What is Golden Visa

Golden Visa, is a program, active in EU countries, which is addressed to third country citizens and gives them the right to stay in these countries through investment. In Greece, as in some of the other countries, investments are allowed to include Real Estate.

China, for a long time, has been the biggest source of demand, followed by people from all over the world who want to have a plan b in their lives. The reasons that lead them to invest large amounts through a Golden Visa program are numerous and often related to political or economic instabilities in their own countries. They are also related to their desire to have access to a more stable environment, with a pleasant climate and better education or health care opportunities for themselves and their family members. To exchange these benefits for the investment of a significant amount of money in a country like Greece seems in principle to be a win-win deal. This was at least true until a certain point in time, as in recent years several Golden Visa programmes and their impact on these countries have become controversial.

More specifically, the Real Estate investment category is being reviewed in some countries, modified accordingly or even discussed to be excluded from the Golden Visa program, as it has had a significant impact on the real estate market. In many cases, it has made it difficult for citizens of these countries to find housing at market and rental prices that they can afford based on the country’s economic realities and their salaries.

At the same time, the Golden Visa and Golden Passport program are being reviewed in all countries, as the European Commission recommends that Members must pay particular attention to safeguarding the security, transparency and values that underpin the European Union.

What is currently applies in Greece for Golden Visa

In Greece, the Golden Visa program has been in force for a decade and the thresholds for investment amounts have already been modified during that time. The most recent revision of the investment amounts and conditions was published in the Government Gazette in April 2024 and more specifically in Government Gazzete 49 Issue Α / 5.4.2024. Based on this, the minimum amounts that must be invested by foreign investors interested in obtaining a 5-year residence permit (Golden Visa) were increased and at the same time the membership criteria and requirements for this program became more stringent.

Minimum investment amounts for Golden Visa

Following the adoption of the new law 5100/2024, which includes in article 64 the provisions for the residence permit through investments, the new thresholds on investment amounts are divided into 3 zones and are as follows:

a) 800.000€– For the Region of Attica, the Regional Unit of Thessaloniki of the Region of Central Macedonia, the Regional Units of Mykonos and Thira of the Region of South Aegean and for the islands with population, according to the last census, more than three thousand one hundred (3.100) inhabitants.

b) 400.000€– For the other regions of the country

c) 250.000€– For the whole country and only for real estate that:

(i) changes the use for the main premises and becomes a home. Includes shops, offices, but also real estate consisting of an industrial building or part of one or within which there is an industrial building, only if no industry has been installed and in operation for at least five (5) years.

(ii) consists of a listed building or part of a listed building to be restored or reconstructed or within which there is a listed building.

Important points – terms – conditions

It should be stressed that in all of the above versions, in the case of investment through purchase of an undivided co-ownership share in the property, the minimum value of the co-ownership percentage is set equal to 800.000€, 400.000€ and 250.000€ respectively. Unique exception is where the joint owners are spouses or cohabiting partners who have entered into a civil partnership, always provided that the total value of the property is at least equal to the above limits.

In all of the above options, the investment through the purchase of real estate is made in a single property.

If in cases a) and b) it is a built property or a property for which a building permit has been issued, then it is required to have a minimum surface area of 120m² (one hundred and twenty square meters) of main premises.

For case c-i) the change of use of the property must be completed before the submission of the application for the granting of the investor’s permanent residence permit, while the change of use may also be made by the seller.

While in case c-ii) the transfer of the property before the complete restoration or total reconstruction of the property has been completed is invalid.

The above amounts must have been paid before submitting the Golden Visa application.

Investors have the right to rent (lease) the real estate they have acquired in Greece on a long-term basis, but it is prohibited the properties acquired under the Golden Visa program may not:

1. short-term rentals in the context of the sharing economy
2. sublet
3. are used as the head office or branch of an undertaking

Failure to comply with the above restrictions will result in corresponding fines and, where applicable, the residence permit may be revoked.

As in all such cases, a transitional period is foreseen so that the Golden Visa purchase and sale agreements currently in progress can be completed without being directly affected by the new provisions in force.

