The Golden Visa scheme emerged during the period of the economic crisis in Greece and provided a boost of liquidity to the Greek economy, which at that time was facing severe difficulties. As time passed, economic conditions changed, and we now observe amendments to the above scheme, so that it does not operate to the detriment of Greek buyers, while at the same time continuing to constitute a strong investment incentive for third-country nationals. In this text, we will address all of the above issues and explain certain critical factors that currently affect the Golden Visa scheme in Greece.

1.What is the Golden Visa scheme?

The Golden Visa scheme allows third-country nationals to obtain a residence permit in Greece for a period of five (5) years, with the possibility of renewal, provided that they make a qualifying investment in real estate located within Greek territory. In practice, the interested party proceeds with the purchase of the property and, subsequently, the details of the property to be transferred are submitted to the competent authorities in order for the residence permit to be approved, provided that the statutory requirements are met.

With regard to this specific residence permit (type B.5), it allows the third-country national to reside legally in Greece for a period of five years and to move freely within the Schengen Area (i.e. the countries that are parties to the relevant agreement, which include all Member States of the European Union). The interested party may also invite family members to obtain a residence permit in Greece; however, such permit will expire on the same date as the principal applicant’s residence permit.

Furthermore, the law allows a third-country national to obtain a residence permit in Greece even if they have inherited real estate property in Greece, provided that the objective value of the property meets the criteria set out below. The manner in which the property is inherited is irrelevant, as long as the inheritance has been accepted and the applicant exercises possession of the property. In such a case, there is no requirement to invest in the purchase of real estate in Greece.

2. What are the requirements to obtain such a residence permit?

In order to systematize the necessary requirements set by law, it is useful to briefly outline the procedure. Accordingly, the law requires that:

• The applicant is a third-country national (and not a citizen of a Member State of the European Union, in which case such a permit would be unnecessary).

• The applicant has entered Greece legally with any type of entry visa, or is legally residing in the country, even if their existing residence permit is of limited duration.

• The applicant has acquired full ownership/possession/holding of real estate property in Greece.

• The acquisition of the property may also occur through inheritance, as explained above.

• The real estate property must have a minimum value of EUR 800,000 for certain areas of the country.

• These areas are the Region of Attica, the Regional Unit of Thessaloniki, Mykonos, Thira (Santorini), and islands with a population exceeding three thousand one hundred (3,100) inhabitants according to the latest census.

• For the remaining areas of Greece not included in the above list, the minimum investment threshold is set at EUR 400,000.

• Alternatively, the applicant may enter into a long-term lease of a tourist accommodation, provided that the value of the accommodation meets the above investment thresholds, depending on its location.

• Upon completion of the transfer or lease of the property/accommodation, the relevant documentation is submitted to the Secretary of the Decentralized Administration, who will grant the residence permit if the statutory requirements are fulfilled.

• The applicant is not required to reside permanently in Greece in order for the residence permit to remain valid.

• After the expiration of five years from the issuance of the permit, the applicant may request its renewal, provided that the investment in real estate in Greece remains in effect.

3.Can the real estate investment be made through a company?

Greek legislation allows a third-country national to invest in real estate in Greece for the purpose of obtaining the corresponding residence permit through a legal entity/company. A key requirement is that the legal entity/company has its actual registered seat in Greece or in another Member State of the European Union. If the company is established anywhere within the EU, no issue arises, as all legal entities within the EU are treated equally by the Member States.

The law further requires that the applicant owns all of the shares (in the case of capital companies such as S.A., Ltd., or IKE) or all partnership interests (in the case of general partnerships, limited partnerships, or civil partnerships) of the legal entity that carries out the investment. Particular attention is required here, as not all EU Member States recognize the same types of companies; a company known in Greece as a general partnership may be subject to a completely different legal framework abroad.

The rationale behind the requirement for full ownership of the shares or partnership interests is clear. In the past, there were numerous cases in which subsidiary companies invested in real estate in Greece using funds originating from parent companies, enabling multiple third-country nationals to obtain residence permits through the Golden Visa scheme with very low individual investments. This category also included offshore companies, which led the Greek legislator to take measures to protect banking transactions from funds of questionable origin.

4.What if the property is a listed (preserved) building?

An applicant seeking to obtain a residence permit through the Golden Visa scheme is permitted to invest in a listed or renovation-required property located in Greece. More specifically, a third-country national may acquire ownership even of a part of a listed building (provided that horizontal or vertical ownership has been established), as well as a plot of land on which a building classified as preserved is located or which requires immediate reconstruction due to its age.

In such cases, the minimum acquisition value of the property for the purpose of obtaining the residence permit is set at EUR 250,000. However, due to the special nature of such properties, the applicant is limited to investing in only one property in Greece if they wish to obtain the residence permit. The same applies in cases of acquisition of an undivided ownership share; the minimum value of the undivided share must also be EUR 250,000.

In order to renew the residence permit after five years, the applicant must have carried out reconstruction, restoration, or repair works on the property classified as preserved. The applicant must demonstrate, by any lawful means, to the competent authority that the required works have been completed. To ensure compliance, the law prohibits the transfer of the property to a third party before the completion of all works deemed necessary for the reconstruction, preservation, or restoration of the property.

