( Article in greek)
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Translation:
Golden visa: What applies in Europe - The situation in Greece
The example of Portugal and who is running to meet the April 30 deadline
By: Natalia Dandolou
09.03.2023 | 21:00
There has been a lot of talk lately about Portugal, which in the midst of an unprecedented housing crisis, has announced the end of the so-called golden visa program for new foreign property buyers. Its aim is to stem the rise in property prices and address the lack of affordable housing.
This news has been received with moderate optimism by other European countries, which benefit from the "golden visas", including Greece, despite the reservations expressed openly by the European Commission months ago.
Why Portugal is abolishing the "golden visa" - The wind in the real estate market
Obtaining the right to live and work in another country, in this case Europe, can be a long and difficult process. But that's not the case for those with money to spend. Golden visas offer the opportunity for wealthy people to effectively 'buy' residency – sometimes without even having to live in the country.
And their popularity in the European Union is increasing as many are trying to limit the effects of various political decisions, such as Brexit, which may limit their rights, but also - mainly - their professional activities.
And for the Russians, this path may be closed at the moment due to the sanctions imposed after the invasion of Ukraine, but there is increasing interest from Americans, with applications registering a significant increase.
Which EU countries still offer golden visas?
There are only a few places that still offer golden passports in the EU. One of those countries is Malta. Here the minimum investment amount starts from 690,000 euros and offers citizenship from 12 to 36 months.
Many others, however, still offer golden visa programs.
Spain
Spain launched the Residence by Investment program in 2013. It also grants residence permits to foreigners and their families who invest in real estate in the country.
An investment of 500,000 euros in real estate is required to obtain the golden visa, which gives the right to reside, work and study in Spain. Although this is significantly higher than Portugal's minimum investment, there are fewer restrictions on what property one can buy.
The visa can also be obtained by starting certain types of business activities in Spain, with shares or bank deposits of a minimum value of 1 million euros in Spanish financial institutions, or by investing in government bonds of at least 2 million euros.
However, some politicians are calling for the plan to be stopped. In February 2023, the center-left political party Más País filed a bill to abolish or drastically modify Spain's Residence by Investment program, saying it affects housing prices and is not beneficial to the economy.
Italy
Italy is another popular destination. The golden visa introduced in 2017 grants third-country nationals a two-year residence permit in exchange for an investment in Italy.
The minimum investment here is 500,000 euros. Holders of these visas can also include their family in the application and benefit from special tax status. If those using the system live in Italy for 10 years, they can qualify for citizenship.
The image in Greece
In recent years, Portugal has become one of the top destinations for high-profile US investors. However, the recent abolition of the "Golden Visa" program has pushed Americans to Greece, with an annual increase of 740% in applications for the program. According to the consulting company Astons, which specializes in real estate and investments abroad, the interest of Americans in Greece is expected to increase even more in the coming years.
Greece offers golden visas, with one of the fastest residency acquisition procedures. Eligible aliens can obtain a permit within 60 days of application. And it still has one of the lowest thresholds for investment with just €250,000 spent on real estate in the country. The Golden Visa granting program with the acquisition of a property with a minimum value of 250,000 euros added to the domestic real estate market 1,035 property sales in 2021, 938 in 2020, 3,535 in 2019, 1,833 in 2018, 959 in 2017, 488 in 2016, 421 in 2015, 338 in 2014 and 21 in 2013, which was the first year of implementation of the program.
In September, this limit was increased to 500,000 euros, starting from May.
Blasting applications
In the last quarter of 2022, applications for the issuance of a residence permit through the "golden visa" program soared, as the announcements to increase the minimum amount of investment activated the "reflexes" of the market, accelerating the relevant decisions.
Based on statistics from the Ministry of Migration Policy, in December 2022 applications for new permits reached 1,116, up from 337 in September of the same year, an increase of 231%.
In total, 2,767 new investment immigration permits were issued in 2022, a number increased by 81% compared to 2021, when 1,525 were granted. However, the number still falls short of 2019, when a record high of 3,504 new permits was set. Within 2022, a total of 4,264 applications were submitted for the issuance of new licenses, a number which together with renewal applications increases to 5,547.
