Greece’s Golden Visa program, launched in 2013, has been a pivotal initiative in drawing foreign investment to the country by offering residency permits in return for property investments.
This program allows non-EU citizens to secure a five-year residency in Greece, with the added perk of visa-free travel across the Schengen Zone, making it an appealing option for those looking to establish a foothold in Europe.
Initially, Greece set the entry bar low, requiring a minimum investment of just €250,000, which was one of the most accessible thresholds in Europe.
This affordability played a crucial role in attracting a significant number of investors, boosting the Greek real estate market and aiding in its recovery following the financial crisis.
Key regions such as Athens and the islands saw a boom in development, supported by this influx of capital.
However, this surge in demand also led to rising property prices, prompting the government to reconsider the investment threshold.
The recent decision to hike the investment threshold from €250,000 to €800,000 is a strategic move by the Greek government to address several emerging challenges.
While the low threshold successfully attracted foreign capital and stimulated the real estate market, it also contributed to a sharp rise in property prices, especially in high-demand areas like Athens, Thessaloniki, Mykonos, and Santorini.
This surge has made it increasingly difficult for local residents to afford housing, exacerbating the housing crisis in these regions.
To counterbalance this issue, the Greek government has opted to raise the threshold, aiming to temper the rapid price increases and promote more equitable development.
By doing so, they hope to direct investment towards less saturated areas, encouraging a more balanced distribution of economic growth across the country.
Beginning in September 2024, Greece’s Golden Visa program will require a significantly higher minimum investment.
The new threshold of €800,000 applies to properties in high-demand areas such as Athens, Thessaloniki, and popular islands like Mykonos and Santorini.
This change reflects the government’s intention to manage the real estate market’s growth while considering the housing needs of local residents.
Source : https://economictimes.indiatimes.com/nri/migrate/greece-raises-the-bar-golden-visa-investment-threshold-hits-800000/articleshow/113250378.cms
