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Greece increases Golden Visa investment threshold
In a recent update, Greece’s Golden Visa program has seen a major adjustment. It has increased the investment threshold from €250,000 to €800,000. It was initially set at one of the lowest levels in Europe. And this has made Greece an attractive destination for foreign investors.About the program
The investment visa program was introduced back in 2013 for offering residency permits to non-EU nationals who invested in Greek real estate. It also added the perk of visa-free travel within the Schengen region. This favorable entry point contributed to a substantial influx of capital into the Greek property market, boosting the Greek’s economic recovery.
But the program's success, coupled with the low investment requirement, had unintended consequences. The increased demand for properties led to a sharp rise in real estate prices, especially in high-demand areas such as Athens, Thessaloniki, Mykonos, and Santorini. As property values soared, local residents faced growing difficulties in affording housing, exacerbating a housing crisis in several regions.
In response to these challenges, the Greek government decided to raise the investment threshold significantly. Beginning in September 2024, the minimum investment required for the Golden Visa program will be set at €800,000 for properties in high-demand areas. This adjustment is part of a broader effort to address the imbalance between foreign investment and local housing needs. By increasing the investment threshold, the Greek authorities aim to curb excessive pressure on the real estate market in popular regions and encourage investment in less saturated areas, promoting more balanced and sustainable development across the country.
The new rules, which came into effect on September 1, 2024, reflect a major shift in Greece’s approach to managing foreign investment. The goal is to ensure that the benefits of the Golden Visa program contribute positively to the national economy while also mitigating the impact on housing affordability for Greek citizens. This move is expected to moderate the rapid escalation of property prices in high-demand locations and support the growth of real estate markets in less frequented regions.
Source: Times Of India
