With the aim of addressing the housing problem, limiting demand in “fillet” areas and addressing distortions in the real estate market by reducing particularly high prices, the Ministry of National Economy and Finance is proceeding with legislation to increase the limits for the Golden Visa . At the same time, as stated by government officials, it is also a deep thought not to create “bubbles” in cheap areas of Attica that will exacerbate the housing crisis.
Essentially, the ministry is proceeding to establish three-speed limits depending on the geographical location in which a property is located, as well as special treatment for those investing in listed buildings. Without, at the same time, losing the incentives for the introduction of investment capital into the country and the development of the real estate market.
In particular, as Minister Kostis Hatzidakis announced, for the granting of a five-year residence permit to citizens of third countries (Golden Visa), from March 31 this year the following conditions will apply:
-In the region of Attica, the regional units of Thessaloniki, Mykonos and Santorini and on the islands with a population of over 3,100 inhabitants, the value of the real estate that the interested party must own increases to 800,000 euros. In the rest of the country, the value of real estate is 400,000 euros. In any case, the investment must be made in one property (not in several properties of lesser value) with an area of at least 120 sq.m. It is allowed to purchase a percentage of a property in undivided co-ownership, the minimum value of which is respectively 800,000 and 400,000 euros.
It is typical that these areas are a “magnet” for foreign investors. For example, the northern and southern sector of Attica (especially the part of the coastal Riviera), the center of Thessaloniki, Mykonos and Santorini. Today the limit of 500,000 euros applied to areas of the Northern Sector, namely Penteli, Kifissia, Metamorfosi, Chalandri, Agia Paraskevi, Vrilissia, Nea Ionia, Heraklion, Cholargo, Papagou, Pefki, Lykovrysi and Maroussi. In the Southern Sector, respectively, in the municipalities of Agios Dimitrios, Alimos, Glyfada, Hellinikon-Argyroupoli, Kallithea, Moschatou-Tavros, Nea Smyrni and Palaio Faliro and in the Central Sector the Municipalities of Athens, Philadelphia-Chalkidona, Galatsi, Zografou, Kaisariani, Byron, Ilioupoli , Dafnis Ymittou. In Piraeus, for example, prices have skyrocketed recently, with sales registering an explosive rise.
In the other provisions of the legislative regulation, the following are provided for:
-For buildings that currently have a different use and are converted into residences, the minimum investment amount is 250,000 euros. The conversion of use must be completed before submitting the request for the residence permit.
– The limit is also set at 250,000 euros if it is an investment in a listed building that is to be restored. According to real estate market executives, the exemption for listed properties, which will have a lower minimum investment threshold, is intended to incentivize foreign investors to invest in the specific property category, which requires capital to develop. Today, many owners are unable to undertake the enormous costs of restoring a listed building, with the result that these buildings, in a large percentage, have fallen into a bad state.
-Residence permits can be renewed for the same period of time (five years), as long as the real estate remains in the ownership of the investor. If it is an investment in a listed building, an additional condition for the renewal of the residence permit is that the restoration of the building has been completed. If the investor sells the property, then his residence permit is revoked and the buyer becomes entitled to obtain a residence permit.
-Investors can rent out the buildings they acquire, but they are not allowed to be made available through short-term leases, while in cases of conversion to a residence, their use as a company headquarters or branch is also prohibited. In case of violation, the residence permit is revoked and a fine of 50,000 euros is imposed.
-In addition to the purchase of real estate, citizens of third countries also obtain a residence permit by concluding a long-term complex tourist accommodation contract or a tourist accommodation timeshare contract, corresponding to the value per region (800,000 euros in Attica, etc., 400,000 euros in the rest of the country, etc. .etc.).
According to Mr. Hatzidakis, in order not to disrupt the operation of the market, a transitional period is foreseen with the following conditions:
Third-country nationals who will pay the price, or pay a 10% advance, or sign a pre-contract or private purchase agreement, proving the relevant credits by September 30 this year, can complete their investment by December 31 this year with the conditions that have been in effect until now. In these cases, if the purchase of the property is not completed, the buyer can complete his investment in another property, always with the conditions that applied until now, but in any case not after April 30, 2025.
Based on real estate market executives, last year the Greek Golden Visa was the most sought after globally. This is supported by the figures of the Ministry of Immigration Policy, according to which throughout 2023 the demand hit “red”, as the requests (initial grant and renewal) reached 10,214, recording a 5-year high. At the same time, in the last 12 months, 5,701 permanent investor licenses (4,231 initial and 1,470 renewals) were issued, based on the decision date for applications submitted from 2018 to December 2023. It is estimated that investments of at least 1 billion euros were made in one year, given that 4,231 permanent investor licenses were issued, corresponding to the same number of real estate sales, with a minimum amount per transaction of 250,000 euros. In addition, 8,800 applications are pending.
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