Greece may end its real estate investment option from its Golden Visa Program, starting January 1, 2025, to deal with the housing crisis.
By doing so, Greece would become the third European country to take such a step, citing the same reasons, after Portugal and Spain, Schengen.News reports.
The Ministry of National Economy and Finance introduced a tax bill consisting of provisions to change the Golden Visa Program. Among the conditions for benefiting from the Residency by Investment Scheme of the Hellenic Republic would be investing in startups instead of real estate investments.
The government of Greece is aiming to attract investors through more productive ventures instead of real estate investment options.
Foreign investments made through the Golden Visa Program this year are expected to mark a new record, surpassing €3 billion. In 2023, the figures stood at €2.54 billion, nearly double those registered in 2022(€1.3 billion).
In 2023, a total of 8,516 applications were submitted; of them, 1,802 were approved, which shows that the interest in the Golden Visa Program of Greece remains high.
New Requirements for the Golden Visa Program
If the bill introduced by the Ministry of National Economy and Finance is approved, there would be several new requirements applied to the Residency by Investment Scheme of Greece, among them:
• Foreign investors are eligible to acquire shares or stakes in a business. However, it must not surpass 33 per cent of the company’s capital or voting rights.
• The company is required to create at least two new jobs within the first year following the investment made through this program.
• The company is required to maintain the larger workforce for five years or more after the investment.
Real Estate Investment Option, The Most Famous One
The Golden Visa Program of Greece offers residency to wealthy foreign nationals in exchange for financial investments made through several options that the scheme offers.
In addition, last month, the Prime Minister of Greece, Kyriakos Mitsotakis, unfolded plans to include startup investments in this program.
However, the most sought-after option of this program is purchasing properties in Greece in exchange for acquiring residency. But, this option has been contributing to the housing crisis that Greece is dealing with.
In its fight against the housing crisis, the Hellenic Republic decided to increase the minimum amount required for golden visa investments made through the real estate option, which in some of the most famous territories in Greece now reaches €800,000.
However, these changes, according to the president of the Federation of Real Estate Brokers of Greece, Dimitris Biniaris, have led to distortions.
Last year, Portugal’s President, Marcelo Rebelo de Sousa, approved the “More Housing” bill, which, among others, consisted of the abolishment of real estate investment options from the Golden Visa Program of Portugal.
At the same time, in April of this year, Spain also ended the real estate investment option from its residency by investment scheme. Announcing the new changes, Spanish Prime Minister Pedro Sanchez said his country would take all the necessary measures to ensure that housing is a right and not “a mere speculative business”.
Source: https://schengen.news/greece-may-abolish-real-estate-investment-option-from-its-golden-visa-program-from-january-2025/
