“Golden Visa threshold to increase significantly,” says Greece’s PM

“We are looking for a further significant increase in the threshold for Golden Visa investments that will affect all areas under pressure and in urban areas and islands,” Prime Minister Kyriakos Mitsotakis told the Parliament on Friday morning.

“The threshold can go to 800,000 euros,” in such areas, he announced adding ” but we have to discuss whether we want to keep the low limit of 250,000 for areas where there is not much pressure.”

He said that the government will very soon intervene in the issue arguing that GV investments should not compete with the average apartment.

In addition, Mitsotakis said “those with Golden Visa properties should only be required to lease them for long term.”

Golden Visa distorted the Real Estate

The Golden Visa program may have poured money into Greece, however, it distorted the real estate market. According to media, the Finance Ministry has already prepared changes that will raise the minimum threshold for aspiring investors.

A total of 2.6 billion euros was poured into Greece through the Golden Visa program scheme in the last three years, reported economic newspaper imerisia.gr.

The purchase of real estate via the Golden Visa program enabled non-EU citizens to invest in real estate in exchange for residence permits and  free movement in the Schengen countries.

Approximately 15,000 applications were approved and the way was opened for 31,000 foreign investors and their family members to reside in Greece and to move freely, without restrictions, to the countries where the agreement is valid.

56% of approved applications concern Chinese, followed by Turks with around 10%. state broadcaster ERT reported citing data from the Migration Ministry.

The increased interest in Greece’s “Golden Visa” may have brought foreign money to the country, but it also created problems, mainly the high demand for real estate and the consequent “explosion” of prices and lack of housing for Greeks.

According to data from real estate market operators and banks, the market is currently short of 212,000 homes. At the same time, data from the Bank of Greece showed continuous double-digit increases (from 11% to 15% in the first three quarters) of 2023.

The relevant index of apartment prices for the entire country reached 92 units last year when during the peak of the economic crisis period, in the two years 2016-17, it had fallen even to 58 units.

Bundle of measures

In an attempt to “correct” the situation that has been created, the Ministry of National Economy and Finance is preparing a set of measures to deal with the housing problem, bringing changes to the Golden Visa granting regime.

According to information obtained by imerisia.gr, the existing threshold limit of 250,000 euros for purchases in areas of Attica and Thessaloniki will be increased to 500,000 euros, a limit that already applies to the Center, the North and South Sectors of Attica, the Municipality of Thessaloniki, the islands of Mykonos and Santorini.

Today the limit of 500,000 euros concerns areas of the Northern Sector, namely Penteli, Kifissia, Metamorfosi, Chalandri, Agia Paraskevi, Vrilissia, Nea Ionia, Heraklion, Cholargo, Papagou, Pefki, Lykovrysi and Marousi.

In the Southern Sector respectively, the municipalities of Agios Dimitrios, Alimos, Glyfada, Hellinikon-Argyroupoli, Kallithea, Moschato-Tavros, Nea Smyrni and Palaio Faliro and in the Central Sector the Municipalities of Athens, Philadelphia-Chalkidona, Galatsi, Zografou, Kaisariani, Byron, Ilioupoli , Dafni and Hymetto. In the remaining Municipalities of Attica, the limit of 250,000 euros applies and for many of them – if not for all – a doubling of the limit (to 500,000 euros) is expected.

Who buys with Golden Visa?

In a total of 14,875 requests in the last three years (2021-2023), 8,404 requests to buy real estate with a Golden Visa concern Chinese people. The second place is occupied by the Turks with 1,432 applications and the third by the Lebanese with 775 applications.