Stricter Rules for Greece’s Golden Visa: Increased Investment Thresholds and Tougher Criteria

November 21st, 2024 at 05:23 am

Stricter Rules for Greece’s Golden Visa: Increased Investment Thresholds and Tougher Criteria

Greece is preparing to tighten its Golden Visa program with new requirements for foreign investors. These changes include a higher investment threshold and more stringent business criteria. This article explains what the changes mean for future applicants and how the program benefits those seeking residency in Greece.

Overview of the Golden Visa Program

Greece’s Golden Visa program has been in place for over eleven years. The program aims to attract foreign investment and stimulate economic growth. Initially introduced in 2013 during a period of financial crisis, the program was designed to bring much-needed capital into the country.

The minimum investment requirement started at €250,000 but increased to €500,000 in August 2023. This adjustment directed most investments toward property purchases. However, concerns about the program’s impact on the housing market have prompted further changes.

Key Changes to Greece’s Golden Visa

Recently, the Greek Parliament has been debating a new bill that aims to tighten eligibility for the Golden Visa program. The proposed amendments seek to ensure that foreign investments provide tangible benefits to the Greek economy. Here are the key changes:

Increased Minimum Business Investment Stake

Foreign investors wishing to acquire a stake in an existing business must now hold at least one-third of the company’s capital or voting rights. This change aims to ensure that investors have a significant role in their chosen businesses.

Job Creation Requirement

The investment must now lead to the creation of at least two new jobs within the first year. This requirement emphasizes the importance of job creation as a condition for receiving the Golden Visa.

Long-Term Job Sustainability

The new jobs created must be maintained for a minimum of five years after the investment. This requirement ensures that investments contribute to sustainable economic growth in Greece.

A Brief History of Greece’s Golden Visa Program

The Golden Visa program emerged in 2013 to attract foreign investors during Greece’s economic turmoil. It quickly became popular due to its relatively low investment threshold. However, as the program grew, so did concerns about its impact on the local housing market.

In response to these concerns, Greece raised the investment threshold significantly in September 2023. The minimum investment now stands at €800,000. This increase aims to mitigate the pressure on the housing market while still attracting foreign capital.

Rising Investments Despite Changes

Despite these stricter regulations, Greece remains a favored destination for foreign investors. In 2023, the country attracted approximately €2.5 billion through Golden Visa investments. This amount nearly doubled the figure from the previous year. Experts predict that this year’s investments could exceed €3 billion, indicating strong interest in the program.

Changes in Other Golden Visa Programs

While Greece tightens its Golden Visa rules, other European nations are moving in the opposite direction. Spain and Portugal have decided to abolish their Golden Visa schemes in 2024. They cite concerns over rising property prices and the availability of housing for locals. In contrast, Hungary and Italy continue to operate their Golden Visa programs, even as they face debates regarding immigration policies.

Eligibility Criteria for Greece’s Golden Visa

To qualify for Greece’s Golden Visa, applicants must meet several key requirements:

• Minimum Age: Applicants must be at least 18 years old.
• Residency: They should reside outside the European Union.
• Medical Insurance: Mandatory health insurance is required for both the applicant and their family members.
• Clean Criminal Record: A clear criminal history is essential for eligibility.

Meeting these criteria is crucial for anyone wishing to apply for the Golden Visa program.

Benefits of Greece’s Golden Visa

Holding a Greek Golden Visa offers numerous advantages. Here are some of the key benefits:

• Residency for Family: The main applicant, their spouse, and children under 21 can obtain residency rights.
• Schengen Travel: Visa holders can travel freely within the 27 countries of the Schengen Area without needing additional visas.
• Tax Benefits: Investors can take advantage of Greece’s double tax avoidance treaties, potentially reducing tax liabilities in eligible countries.

These benefits make the Golden Visa an attractive option for many global investors.

Impact of the Golden Visa on Greece’s Economy

Greece’s Golden Visa program has positively impacted the economy, particularly in real estate and tourism. By attracting international investors, it has infused capital into various sectors. Despite some criticisms, recent changes aim to enhance the economic benefits through job creation and sustainable investments.

The program continues to keep Greece a popular gateway to Europe. It allows foreign investors to contribute to the local economy while enjoying the benefits of residency.

Conclusion

Greece’s revised Golden Visa program aims to balance the needs of foreign investment with housing and economic concerns. While the stricter rules may deter some potential applicants, the program remains appealing to many global investors. As Europe reassesses the long-term impact of residency-by-investment schemes, Greece continues to stand out as a top destination for those looking to invest in their future.

In summary, the changes to Greece’s Golden Visa program reflect a commitment to fostering sustainable economic growth while ensuring that foreign investments yield tangible benefits. By understanding these new requirements, prospective investors can better prepare for their applications and take advantage of the opportunities that Greece has to offer

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