5.What applies if the principal use of the property changes after purchase?

The applicant has the discretion to change the principal use of the property (most commonly from storage or office use to residential use). In such cases, the law sets the investment threshold at EUR 250,000. However, the change of use of the main areas of the property must be completed no later than the time of issuance of the residence permit. After that point, a change of use is no longer permitted, in order to prevent abusive practices.

Following the same rationale, an applicant is permitted to purchase an industrial building, part of an industrial building, or a plot of land on which an industrial building is located, and to change the principal use of the property to residential use prior to obtaining the residence permit. A prerequisite for the validity of such a change of use is that no industrial activity has been carried out on the property for a period of five years prior to the date of transfer.

To facilitate this complex investment, the legislator allows even the seller to change the principal use of the property in advance, so that the process is completed and no doubts remain regarding the legal status of the property. It is understood that, in this type of investment as well, if the applicant chooses to acquire an undivided ownership share in an industrial property, the minimum value of such share must be EUR 250,000.

6.Are there now alternative ways to invest in order to obtain a residence permit?

Among the changes rumored to be introduced to the Golden Visa scheme is the possibility for a third-country national to invest in a Greek “start-up” company. Economists generally define this as a rapidly growing business offering an innovative product to the market, which contributes to the company’s rapid development and attracts potential shareholders to invest in covering or increasing the company’s share capital.

Given that today most start-ups are sold relatively quickly (precisely because the goods/services they provide are in high demand), the third-country national’s investment generally consists of covering the initial share capital of the company. It remains to be clarified what will happen if the company is later transferred, i.e., whether the original investment will still be considered sufficient.

At this point, it is crucial for the legislator to define what constitutes a start-up in Greece, as several definitions circulate, often leading some to label even regular cafés or restaurants as start-ups. The establishment of necessary criteria and specialization of the matter has already been addressed in executive laws issued last year, which will be analyzed in a subsequent text, as the regulations are extensive.

7.Can the residence permit obtained through the Golden Visa be renewed?

The main incentive provided to the applicant by law is the possibility to renew their residence permit in Greece once five years have passed from the initial issuance date. To have the renewal accepted, the applicant must submit a request to the Decentralized Administration, detailing the investment made in Greece, its amount, location, and whether it is still in effect.

Specifically, the applicant must submit a certificate from the notary who prepared the property transfer deeds or lease contracts, proving the parties involved, the method of payment, and whether the property was used to obtain a permanent residence permit. A copy of the applicant’s E9 form is also required.

As mentioned above, in the case of acquiring a preserved property, the applicant must also provide evidence of restoration or renovation works performed on the property to maintain its economic value. This is why such properties are offered for investment at a lower minimum value (EUR 250,000) compared to other central regions (EUR 800,000).

8.Is it permitted to rent properties acquired by third-country nationals?

Regarding property leasing, the law allows the applicant to rent the property only through long-term leases, subject to all relevant provisions described in detail in another text. For such leasing, a lease contract must be drawn up, and the applicant (or their representative) must be present in Greece to sign the private agreement.

Short-term rentals (such as Airbnb) are completely prohibited for properties acquired for the Golden Visa. If this law is violated, the applicant’s residence permit is automatically revoked, and a fine of EUR 50,000 is imposed on the applicant or the current property holder.

For properties that contain industrial buildings, the applicant is prohibited from establishing their business headquarters on these properties; the headquarters may be located elsewhere in Greece. Violations incur the same penalty as illegal short-term leasing, since such relocations often concealed short-term rentals in the past.

9.What happens if a third-country national sells the property they purchased?

To answer this, it is necessary to distinguish between different types of properties eligible under the Golden Visa scheme. For primary residence properties, the law allows resale to another third-country national. In this case, the original residence permit is revoked, and the new owner receives their own 5-year residence permit.

To prevent abusive practices, the law establishes the same consequences if the property is owned by a legal entity or company in which the applicant holds shares. If the applicant transfers the property through the company or leaves the company, they lose their residence permit, which is instead granted to the new shareholder.

For preserved properties, the law explicitly prohibits transfer, due to the special nature of the investment (necessary restoration works). Violation results in automatic revocation of the residence permit and an administrative fine of EUR 150,000 for both the owner and the holder of the property.

10.How is the payment for the property purchase proven?

To ensure transparency and facilitate transactions, the law allows payment by the buyer through a dual-signature bank cheque to the seller’s account in a Greek bank/credit institution. Alternatively, bank transfers can be made even between accounts in different countries.

Payments may also be made via electronic payment systems (POS) using the buyer’s credit/debit card, to a recipient account held with a payment service provider operating in Greece. Another way for payments to be done is by the buyer’s spouse or relatives up to the second degree, but identification of the payer is critical for the legality of the transaction.

Finally, the law requires that all identification details of the buyer, the seller’s account, the payment method used, and the personal information of the parties are included in the notarial deed of transfer to facilitate verification of the transaction’s legality.

Next to the client and his needs.

Athina Kontogianni-Lawyer

The above does not constitute legal advice, and no responsibility is assumed for it. For more information, please contact us.