On Monday 2nd September 2024, Greece implemented new 'Golden Visa' rules as part of the government's initiative to strengthen its housing policy.  From today, foreign nationals, specifically those outside the European Union, who wish to obtain a five-year residence permit in Greece, will need to invest in real estate worth at least €800,000, as oposed to the previous threshold of €500,000.  However, this applies to specific regions, with the minimum investment set at €800,000 for properties of at least 120 Sq. metres, up from the €500,000 previously.  This new threshold applies to the following regions: Attica, Thessaloniki, Mykonos, Santorini and islands with more than 3,100 inhabitants.  For all other areas of the country, the threshold is lower at €400,000, compared to the previous threshold of €250,000.

The minimum threshold of €250,000 remains in two cases only.  If a foreign investor wants to buy a property that currently has a different use, industrial for example, and wishes to convert it into residential use, or if they are investing in a listed building, which they will undertake to renovate and restore.

The Greek 'Golden Visa' programme has witnessed a significant uptake in investment from British, American and Israeli investors over the past year.  Official figures from the Misistry of Immigration and Asylum reveal substantial increases in initial permanent permits issued.  The United Kingdom's exit from the European Union has undoubtedly played a crucial role in the rise of British investors.  In addition to purchasing a high-quality property compared to Italy, Spain or the South of France, UK buyers can also obtain a residence permit, allowing them and their family members to enter and exit the EU freely.  This element has gained significant importance for many non-EU investors.  The biggest increase of 'Golden Visa's' is recorded by investors from Israel.  This is an obvious shift towards the safety of the Greek market, mainly due to the war situation in the wider middle east region.

For the local real estate market, more than 900,000 properties remain vacant and underutilized across Greece, according to real estate experts. Many of these properties are tied up in legal disputes, owned by the government, banks or institutional creditors. These properties, particularly in urban areas such as Athens and Thessaloniki, are exacerbating the country’s ongoing housing crisis, where demand far outstrips supply, driving prices upward.  The general secretary of the Real Estate Association, highlighted that 500,000 properties are abandoned inheritances or have been disclaimed, while another 400,000 are held by banks due to debt.  The situation is particularly dire in Athens, where more than 5,000 homes are tied up in unresolved legal disputes, often stemming from inheritance claims.  This bottleneck limits housing availability at a time when demand continues to rise.

Monday 11th November 2024 - Greece is likely to terminate the real estate investment option from its 'Golden Visa' Programme starting 1st January 2025, in an effort to address the country's escalating housing crisis.  This move would make Greece the third European country, following Portugal and Spain, to abolish this pathway to residency due to similar housing concerns.  The investment deadline was extended at Christmas to February 2025.