What the recent changes to Golden Visa mean in practice

To summarize what we have included in this article, keep in mind the important changes to Golden Visa that are:

1. The increase of the minimum amounts to be invested for the acquisition of real estate in Greece in exchange for a five-year residence permit
2. The investment is made in a single property
3. If it is a building, the main rooms must be at least 120m²
4. Subletting and short-term leases of such properties are prohibited
5. These properties may not be used as a Headquarters or Branch Office of a business.

The recent change in the Golden Visa legislation means, in practice, that properties smaller than 120 m² are no longer of interest to investors who want to acquire a Golden Visa. It also means, in practice, that even larger properties whose value, however, does not reach the minimum thresholds for investment, are also of no interest to this category of investors, since the investment must be made in one property.

Here is the full article 64 of the law. 5100/2024 to study in detail each paragraph that may be of particular interest to you

PART D’

OTHER URGENT PROVISIONS

Article 64

Residence permit linked to investment in immovable property – Replacement of Article 100 and paragraph 49 Article 176 of Law 5038/2023

1. In article 100 of the Migration Code (Law 5038/2023, A’ 81), concerning investments in real estate: a) par. 2 shall be replaced; b) the following shall be added: ba) a new second subparagraph in par. 4; and b) paragraph bb) paragraph 2, second subparagraph, paragraph 2, second paragraph, and b) paragraph bb) paragraph 2. 7A, (c) in the first subparagraph of para. (b) in the first paragraph of Article 6, the references are corrected, and Article 100 is amended as follows

“Article 100 – Investments in real estate (permanent residence permit of an investor) (residence permit “type B.5”)

1. By decision of the Secretary of the Decentralized Administration, a residence permit is granted for five (5) years, renewable, to a citizen of a third country who:

α) Has legally entered the country on any visa or is legally residing in the country, even if the residence permit he/she holds does not allow for a change of purpose.

b) Has, in full ownership and possession, real estate in Greece. In the case of an undivided joint ownership of real estate, the acquisition value is at least equal to the value defined in par. 2, the right of residence is granted only if the joint owners are spouses or cohabiting partners. Otherwise, the right of residence shall be granted only if the share of each co-owner is of a value at least equal to that specified in par. 2.

c) Has full ownership and possession of immovable property in Greece, with an acquisition value at least equal to the value defined in par. 2, through a legal person established in Greece or in another Member State of the European Union, whose shares or shares in a company are wholly owned by it.

(d) Has entered into a long-term contract of complex tourist accommodation, in accordance with par. 2 of article 8 of Law no. 4002/2011 (A’ 180) or a timeshare contract for tourist accommodation, in accordance with Law No. 1652/1986 (A’ 167), of a value at least equal to the value specified in paragraph. 2.

e) He/she is an adult and has acquired in full ownership and possession as an intestate or testamentary heir or as a result of a parental gift, immovable property with an objective value at least equal to the value defined in par. 2.

2.α) For the Region of Attica, the Regional Unit of Thessaloniki of the Region of Central Macedonia, the Regional Units of Mykonos and Thira of the Region of South Aegean and for the islands with a population, according to the last census, of more than three thousand one hundred (3,100) inhabitants, the minimum acquisition value of the real estate at the time of its acquisition, as well as the total contractual rent of the contracts of para. d) 1 shall be set at EUR eight hundred thousand (800,000). In the case of investment through the purchase of real estate in the areas referred to in the first subparagraph, the investment shall be made in a single property. In particular, in the case of built-up real estate or real estate for which a building permit has been issued, a minimum surface area of one hundred and twenty (120) square metres of main premises shall be required. In the case of investment through the purchase of an undivided co-ownership interest in real estate, the minimum value of the co-ownership interest shall be set at eight hundred thousand (800,000) euros, subject to the conditions set out in the previous subparagraphs.

b) For the other regions of the country, the minimum acquisition value of the real estate at the time of its acquisition, as well as the total contractual rent of the contracts referred to in para. d) of par. 1 are set at four hundred thousand (400,000) euros. In the case of investment through the purchase of immovable property in the areas referred to in the first subparagraph, the investment shall be made in a single property. In particular, if it is a structured property or a property for which a building permit has been issued, a minimum floor area of one hundred and twenty (120) square meters of principal premises is required.

