In a long-awaited move, the Greek government has unveiled its revised golden visa program, introducing significant changes to the real estate investment thresholds. Amidst weeks of speculation and anticipation, the Ministry of Finance has finally shed light on the updated rules, setting the stage for potential shifts in the country's investment landscape.
Overview of the New Rules
The revamped golden visa program introduces a tiered pricing structure, with investment thresholds varying based on geographical regions and property types.
Here's a breakdown of the key elements:
Price Tiers: Greece will now feature two distinct zones with different investment requirements:
EUR 800,000 threshold: Applicable to select high-demand areas such as the Administrative Region of Attica, Thessaloniki, Mykonos, Santorini, and islands with a population exceeding 3,100 inhabitants.
EUR 400,000 threshold: Applicable to all other regions across Greece.
Exceptions to Price Tiers: Two crucial exceptions have been outlined, allowing investors to qualify for the golden visa program at lower investment thresholds:
Conversion of commercial properties: Investors can acquire commercial properties for EUR 250,000 and convert them into residential units to meet the eligibility criteria.
Restoration of listed buildings: Investors can undertake the full restoration or reconstruction of properties in listed buildings, qualifying for the golden visa program with a minimum investment of EUR 250,000.
Property Use Restrictions: Golden visa investors are prohibited from engaging in short-term rentals (e.g., Airbnb) and using properties acquired through commercial-to-residential conversions as registered company headquarters. Non-compliance with these restrictions may result in permit revocation and administrative fines.
Transitional Period and Consequences
To facilitate a smooth transition, the government has provided a grace period for applicants to qualify under the current thresholds. Investors who pay a 10% investment deposit before September 30th and complete their investments by the end of 2024 can still benefit from the existing pricing tiers.
Market Implications and Developer Strategies
Industry experts anticipate a shift in investor preferences and developer strategies in response to the new rules. With the lower investment thresholds for property conversions and restorations, developers are expected to pivot towards these categories to attract investors seeking golden visa eligibility at reduced costs.
While the changes may initially pose challenges for some stakeholders, they also present opportunities for revitalizing derelict properties and driving economic growth through renovation projects. Developers and funds are poised to adapt to the new regulations by leveraging the exceptions to their advantage.
Conclusion
The unveiling of Greece's revised golden visa rules marks a significant milestone in the country's investment landscape. As investors navigate the evolving regulatory environment, strategic adaptation and informed decision-making will be essential to capitalize on emerging opportunities and secure residency through the golden visa program.
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