In an effort to make more properties available for long-term rentals, Greece’s government is considering imposing restrictions on short-term rental properties acquired through the Golden Visa Program.
The proposal plans to remove investors who use the scheme to invest in real estate in the centre of Athens and other parts of Attica for short-term leasing, SchengenVisaInfo reports.
However, no final decision has been made in this regard, as reported by Ekathimerini.
The plan will be discussed within the week, and then the proposed change, including adjustments to the Golden Visa Program limits, will be presented to the Parliament. Soon after its introduction, the new changes sparked controversy.
In August last year, Greek Prime Minister Kyriakos Mitsotakis announced that the minimum investment requirement for the program that allows foreigners to acquire residency in exchange for financial investment in some parts of the country increased to €500,000 from €250,000.
In order to increase the affordability of real estate for Greeks, we are now increasing the minimum amount of investment required for the issuance of a golden visa from €250,000 to €500,000 (£434,000, $500,000).
New Map for Golden Visa Program
In the cheap areas, foreigners can benefit from the scheme by investing €250,000, while in the expensive ones €500,000.
Following the new proposal, the new map for this program will be decided within a week, and it is being considered to create two, three or four thresholds €250,000, €400,000, €500,000 and €800,000.
Greece is struggling with a housing shortage, which has also contributed to the Golden Visa Program, particularly its option to acquire residency by buying properties.
Plans to increase the minimum investment for the residency by investment scheme to €800,000 in some cases have raised concerns among real estate professionals, as well as foreign investors and homeowners in the Hellenic Republic.
They expressed concerns that by doing so, the country could be subject to a decline in the number of international investors after it loses its competitiveness after investors could choose other EU countries with lower minimum amounts required for investment for this program.
The Golden Visa Program of Greece attracts a large number of internationals each year. The figures from the Ministry of Immigration and Asylum for a period from 2021 to 2023 revealed that the scheme brought over €4.3 million to the country.
