Immigration news: Golden Visa for Greece to get more expensive from May 1

In Athens, Greece. Greece's Golden Visa Program grants a five-year residency in return for an investment in real estate or other financial options. (Photo by Jimmy Teoh via Pexels)

From May 1 this year, Greece will double to €500,000 for its Golden Visa Program, from its current minimum requirement of €250,000 for residence by investment. The hiked investment amount will be for some of Greece’s most popular and populated locations - most of the municipalities of Athens and Thessaloniki, and on the islands of Mykonos and Santorini. The minimum investment amount of €250,000 will still apply in all other regions. The Prime Minister of Greece had announced that the step is being taken to make housing more affordable for locals.

Launched in July 2013, the Greek Golden Visa Program grants a five-year residency visa in return for an investment in real estate or other financial options. It may be noted that the residence permit granted to the foreign national does not entitle them to work in Greece.

Advantages of Greece Golden Visa Program

· Make a remote application without the need to enter Greece

· Maintain your residency without any stay requirement

· Your spouse, dependent children, and parents can join your application simultaneously

· Lowest real estate investment threshold in Europe

· Residence permits acquired within 90 to 120 days

· Keep your investment and renew your Golden Visa every 5 years

· Visa-free travel in Europe’s Schengen Area

· Opportunity to rent out bought real estate

· Access to Greek public healthcare and education

Real estate investment options under Greece's Golden Visa Program

· An investment in real estate property with a minimum value of €250,000, plus the applicable taxes

· A 10-year lease agreement for hotel accommodation or furnished tourist residences in tourist accommodation complexes

· A 10-year time-sharing agreement for hotel accommodation

Return on real estate investment & taxation

An owner’s annual return from the lease, after expenses and taxes, is estimated at around 4–5 percent. In central Athens, the gross rental yield on apartments is about 4.49 percent, while outside the city centre, it is about 4.05 percent (Source: HenleyGlobal.com).

The income tax on rental income is 15 percent per annum for the first €12,000, 35 percent between €12,000 and €35,000, and 45 percent thereafter.

Residence Permits for investment in securities or a bank deposit in Greece: Applicants can make an intangible investment in Greece in specific forms of securities or a bank deposit over €400,000, either as individuals or through legal entities.

Categories of investment

· Capital contribution, amounting to at least €400,000, to a company headquartered or established in Greece.

· Capital contribution, amounting to at least €400,000, to a Real Estate Investment Company (REIC) whose objective is to invest exclusively in Greece, for the acquisition of stock in an increase of its capital stock.

· Capital contribution of €400,000 or more to a Venture Capital Company (VCC) for the acquisition of stock, or capital contribution to a Venture Capital Fund (VCF).

· Purchase of Greek Treasury bonds, with an acquisition value of at least €400,000 and a residual duration, at the time of purchase, of at least three years, through a credit institution established in Greece, which is also their custodian.

· Term deposit of at least €400,000 in a domestic credit institution, for at least one year, with a standing renewal order.

· Purchase of shares, corporate bonds, or Greek Treasury bonds, which are listed for trading or traded in regulated markets or multilateral trading facilities operating in Greece, of an acquisition value of at least €800,000.

· Purchase of shares of an acquisition value of at least €400,000 in a mutual fund, which has been established in Greece or another country and whose object is to invest exclusively in shares, corporate bonds or Greek Treasury.

· Purchase of shares or stock of an acquisition value of at least €400,000 in an Alternative Investment Fund (AIF), which has been established in Greece or another Member State of the European Union and whose object is to invest exclusively in real estate in Greece.

Application process: Non-European Union (EU) citizens who have made an investment through the Greek Golden Visa program, can apply for a residence permit through a proxy, without having to visit Greece. The Power of Attorney for the appointment of a proxy must be signed before a Greek Consular authority. The applicant must enter Greece in a period of 12 months from the date of the confirmation receipt of the application, in order to submit his/her biometric data.

Definition of a family member: Family members can apply for a residence permit simultaneously with the main applicant. Family members shall mean:

· spouses

· the other spouse or partner with whom a third-country national has a cohabitation agreement in Greece

· direct unmarried descendants of the spouses, who are under the age of 21

· direct unmarried descendants of the supporter or of the other spouse/partner, provided that their custody has been legally entrusted to the sponsor (for his/her children) and to the other partner (for his/her children), under 21 years of age

· direct relatives of the spouses in the ascending line.

Renewal of residence permits

· The residence permit may be renewed for 5 years, provided that the real estate property remains in the ownership and possession of the permit holder. Periods of absence from the country shall not disrupt the renewal of the residence permit.

· Resale of the real estate property during the period of validity of the residence permit, to another third-country national shall provide the right to the granting of residence permit to the new buyer with simultaneous withdrawal of the seller’s residence permit.

The residence permits do not establish the right of access to any form of employment.