Changes to Greek Golden Visa

The allure of Greece, with its ancient history, vibrant culture, stunning landscapes, and perpetually inviting climate, has long made it a coveted destination for both tourists and those seeking a new life. For non-European Union (EU) nationals, the Greek Golden Visa Program has been a particularly popular pathway to residency, offering the tantalizing prospect of unrestricted Schengen travel and the ability to spend more than 90 days out of every 180 in Greece itself. However, in a significant shift aimed at addressing critical domestic issues, Greece has recently announced, and largely implemented, substantial changes to its popular residency-by-investment scheme. These adjustments redefine the minimum investment thresholds, introduce geographical zoning, and impose new restrictions on property use, fundamentally altering the program’s accessibility and appeal.

This comprehensive exploration delves into the intricacies of these recent changes, their implications for prospective investors, and alternative pathways to long-term residency in Greece for those who may no longer qualify or prefer a different route.

The Evolution of the Golden Visa: A Response to Market Pressures

The Greek Golden Visa, launched in 2013, quickly distinguished itself as one of Europe’s most accessible and attractive residency-by-investment programs. Its initial minimum investment threshold of €250,000 for real estate across the entire country made it highly competitive, particularly when compared to similar programs in other EU nations. This affordability, coupled with the myriad benefits of Greek residency (including visa-free travel within the Schengen Area, family inclusion, and no minimum stay requirements), fueled a boom in foreign property investment, especially from non-EU citizens.

However, this success, while economically beneficial, inadvertently created significant pressures on the local housing market. In popular urban centers and highly sought-after islands, the surge in demand from Golden Visa investors, combined with an increasing trend among property owners (including some Golden Visa holders) to convert long-term rental properties into more lucrative short-term holiday rentals (via platforms like Airbnb), led to a critical shortage of affordable housing for Greek citizens and a dramatic escalation in rental and property prices.

In response to these socio-economic challenges, the Greek government initiated a series of reforms. The first notable change occurred in 2023, raising the minimum investment to €500,000 in specific, high-demand areas. The most recent, and arguably most significant, wave of changes was officially implemented, with a transitional period to accommodate ongoing transactions.

The New Investment Landscape: Tiered Thresholds and Geographical Zones

The latest revisions to the Greek Golden Visa program introduce a sophisticated two-tiered investment system based on the property’s geographical location and establish specific requirements for the purchased asset.

Tier 1: The High-Demand Zones (€800,000 Minimum Investment)

The highest investment threshold of €800,000 now applies to properties located in areas experiencing the most significant housing pressures and tourist demand. These include:

• The entire Region of Attica: This encompasses the bustling capital city of Athens, including its central and northern provinces, along with South Attica. Athens has been a prime target for Golden Visa investors, and this increase aims to cool down its rapidly appreciating real estate market.
• Thessaloniki: Greece’s second-largest city, located in Central Macedonia, is another significant urban center that has seen considerable investment and subsequent pressure on housing.
• Mykonos: World-renowned for its cosmopolitan lifestyle, vibrant nightlife, and luxurious properties, Mykonos has consistently commanded premium prices.
• Santorini: Famous for its iconic caldera views, whitewashed villages, and breathtaking sunsets, Santorini is another highly sought-after island with limited housing supply.
• Greek Islands with a population exceeding 3,100 inhabitants: This broad category includes a substantial number of popular and larger Greek islands that have attracted significant foreign investment and tourism. Examples often cited include Crete (Chania, Heraklion), Rhodes, Corfu, Evia, Lesbos, Chios, Zakynthos, Salamina, and Kos, among others. The rationale here is to protect the housing markets on islands that are facing similar pressures to the major urban centers.

Tier 2: The General Regions (€400,000 Minimum Investment)

For all other areas of Greece not explicitly listed in Tier 1, the minimum property investment required to qualify for the Golden Visa has been raised to €400,000. This still represents a significant increase from the previous universal €250,000 threshold but offers a more accessible entry point for investors willing to explore regions outside the most saturated markets. The government’s intention here is to incentivize investment and promote economic development in a broader range of areas, potentially diversifying the benefits of the program across the country.

