The golden visa to Greece is raised to 500,000 euros. Minister lists affected regions

The government is starting to develop new Golden Visa rules that double the amount of investment in real estate in specific areas and regions of Greece in order to obtain a residence permit.

Speaking to reporters on Thursday, Deputy Development and Investment Minister Nikos Papathanasis said the government would submit a resolution to parliament to raise the investment to 500,000 euros from the current 250,000 euros next week. To obtain a residence permit under the Golden Visa program, the amount of investments in Thessaloniki, Mykonos and Santorini will increase to 500,000 euros, the minister said.

As for Attica, he added that the increase does not apply to the eastern and western suburbs of Athens, as well as Piraeus. However, the increase will apply to the northern and southern suburbs of Athens, and to the city center. For the first time about the rise in price of the “Golden Visa” announced Kyryakos Mitsotakis 10 September.

Rules for other regions

For other regions, the limit of 250,000 euros will remain. According to the state news agency amna, according to the new rules, permits can also be obtained in expensive areas when buying up to 2 apartments (for example, worth 250,000 euros each), provided that they are located in the same area.

Currently, investors can obtain a residence permit by purchasing a property worth at least 250,000 euros without any restrictions. They can purchase two, three or even more properties of lower value if the total amount exceeds 250,000 euros.

Papathanasis noted that the goal is to highlight other regions of the country where investment funds can be directed, in addition to those that have so far attracted the most interest. As for the timing of the implementation of the resolution, it is worth noting that for the signing of preliminary contracts for the purchase of real estate, based on the current regime, a time period will be provided until the beginning of 2023. Some media reports that the deadline will be April 30, 2023.

Until December 31, 2023, final sales contracts must be concluded, while the percentage of the down payment must be at least 10% of the purchase price of the property. Plans to double the amount of the Golden Visa were first announced in September, causing uncertainty in the real estate market and among investors.

Final details are expected with the release of the official ruling.

“Doubling the amount of investment means a hybrid war against China,” one Greek wrote on social media. Others called the new policy simply “wrong”. However, the first signs appeared in early March, when the Greek authorities supported the all-European appeal and canceled this program for Russian citizens.

“A total doubling to 500,000 euros for a Golden visa is wrong. Alternatively, it could be increased only for 2 major urban centers to serve as an incentive to help regions such as Epirus and Western Macedonia,” wrote one, and another: “Clarifications are needed on what exactly will be done with the golden visa, because that the announcement of an increase to EUR 500,000, not accompanied by any other compensatory measures, will mark the end of this investment program.”

The Golden Visa changes are turning the real estate market on its head, some real estate websites write. Referring to the data, they remind that “investors who have already begun to abandon the Golden Visa program today will be further limited by a higher amount required. Real estate players say they will focus on high-end markets such as the southern suburbs of Athens, mainly on the so-called Athenian Riviera, but also in select locations in the northern suburbs of the Greek capital.

Recall that in the first half of 2022, according to the Ministry of Immigration and Asylum – the General Secretariat of Immigration Policy, a decrease of more than 5% was recorded in the issuance of 5-year permits to investors owning real estate worth more than 250,000 euros, according to the website Real Estate & Development . “That is, out of the total number of 9614 licenses that were issued from the start of the program until December 31, 2021 and were active, after six months the total number of active licenses decreased by 539 and now stands at 9074,” the message says.

Source/Editing: Ministry of Immigration and Asylum, General Secretariat for Immigration Policy. Date: January 31, 2022 and June 31, 2022 / Panhellenic Real Estate Network.

* until the ban from 1/03/2022

It is noted that in many cases, foreigners who wanted to take advantage of the Golden Visa program bought property in areas where affordable housing was available a few years ago, such as the Athens districts of Pagrati and Kipseli. It was repaired and put up for sale at double the price. Today, those who want to take advantage of the program will have to focus on newly built and more expensive areas, such as the southern and northern suburbs of Athens (Paleo Faliro, Nea Smyrni, Alimos, Glyfada, Kifisia, Papagou), where prices for the cost of new apartments range from 400,000 euros and up, while for larger and more luxurious houses in Voula Vouliagmeni, they start at 500,000 euros.

Changes to the Golden Visa program have also recently been made by Portugal, which, with a cost cap of €250,000, has applied geographic restrictions to eligible areas for real estate investment as it has been observed that most investors are concentrated in coastal areas and metropolitan centers such as Lisbon and Porto.

In Spain the limit is also 500,000 euros, in Malta it is 150,000 euros, in Cyprus it is 300,000 euros, and in Switzerland it is 450,000 francs. Turkey, with a $400,000 investment, ensures free movement within the European Union.

Source link