Is Greece’s Golden Visa still attractive and a good option?

Golden visas granted by EU countries are gradually being phased out or are being redesigned to either exclude investment in residential property or make such investments more expensive. The process begun with the Portuguese Programme and was followed by the Greek and Spanish ones.

There seems to be a deep conviction among politicians that Golden Visa programmes drove demand and values up, something which is only partly true and applies only to specific areas, and that suspending investments in residential properties in their totality will somehow help in containing or even in reducing housing prices. Experience, however, shows that housing prices keep on rising even when demand coming from Golden Visa applicants diminishes to zero in the affected areas.

Essentially, the provisions coming into force in Greece on the 1^st of September mean that applicants have 3 options:

1. either they will invest in properties having a price of €800,000 or
2. €400,000 depending on location or, even,
3. invest in redeveloped properties having a minimum price of €250,000.

All Golden Visa properties cannot be rented out on a short-term basis but can only be used for long term rentals and own use. Moreover, properties coming under the €800,000-400,000 range cannot have an area of less than 120sqm (presumably of net covered area excluding common use areas). In other words, investing in multiple small housing units is not allowed.

The above provisions mean that:

1. Securing a satisfactory yield from the 800-400k properties will be difficult since units having an area of 120sqm or more are not in much demand, thereby commanding lower rental values and experiencing longer vacant periods.
2. The potential for a satisfactory yield is more likely to come from the 250k properties, (which will most likely come at a price tag of 300k+) depending on location and amenities, especially for centrally located buildings.

It must of course be said that demand for properties in the €800-400k range will be minimal, if any. The fact that Portugal and Spain have removed investments in property from the requirements for securing a golden visa, gives the Greek one a competitive edge, but it is unlikely that people will spend €400k or, more so, 800k for the purpose.

The €250k option will attract considerable interest but supply is expected to be very limited in the foreseeable future due to the following:

1. The redevelopment of existing buildings comes with a host of issues such as complex town planning considerations, compliance with energy efficiency and earthquake resistance requirements and hence, the ease of securing solid redevelopment permits. Moreover, such buildings are old and usually burdened with problems relating to multiple ownership, the non-payment of taxes and/or non-performing loans. These issues will need to be settled before redevelopment takes place, usually a daunting task.
2. These buildings were built for a different use. They will be either commercial or industrial in most cases which means their structural frame will be different from that required for residential use. It could well be that securing a building permit will neither be easy nor cheap.
3. Investing in such a property for securing a golden visa comes with the requirement that these properties be completed before applying. The question here is whether a developer would postpone the sales of such property until they are finished, at a time when demand coming from the local market is likely to be strong with sales with taking place during construction. It could be that applicants for a golden visa either must buy leftovers or will need to pay a higher price due to the delay in buying. Of course, applicants can buy such properties during construction and wait to apply when they are finished, but this will mean that securing a golden visa might take years.

So, is the Greek Golden Visa still on the cards? Is it worth it?

The golden visa programme of Greece is still a sound option in our opinion, even though it has become harder to get as redeveloped properties are currently in very short supply.

The other options in the EU require applicants to invest good money in recently set up Funds of questionable reliability with no track record in places like Portugal, Spain, and Hungary. What happens if a Fund goes bust? Will Golden Visa holders be required to re-invest because their chosen investment became zero?

Proposed course of action

The best way forward for potential applicants is to try to find a property priced at around €250-300k now and before the 31^st of August 2024. It is not easy to find such properties which tick all the boxes, but the alternative could be much more expensive and/or will require much more time in securing the Golden Visa.