Overhauling Greece's Golden Visa Program: Striving for Economic Resilience and Balanced Real Estate Markets

Greece is on the brink of implementing sweeping changes to its Golden Visa Program, marking a significant shift in its approach to investment immigration and real estate policy. Prime Minister Kyriakos Mitsotakis has recently unveiled plans to substantially raise the minimum investment threshold for the program, potentially reaching up to €800,000 for real estate investments in specific regions facing heightened residential pressures. This proposed adjustment, which represents a substantial increase from the current threshold of €250,000, underscores the government's determination to recalibrate the program in response to evolving economic dynamics.

Mitsotakis emphasized the need for flexibility within the Golden Visa Program, suggesting that additional measures, such as long-term rental agreements for properties acquired through the Residency by Investment scheme, may be introduced. Furthermore, he cautioned against oversimplifying the complexities of the real estate market, highlighting that only a small fraction of recent transactions were directly linked to the Golden Visa program.

Supporting Mitsotakis's stance, Economy and Finance Minister Kostis Hadjidakis reiterated the government's commitment to adjusting the investor visa threshold to stimulate significant investments while concurrently managing the issuance of visas. These proposed changes are designed to address market distortions and bolster the real estate sector by increasing property availability for rental purposes, thereby contributing to the broader economic stability of the country.

The Golden Visa Program has long been regarded as an attractive pathway for obtaining residency in Greece, particularly through property acquisitions. Data from the Migration Ministry underscores the program's economic impact, indicating that it has injected over €5.54 million into Greece's real estate market since its inception. However, amidst a housing shortage and escalating property prices, policymakers recognize the imperative of implementing measures to alleviate market pressures and foster sustainable growth.

Last year witnessed Greece implementing a significant hike in the minimum investment requirement for golden visas, raising it from €250,000 to €500,000 in designated regions, including popular tourist destinations and urban centers. This move aimed to strike a balance between encouraging foreign investment and addressing concerns regarding overheated property markets.

The forthcoming revisions to the Golden Visa Program underscore Greece's proactive stance in adapting its immigration policies to meet evolving economic challenges. By introducing these reforms, the government aims to cultivate a more resilient and balanced real estate market while simultaneously attracting strategic investments that contribute to the long-term prosperity of the country.

By fLEXI tEAM