Greek Golden Visa Frenzy: Greece’s Investment Threshold Soars to €800K

Greek Golden Visa Frenzy: Greece’s Investment Threshold Soars to €800K

• As Greece gears up to increase its Golden Visa investment threshold to €800,000 on September 1st, the real estate market is experiencing a surge of activity. Investors are rushing to buy properties before the new, higher requirements take effect. This policy shift marks a significant change from Greece’s previous Golden Visa scheme, which had a more attractive threshold of €250,000.
• The 2023 adjustment raised the minimum to €500,000 in high-demand areas, including Athens, Thessaloniki, Mykonos, and Santorini. The new €800,000 requirement will further restrict access, with properties needing to be at least 120 square meters and limited to a single purchase per investor.
• As Greece prepares to raise the investment threshold for its Golden Visa program on September 1st, a flurry of activity is sweeping across the country’s real estate market. Investors are hurrying to purchase properties before the new, higher minimum investment requirements come into effect. This significant change in policy marks a major shift in Greece’s approach to foreign investment in real estate.

• Earlier this year, the Greek government announced plans to substantially increase the investment threshold for non-European Union nationals seeking a Golden Visa. Prime Minister Kyriakos Mitsotakis, addressing the ongoing housing crisis affecting countless Greeks, revealed that the new threshold would be set at up to €800,000 (approximately $890,000) for real estate purchases in the most desirable areas of the country.
• This adjustment represents a dramatic departure from Greece’s previous Golden Visa scheme, which was one of the most attractive in the European Union. Until 2023, the minimum investment requirement for obtaining a Golden Visa was just €250,000 (about $278,000). This comparatively low threshold led to an influx of foreign buyers, which, in turn, drove up property prices and reduced the availability of homes for ordinary Greek citizens.
• In response to the housing affordability issue, the conservative government made changes to the Golden Visa program in 2023, increasing the minimum investment to €500,000 (roughly $550,000) for properties located in high-demand areas. This new threshold applied specifically to real estate purchases in prominent municipalities within the metropolitan areas of Athens and Thessaloniki, as well as on the islands of Mykonos and Santorini. Additionally, the €500,000 threshold extended to islands with permanent populations exceeding 3,100 residents. For the remainder of the country, the minimum investment threshold was adjusted to €400,000 (about $445,000).
• The upcoming increase to €800,000 will further narrow the scope of accessible real estate for prospective Golden Visa investors. In addition to the elevated financial requirement, there are now specific conditions regarding the properties themselves. All properties purchased to meet the new threshold must be at least 120 square meters in size. Investors are permitted to buy only a single property to meet the required investment amount.
• Properties that are not currently used as residences, including listed buildings requiring restoration, will continue to be subject to a threshold of €250,000. This lower threshold aims to encourage investment in the restoration of historic properties, but it does not alter the overall trend towards higher investment requirements.
• The Golden Visa program has faced increasing scrutiny and criticism within the European Union in recent years. Critics argue that such schemes exacerbate inequalities in the housing market by pushing up property prices and making it more difficult for local residents to find affordable housing. The influx of wealthy foreign investors has, in some cases, led to a shortage of available housing for locals, as properties are bought up for investment purposes rather than as primary residences.

• Despite the controversy, data from Greece’s Immigration and Asylum Ministry indicates that the Golden Visa program has had a significant economic impact. In the first five months of 2023 alone, the program contributed nearly one billion euros to the Greek economy. However, this economic boost often comes at the expense of local residents, who face increasing challenges in securing affordable housing due to rising property prices driven by foreign investments.
• The imminent increase in the Golden Visa investment threshold reflects the Greek government’s attempt to address these concerns by scaling back the program’s attractiveness to foreign investors. By raising the minimum investment requirements, the government aims to mitigate the impact of foreign investment on the local housing market while still maintaining a degree of appeal for high-net-worth individuals seeking residency in Greece.
• As the September 1st deadline approaches, the real estate market in Greece is expected to see a surge of activity from investors looking to finalize their purchases before the new regulations take effect. This rush highlights the ongoing tension between fostering economic growth through foreign investment and addressing the pressing need for affordable housing for Greek citizens.
• In conclusion, Greece’s decision to raise the investment threshold for its Golden Visa program represents a significant policy shift aimed at balancing economic benefits with housing affordability concerns. As investors scramble to secure properties before the new rules come into force, the impact of these changes will likely be felt across both the real estate market and the broader Greek economy in the months and years to come.

Frequently Asked Questions (FAQs) on “Golden Visa Frenzy: Greece’s Investment Threshold Soars to €800K”

• What is Greece’s Golden Visa program?
• Greece’s Golden Visa program offers residency permits to non-European Union nationals who invest in Greek real estate. This program aims to attract foreign investment, stimulate the real estate market, and boost the Greek economy.
• Why is Greece increasing the Golden Visa investment threshold to €800,000?
• The increase to €800,000 is part of the Greek government’s efforts to address the housing affordability crisis. By raising the investment threshold, Greece aims to reduce the influx of foreign investors that drive up property prices, making housing more accessible for local residents.
• When will the new €800,000 investment threshold take effect?The new investment threshold of €800,000 will take effect on September 1st.
  • Pre-2023: €250,000
  • 2023 Adjustment: Raised to €500,000 in high-demand areas
  • September 1st, 2024: Further increased to €800,000
• How does the new €800,000 threshold compare to the previous requirements?
• This marks a significant increase from the original €250,000 requirement, making the Golden Visa program less accessible to a broader range of investors.
• Which areas in Greece are affected by the €800,000 investment threshold?The €800,000 threshold applies to the most desirable areas, including major cities like Athens and Thessaloniki, as well as popular islands such as Mykonos and Santorini. Properties in these high-demand locations must meet the new investment and size criteria.
• What are the specific property requirements under the new €800,000 threshold?
• • Minimum Investment: €800,000
  • Property Size: At least 120 square meters
  • Purchase Limit: Only one property per investor
• These conditions are designed to limit the number of properties purchased for investment purposes, thereby reducing the pressure on the housing market.
• Are there any exceptions to the new €800,000 threshold?
• Yes. Properties that are not used as residences, including listed buildings requiring restoration, remain eligible for the original €250,000 threshold. This exception aims to encourage the restoration and preservation of historic properties.
• How has the Golden Visa program impacted Greece’s real estate market and economy?
• The Golden Visa program has significantly boosted the Greek economy, contributing nearly one billion euros in the first five months of 2023 alone. However, it has also led to increased property prices and reduced housing availability for Greek citizens, exacerbating the housing affordability crisis.
• What prompted the Greek government to adjust the Golden Visa program in 2023 and again in 2024?
• The primary motivation for these adjustments was the ongoing housing crisis affecting many Greeks. The influx of foreign investors purchasing properties for the Golden Visa program drove up real estate prices and limited affordable housing options for local residents, prompting the government to raise investment thresholds to mitigate these effects.
• How might the increase to €800,000 affect future foreign investment in Greece’s Golden Visa program?
• Raising the investment threshold to €800,000 is likely to restrict access to the Golden Visa program to higher-net-worth individuals. While this may decrease the overall number of investors, it aims to balance economic benefits from foreign investment with the need to make housing more affordable for Greek citizens.

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