An IMGW News Report
Greece’s Anti-Money Laundering Authority is investigating significant irregularities in the country’s Golden Visa Programme, which allows wealthy foreign investors, predominantly from China, to acquire residency through property purchases.
This inquiry was prompted by reports from Chinese authorities indicating that their nationals are being defrauded in a scheme where properties are sold multiple times to different buyers, with substantial down payments taken without any delivery of the properties.
The investigation has uncovered that intermediaries are involved in fraudulent activities, purchasing properties for approximately €100,000 and reselling them for around €250,000, thereby inflating prices to help clients qualify for the visas. The Golden Visa grants five-year residency permits to investors and their families, along with the potential for valuable EU citizenship. However, this programme has come under scrutiny for its vulnerability to criminal activity and money laundering, especially after Greece received alarming information about the extent of these frauds from Chinese officials.
Two properties said to have been linked to a pyramid scheme that exploited Chinese investors in Attica were seized by authorities, highlighting the network’s deep-rooted connections in Greece. Disturbingly, some reports indicate that the fraudulent activities led to suicides among the victims, prompting urgent action from Greek authorities.
In response to these issues and the ongoing housing crisis, the government has increased the minimum investment threshold for the Golden Visa from €500,000 to €800,000 in high-demand areas like Mykonos, Thessaloniki, and Santorini, effective this month. Prime Minister Kyriakos Mitsotakis stated that further increases in the investment threshold are being discussed to address housing market challenges.
As Greece continues to market its Golden Visa Programme despite warnings from the European Union, this investigation emphasises the need for regulatory reforms to protect foreign investors and the integrity of the real estate market while ensuring that the programme benefits the local economy and housing supply.
