Earlier this year, the Greek government announced a substantial modification to its Golden Visa Program. The investment threshold for obtaining a residence permit has been increased to €800,000 for properties in Attica, Thessaloniki, and all islands with populations exceeding 3,100 inhabitants. This change, set to take effect on September 1, 2023, prompted a surge in real estate transactions as foreign investors from non-EU countries rushed to secure permits under the previous thresholds of €250,000 or €500,000.
Since its inception in mid-2014, the Golden Visa Program has attracted significant foreign investment. Based on the number of approved and pending permits, the total count of non-EU investors who have received or are soon to receive a Golden Visa is projected to reach 26,370. This influx of foreign investment translates to an estimated capital inflow of at least €6.6 billion, underscoring the program’s economic impact on Greece.
The program’s popularity has skyrocketed in recent months, with over 10,000 applications submitted in the past 18 months alone. This unprecedented demand has led to considerable processing delays. According to data from January to June 2023, there are currently 9,407 pending applications, with 5,330 of these submitted in 2023 alone. These figures highlight the extent of the backlog and the challenges faced by the Greek authorities in managing the program’s success.
As the Golden Visa Program evolves, it continues to be a significant driver of foreign investment in Greece, while also presenting administrative challenges that authorities must address to ensure its sustainable success.
Evolving Yet Still Compelling
The Greek government’s introduction of incentives for heritage building restoration and the conversion of non-residential structures into homes represents a commendable effort to align investment incentives with broader social and economic objectives. This strategic move aims to mitigate the program’s inflationary impact on housing prices while continuing to attract substantial foreign investment.
For investors seeking a more streamlined approach to obtaining a Golden Visa without the complexities of real estate investment, the Greek government has expanded and enhanced alternative options. One such option is the time deposit scheme, which now requires a minimum investment of €500,000.
The time deposit option operates by allowing investors to place funds in one of Greece’s four systemic banks. This investment not only qualifies for the Golden Visa but also yields returns in the form of interest, with rates determined by prevailing market conditions.
For those preferring not to engage in banking-related investments, an equally attractive alternative exists. Investors can opt to purchase €500,000 worth of Greek government bonds, an option that presents its own set of financial advantages.
These diversified investment pathways demonstrate Greece’s commitment to maintaining the Golden Visa Program’s appeal while adapting to evolving economic needs and investor preferences. By offering a range of investment options, Greece continues to position its Golden Visa Program as a flexible and attractive proposition for international investors seeking residency in a European Union member state.
Advantages of the Term Deposit Option
Remote Account Opening:
This option offers the convenience of remote bank account activation, eliminating the need for investors to travel to Greece. The process can be completed entirely online, allowing for seamless account setup from anywhere in the world. Furthermore, the account supports a full range of online transactions, enabling effortless management of funds.
Low-Risk Investment with Competitive Returns:
The term deposit option presents a low-risk investment opportunity. Upon depositing €500,000 into a Greek bank account, investors can benefit from the current benchmark one-year deposit rate, which stands at approximately 1.2%. This competitive interest rate ensures a steady return on investment while maintaining capital security.
Flexibility and Continuous Residency Rights:
A key advantage of this option is its flexibility. Investors have the freedom to withdraw their deposit at any time without jeopardizing their residency status. As long as the required funds remain in a Greek bank account, investors retain their Greek residency permit, offering peace of mind and financial adaptability.
Streamlined Application Process:
The term deposit route boasts a simplified procedure compared to other investment options. Notably, investors can expect to receive their residence permit within a remarkably swift timeframe of just three months, significantly reducing bureaucratic delays and allowing for quicker establishment of residency in Greece.
