Increased Investment Value & New Conditions for Greek Golden Visa

The minimum property purchase price to qualify for the coveted Greek Golden Visa for the Attika area, is set to increase to €400,000 and on some islands/areas it could be as much as €800,000.

Most of the Attika area which includes the Saronic Islands, has until now, only needed a €250,000 investment to qualify and no conditions but happily for the local communities, this is about to radically change.

The increases are still under discussion in the courts and Greek government departments but the word is that it will happen in 2024 for sure anytime between May and September. So anyone who is interested in buying to qualify for a visa at today's much lower entry price, are going to have to get a move on or substantially increase their purchasing budget in the very near future.

At the moment, even though the Saronic Islands come under the Attika administrative zone, it's not clear whether Hydra, Poros, Aegina or Spetses will qualify for the discounted threshold of 400k so it still remains to be seen if any of the Attika Islands increase to much higher 800k.

What is for sure is that in addition to spending the qualifying value to be able to apply for a Greek Golden Visa (GGV), the new conditions include:

• A minimum living space size of 120m2 for the property bought
• No short-term holiday renting - so no Airbnb return on investment

But GGV applicants will be able to offer their investment property as a residential annual rental, so the estimated 57% of foreigner owners of property throughout the Attika area will still be able to get a small return on their investment by providing much needed local housing. I can't help but cheer at this stage for the local communities and businesses who have been really struggling in the last 5 years to find anywhere to live or put their staff!

So for non-EU foreign investors, the glory days of cheap investment to get extended European travel have almost closed. For those seeking a Greek Golden Visa, it is now less attractive as an investment and this in turn will reduce the number of sales of the lower priced properties. Of course it's not going to stop foreigners from buying but they just won't be able to get their GGV unless they comply with the new conditions. The benefit being that locals might be able to get a foot on the property ladder.

(Please note that these conditions for buyers who aren't interested nor need a GGV, do not apply. EU residents or non-EU buyers can still buy a property as an investment. It's just that non-EU buyers won't qualify for a visa unless they adhere to the conditions above.)

Since the visa's introduction, the Greek Government has had a massive increase in revenue generated. However, attracting foreign investment through property ownership has seen a massive hike in real estate prices, specifically in the lower end of the market which means that local Greeks can no longer afford to buy. Great for the finance ministry but not for communities. Large areas of Attika mainland have been bought up especially by far-east foreigners who bought sight unseen simply as a 250k cost of getting a GGV. They never visit, nor maintain the property and don't even rent it for local accommodation. There are small blocks of 12 apartments in parts of Athens (Attika) where there's only one apartment lived in - quite isolating to say the least!

But the housing crisis for locals and workers has not just come about because of Golden Visa purchases.

Greece has gone through a radial change over the last 10 years and everything has happened very quickly. The GGV isn't the sole reason for the shortage of residential letting or entry level purchasing for communities.

ENFIA, the annual property tax came into being about 10 years ago. For many pensioner owners who had over time, inherited multiple properties, selling-off or passing on before they passed away was their most obvious solution as they couldn't afford to pay multiple annual tax bills with their low pensions. Pensioners are no longer keeping property to pass on to family as they got married. The kids have to buy for themselves or rent. And that is very difficult for them still as prices have inflated faster than income.

The phenomenon of holiday renting with massive annual incomes compared to residential annual income has reduced the local housing availability horribly. It's impossible to 'force' locals to annually residential let for an average income of €300 per month when platforms such as AirBnb give them the ability to have a €20,000 plus income per year.

The introduction of the Greek Golden Visa simply added more strain. Properties that by any correct and sensible valuation should have gone on the market for €150,000, overnight jumped up to €250,000 just to cash-in with non-EU buyers who wanted to qualify for the GGV. And as a real estate agent, I along with all the others, cannot 'force' sellers to drop their prices when it's obvious that foreign buyers will pay far more than the locals.

So, I for one, am very relieved that the Greek Government have taken measures to impose higher qualification investment and better conditions attached to obtaining the Greek Golden Visa. It will take the heat out of the market and allow a better balance.

And happily, we'll still be welcoming foreigner homeowners because whatever the price, Greece is still one of the best places to be a homeowner!

For more details, please don't hesitate to contact me, regards Kelsey