Buying property in Greece as part of the Golden Visa scheme
Buying property in Greece is not only attractive because of its picturesque nature and mild climate. The country has a programme for obtaining a residence permit in exchange for an investment, which offers various investment opportunities.
The Golden Visa scheme has been in place in Greece since 2013, and in 2023, there were changes to the rules for participation in the scheme. As a result, the investor does not have to be physically present in the country to process the documents. The application and all associated procedures are remote.
There are several restrictions aimed at slowing the growth of property prices. For example, the government wants to make homeownership affordable for foreigners and local citizens. The updated rules of the program propose:
1. Raising the minimum investment threshold to €500,000 for some regions. The list includes popular destinations such as Athens, Mykonos and Thessaloniki.
2. A foreigner can obtain a residence permit by signing a 10-year lease in a hotel or other establishment. The primary condition is that the contract must be at least 250,000 euros. You can also invest in a local investment fund in the Greek property market. The investment must be 400 thousand euros.
3. Another way to participate in the program is to buy government bonds for at least 400 thousand euros. The securities should mature in 3 years.
4. Buying shares and bonds listed on the Greek Stock Exchange for 400 thousand euros is also possible. The amount for corporate or government bonds starts at 800 thousand euros.
The new conditions came into force at the beginning of 2024, followed by a transitional period.
How the Golden Visa affects the property market
The popularity of the investment scheme is driving up property prices in Greece. According to Global Property, property values rose by 15.3% in the first quarter of 2024. The price increase for the second quarter was more than 14%. In addition, the sector is experiencing a serious gap between the asking price and the actual amount sold. The indicator is in the range of 15-25%.
Foreigners’ demand for property is encouraging sellers to raise prices. In addition, prices on the secondary market have almost caught up with prices for new buildings.
Housing prices in the country vary according to the location:
– the cost of a square metre in Athens ranges from 2,000 to 3,6,000 euros;
– an apartment or house in Thessaloniki costs an average of 3,000 euros per square metre;
– in Piraeus, apartments range from 1.7 to 2 thousand euros per square metre.
When buying property in Greece, you should also take into account the cost of various fees and taxes.