Golden Visa: The anti-money laundering authority investigates Greek-Chinese syndicate – Properties seized

The Anti-Money Laundering Authority has launched thorough investigations into the opaque world of the Golden Visa program following information from Chinese authorities, delivered to the head of the Authority and honorary Supreme Court prosecutor, Charalambos Vourliotis, about illegal syndicates surrounding property purchases in Greece.

According to reports, in recent days, the Anti-Money Laundering Authority seized two properties bought by Chinese nationals in Attica, aiming to gain the benefits provided by the Golden Visa.

The seizure occurred after the Authority received information that these property owners were involved in a pyramid scheme based in China related to real estate purchases in Greece.

Fraud

Reports suggest a network has deceived many unsuspecting Chinese individuals who dreamed of securing a Visa for Greece, and therefore Europe, and paid deposits for properties they never received. Chinese authorities have even reported that some victims have committed suicide. Investigations have been requested by Greek authorities as well, as there are strong suspicions that the network has connections in Greece.

Expanding the investigation

The Anti-Money Laundering Authority is determined to expand its investigation into property acquisitions by Golden Visa recipients, having discovered that there has been no verification of the source of funds used to acquire the properties so far. Furthermore, it has been found that many of these properties are purchased at inflated prices due to intermediaries, and most remain vacant, exacerbating the already severe housing shortage in Athens.

The scheme is orchestrated by real estate companies, usually involving at least one Chinese partner. These companies collaborate with law firms, Chinese agencies, and other intermediaries. They are involved in property transactions, earning substantial commissions from buyers seeking the Golden Visa in Greece. These companies target areas like Piraeus, western suburbs, and other districts, where the purchase threshold for the Golden Visa was recently low at €250,000 (now raised to €800,000).

They approach property sellers, promising higher prices for their properties, convincing them to agree to contracts stating a higher price than what they will actually receive. As a result, properties bought for as low as €100,000 are resold to Chinese buyers at inflated prices, often more than double the actual value, to meet the €250,000 threshold required for the Golden Visa. The properties are listed as being sold for €250,000, while the real price is only €100,000.

Illegal profits

Taxes are paid on the €250,000, and the difference between the sale price and the contract value (i.e., €150,000) is returned by the property sellers and split among intermediaries, both Greek and foreign. In this way, the property seller receives their money, the Chinese buyer secures their residency permit, and the intermediaries pocket hefty commissions. However, as the Authority’s investigations reveal, things don’t always go as planned, and the Chinese buyers often end up bearing the losses.

Despite the restrictions, the Golden Visa program continues to attract interest. From 2018 until July 2024, 33,544 applications for Golden Visas (initial and renewal) were submitted, with 21,086 approved. The largest group seeking permanent investor residency permits are the Chinese, with 7,128 permits (56%). Following them are the Turks with 970 permits (7.6% of the total), the Lebanese with 694 permits (5.5%), and the UK with 468 permits (3.7%). Close behind are the Iranians with 467 permits (3.7%), Egypt with 374 permits (2.9%), the US with 341 permits (2.7%), Russia with 267 permits (2.1%), Israel with 260 permits (2%), and Ukraine with 135 permits (1.1%).

Of the applications currently under review, 81% are for the initial issuance of Golden Visas, while only 19% pertain to renewals. The majority of these applications come from citizens of China and Turkey.

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