Due to housing shortage

New rules for “golden visas” in Greece

Thessaloniki

(Bild: k_samurkas - stock.adobe.com)

The Greek government is currently struggling with a housing shortage in the country. Stricter rules for the so-called Golden Visa are now intended to provide relief. The program allows non-EU citizens to obtain a residence permit for at least five years in exchange for investments.

The amount of money that must be invested has now been significantly increased. In popular areas such as Attica, Thessaloniki, Mykonos, Santorini and islands with more than 3100 inhabitants, 800,000 euros are now required. In other regions, a minimum of 400,000 euros must be paid.

Golden visas are passports and residence visas for the particularly wealthy. The issuing countries hope that people will bring money into the country by acquiring property or making investments. The program was introduced in 2014 during the financial crisis. At that time, property prices fell and the construction industry came to a standstill.

The popular vacation island of Santorini (archive image)

(Bild: AFP)

Real estate area increased
Now the real estate area for potential investors has also been increased to at least 120 square meters. Anyone wishing to convert industrially used buildings into living space will have to pay 250,000 euros or more. This also applies to historic buildings.

The steps are part of the government's housing policy, said Economics and Finance Minister Kostis Hatzidakis. They are intended to "ensure affordable and high-quality housing for all citizens." Investments must continue, but "under more balanced conditions." Rents in Greece have risen by 20 percent since 2018, reducing the purchasing power of households.

Investors from Turkey and Israel
The Greek Association of Public Limited Companies and Entrepreneurship is skeptical that the government's goals, such as reduced housing prices and more long-term rents, can be achieved. The members have already written a letter to the Minister of Economy and Finance and Minister of Development Kostas Skrekas. 

So far, around 20,000 permanent residence permits have been issued to real estate investors, most of them from Turkey, Israel and China. The previous year saw record demand.