Greece Golden Visa: Investors now need Rs 8 cr for property in major cities

Greek Prime Minister Kyriakos Mitsotakis recognised the housing shortages, especially in Athens, but said the government remains focused on attracting investors

If you were planning to get a Greece Golden Visa in major cities at a reasonable price, you've missed the bus. As of September 1, Greece has raised its foreign investment threshold from €500,000 to €800,000 in prime locations like Athens, Mykonos, and Santorini. "The increase in property investment is a major setback for Indian investors, as it now amounts to around Rs 8 crore," said Varun Singh, managing director at XIPHIAS Immigration, an immigration consultancy, told Business Standard.

Greek Prime Minister Kyriakos Mitsotakis addressed the severe housing shortages in the country, particularly in Athens, and acknowledged the pressure on rental markets. However, he confirmed that the government is still keen to attract investors. Official figures show that Greece secured €4.3 billion in investments from the visa programme between 2021 and 2023.

 

Indian investors move fast before changes

Indian investors were quick to act before the price hike, snapping up properties in Greece at a record pace. According to Cyprus-based Leptos Estates, property purchases by Indians surged by 37 per cent between July and August, as many rushed to secure permanent residency ahead of the changes, according to the Greek government.

Varun Singh said, " exact number of Indian applications for the Greece Golden Visa is hard to track since data isn't shared by the Ministry of External Affairs. However, there have been up to 200,000 applications for Golden Visas from Dubai and India, most of which are from Indian applicants aiming for Greece.”

What is the Golden Visa programme?

The Golden Visa programme was introduced by several eurozone countries in 2012 to plug budget deficits during the European debt crisis. Countries like Spain, Ireland, Portugal, and Greece, which needed bailouts, saw this as an opportunity to attract investors while revitalising their struggling real estate markets. In exchange for investments in real estate, government bonds, or other approved sectors, the programme offers residency or citizenship.

Wealthy Indians have increasingly sought these visas for second homes in Europe, drawn by the benefits of rental income, access to European healthcare and education, and the ability to establish businesses in the EU.

According to a March 2024 report by the Institute of Labor Economics, visa programmes like this have boosted economic development in the countries offering them. But the report warns that governments must “strike a delicate balance between reaping economic benefits and safeguarding against potential risks,” including concerns about money laundering and the gentrification of local communities.

What are the benefits of the Greece Golden Visa?

Henley & Partners outline several benefits for the Greece Golden Visa:

— Visa-free travel within Europe’s Schengen Area

— No requirement to reside in Greece

— Residence permits can be obtained within 90–120 days

— Residence permits have no expiry date

— Opportunity to rent out the investment property

— Residence applies to the whole family, including spouse, children under 21, and parents of the main applicant and spouse

— Eligibility to apply for citizenship after seven years of residence

— Ability to hold shares and receive dividends from a company registered in Greece, although applicants cannot be employed in the country

Why is the Greece Golden Visa appealing to Indians?

"The Greece Golden Visa has been appealing due to its affordable property options near beaches, and the freedom of movement across Europe with minimal stay requirements. Until recently, Greece was the cheapest option in Europe for such a visa, making it attractive to Indian investors," says Singh.

He adds, "However, Cyprus, offering a similar visa for €350,000, is now a more competitive option for those seeking a more affordable path to European residency."

How does the Greece Golden Visa work?

The Greece Golden Visa grants residency in exchange for property investment, with minimal stay requirements (just seven days per year). The visa also offers free movement across the European Union, making it an attractive choice for those looking for both property and European access.

Key options for qualifying:

Real estate investment in one of the following zones, according to  Henley & Partners:

— EUR 250,000 for investment in the conversion of commercial properties into residential use or restoration of listed buildings, regardless of location or size

— EUR 400,000 for property purchases with a minimum size of 120 sqm

— EUR 800,000 for properties in Athens, Thessaloniki, and islands with more than 3,100 inhabitants

Alternative qualifying options include:

— 10-year time-sharing or lease agreement for hotel accommodation or furnished tourist residences

— Fixed-term deposit of at least EUR 500,000 with a Greek credit institution

— Capital contribution of at least EUR 500,000 in a public limited real estate investment company or similar entity

— Purchase of Greek government bonds worth at least EUR 500,000

— Purchase of shares, corporate bonds, or government bonds traded in Greece worth at least EUR 800,000

— Purchase of shares or stocks worth at least EUR 350,000 in a mutual fund dedicated to investing in Greece