New Rules of Golden Visa Program in Greece: Insights and Transitional Provisions

In a significant update to its Golden Visa program, Greece has introduced pivotal changes that are set to redefine the landscape of real estate investment within its borders. This legislative evolution reflects a delicate balance between encouraging foreign investment and addressing the pressing housing needs of its citizens. As the dust settles on the new amendments, it becomes imperative for investors and stakeholders to grasp the nuances of these changes and the opportunities they herald.

Analyzing the Changes

The revised Article 100 introduces a tiered investment framework, elevating the minimum investment thresholds for acquiring property in Greece under the Golden Visa program. Specifically, investments in high-demand regions such as Attica, Thessaloniki, Mykonos, Santorini, and islands with a population exceeding 3,100, will now require a minimum of €800,000. Conversely, for the rest of Greece, the bar is set at €400,000, broadening the spectrum of investment opportunities.

A notable shift in the program is the emphasis on cultural heritage and urban renewal. Investments aimed at converting non-residential buildings into homes and restoring buildings of historical significance are now being incentivized. This strategic pivot not only champions cultural preservation but also aligns with broader housing policy goals by curbing short-term rental arrangements and repurposing of properties as business premises.

Transitional Provisions: A Closer Look

Understanding the transitional provisions is crucial for investors currently navigating the investment process or contemplating entry into the Greek real estate market. These provisions offer a clear pathway for investments initiated under the program’s previous conditions to be completed or adjusted according to the new legal framework.

Investors who have fully paid the price, made a 10% down payment, or signed a preliminary agreement or private purchase contract before September 30, 2024, can complete their investment under the existing conditions until December 31, 2024. This grace period is a thoughtful accommodation for investors midway through their investment journey, allowing them to adapt to the new regulations without undue financial strain or procedural complexity.

For those unable to finalize the purchase of their intended property within this timeframe, the law offers an alternative: the possibility to redirect their investment to another property under the old conditions, provided this is done no later than April 30, 2025. This provision ensures that investors are not unduly penalized for circumstances beyond their control, offering flexibility and reassurance.

Looking Forward

The updates to Greece’s Golden Visa program represent a thoughtful recalibration of the nation’s approach to foreign investment in real estate. By raising investment thresholds and refining the criteria for eligible properties, Greece is seeking to mitigate the program’s inflationary impact on housing prices while still attracting substantial foreign investment. The introduction of incentives for the restoration of heritage buildings and the conversion of non-residential buildings into homes is a commendable effort to align investment incentives with the country’s broader social and economic objectives.

As these changes unfold, potential investors and stakeholders must carefully consider the implications of the new legal landscape. The transitional provisions, in particular, warrant close attention, offering a window of opportunity for those who act promptly and decisively.

For individuals and entities navigating this shifting terrain, the assistance of legal and financial advisors who are well-versed in the nuances of the Greek real estate market and the specifics of the Golden Visa program will be invaluable. With the right guidance, investors can successfully adapt to these changes, seizing the opportunities that Greece’s dynamic real estate market continues to offer.

Critical Updates to the Golden Visa Program

Prohibition on Property Rental and Operational Use

One of the most consequential amendments introduced is the stringent regulation on the utilization of acquired properties. The new legal framework explicitly prohibits the short-term rental of properties acquired under the Golden Visa program. This measure aims to mitigate the adverse effects that such rental practices have had on local housing markets, particularly in tourist-heavy areas. By curbing short-term rentals, the legislation seeks to ensure that investment properties contribute to the long-term residential housing stock, aligning with broader housing affordability and availability goals.

Furthermore, the updated provisions bar the use of these properties as business premises. This change is indicative of a broader strategy to preserve the residential nature of neighborhoods and support community cohesion, marking a significant shift from the program’s previous iterations.

Single Property Investment Requirement

The revised legislation specifies that the Golden Visa investment must be concentrated in a single property. This stipulation represents a departure from earlier policies that allowed investors to distribute their investment across multiple properties to meet the minimum investment threshold. The move to a single-property requirement is designed to streamline administrative processes and ensure the program’s benefits are more focused and impactful. For investors, this means a recalibration of investment strategies to align with the new mandate, potentially affecting decisions on property location, type, and value.

Conditions for the €250,000 Investment Threshold

The lowered investment threshold of €250,000, while remaining an attractive entry point, is now subject to more stringent conditions. This reduced threshold is specifically applicable to investments in buildings being converted to residential use or the restoration of heritage buildings. The condition underscores the government’s intent to incentivize projects that contribute to urban renewal and cultural preservation. Importantly, the conversion or restoration must be completed before the application for residency, ensuring that these investments have a tangible impact on the housing stock and architectural heritage.

Implications and Strategic Considerations

These adjustments to the Golden Visa program reflect a nuanced approach to balancing investment incentives with social and economic objectives. The prohibition on short-term rentals and the operational use of properties, coupled with the single-property investment requirement, signal a shift towards more sustainable and community-oriented investment models. Meanwhile, the specific conditions attached to the €250,000 investment threshold highlight a targeted effort to rejuvenate and repurpose existing buildings, enriching Greece’s urban and historical landscapes.

For investors, these changes necessitate a thorough reevaluation of potential investment avenues, with a greater emphasis on long-term value and compliance with the revised program criteria. Navigating this altered landscape will require careful planning and consultation with legal and real estate professionals, ensuring that investments are not only financially sound but also aligned with the new regulatory framework.

Conclusion

The reformulated Golden Visa program stands as a testament to Greece’s adaptive strategies in the face of evolving economic and social landscapes. By introducing measures to limit short-term rentals, emphasizing single-property investments, and setting precise conditions for reduced investment thresholds, Greece is steering the program towards a future that privileges sustainable development and cultural enrichment. For prospective investors, understanding and adapting to these changes will be key to unlocking the opportunities that lie within Greece’s vibrant real estate market.

At Amoiridis Law Services®, we stand ready to navigate these changes with you. Our commitment to providing comprehensive consultancy services, bolstered by our network of legal and financial experts, remains unwavering. Whether you’re exploring the potential of the Golden Visa program or embarking on other investment ventures in Greece, our team is equipped to ensure your success, offering tailored advice that aligns with your investment objectives.