Greece tightens the rules for the “golden visa”: The amount of investment required for non-EU citizens to receive a residence permit has been increased

In an attempt to solve the housing crisis, Greece has tightened the rules for the so-called “golden visa” program, which grants non-European citizens residence permits in exchange for investments in real estate.

According to the changes presented by the Ministry of Finance on March 22, the amount of investment required to participate in this program, which was launched in 2014, during the Greek crisis, when real estate prices were falling and construction was in decline, was increased by from 250,000 euros to 800,000 euros, writes Agerpres.

In popular areas such as Attica (the region around Athens), Thessaloniki, Mykonos, Santorini and islands with a population of more than 3,100 people, the amount reaches 800,000 euros. According to Finance Minister Costis Hatzidakis, “these measures are part of the government’s housing policy, which aims, in cooperation with the private sector, to ensure quality and affordable housing for all citizens, taking into account the need to continue investing in more balanced conditions”.

According to the Ministry of Migration, the demand for this program was unprecedented in 2023, with 10,214 requests to obtain or extend the program. And last year, 5,701 visas were issued, with a total value of one billion euros.

The government’s changes to the golden visa have drawn criticism from some investors. “The consequences for investments (…) will be dramatic,” lamented the Hellenic Association of Limited Liability Companies and Enterprises in a letter to Economy Minister Costis Hatzidakis and Development Minister Costas Skrekas.

According to the Bank of Greece, rents have risen by 20% since the country officially emerged from a decade-long economic crisis in 2018, reducing household purchasing power. In response to this housing crisis, the Ministry of Finance also introduced measures to encourage the conversion of buildings into residential spaces, to protect historic buildings and to ban short-term rentals of properties purchased through the golden visa program.

So far, around 20,000 permanent residence permits have been granted to real estate investors, mainly of Turkish, Israeli and Chinese nationalities, according to data from the Association of Companies and Limited Liability Companies of Greece.

And other southern European countries affected by the crisis – Cyprus, Spain and Portugal – resorted to similar programs to attract investment.

Affluent citizens from outside the European area can obtain, through these programs, the right to stay in the EU and in the Schengen area.