Greece May Eliminate Real Estate Investment Option from Golden Visa Program in 2025 to Combat Housing Crisis

Greece is preparing to remove the real estate investment option from its Golden Visa Program as of January 1, 2025, in an effort to address the ongoing housing crisis. If enacted, Greece would become the third European nation to take this measure for similar reasons, following in the footsteps of Portugal and Spain.

The Ministry of National Economy and Finance recently introduced a tax bill proposing adjustments to the Golden Visa Program. Among the planned revisions is a shift in focus away from real estate toward investment in startups as a key qualification for Greece’s Residency by Investment Scheme. With this change, the Greek government hopes to draw investors toward more productive economic activities rather than real estate.

Foreign investment in Greece via the Golden Visa Program is expected to reach a record high this year, projected to surpass €3 billion. In 2023, investment through the program stood at €2.54 billion—nearly double the €1.3 billion recorded in 2022. Interest in the program remains robust, with 8,516 applications filed this year, of which 1,802 have already been approved.

Should the proposed bill from the Ministry of National Economy and Finance be approved, several new conditions will be introduced for foreign investors participating in Greece’s Residency by Investment Scheme. The new rules would include:

• A stipulation that investors may acquire shares or stakes in a business, provided they do not exceed 33 percent of the company’s capital or voting rights.

• The business is required to create at least two new jobs within the first year of the investment.

• The company must maintain this expanded workforce for at least five years following the investment.

Greece’s Golden Visa Program has long offered residency to affluent foreign nationals in exchange for various financial investments. However, the option of property acquisition has been particularly popular, as it grants residency to those purchasing real estate in Greece. This provision, however, has contributed to Greece’s worsening housing crisis.

To mitigate the impact on housing, the Greek government previously increased the minimum investment required for Golden Visa real estate purchases in certain popular regions to as much as €800,000. Yet, according to Dimitris Biniaris, president of the Federation of Real Estate Brokers of Greece, these adjustments have led to complications in the market. “Due to the series of changes, there was a surge in permit applications, leading to market distortions and unintended consequences,” Biniaris remarked.

In a similar move last year, Portugal’s President Marcelo Rebelo de Sousa enacted the “More Housing” bill, which abolished the real estate investment route from Portugal’s Golden Visa Program. Similarly, in April of this year, Spanish Prime Minister Pedro Sanchez announced Spain’s decision to eliminate the real estate investment option from its residency by investment scheme. Sanchez emphasized Spain’s commitment to ensuring that housing is regarded as a right rather than "a mere speculative business."

Prime Minister Kyriakos Mitsotakis has recently outlined further plans to incorporate startup investment into the Greek program, signaling a strategic redirection aimed at fostering economic productivity while alleviating the housing crisis.

By fLEXI tEAM