Amendments to rules have raised the price of a residence permit as part of a drive to ‘address the impact of the Golden Visa on housing costs’, ministry says.
The Greek parliament voted on April 2 to amend Golden Visa legislation with the aim of fighting the housing crisis. Third-country citizens from now must pay as much as 800,000 euros for a five-year residence permit.
The amendment was voted by MPs of the ruling New Democracy party, the opposition centre-left PASOK party, Pleusi Eleftherias and the far-right Spartans and Elliniki Lysi. The left-wing SYRIZA and New Left parties voted against, while the Greek Communist Party, KKE, and the far-right party Niki abstained.
In August 2023, the government set Golden Visa prices from 250,000 to 500,000 for buildings in Athens, Thessaloniki, and on the islands of Mykonos and Santorini.
From now on, in the regions of Attica, Thessaloniki, on the islands of Mykonos and Santorini and on islands with a population of over 3,100 inhabitants, the value of real estate that the interested party must own increases to 800,000 euros. In the rest of the country, the value is set at 400,000 euros.
The new scheme aims “to increase the supply of long-term rental housing and address the impact of the Golden Visa on housing costs while maintaining incentives to bring investment capital into the country and develop the property market,” said a press release by the Ministry of Economy and Finance.
“Government policy has led to an artificial jump in prices and overcharging, which in turn have as a direct consequence the rise in property values and the accumulation of problems for the vast majority of citizens.,” said SYRIZA MP Giannis Sarakiotis.
As BIRN has reported, housing prices are becoming a serious issue in Greece, and rental prices are skyrocketing. Many Greeks have trouble making ends meet and turn to other solutions, such as home-sharing or returning to their parent’s home.
The new provision sets that the investment must be made in one property, not several properties of lesser value, with an area of at least 120 square.metres. The purchase of a percentage of undivided co-ownership of a property is allowed, the minimum value of which is set at 800,000 and 400,000 euros, respectively.
For buildings that currently have different uses and are being converted into residences, the minimum investment amount is 250,000 euros. The conversion of use must be completed before submitting the request for the residence permit.
The limit is also set at 250,000 euros if it is an investment in a landmarked building to be restored. For changes of use from e.g. industrial to residential, etc.,and for landmarked properties, there are no minimum square footage limits for properties for sale.
Investors can rent out the buildings they acquire but are not allowed to use them for short-term leases. In cases of conversion to a residence, their use is prohibited as a business headquarters or branch. In case of violations, the residence permit is revoked and a fine of 50,000 euros is imposed.
Third-country nationals may also obtain a residence permit by concluding a long-term complex tourist accommodation contract or a timeshare rental contract for tourist accommodation, equivalent per area of value (800,000 euros in Attica, etc., 400,000 euros in the rest of the country, etc.).
