People in the real estate market express their concern that Golden Visa will lose its… luster in the face of the changes.
They strongly react to the new order of the Ministry of National Economy and Finance, as, as they say, investors will leave Greece and head to countries with lower thresholds for obtaining golden visas. Others make excuses for an “experiment” that may not have the desired results.
Another portion of market circles say the changes will have an adverse impact on investment activity. They point out that foreign investors not only contribute with new funds but also support the construction activity, as Greeks cannot afford the prices of newly built properties due to the non-existent bank financing.
Bell for the Golden Visa
The President of the Association of Civil Contract Brokers of Athens-Attica, Lefteris Potamianos, speaking to OT, sounds the alarm to the government stressing that the changes will drive away investors and create a serious problem in the liquidity of the Greek economy.
Mr. Potamianos notes that “as an investment tool, the Golden Visa has helped the economy” and adds that “there is no such evidence to justify the measures taken by the government”.
The paradox, continues Mr. Potamianos, is how during the previous increase from 250,000 to 500,000 euros for some areas we did not “see” investors and prices continued to rise in both leases and sales.
For its part, the Association of Limited Companies and Entrepreneurship (SAE|E) reports that “the proposed amendment completely suspends the competitiveness of the Greek Golden Visa program” and notes that “the impact on attracting investments through the program will be extremely serious”.
The layout and the… loophole
The relevant provision which is expected to be passed, according to information, next Monday, April 1st foresees an increase in the minimum sales price to 400,000 and 800,000 euros depending on the area and a “ceiling” of 120 sq.m. for the property surface.
However, there is also a “loophole”, i.e., a transitional provision to ensure a smooth transition to the new regime. Which will allow those Golden Visa investors who have started the procedures to complete them under the old conditions.
According to the new regulation for the granting of a 5-year residence permit to citizens of third countries (Golden Visa), the following conditions apply:
– In the Region of Attica, the Regional Units of Thessaloniki, Mykonos and Santorini and on the islands with a population of over 3,100 inhabitants, the value of the real estate that the interested party must own increases to 800,000 euros. In the rest of the country, the value of real estate is 400,000 euros. In any case, the investment must be made in one property (not in several properties of lesser value) with an area of at least 120 sq.m. It is allowed to purchase a percentage of a property in undivided co-ownership, the minimum value of which is respectively 800,000 and 400,000 euros.
– For buildings that currently have a different use and are converted into residences, the minimum investment amount is 250,000 euros. The conversion of use must be completed before submitting the request for the residence permit.
– The limit is set at 250,000 euros if it is an investment in a listed building that is to be restored.
– Residence permits can be renewed for the same period of time (five years) as long as the real estate remains in the ownership of the investor. If it is an investment in a preserved building, an additional condition for the renewal of the residence permit is that the restoration of the building has been completed. If the investor sells the property then his residence permit is revoked and the buyer becomes entitled to obtain a residence permit.
– Investors can rent out the buildings they acquire, but they are not allowed to be made available through short-term leases, while in cases of conversion to a residence, their use as a company headquarters or branch is also prohibited. In case of violation, the residence permit is revoked and a fine of 50,000 euros is imposed.
– In addition to the purchase of real estate, citizens of third countries obtain a residence permit by concluding a long-term contract for a complex tourist accommodation or a timeshare rental contract for a tourist accommodation, corresponding to the value per region (800,000 euros in Attica, etc., 400,000 euros in the rest of the country, etc. K.).
Transitional period
In order for the new system to be implemented smoothly and not to disrupt the operation of the market, a transition period is foreseen with the following conditions:
– Third-country nationals who will pay the price or pay a 10% advance, or sign a pre-contract or private purchase agreement, proving the relevant credits until September 30, 2024 can complete their investment until December 31, 2024 under the conditions were valid until now.
– In these cases, if the purchase of the property is not completed, the buyer can complete his investment in another property always under the conditions that have been in force until now, but in any case not after April 30, 2025.
Source: ot.gr
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