On 25 September 2024 the Greek Ministry of Migration & Asylum issued Circular 9 (AΠ240076) which provides important clarifications on the conditions governing real estate investments under the Golden Visa Program, particularly for obtaining a permanent residence permit through such investments. The circular is based on Law 5038/2023, which was further amended by Article 64 of Law 5100/2024.
For more context, read our previous article on the legal updates to Greece’s Golden Visa program and the transition period here. This article detailed the initial updates and outlined the transitionary framework for investors.
Key Clarifications from the Circular:
Investment Thresholds:
- In high-demand areas, such as Attica, Thessaloniki, Mykonos, Santorini, and islands with over 3,100 residents, the minimum investment in real estate is set at €800,000.
- For all other regions, the minimum investment is €400,000.
Single Property and Minimum Surface Requirement:
- All investments must now be made in a single property. The previous option allowing the combination of multiple properties to meet the minimum investment threshold is no longer permitted.
- The property must have a minimum area of 120 sq.m., though this requirement does not apply to undeveloped plots of land.
- Auxiliary spaces like storage rooms or parking spaces can count towards the overall investment if purchased as part of the same transaction and within the same building. However, these spaces do not count toward the 120 sq.m. minimum area requirement.
Residential Conversions:
- Non-residential properties that are converted for residential use are eligible with a minimum investment of €250,000, and there is no restriction on the surface area.
- The property must be converted before the Residence Permit Application is submitted, and the conversion must occur from April 5, 2024, onwards. The conversion may be carried out by either the buyer or the seller.
- Industrial buildings or parts of industrial buildings or a plot of land within which an industrial building is located, that has not been operational for at least five years also qualify, provided that their use is converted to residential.
- For investments in industrial buildings or parts of industrial buildings (or a plot of land where an industrial building is located), properties resulting from interventions, or additions of extra floors or extensions of the industrial buildings are also eligible, provided their use is changed to residential.
- The construction of new independent buildings on plots of land where industrial buildings are located also qualifies, as long as the industrial buildings’ use is changed to residential.
- Properties converted to residential use under the €250,000 investment option cannot be used as business headquarters or branch offices.
Listed Buildings
- Investments in listed (protected) buildings undergoing restoration or reconstruction are eligible with a minimum investment of €250,000.
- There is no restriction on the surface area for such properties.
- Properties resulting from interventions or additions of extra floors or extension of listed buildings to be restored or reconstructed, or the addition of new independent buildings to plots or land on which there are listed buildings to be restored or reconstructed, are also included.
- The restoration or reconstruction must be fully completed before the investor can renew their residence permit. If the property is sold before the work is finished, the transaction is invalid.
Restrictions on Short-Term Leasing:
- Property acquired under the Golden Visa Program can no longer be leased or subleased on a short-term basis (up to 60 days), via platforms such as Airbnb.
- Long-term leasing or subleasing to tourism-related businesses for commercial use (e.g., hotels) is allowed, provided it complies with relevant conditions.
The prohibition on short-term rentals does not affect current Golden Visa holders under the previous provisions, nor does it apply to investors who made a 10% advance payment of the total purchase price by August 31, 2024, and complete the purchase by December 31, 2024.
Penalties for Non-Compliance:
- Violations of the provisions, such as unauthorized use of properties for short-term rentals or business purposes, can lead to fines or revocation of the residence permit.
Next Steps:
Further circulars and Joint Ministerial Decisions are expected to provide additional clarifications, particularly in response to questions from stakeholders regarding the implementation of these provisions.
Our Immigration and Real Estate Teams are closely monitoring these developments and are here to assist you at every step of the process, ensuring that your investment aligns with all necessary requirements.
