Greece is poised to make significant changes to its Golden Visa Program, likely eliminating the real estate investment option starting January 1, 2025. This decision aims to address the country’s ongoing housing crisis and follows similar moves by Portugal and Spain to prioritize housing affordability over investment-driven residency programs.
Key Takeaways
- Greece plans to eliminate the real estate route to its Golden Visa by 2025.
- The focus will shift to investments in startups, with a minimum investment of โฌ250,000.
- New requirements will include job creation and limits on equity participation.
Background of the Golden Visa Program
The Golden Visa Program has been a popular pathway for foreign investors seeking residency in Greece, primarily through real estate investments. However, this route has contributed to rising housing costs and a shortage of affordable housing for locals. In response, the Greek government is looking to reform the program to better align with the needs of its citizens.
Proposed Changes to the Program
The new tax bill introduced by the Ministry of National Economy and Finance outlines several key changes:
- Elimination of Real Estate Investment: The real estate investment option will be removed, making way for a new focus on startup investments.
- Startup Investment Requirements: Investors can obtain residency by investing a minimum of โฌ250,000 in startups registered in the National Register of Startups (Elevate Greece).
- Job Creation Mandate: The invested company must create at least two new jobs within the first year and maintain this workforce for a minimum of five years.
- Equity Participation Limit: Investors can hold no more than 33% of the companyโs capital or voting rights.
Economic Impact and Future Outlook
Despite the impending changes, interest in the Golden Visa Program remains robust. In 2023, foreign investments through the program are expected to exceed โฌ3 billion, a significant increase from previous years. The governmentโs shift towards startup investments is seen as a way to foster innovation and create jobs, while also addressing the housing crisis.
Comparison with Other European Nations
Greece’s decision to eliminate the real estate route aligns with similar actions taken by Portugal and Spain. Both countries have recognized the need to prioritize housing as a fundamental right rather than a speculative commodity. Portugal’s recent reforms and Spain’s elimination of the real estate-based Golden Visa program reflect a growing trend across Europe to ensure housing affordability for residents.
Conclusion
As Greece prepares to implement these changes, the focus will shift from real estate to more productive investments in startups. This move is expected to not only alleviate the housing crisis but also stimulate economic growth through job creation and innovation. The proposed changes are set to be debated in the Greek Parliament soon, with expectations for swift approval given the current government’s majority.
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