In the case of investment through the purchase of an undivided co-ownership interest in real estate, the minimum value of the co-ownership interest is set at four hundred thousand (400,000) euros, subject to the conditions of the previous subparagraphs.

c) In particular in cases of investment through purchase of real estate and if the main premises are changed into a residence, the minimum acquisition value at the time of its acquisition is set at two hundred and fifty thousand (250,000) euros. The conditions of the first subparagraph shall also apply in cases of investment through purchase in real estate consisting of an industrial building or part of an industrial building or within which an industrial building is located, only if there has not been an industry installed and operating therein for at least five (5) years. The investment of the preceding subparagraphs is made in a single property and the change of use must be completed before the application for the investor’s permanent residence permit is submitted. In the cases referred to in the preceding subparagraphs, the change may also be made by the seller.

In the case of investment through the purchase of an undivided co-ownership share of real estate, the minimum value of the co-ownership share is set at two hundred and fifty thousand (250,000) euros, subject to the conditions of the previous subparagraphs.

δ) Ειδικώς στις περιπτώσεις επένδυσης μέσω αγοράς ακίνητης περιουσίας που αποτελείται από προς αποκατάσταση ή ανακατασκευή διατηρητέο κτίριο ή τμήμα διατηρητέου κτιρίου ή εντός της οποίας ευρίσκεται διατηρητέο κτίριο, η ελάχιστη αξία κτήσης της κατά τον χρόνο απόκτησής της καθορίζεται σε διακόσιες πενήντα χιλιάδες (250.000) ευρώ. The investment referred to in the first subparagraph shall be made in a single property. In the case of investment through the purchase of an undivided co-ownership share of real estate, the minimum value of the co-ownership share is set at two hundred and fifty thousand (250,000) euros, subject to the conditions of the previous subparagraphs. Transfer of the property of this case before the complete restoration or total reconstruction of the property is completed is invalid.

3. The minimum value of the immovable property at the time of its acquisition, as well as the total contractual rent of the leases of hotel accommodation or tourist residences of the present, as derived from the notarial deeds of transfer and, in case they are conditional on the payment of a credit price, from the respective legally transcribed notarial deeds of repayment and removal of dissolving conditionality, or the lease contracts, respectively, determined in accordance with par. 2, must be paid in full before the application for the investor’s permanent residence permit is submitted.

4. Third country nationals – holders of an investor’s permanent residence permit may renew their residence permit, for a period of equal duration each time, provided that the real estate remains in their ownership and possession or the contracts referred to in par. 1 and the other requirements of this Regulation are met. Except in the case of third country citizens – holders of a permanent residence permit of an investor who has implemented an investment of the above mentioned. d) of par. 2, an additional condition for the first renewal of their residence permit is the implementation of the full restoration of the elements of the immovable property or their total reconstruction, regardless of the cause of the deterioration, collapse or demolition of the buildings or parts thereof. Periods of absence from the country are not an obstacle to the renewal of the residence permit.

5. The agreed price or rent shall be paid in full in the following ways: a) by a two-line bank cheque to a payment account of the beneficiary held in a credit institution operating in Greece, b) by credit transfer, as per para. 24 of article 4 of Law no. 4537/2018 (A’ 84), and

c) through a POS installed by a payment service provider operating in Greece, by debiting the buyer’s bank credit or debit card to the payment account of the beneficiary held with a payment service provider, as referred to in para. 11 του άρθρου 4 του ν. 4537/2018, which operates in Greece. The above payment may also be made by the spouse or relatives by blood or marriage up to the second degree of the buyer. All the above provisions also cover the payments that have taken place with the above payment methods from 1.1.2017 until today. All the specific details of the payment, including in particular the identification details of the seller, the buyer and any third party payer, the payer’s payment account number, the payer’s address, his official identity document number, the payer’s identification number or his date and place of birth, the method of payment and the relevant payer’s debit and payee’s credit payment accounts, as well as the purchaser’s affidavit of spousal relationship or relationship to a third party payer, shall be declared and duly submitted by the parties before the notary who draws up the contract and shall be recorded therein.

6. A third country citizen, when submitting an application for the issuance of a permanent investor residence permit, shall submit a certificate of the notary who drew up the notarial deeds of transfer or lease contracts referred to in para. d) of par. 1, which confirms the details of the parties, the details of the property, the method of payment of the agreed price or rent and all the particulars of the payment in accordance with the provisions hereof, the existence of any dissolving condition, and whether the property in question has been used by the seller for the issuance of a permanent residence permit for an investor. In cases of acquisition by transfer, a copy of the investor’s property data declaration (E9) is submitted.

