Legal Flash | Golden Visa Greece | New Rules 500K applicable May 1st, 2023
Amoiridis Law Services? (www.law-services.gr) is a Greek Law firm specializing, amongst other sectors, in Immigration Law & Real-Estate Property Law having a wide range of experts, composed by both in-house and external solicitors, notaries, accountants, tax experts, civil engineers, topographers, real estate agents, enabling us to provide an “all-in-one package” of legal guidance.
As a single team with an international focus and creative thinking Amoiridis Law Services? has successfully concluded numerous Golden Visa cases tackling successfully any challenges that might arise, by representing an exclusively foreign clientele from all over the globe, providing high standard legal advice tailored to the personalized profile of our clients.
Amoiridis Law Services? handles each case with devotion and creative spirit.
Greek investment environment
The Greek real estate market offers many lucrative investment opportunities as a resultant of the revitalization and recovery of the Greek economy after a long period of deep recession underpinned by preferential and relatively lenient legal framework.
As a matter of fact, lately an “entrepreneurial boom” takes place in Greece, as the economy has initiated to emerge again out from recession and Greece can offer now the potential to high-impact entrepreneurs and investors from all over the globe with interest in Greek market to pursue business opportunities.
Due to the long-lasting recession, the Greek real estate market is one of the most competitive in Europe offering tempting prices due to the undervaluation of Greek real estate properties that reached a historical low.
The attractive real estate market along with the relatively recent amendments in Greek Immigration Law create an ideal invigorating entrepreneurial environment.
The Golden Visa Legal Framework
Golden Visa is currently regulated by Art. 20Β of L. 4251/2014 as amended by L.5007/2022/23.12.2022
The above-mentioned Art. 20B stipulates in par. 1 (as cited below) the specific requirements upon their fulfilment a third-country national is entitled to issue Golden Visa.
I.?Requirements
The requirements granting the eligibility of a third country national to apply for a Golden Visa are stipulated under the Art. 20Β par. 1 pursuant to which “By decision of the Secretary General of the Decentralized Administration a 5-year renewable residence permit shall be granted to a third country national who:
a. Has legally entered the country with any type of visa or legally resides in the country, even if the residence instrument in his possession does not permit change of residence purpose;
b. Has the full ownership, possession of real estate property in Greece. In case of joint ownership of a property to the value of EUR 250 000, the right of residence shall only be granted if the owners of the property are spouses with indivisible shares in the property. In all other cases of joint ownership, the right of residence shall only be granted if the joint ownership rate of each joint owner equals to the value of EUR 250.000 * see new rules in part II
c. Has the full ownership, possession of real estate property in Greece via a legal entity whose shares are fully owned by the applicant;
d. Has made an agreement with a minimum term of ten years for the lease of hotel accommodation or furnished tourist residences in tourist accommodation complexes pursuant to Article 8(2) of Law 4002/2011 (Government Gazette, Series I, No 180);
e. Has made a time-sharing agreement pursuant to the provisions of Law 1652/1986 regulating time sharing agreements and related matters (Government Gazette, Series I, No 167), as in force.”
Persons entitled to reside permanently in Greece
The advantages of Golden Visa are not solely limited to the financial benefits entailing from the admittedly low required investment capital. Golden Visa grants to a third country national the right to reside in Greece accompanied by his/her family members.
Pursuant to Art. 20B par. 4 as it was recently amended by the Art.?31 par.6 & 40?of the L.4540/2018, the third country national, holder of a Golden Visa (hereinafter referred to as “sponsor”), may be accompanied by his/her family members to whom individual residence permits shall be issued following a relevant application, which shall expire together with the residence permit of the sponsor.
Family members shall mean:
It is worth noting that Golden Visa regime sets the upper age limit of the children to the age of 21 years old, whereas other kinds of residence permits, set the aforementioned limit to 18 years old. The children which complete their 21st year are granted an independant 3year residence permit by submitting a simple application for family reunification. Hence, the children are covered until the 24th year of their age.
