Extra rules for Golden Visa
Additional limitations will apply, concerning minimum property area and utilization
The government is finalizing its changes to the Golden Visa program, which will now be addressed to a significantly smaller number of investors. Kathimerini understands there will be several and significant changes.
First of all, in Attica, Thessaloniki and on all islands with over 3,000 inhabitants, the minimum amount of investment for the five-year residence permit will increase to 800,000 euros. Today, a limit of €500,000 applies only to the center of Athens and its northern and southern suburbs, the Municipality of Thessaloniki, Mykonos and Santorini. So areas like Evia, Crete and all the popular island destinations will now have the high threshold of €800,000.
Across the rest of the country the threshold will also rise to €400,000 from the current €250,000, in an effort to avoid the concentration of all demand in a few places across Greece, resulting in sharp increases in house sale prices. The only case where the €250,000 limit will apply will be listed properties and buildings, to incentivize investors to give new life to properties currently unused.
Another important parameter is that purchases will only be accepted for properties with an area of at least 120 square meters.
Investors will also be prohibited from utilizing properties through digital short-term rental platforms. It seems, therefore, that the Finance Ministry is trying to close every possible loophole for utilization through short-term rentals. One could buy, for example, a large apartment and configure it in such a way that it can be used for short-term rental. The large area parameter remains, however, so that foreign investors do not directly “compete” with domestic investors, who as a rule prefer smaller properties.
However, as experts point out, short-term lease usage concerned only 5-10% of the properties bought by foreign investors from third countries. The main reason is it requires active management, which costs money and certainly reduces potential revenue, so most people prefer long-term rental.