7. Third country citizens, holders of real estate are provided with the possibility to lease it.

7Α. Real estate acquired in full ownership and possession by third-country nationals for the initial granting or renewal of an investor’s residence permit may not be rented out on a short-term basis in the context of the sharing economy, nor may it be sublet. In addition, real estate acquired in full ownership and possession by third country citizens for the initial granting or renewal of an investor’s permanent residence permit under the conditions of para. γ) της παρ. 2, may not be used as the headquarters or branch of a business. In case of non-compliance with the provisions of the first and second subparagraphs, the residence permit is revoked and a separate administrative fine of fifty thousand (50,000) euros is imposed on the owners and/or occupants of the property. In case of non-compliance with the condition of the second subparagraph of par. 4, a separate administrative fine of one hundred and fifty thousand (150,000) euros is imposed on the owners and/or occupiers of the property. If a contract for the transfer of real estate is concluded despite the prohibition of para. d) of par. 2, the residence permit shall be revoked and a separate administrative fine of one hundred and fifty thousand (150,000) euros shall be imposed on the owners and/or occupiers of the property. The fines of the present are public revenues and are collected in accordance with the Public Revenue Collection Code (Law 4978/2022, A’ 190).

8. The resale of real estate during the period of validity of the residence permit to another third country citizen entitles the new buyer to a residence permit with the simultaneous revocation of the seller’s residence permit.

9. Residence permits granted under this Article do not establish a right of access to any form of work.

10. The residence permit shall be issued within two (2) months from the receipt of all the information in the file by the issuing authority.

11. In case of conclusion of a contract of sale of real estate for any price, the seller, a third country citizen, must submit a certificate from the locally competent department of Aliens and Immigration of the Decentralized Administration, regarding whether the property has been used for the issuance of a permanent residence permit for the investor. The above shall apply accordingly in the case of sale of real estate by a legal person, the shares or shares of which are held entirely by a third country citizen, in accordance with para. c) of par. 1.”

2. Para. Article 49 of Article 176 of the Migration Code, on enabling provisions, shall be replaced by the following:

“49. A joint decision of the Ministers of Immigration and Asylum, National Economy and Finance, Environment and Energy and Development may specify the documents to be submitted when submitting the application for the granting of the permanent residence permit of an investor under Article 100, as well as the way of certifying the existence of paragraphs c) and d) of Para. 2 when submitting and checking the above-mentioned application. By joint decision of the Ministers of Immigration and Asylum, National Economy and Finance, Environment and Energy and Tourism and the Governor of the Independent Public Revenue Authority, the procedure and the bodies for carrying out the control for the application of the conditions and restrictions of Article 100 are defined, the procedure for the certification and collection of the fines of par. 7 A of the same Article, as well as any other relevant matter.”

3. Investor residence permits granted to third country citizens under par. B’ of article 20 of Law No. 4251/2014 (A’ 80), the special conditions of article 92 of Law No. 5007/2022 (A’ 241) or the conditions in force before the entry into force of this Regulation shall remain in force and shall be renewed, provided that the conditions in force at the time of their granting continue to be met.

4. Without prejudice to Article 92 of Law No. 5007/2022, third-country nationals may complete their investment until 31 December 2024 under the regime in force until the entry into force of this Regulation, provided that they either pay an advance payment of ten percent (10%) of the purchase price or the total contractual rent of the contracts referred to in para. d) of par. 1 of article 100 of the Migration Code (Law 5038/2023, A’ 81) or payment of the agreed price or rent according to par. 5 of article 100 of the same Code, either by signing a notarial deed or by signing a private agreement of a certain date and the relevant proof of credit from the buyer’s bank for the transfer of the amount of the advance payment to the seller’s account by 31 August 2024.

If the purchase of the property or properties referred to in the first subparagraph is not completed, the third country citizen may complete his/her investment in another property or properties under the conditions that were in force before the entry into force of this Act, subject to article 92 of Law No. 5007/2022, and in any case not beyond 30 April 2025.