Furthermore, another point worth being highlighted is the right of the parents of both of the spouses/partners to accompany the latter in Greece. This option was introduced for the first time by the Art. 8, par. 28 of the L. 4332/2015 entailing even more preferential treatment for Golden Visa holders.
II. The investment capital - New Rules applicable from May 1st 2023
New threshold of 500.000 EUR based on georgraphic criteria:
1. Central Athens Regional Unit:
? Athens
? Filadelfia-Chalkidona
? Dafni-Imittos
? Galatsi
? Kaisariani
? Vyronas
? Zografou
? Ilioupoli
2. Southern Athens Regional Unit:
? Glyfada
? Palaio Faliro
? Alimos
? Agios Dimitrios
? Elliniko-Argyroupoli
? Kallithea
? Moschato-Tavros
? Nea Smyrni
? Vari-Voula-Vouliagmeni
3) Northern Athens Regional Unit:
? Kifisia
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? Marousi
? Agia Paraskevi
? Chalandri
? Filothei-Psychiko
? Irakleio
? Lykovrysi-Pefki
? Metamorfosi
? Nea Ionia
? Papagou-Cholargos
? Penteli
? Vrilissia
4. Municipality of Thessaloniki
5. Islands: Mykonos & Santorini
In the case of an investment at the above mentioned areas through the purchase of an undivided co-ownership percentage of a property, the minimum value of the co-ownership percentage is set at five hundred thousand (500,000) euros and the investment is allowed ONLY in a ONE property.
ΙΙΙ. Τransitional period:
Investors buying in the areas affected and who have already paid a 10% of the property value as a deposit before 30/04/2023 will be eligible to conclude the property contracts up to 31/12/2023 and still apply under the old 250k scheme. In case the deal will fail up to the cut-off date, the investors will be able to replace it with another property and still apply under the previous 250k scheme, provided they will have concluded the transaction up to 31.12.2023.
Furthermore, it is now allowed for the investors to proceed by signing a Power of Attorney (POA) in their country, without visiting Greece, not only before Greek Embassies/Consulates but also before any foreign Notary of their choice, provided that the POA will be duly certified with Apostille Stamp or will be authorised by the local competent Greek Embassy/Consulate.
In more detail:
By way of derogation from the usual proceddure, a citizen of a third country, who meets the conditions of Golden Visa, may submit an application for beeing granted a residence permit, prior to his entry into the Greek Territory. The application is submitted, by virtue of a relevant Power of Attorney, which has been drafted before a Greek Consular Authority or before a competent foreign authority or a notary based abroad and bears the notation of The Hague (Seal of the Hague Convention of 5 October 1961 (APOSTILLE) or the corresponding visa of the competent Greek consular authority as the case may be. Under the condtition that the supporting documents submitted are complete, a certificate of application submission is granted. The third-country citizen must, within an exclusive period of twelve (12) months from the submission of the relevant application, enter the Greek Territory and submit to the competent service the required biometric data.
Pursuant to Art. 20B par. 1 (b) in case of joint ownership of a property, the right of residence is granted under the requirement that the joint owner has in his/her ownership a share equal to the value of €250.000. The above requirement does not apply to spouses or couples living in a civil partnership being joint owners of a real estate property, which are entitled to issue a Golden Visa provided that the aggregate of their indivisible shares on the property amount to €250.000.
It should be clarified that the crucial amount for the issuance of the Golden Visa is the contractual price of the real estate property as it is strictly referred on the Sale & Purchase Contract (S&P Contract).
Method of payment
One of the thorniest issues regarding Golden Visa Law, which has been subject to consecutive amendments of the Law within the last years, is the method of the payment.
Greek Law provisions are very strict regarding the payment methods that have to be respected. S&P contracts not indicating that the amount was paid via one of the below methods will not be approved by the competent authority for the issuance of the Golden Visa. The above excessive formalism of the Law has led to the amendment of the Art. 20B par. 2 with the Art. 226 of L. 4635/2019 introducing amongst other options the capability of payment via POS.
