The Greek government has recently announced plans to increase the minimum investment amount required for its Golden Visa program, a scheme that offers residency-by-investment in Greece. This move comes after a surge in applications and interest in the program.
Kostis Hatzidakis, Greece's Finance Minister, addressed a conference stating that “measures to limit it will be applied, the limits will be increased to encourage more substantial investments. However, an exemption will be provided for listed properties, for which a lower minimum threshold will be maintained to direct funds to a property class that is particularly in need of them”.
The Greek government's decision to raise the bar on the Golden Visa program is a strategic move to maximize the economic benefits while managing the societal impacts. Despite the higher price tag, the program continues to be an attractive pathway to European residency for high-net-worth individuals globally.
Previously, the minimum investment threshold for the Greek Golden Visa program was €250,000. However, this has now been increased to €500,000 in certain areas. These changes were implemented as of July 31, 2023. This increase was implemented in response to wealthy foreign investors with no connection to Greece buying multiple properties and converting them into short-term rentals. This trend has resulted in the displacement of long-term residents and transformed residential neighborhoods into tourist hotspots. However, the lower threshold remains applicable in desirable tourist destinations like Piraeus, Rhodes, Halkidiki, and Crete. These areas are witnessing an influx of foreign buyers, which is reducing the supply of available properties and driving up rental prices.
The program remains one of the most affordable residence-by-investment programs that provide access to Europe. However, the increased investment threshold could be seen as a deterrent for some potential investors. In 2023, the Golden Visa program raised €45 million per week for Greece, making it the world's most popular investment visa program. However, the proposed changes have sparked some controversy, with the socialist opposition calling for the program to be abolished.
Despite this, the Greek government has persisted with its plan, believing that the increased investment threshold will continue to attract high-net-worth individuals who are willing to invest in the Greek economy.
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