Greece's Golden Visa program has undergone significant changes in a recent update. She increased the investment threshold from 250,000 to 800,000 euros. It was initially set at one of the lowest levels in Europe. And this has made Greece an attractive destination for foreign investors.
About the program
The investment visa program was introduced back in 2013 to provide residence permits to citizens of countries not members of the EU who have invested in Greek real estate. It also added the benefit of visa-free travel within the Schengen area. This favorable entry point facilitated a significant influx of capital into the Greek real estate market, which contributed to Greece's economic recovery.
But the success of the program, coupled with low investment requirements, had unintended consequences. The increased demand for property has led to a sharp increase in property prices, especially in sought-after areas such as Athens, Thessaloniki, Mykonos and Santorini. As property values have risen, local residents have found it increasingly difficult to afford housing, exacerbating the housing crisis in several regions.
Government Decision
In response to these problems The Greek government has decided to significantly increase the investment threshold. From September 2024, the minimum investment required for the Golden Visa program will be set at €800,000 for properties in areas of high demand. The adjustment is part of a broader effort to address the imbalance between foreign investment and local housing needs. By increasing the investment threshold, the Greek authorities aim to curb excessive pressure on the property market in popular regions and stimulate investment in less saturated areas, promoting more balanced and sustainable development throughout the country.
New rules
The new rules, which came into force on September 1, 2024, reflect a significant shift in Greece's approach to managing foreign investments. The goal is to ensure that the benefits of the Golden Visa program have a positive impact on the national economy, while also mitigating the impact on housing affordability for Greek citizens. The move is expected to curb the rapid rise in property prices in high-demand areas and support the growth of property markets in less-visited regions. In short, raising the investment threshold for the Golden Visa demonstrates Greece's new strategy to attract foreign capital.
Source: timesofindia
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