Specific Property Requirements for Tier 1 and Tier 2:

A crucial addition to these new thresholds is a specific requirement for the investment property:

• Single Property Investment: In both the €800,000 and €400,000 areas, the entire investment must be made in a single property. The previous option allowing investors to combine multiple smaller properties to reach the minimum investment threshold is no longer permitted under these tiers. This aims to encourage investment in more substantial, likely residential-use, properties.
• Minimum Size Requirement: The purchased property must have a minimum surface area of at least 120 square meters. This further reinforces the government’s intent to channel investment into properties suitable for genuine long-term living, rather than small units primarily aimed at short-term rental exploitation. Auxiliary spaces like storage rooms or parking spaces can count towards the overall investment value if part of the same transaction, but they do not count towards the 120 sq. m. minimum living area requirement.

Exceptions to the New Thresholds: Retaining the €250,000 Option

Despite the general increase in investment amounts, the Greek government has strategically retained the €250,000 minimum investment for specific types of property acquisitions, aiming to promote urban regeneration, cultural preservation, and potentially provide affordable housing solutions:

• Restoration of Listed Buildings: If the property is a listed building (i.e., designated for historical or architectural preservation) and the investment is explicitly for its full restoration or reconstruction. This encourages the preservation of Greece’s rich architectural heritage. The restoration/reconstruction must be fully completed before the investor can renew their residence permit after five years.
• Conversion from Commercial to Residential Dwelling: If the investment involves the purchase of a commercial property that is then converted into a residential dwelling. This incentivizes the repurposing of unused or underutilized commercial spaces, potentially increasing the housing supply in urban areas. The change of use must be fully completed before the Golden Visa application is submitted. This also applies to the conversion of industrial buildings into residential use, provided they have not been operational for at least five years. These converted properties, acquired under the €250,000 option, cannot subsequently be used as business headquarters or branch offices.

These exceptions are significant as they offer a lower entry point into the Golden Visa program, albeit with specific conditions related to the type of property and the nature of the investment.

The Transitional Period: Deadlines for Existing Applications

To ensure a relatively smooth transition for investors who had already initiated their purchase processes under the previous rules, Greece implemented a transitional period. For buyers to be eligible for the existing (pre-August 2024) thresholds (€250,000 or €500,000, depending on the area), they had to meet specific deadlines:

• Deposit Payment: Buyers were required to pay a 10% deposit on their home by the end of August 2024.
• Completion of Purchase: The full property purchase was generally expected to be completed by the end of December 2024.
• Extended Completion Deadline: Due to the surge in applications and potential delays, the government subsequently extended the final completion deadline for those who paid their 10% deposit by August 31, 2024, to February 28, 2025. Furthermore, if the initial purchase could not be finalized by the end of 2024, investors were allowed to transfer their investment to another eligible property, provided that the acquisition was finalized by April 30, 2025.

These deadlines were crucial for thousands of investors attempting to lock in the lower investment amounts, leading to a significant rush of applications in the months leading up to the changes. Investors who have already received their Golden Visas under previous rules are not retroactively affected by the new thresholds or use restrictions, but the new rules apply to renewals if the property is still subject to the new restrictions.

Restrictions on Property Use: Tackling the Housing Crisis

Perhaps one of the most impactful changes, and one directly aimed at the housing supply issue for locals, is the restriction on short-term rentals for properties acquired through the Golden Visa program.

• Prohibition on Short-Term Rentals: Golden Visa holders are now prohibited from renting out their property on Airbnb or other short-term rental platforms (i.e., rentals for periods up to 60 days). This measure directly confronts the problem of properties being withdrawn from the long-term rental market in favor of more lucrative tourist rentals, which contributed to rising rents and reduced housing availability for Greek residents.
• Permitted Use: The property can still be used for personal residence by the Golden Visa holder and their family. It can also be leased on a long-term basis (i.e., for periods longer than 60 days) or potentially leased to tourism-related businesses for commercial use (e.g., as part of a hotel’s long-term lease portfolio), provided it complies with all relevant regulations.
• Penalties for Non-Compliance: The Greek government has indicated that non-compliance with these use restrictions can lead to significant penalties, including fines (e.g., €50,000) and potentially the revocation of the residence permit.
• No Retroactive Application (with caveats): Importantly, these short-term rental prohibitions generally do not affect existing Golden Visa holders who acquired their properties under previous provisions, nor those who made their 10% advance payment by August 31, 2024, and completed their purchase by the stipulated deadlines. However, clarity on renewal implications for existing holders whose properties fall under the new restrictions remains an area where professional advice is paramount.

