The consequences of the launch of granting Golden Visa to investors from third countries are analyzed in a German publication Handelsblatt. While 4,231 permits were granted to wealthy foreign investors in 2023, with the blessings of the Mitsotakis government, rents have soared for citizens as the EU warns of security risks and money laundering.
The Handelsblatt publication makes a special reference to investors from Chinaas tthe 61% of golden visas for Greece have been issued for citizens of that country. They are followed by investors from Turkey (6%), the Lebanonthe Iran and the Britain.
“EU countries grant visas to investors from third countries who invest money in real estate, thus attracting billions in investment. As a result, apartments are becoming unaffordable for citizens in many areas.”notes Handelsblatt.
“According to calculations by the Greek central bank, the prices of apartments in Attica have increased by 71% since 2017. Rents have risen as much as 56% over the past five years. According to a study, there is currently a shortage of 212,000 apartments in Greece.” the publication points out.
The increase in rents is not the only reason why the granting of Golden Visa. “Critics say this turns the right to stay in the EU into a luxury that can be bought for the rich. This practice it also facilitates money laundering. As a result, many EU countries have stopped granting visas to real estate investors in recent years,” reports Handelsblatt.
“THE Transparency International calls for an end to the Golden Visa programs. They have “turned the right to stay in the EU into a luxury good that anyone with enough money can buy”, criticizes non profit organization, which fights corruption worldwide”. “The schemes are also controversial because of the effects they cause on the property and housing market. Last year, the Golden Visa program already accounted for seven percent of all real estate transactions in Greece.
THE government Mitsotakis however, she sticks to her schedule, setting a new record. In 2023 he issued 4,231 residence permits to property buyers from outside the EU. This was almost double the number from the previous year. Greece introduced the program in 2013, at the height of the sovereign debt crisis. Its purpose was to revive the real estate market, which had been particularly affected by the crisis. Since the start of the program eleven years ago, Greece has issued 22,298 residence permits”noted among others.
Handelsblatt then writes that the Commission: “identifies security, money laundering, tax evasion and corruption risks with the golden visa. This has consequences for the Union as a whole, “as the residence permit gives the right to free movement within the Schengen area,” explained a representative of the Commission in response to a question from the German newspaper.
“But Brussels can do nothing more than warn. The Commission’s hands are tied as residence rules are subject to national legislation’is also noted.
“The schemes are also controversial because of the effects they cause on the property and housing market. Last year, the Golden Visa program already accounted for seven percent of all real estate transactions in Greece. About 170,000 apartments are currently rented out on portals like Airbnb on a short-term basis. There is a lack of them in the normal housing market. Therefore, average wage earners find it difficult to find affordable housing”the article concludes.
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