The Greek government is set to raise the €250,000 threshold for real estate investments that guarantee residency in Greece (renewable every 5 years), known as the Golden Visa, in a bid to curb demand and “deflate” property prices , writes e – Kathimerini.

According to analysts, the Greek program remains one of the most attractive in Europe, as it has the lowest threshold for foreign investors – 250,000 euros. Although properties located in the most attractive parts of Attica are now excluded from this level, such as the center of Athens and the northern and southern suburbs (where the threshold has doubled), there are still significant areas where foreign investors are already moving. – Rhodes, Halkidiki and Crete.

From January to November 2023, the number of permits issued to British investors increased by 77.8% to 370 (from 208), and for Israelis by 77.6% to 183 (from 103), according to data from the Ministry of Immigration Policy.

The minimum amount has doubled to 500,000 euros in central Athens and some Cycladic islands.

According to a Bloomberg analysis, programs launched by several European states that grant citizenship in exchange for investment are still operating despite calls from politicians to end them. In Greece and Portugal, the number of issued “golden visas” has increased in recent months, and in Italy and Spain, requests have reached record levels.

The so-called “golden visas” allow wealthy foreigners to obtain a residence permit in the EU and, accordingly, obtain citizenship by investing in real estate or local financial assets. There are several conditions, and some programs require that the applicant spend at least one week per year in the country of which he wishes to become a citizen.

More than 132,000 people have been granted citizenship through these programs between 2011 and 2019, even as criticism from the political environment has intensified because the “golden visa” programs have been linked to rising property prices and loosening of regulations.

Members of the European Parliament and the European Commission have called on EU member states to end these programs, and Ireland and the United Kingdom have done so. Requests for the cancellation of “golden visas” have intensified, writes Agerpres. In February, Portugal’s prime minister announced that his country would end the program, saying “nothing justifies this special treatment.”

Greece has doubled the investment threshold from €250,000 to €500,000 in some parts of the country for those seeking citizenship. Montenegro has pledged to end its own program, while Spain is considering whether to raise the minimum investment threshold from €500,000 to one million euros or end the program.

However, there is little concrete evidence that golden visas are harder to obtain. “We haven’t seen a significant change in the difficulty of getting a visa,” says Patricia Kasaburi, director of immigration consulting firm Global Citizen Solutions.

Even if politicians in Europe talk about abolishing the “golden visas”, the legislation they have passed to limit these programs has not been so harsh. In July, Portugal abolished the possibility of obtaining citizenship through investment in real estate, but left intact the possibility for foreigners to obtain a residence permit if they invest at least 500,000 euros in local companies or funds not related to the real estate sector. The Netherlands is still accepting applications for “golden visas” even though it has announced plans to end the program. The situation is the same in Montenegro.

In May, Cyprus changed the legal framework under conditions where previously the investor’s family members could also receive “golden visas”, but the program remained largely unchanged. Bulgaria has re-introduced the golden visa scheme after it was abolished in 2021. Malta has refused to reform its own program despite requests from the European Commission to do so. And raising the minimum investment threshold, as Greece recently did, is not seen as a persuasive factor.

“For people with a fortune of five to seven million dollars, an investment of $500,000 is acceptable to obtain a residence permit in the EU,” says Nuri Katz, founder of the consulting company Apex Capital Partners. Even in countries that have ended the Golden Visa program, other options are available, even if they are not the exact equivalent of the Golden Visa, alternatives such as digital nomad visas for those who want to live abroad and work remotely, are gaining more and more popularity.

In addition, those wishing to set up a business in the UK, France, Ireland or Germany can apply for special investor visas, which provide temporary residence and a pathway to permanent residence.

“Governments want to show that they are taking a hard line on golden visas, but these visas are important to troubled economies, so many EU countries find themselves in a rather ambiguous position,” says Will Harvey, a professor at the University of Bristol.

Over the past decade, Europe’s Golden Visa programs have brought in a total of €25 billion in foreign direct investment. Portugal was one of the main beneficiaries with more than €6.8 billion. According to economists, countries facing high debt or low economic growth while trying to meet ambitious climate goals are most in need of foreign capital. This means that if the “golden visas” are reformed or abolished, other fiscal incentives may take their place.

In Spain, for example, a law introduced in January allows non-residents, including those with digital nomadic visas, to pay a flat rate of 24% on income up to €600,000 over six years, compared with the 47% tax rate for residents in the category persons with the highest incomes.