Greece's Golden Visa program now has a much higher investment barrier. The program's initial success was greatly influenced by its minimum property investment requirement of €250,000, which was among the lowest in Europe.

This low entry point made Greece an attractive destination for investors, leading to a substantial influx of capital into the Greek real estate market. Now, the investment threshold for Greece’s Golden Visa program has been hiked from €250,000 to €800,000.

The Greek Golden Visa program, introduced in 2013, has been instrumental in attracting foreign investment to Greece by offering residency permits in exchange for property investments. This program allows non-EU nationals to obtain a five-year residency in Greece, with the added benefit of visa-free travel within the Schengen Area, making it particularly appealing to investors seeking access to Europe.

The program not only helped stabilize the market post-economic crisis but also spurred development in key areas such as Athens and the islands. However, this popularity also contributed to rising property prices, prompting the recent decision to raise the investment threshold​.

The decision to raise the investment threshold for Greece’s Golden Visa program from €250,000 to €800,000 was driven by several significant factors.

Initially, the low threshold attracted a substantial number of foreign investors, boosting the Greek real estate market. However, this influx also led to a dramatic increase in property prices, particularly in sought-after regions like Athens, Thessaloniki, and the popular islands of Mykonos and Santorini. This price surge has made it increasingly difficult for local citizens to afford housing, exacerbating a housing crisis in some areas.

In response, the Greek government aims to balance the benefits of foreign investment with the need to ensure housing affordability for locals. By raising the threshold, the government hopes to redirect investment toward less crowded areas, promoting more sustainable and equitable growth across the country.

Starting in September 2024, Greece’s Golden Visa program has witnessed a significant increase in the minimum investment threshold. The new requirement sets the investment at €800,000 for high-demand areas, including Athens, Thessaloniki, Mykonos and Santorini.

This change reflects the government’s effort to balance the booming real estate market with local housing needs.

From September 1, 2024, new rules have taken effect for Greece’s Golden Visa program, marking a shift in the minimum investment thresholds for real estate investments. These changes reflect the Greek government’s effort to manage foreign investment while promoting regional development and addressing housing challenges.

Key Changes from September 2024

Two Investment Zones: The program now features two tiers for property investment: €800,000 for properties located in high-demand areas, including Athens, Thessaloniki, and popular islands like Mykonos and Santorini and €400,000 for properties located in other regions of Greece.

Focus on Heritage and Urban Renewal: Investors can still qualify for the lower €250,000 threshold if they invest in heritage buildings or properties that are converted from commercial to residential use. This is aimed at promoting cultural preservation and urban revitalization.

Prohibitions on Short-Term Rentals: Properties acquired under the Golden Visa program can no longer be used for short-term rentals like Airbnb. This move aims to reduce the pressure on the local housing market, ensuring properties contribute to long-term residential supply.

Single Property Investment: Investors are now required to focus their investment on a single property, streamlining the process and ensuring more impactful investments.

These adjustments reflect a strategic approach to balancing foreign investment with local housing needs. Investors who had begun their process under the previous rules and met the required conditions by August 31, 2024, are allowed to complete their transactions under the old €250,000 minimum until December 31, 2024, or transfer their investment to another property by April 30, 2025.

Implications for Investors and the Future of the Program

The recent increase in Greece’s Golden Visa investment threshold, effective from September 1, 2024, will likely reshape the program’s attractiveness, especially when compared to other European schemes.

Greece has traditionally been favored for its relatively low entry point, but the rise in minimum investment amounts—€800,000 in high-demand areas and €400,000 in less sought-after regions—may lead some investors to explore alternatives, such as Portugal or Spain, which offer competitive residency programs with lower thresholds.

While the previous €250,000 threshold was available to investors who met specific conditions before August 31, 2024, its discontinuation marks a new era for Greece’s program.

In the short term, Greece might see fewer new applicants, particularly in prime locations like Athens and Santorini, where the investment minimum has nearly tripled. However, the €400,000 threshold in less populated regions may attract interest, redirecting investments toward areas previously overlooked, potentially sparking growth in those regions.

For investors focused on cultural and heritage projects, the €250,000 threshold remains an option under stricter conditions, which may help preserve some appeal of the program.

Nonetheless, Greece’s revised visa program may experience a slowdown as investors adjust to the new framework and consider other options across Europe​.

Greece’s Golden Visa: A Strategic Opportunity for Indian Investors

For Indian investors, the upcoming changes to Greece’s Golden Visa program offer both challenges and new opportunities. The increase in the investment threshold may seem substantial, but it opens doors to one of the most sought-after destinations in Europe. This program provides access to residency in Greece, coupled with visa-free travel across the Schengen Area, making it an attractive proposition for those looking to expand their global presence.

Indian investors, known for their strong inclination towards real estate investments, may find this program aligns well with their wealth-building strategies. While the higher threshold might prompt some to consider other European countries with lower entry points, the allure of Greece’s stable economy, rich culture, and strategic geographic location remains strong.

Additionally, the transitional phase allowing investors to still take advantage of the old threshold presents a time-sensitive opportunity to act quickly and secure a more affordable entry into the European market. For those seeking long-term value and a foothold in Europe, Greece’s Golden Visa program continues to offer significant benefits despite the new financial requirements​.

Conclusion

The increase in Greece’s Golden Visa investment threshold is poised to reshape the future of the country’s real estate market, potentially driving more balanced regional development. While the program may lose some of its former appeal, the changes could lead to a more sustainable and equitable growth model.