Greece is likely to terminate the real estate investment option from its Golden Visa Program starting January 1, 2025, in an effort to address the country’s escalating housing crisis.
This move would make Greece the third European nation, following Portugal and Spain, to abolish this pathway to residency due to similar housing concerns.
A new tax bill introduced by the Ministry of National Economy and Finance proposes changes to the Golden Visa Program, shifting the focus from real estate to investments in startups. The Greek government aims to attract investors through more productive ventures, moving away from the property market.
This year, foreign investments through the Golden Visa Program are projected to reach a record high, exceeding €3 billion. This follows a significant increase in 2023, with investments totaling €2.54 billion, almost double the €1.3 billion recorded in 2022. Despite impending changes, interest in the program remains strong, with 8,516 applications submitted in 2023, of which 1,802 were approved.
Proposed New Requirements:
If the proposed bill is approved, several new requirements for Greece’s Golden Visa Program would come into effect:
- Foreign investors can acquire shares or stakes in a business, but not exceeding 33% of the company’s capital or voting rights.
- The invested company must create at least two new jobs within the first year following the investment.
- The company must maintain this increased workforce for at least five years after the investment.
Real Estate Option: Popular, but Problematic:
While real estate investment has been the most popular route to obtaining a Greek Golden Visa, it has also been a significant contributor to the housing crisis. In an attempt to mitigate this, Greece previously increased the minimum investment amount for real estate in some areas to €800,000. However, according to Dimitris Biniaris, president of the Federation of Real Estate Brokers of Greece, this has led to market distortions and a surge in permit applications, creating unintended consequences.
Following Portugal and Spain’s Lead:
Last year, Portugal eliminated the real estate option from its Golden Visa Program as part of its “More Housing” bill. Similarly, Spain ended its real estate-based Golden Visa program in April 2024. Spanish Prime Minister Pedro Sanchez emphasized the need to ensure housing is a right, not a speculative commodity. Greece’s proposed changes appear to align with this growing trend of prioritizing housing affordability over investment-driven residency programs.
