Plans to increase the minimum amount investment requirement for the Golden Visa Program, which in some cases could reach €800,000, have raised concerns of real estate professionals, foreign investors and homeowners in Greece.
They fear that increasing the minimum to reach €800,000 in some parts of the country, such as Attica and Thessaloniki, could lead to a decrease in the number of foreign investors after it loses its competitiveness, SchengenVisaInfo.com reports.
According to a report by Kathimerini, competitiveness would be lost after most investors turn to other countries where the minimum required for Golden Visa investments is lower.
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Cyprus, Malta, and Spain also offer Residency by Investment Programmes, in which investors can acquire residency for lower investment requirements compared to Greece when it comes to real estate options.
Wealthy foreign investors are required to buy at least €300,000 worth of residential property in Cyprus in exchange for a golden visa. At the same time, a golden visa in Malta can be acquired if investors buy €350,000 of property.
In order to benefit from Spain’s Golden Visa scheme, investors are required to purchase real estate worth at least €500,000.
Implementing a Three-Zone Pricing System
Recently, local media reported that new prices for Greece’s Golden Visa scheme would come in three levels:
- Zone A: €800,000
- Zone B: €400,000 – 500,000
- Zone C: €250,000
Zone A is expected to include central, southern, and northern parts of Attica. It is also expected to include the capital region and central Thessaloniki, the islands of Mykonos and Santorini, and potentially Crete, the Cyclades and Dodecanese islands.
Zone B will be reserved for areas where the €250,000 minimum requirement applies but have experienced increased prices since last year’s hike, while Zone C will be kept for municipalities where wealthy foreigners have low interest in buying properties.
Addressing the Housing Crisis
Through the Golden Visa Program, wealthy foreign nationals are eligible to acquire residency in the Hellenic Republic in exchange for financial investment. One of the most famous options through this program is buying properties.
However, the county is dealing with a housing shortage, the main reason that led the Minister of Economy and Finance to apply new changes to this scheme that aim to reduce the increasing prices of buying and renting properties.
In August last year, Greece increased the minimum amount of investment required for its Residency by Investment scheme from € 250,000 to €500,000 in some parts of the country.
But doubling the threshold in some parts of the country led to an increase in sales after investors rushed to act before the changes took effect.
