An IMGW News Report
Greece is preparing to remove the real estate investment option from its Golden Visa Programme, with the change expected to take effect on 1 January 2025. This move is part of the Greek government’s efforts to tackle a housing crisis that has worsened in recent years. If enacted, Greece will join Portugal and Spain as the third European country to phase out this pathway in their residency-by-investment schemes, a step aimed at prioritising housing availability over investment-based residency.
The Ministry of National Economy and Finance has introduced a tax bill to amend the programme, shifting its focus from real estate to startup investments. This adjustment is intended to direct foreign capital towards more productive economic ventures, reflecting Greece’s growing interest in sustainable investment channels. The government expects Golden Visa-related investments to exceed €3 billion in 2024, a rise from €2.54 billion in 2023 and €1.3 billion in 2022. With 8,516 applications and 1,802 approvals in 2023, the programme remains popular among foreign investors, but concerns have arisen over its impact on Greece’s housing market.
The new regulations, if approved, would restrict foreign investors from holding more than 33% of a company’s capital or voting rights. Companies benefitting from such investments would also be required to create at least two new jobs within the first year and to maintain this workforce for a minimum of five years. Currently, property purchases are the most popular option for Golden Visa applicants, yet this pathway is increasingly viewed as a factor in Greece’s housing shortage. To mitigate the issue, Prime Minister Kyriakos Mitsotakis recently raised the minimum real estate investment requirement to €800,000 in high-demand areas.
An IMGW News report published on 1st November highlights growing concerns among real estate professionals regarding recent amendments. Dimitris Biniaris, president of the Federation of Real Estate Brokers of Greece, noted that the new rules have led to a surge in permit applications, causing market distortions and unintended consequences. Properties purchased through the programme are often rented out instead of being owner-occupied, frequently at rates 10% to 15% lower than comparable properties in Athens and Thessaloniki. Industry experts caution that these changes may ultimately fail to address Greece’s housing crisis while further disrupting the real estate market.
While real estate professionals have voiced apprehensions, the Golden Visa Programme continues to play a significant role in the Greek economy, generating over €1.2 billion in the first seven months of 2024 alone. As the government considers expanding the scheme to include startup investments, industry experts are calling for a more balanced approach. They point out that Greece, particularly areas like Thessaloniki and Halkidiki, holds untapped investment potential, especially from neighbouring countries.
Greece’s proposed changes reflect broader policy shifts in Europe. In Portugal, President Marcelo Rebelo de Sousa’s ‘More Housing’ bill removed real estate from its Golden Visa Programme, emphasising housing as a basic right rather than a speculative asset. Similarly, Spain’s Prime Minister Pedro Sanchez has championed measures to ensure housing accessibility, marking a trend among EU nations to limit property-based investments in their residency programmes.
