Golden visa: the Portuguese trick and how Greece benefits - Economic Courier - ot.gr

Changes in the Portuguese "golden visa" program are having a significant impact on the European market, even though they are not directly aimed at the real estate sector. As a result of this change, Greece is starting to benefit and is gaining attention as the most attractive destination for investors, making Piraeus a true magnet for capital.

Golden Visa Program: attractive offers by country – Greece among the leaders

A recent report from the Spitogatos Property Index showed that housing prices in Piraeus increased by 23.20% in the fourth quarter of 2023, with the average asking price per square meter reaching €2,174. This figure has significantly risen compared to the same period in 2022, when the average price was €1,765 per square meter. In the suburbs of Piraeus, the increase was even more pronounced at 25.60%, reaching €1,800 per square meter compared to €1,433 for the same period the previous year.

The Golden Visa attracts foreigners looking to invest in real estate with a minimum investment of 250,000 euros, which allows them to obtain residency. According to real estate experts, interest has shifted to Piraeus and its surrounding areas, where conditions for such investments remain favorable, unlike the western part of Athens, where the minimum threshold has increased to 500,000 euros. Piraeus is experiencing a significant rise in interest, driven by substantial investments in infrastructure, including metro upgrades and construction projects.

Chinese investors continue to lead among those seeking to obtain a Golden Visa. While Portugal is trying to address the housing issue and has announced the winding down of the golden visa program by changing its conditions. This decision is driven by the need to get the housing situation back on track. Now, to obtain residency, foreigners will only need to invest in funds rather than just in real estate, which alters the conditions in the market.

Financial results of the Golden Visa program

Since 2012, the Golden Visa program has attracted over 7.3 billion euros, with China, Brazil, and the USA taking the top spots among source countries.

Previously, direct investments in real estate were a priority, but now the focus is shifting to other channels for capital investment. Opportunities to participate in cultural or research projects can also serve as a basis for obtaining a Golden Visa.

Opportunities and risks

Some representatives of the investment sector, such as a representative from the sustainable agriculture fund Pela Terra, see the new requirements as an opportunity to create an effective system that will take into account the needs of the local population and activate new forms of investment aimed at revitalizing the area.

Nevertheless, lawyers and experts are raising questions regarding the new rules prompted by the ban on real estate investments. They are concerned that this could reduce the influx of capital into the country. Some have mentioned that many investors are primarily interested not in actual investments, but rather in obtaining...“golden visas”.

The payment of a contribution of 250,000 euros for cultural projects or 500,000 euros for scientific research may also become an opportunity to obtain a residence permit. However, the decreasing attractiveness of investing in real estate may lead investors to consider the Golden Visa programs of other countries as a more appealing alternative.

Lawyers and consulting firms have long pointed out the sluggishness in the processing, and the lack of clarity around the new rules only fuels their concerns. The emergence of situations where it is unclear whether an investment in a factory is considered an indirect investment in real estate can lead to additional problems.

Conclusion

Golden Visa programs allow foreigners to obtain the right to permanent or long-term residence in exchange for certain investments. Despite criticism and negative impacts on local markets, such schemes continue to be popular among those looking to expand their opportunities, improve their quality of life, or obtain a second citizenship. Many investors find Golden Visa programs quite appealing, which confirms their relevance even amid market changes.