, the Minister of National Economy and Finance, hopes to both respond to the housing crisis while preserving foreign investment. “ We are adopting balanced measures regarding the program of the “golden visa”which take into account the housing needs of households, without forgetting the need to attract investment in the country », declared the Minister of Finance.
But the government is the target of criticism from entrepreneurs who fear a flight of new investors. “ The impact on investments […] will be dramatic », thus estimated the Greek association of joint stock companies and entrepreneurship in a letter addressed to the Ministers of Economy and Development.
Other southern European countries hit by the crisis such as Cyprus, Spain or Portugal have used similar programs to attract investment.
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