This restriction underscores the Greek government’s commitment to ensuring that the Golden Visa program serves broader economic and social objectives, rather than solely facilitating speculative real estate investments that exacerbate local housing challenges.

Golden Visa vs. National Visa (D Visa): Alternative Pathways to Greek Residency

The increased investment thresholds and new restrictions mean that the Golden Visa may no longer be suitable or affordable for all aspiring non-EU residents of Greece. Fortunately, the Greek National Visa (Type D Visa) offers an alternative pathway for long-term stay, albeit without the direct link to property investment.

The Type D Visa is a long-stay visa that permits third-country nationals to remain in Greece for more than 90 days and up to one year, with the possibility of renewing their residence permit in Greece thereafter. Unlike the Golden Visa, it does not require a specific investment amount in property. Instead, it typically requires proof of sufficient financial means to support oneself without working in Greece (unless the visa is for employment purposes).

Common categories for the Greek National Visa (D Visa) include:

• Financially Independent Persons (FIPs): This is a popular option for retirees or individuals with passive income. Applicants must demonstrate a fixed annual income sufficient to cover their living expenses. As of the current understanding, this amount is typically set at €3,500 per month, or €42,000 per year, for a single applicant, with additional amounts required for dependents. This income must be reliably generated from outside Greece (e.g., pensions, rental income, dividends).
• Digital Nomads: Greece has actively sought to attract digital nomads, offering a specific D Visa for individuals who work remotely for an employer or clients outside Greece. This visa also has minimum income requirements (e.g., €3,500 per month, with additional amounts for dependents) and requires proof of employment/contracts.
• Employment Visas: For those with a job offer from a Greek employer.
• Study Visas: For individuals enrolled in Greek educational institutions.
• Family Reunification Visas: For family members of Greek residents.

Key Differences and Considerations:

The Greek National Visa options provide flexibility for those whose primary motivation is residency, rather than investment in a specific property threshold. For individuals with stable, verifiable income, the FIP visa can be a highly attractive and more financially accessible route to living in Greece long-term.

Conclusion: A Maturing Program and Evolving Opportunities

The recent changes to the Greek Golden Visa program mark a significant maturation of what was once a relatively straightforward residency-by-investment scheme. The Greek government has demonstrated a clear intent to balance the benefits of foreign investment with the need to protect its local housing market and ensure sustainable growth. By increasing investment thresholds in high-demand areas and imposing restrictions on short-term rentals, Greece aims to attract higher-value investments and encourage more long-term, integrated residency.

For prospective investors, these changes necessitate a more strategic and nuanced approach. Thorough research, careful budgeting (including all associated taxes and fees), and professional guidance from specialized lawyers and financial advisors are more critical than ever. The choice of location and the specific type of property investment now carry significant implications for both the cost of the Golden Visa and the permitted use of the acquired asset.

While the higher investment tiers may deter some, the retention of the €250,000 option for specific, socially beneficial projects (like commercial-to-residential conversions and listed building restorations) offers a unique avenue for those interested in contributing to Greece’s urban renewal and cultural preservation. Furthermore, for individuals primarily seeking residency without a large property investment, the various categories of the Greek National Visa (Type D), particularly the Financially Independent Person visa, remain viable and attractive alternatives.

Ultimately, Greece continues to be a highly desirable destination. Its Golden Visa program, though changed, still offers a competitive pathway to EU residency and Schengen travel. However, a deeper understanding of its evolving rules and a readiness to adapt to the new landscape are essential for any non-EU national dreaming of calling Greece home. The emphasis has shifted from mere investment to more thoughtful, purpose-driven engagement with the Greek property market and broader society.