In a move to combat the housing crisis, Greece has announced an increase in the price of its popular Golden Visa programme. Originally launched in 2014, this programme was designed to attract foreign investors by offering a renewable, five-year residence permit. The key offering of this scheme was the requirement of a minimal property investment of 250,000 euros.
Increased Threshold
However, the Greek finance ministry has announced a significant rise in this threshold. From Sunday onwards, foreign investors seeking to obtain a Golden Visa will have to make a property investment of 800,000 euros instead. This reflection of the strong demand and success of the previous scheme comes with the added caveat that higher investments are required in attractive regions.
Impacted Regions
The regions impacted by this new pricing structure are the areas around Athens in Attica, Thessaloniki, Mykonos, Santorini and all islands with a population exceeding 3,100. The surge in property prices owing to external demand had led to a real estate bubble, especially in these areas that have a high demand amongst foreigners.
Golden Visa and The Chinese Market
The Chinese market has shown particular interest in the Golden Visa program since its inception. Thousands of Chinese investors have been drawn to the opportunity of acquiring residency in Greece through property investment, a trend that is likely to continue despite the increase in the investment threshold.
Greece’s Housing Crisis
The decision to raise the minimum investment comes as a strategy in response to the ongoing housing crisis in Greece, with home ownership rates falling and rental costs rising significantly. By increasing the entry cost of the Golden Visa programme, Greece aims to stabilise the overheated property market and make housing more accessible for locals.
It remains to be seen how these changes will affect the Golden Visa’s attractiveness to foreign investors. Nevertheless, it is a definitive step by the government to address domestic housing issues while maintaining the economic benefits associated with the programme.
