Golden Visa: Owners rush to sell properties just before the changes

Owners of neglected properties, half-finished buildings, old houses, and other owners with two- or three-story buildings who want to take them off the rental market due to their age are doing whatever they can to pass them on to individual brokers (both Greek and foreign) or developers while the low limit of €250,000 under the Golden Visa program is still in effect.

In less than 10 days, the Golden Visa program will become more difficult. If the transition period is not extended (government sources consider an extension unlikely), the limits for acquiring property in areas of interest will rise to €800,000, and this entire market activity during the transition period will come to an end, creating new conditions in the real estate market.

There are two scenarios: First, those with ready-to-utilize properties of lower value are trying to sell them for €250,000 (the current low threshold for the Golden Visa) to agencies and brokers. The goal is to sell them to Chinese, Israelis, Americans, etc., at this price and pocket the difference. In this case, owners approach individual brokers—Greeks, Chinese, and others. These are freelancers living in Greece or who have obtained residency through the Golden Visa and are engaged in searching for almost-ready properties to sell to third parties who want the golden passport.

The second scenario involves half-finished properties or others that need renovation and are looking for construction companies to handle the completion and sale through the Golden Visa. However, there is often a problem: The owner wants to sell for more, say €250,000, but the developers won’t buy them. The reason is simple! Beyond the purchase cost (e.g., €150,000), developers have to bear the costs of completion work, the foreign broker’s commission (which in the case of China can reach 20%), VAT, other taxes, guaranteed rents (which clients like the Chinese demand), and other additional burdens that could drive the property price up to €500,000. This means that to break even, developers would have to sell it at double the price, making it unattractive for the Golden Visa program.

The government recognizes the program’s success on one hand but also wants to send a clear message that the Golden Visa program must adapt to the broader housing problem in the country. These issues will be clarified in September during a speech by Prime Minister Kyriakos Mitsotakis. It is noted that under the new regime, the following conditions will apply for granting a 5-year residency permit to third-country nationals (Golden Visa):

• In the Region of Attica, the Regional Units of Thessaloniki, Mykonos, and Santorini, and islands with a population of over 3,100 residents, the value of real estate that the applicant must own increases to €800,000. Moreover, as the minister mentioned in Parliament on Tuesday, the investment limit in Attica, Thessaloniki, Mykonos, Santorini, and islands with more than 3,100 residents rises to €800,000, while in other areas, it increases to €400,000, with a transitional arrangement to prevent market disruption.
• In other parts of the country, the value of real estate is set at €400,000. In any case, the investment must be in a single property (not multiple properties of lower value) with a minimum area of 120 square meters. The purchase of a share of undivided co-ownership of a property is allowed, with the minimum value set at €800,000 and €400,000 respectively.
• For buildings currently used for other purposes and converted into residences, the minimum investment is set at €250,000. The conversion must be completed before submitting the application for the residency permit.
• The €250,000 threshold also applies to investments in listed buildings that are to be restored. It should be noted that for changes in use, such as from industrial to residential, as well as for listed buildings, there are no minimum square footage requirements for the properties for sale.

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