In a move aimed at addressing the pressure on rental prices, the Greek government plans to raise the minimum investment required for foreign property buyers to obtain a Golden Visa in areas with elevated rental rates. Prime Minister Kyriakos Mitsotakis announced on Friday that discussions were underway to increase the investment threshold to cover regions experiencing significant rental market strain.
Already, Greece has doubled the amount needed to secure a Golden Visa through property investment in popular destinations like Athens, Thessaloniki, Mykonos, and Santorini. Prospective investors must currently spend a minimum of €500,000 to access the program in these areas. In the rest of the country, the requirement remains at €250,000.
While the exact amount of the forthcoming increase was not stated, Mitsotakis indicated that in cities and islands grappling with housing market pressure, the threshold could rise to as high as €800,000. Conversely, in locations with stable rent prices, the requirement could remain at €250,000.
Since the introduction of the Golden Visa program in 2013, Greece has received over 25,100 applications and granted 17,184 permits to foreign buyers seeking to reside in the country. Chinese investors accounted for nearly 60% of all visas issued, followed by Turkish investors at 7%.
The program has proven lucrative for the Greek state, contributing "more than €2 billion since it started," according to Mitsotakis. As a result, residential property prices in Athens have soared in recent years, driven by foreign investor interest, the country's economic recovery, and the affordability of the Golden Visa program. These price spikes have, in turn, led to increased rental rates. Bank of Greece data reveals that the price index for residential property in the Greek capital rose by 11.9% in the third quarter of 2023 compared to the same period the previous year, with previous quarters experiencing even higher increases.
The surge in tourism has further exacerbated the housing crisis for locals, as property owners turn to short-term rental platforms like Airbnb. In response to this mounting issue, the Greek government initiated a program last year wherein low-interest or interest-free loans are extended to individuals under 39 years old seeking to purchase their first property.
By increasing the investment threshold in areas with high rental demand, the Greek government hopes to ease the strain on the housing market and create more affordable conditions for locals seeking accommodation. The forthcoming changes will likely shape the Golden Visa landscape, making it more exclusive and aimed at attracting higher-value investments to regions where rental prices are particularly burdensome.