Greece will increase the cost of the golden visa for real estate.

Amid concerns about housing availability, Greece is proposing to raise the price of so-called "golden visas" for those who invest in real estate as a pathway to long-term residency.

Golden visas

Concerns about ethics and the impact of golden visa programs have led many countries to change or abolish their programs. Greece remains one of the few countries where it is possible to acquire residency through investment for third-country nationals. This island nation, with a population of less than 11,000,000, has issued over 17,500 golden visas since 2018, 61% of which were granted to Chinese citizens, according to data from the Ministry of Migration. The Greek program was launched in 2013 during a period of financial distress. By offering the necessary currency, it provided five years of residency, free movement within the Schengen Area, and ultimately citizenship to investors for €400,000 and more in government or private bonds and stocks, or to those who invested at least €250,000 in real estate.

Real estate

Real estate has become the preferred path, but critics of the program say that the large number of wealthy immigrants has led to a rapid increase in housing prices in some areas, pushing local residents out of the market. According to a statement by the head of the Greek real estate network E-Real Estates, Themistocles Bakas, prices for new builds in Attica have risen by a staggering 71% over the five years leading up to 2023.

In response to the issue, the government has already raised the minimum investment threshold for obtaining residency through real estate to €500,000 in certain parts of Athens, Mykonos, Santorini, and Thessaloniki. New plans put to a vote in parliament in February by Prime Minister Kyriakos Mitsotakis would increase the minimum investment to €800,000. It is expected that these will apply to purchases in areas where there is a shortage of affordable housing and rentals, Mitsotakis said.

Development tool?

The Greek economy gained €4.3 billion between 2021 and 2023 thanks to this program, and home purchases through golden visas account for 7% of all real estate sales. Ironically, these figures could be surpassed by a wave of demand for visas triggered by Mitsotakis's announcement of a new limit. Bakas suggests a more flexible approach, where the scheme could be used "correctly" as a "development tool" and even reduced to attract investments and create jobs in small villages and affected regions. To stimulate the real estate market in Thessaly, which was hit hard by severe floods in 2023, he believes that "the investment limit should be set at €200,000 for next year."