The Art. 20B par. 2 as it was very recently amended by the Art. 226 of L. 4635/2019 stipulates that “The agreed payment or lease is paid totally by crossed bank cheque in bank account of the beneficiary (seller) which is held in a credit institution operating in Greece or via credit transfer, pursuant to the definition 24 of the Art. 4 of L. 4537/2018 (A’84) or via POS established by a payment service provider operating in Greece, via charge of a bank credit or debit card of the buyer to the bank account of the beneficiary (seller) pursuant to the definition 11 of the Art. 4 of L. 4537/2018, operating in Greece. The above methods of payment could be concluded by the spouse and/or by blood or marriage relatives of second degree of the buyer.
Furthermore, the Art. 226 of L. 4635/2019 introduced the capacity the payment to be deposited by the close relatives of the applicant (blood or marriage relatives of second degree), a provision which makes the Golden Visa regime even more friendly to investors.
Duration of Golden Visa – Renewal
According to Art. 20B par. 1 of L. 4251/2014 golden visa lasts for 5 years. In virtue of par. 5 of Art. 20B Golden Visa may be renewed perpetually for an equal period each time, namely 5 years, provided that the real estate property remains in the ownership and possession of the third-country national.
Contrary to other countries’ legislations, actual residence in Greece after granting the Golden Visa is entirely optional. Golden Visa does not require the sponsor and his/her family members to reside permanently in Greece. Periods of absence from the country shall not hinder the renewal of the residence permit.
Resale of real estate property during the period of validity of the residence permit shall have as a consequence the simultaneous revocation of the seller’s Golden Visa.
Management of the real estate property
Golden Visa law does not restrict the investors to manage the real-estate property in any way the prefer. It is up to the discretion of the Golden Visa holder to define the management of the real estate property. The applicants have the option either to move in the purchased real estate property or to utilize it for generating income with the limitation of selling the property, which consists ground for revocation of the residence permit.
In virtue of Art. 20B par. 3 “The capacity of leasing the real estate properties is granted to third country nationals owners of the latter.” Investors are able to lease their properties immediately, in contrast with other European Countries where a certain time period elapsing between the grant of the Golden Visa and the feasibility of leasing is stipulated.
Furthermore, it should be underlined that short – term lease agreements demonstrate a rapid growth in Greece, thus offering to investors a great opportunity for lucrative business activity.
Kindly note that Greek Law lays down the prohibition of encumbering the real estate property with any kind of legal burdens i.e. mortgages, prenotice of mortgage etc. The encumbrance of the real estate property consists reason for revocation. As deriving of the above, investors cannot use the above property as guarantee for financing purposes.
Long-Term Resident Residence Permit and Nationality via Naturalization
Under the former legal regime as it was in force before the introduction of Law 4332/2015, it was stipulated that : “The period of residence referred to in the provisions of part B hereof (golden visa) shall not be taken into account for inclusion in the status of long-term resident and the granting of nationality to the relevant residents.”
After the implementation of Art. 8 par. 32 of 4332/2015 which abolished the aforementioned provision, the period of legal residence in Greece due to Golden Visa can be taken into consideration for the calculation of the required period for the issuance of the Long-Term Resident Residence Permit. Hence, Golden Visa holders are eligible to apply for the issuance of a Long-Term Resident Residence Permit according to the provisions of the Art. 89 et seq. of L. 4251/2014 provided that all the relevant requirements are fulfilled.
In alignment with the above, the Article 5 of the Code of Greek Citizenship (L. 3284/2004) stipulating the formal requirements for the acquisition of Greek Citizenship via naturalization was amended by the Ministerial Decision No. 130181/6353/2018 (Gov. Gazz. 1208/02.04.2018) including in the necessary for the acquisition of the Greek Citizenship residence permits Golden Visa.
In view of the above, Golden Visa holders are now entitled to apply for the acquisition of Greek citizenship through naturalization !
For any further information and clarifications please do not hesitate to contact our qualified legal team, ready to provide you with further personalized information tailored to your needs and your profile.
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Athens, January 2023
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