The Chinese remain the most numerous category of investors and in fact by a significant difference from the rest. Based on the relevant data, as of December 2022, 62.8% of residence permits, or 6,159 permits, had been granted to Chinese nationals. They are followed by investors from Turkey with a share of 6.4% and 631 permits, while the first five are completed by investors from Lebanon (4.5%), Russia (4.5%) and Egypt (2.9%) . Almost 200 permits have also been granted to British investors, although it is estimated that the majority of them already owned some property in Greece and simply requested the issuance of a residence permit, after the imposition of Brexit.
The changes in context
It is recalled that based on the changes in force, until April 30 it is possible to secure a residence permit based on the limit of 250,000 euros, as long as a preliminary property purchase agreement has been concluded.
After April 30, a limit of 500,000 euros will be imposed in the central, southern and northern sectors of Attica, as well as in Mykonos, Santorini and the municipality of Thessaloniki. In practice, it will become more difficult to purchase property in order to secure a residence permit in areas such as Byron, Ilioupoli, Galatsi, Zografou, the Municipality of Philadelphia-Chalkidona and of course the center of Athens. Accordingly, the northern sector of Attica includes areas such as Vrilissia, Chalandri, Heraklion, Nea Ionia, Metamorfosi, Pefki, Marousi, Psychiko, Filothei, Agia Paraskevi and Melissia.
In the southern suburbs, the same limit of 500,000 euros will apply from Agios Dimitrios and Kallithea, to Nea Smyrni, Alimos, Elliniko and of course Glyfada. However, from Glyfada onwards, as long as one continues along the coastline of Attica, i.e. in areas such as Vouliagmeni, Varkiza, Voula, Saronida, Anavyssos and Sounio, nothing will change, as the current limit of 250,000 euros, with the possibility of acquiring more than one property.
The golden visa and the regions
This amount must be paid in full before submitting the request for the granting of the investor's permanent residence permit.
In the case of the investment through the purchase of real estate in the above areas, it is carried out in a single property.
In the case of an undivided co-ownership property, then the minimum value of the co-ownership percentage is 500,000 and the investment is made in a single property.
Residence permit renewal
For the rest of the country, the minimum value of the property is set at 250.00 euros.
Citizens of third countries – holders of a permanent investor residence permit can renew their residence permit for the same duration as long as the property remains in their ownership or prefecture and the period of their absence from the country is not a problem.
Also, for citizens of third countries who own real estate, the possibility of renting them is provided.
The issuance of a residence permit is granted within two months of completing the file.
Third-country nationals have until 31 December 2023 to complete ongoing contracts for the areas where the borders are changing.
What is a golden visa?
Investment residency programs, also known as "golden visas," offer people the opportunity to obtain residency for a country by buying a home there or making a large investment or donation.
Applicants must be over 18 years of age, have a clean criminal record and have sufficient funds to make the required investment.
There are also golden passports, officially known as citizenship by investment programs, which allow foreigners to acquire citizenship using the same means. For EU countries, this also means access to many of the benefits of being a resident of the bloc – including free movement between countries.
Why is the EU reacting?
In 2022, the European Commission called on EU governments to stop selling citizenship to investors.
While this is different from golden visas, which offer permanent residency rather than citizenship, the appeal came as part of a move to crack down on this multi-billion euro combined industry. In the wake of the war in Ukraine, there were concerns that these programs could pose a security risk.
In particular, the Commission issued a recommendation, calling on the member states to immediately abolish any existing program of granting citizenship to investors and to ensure that strict controls are carried out to deal with the risks involved in the programs of granting residence permits
It also emphasizes that the recommendation "is just one element of the Commission's overall policy to take decisive action in relation to both the Investor Citizenship and Investor Residency Schemes", adding that, if necessary, may take additional measures in the future.
It says some Russian or Belarusian nationals who are subject to sanctions or who provide significant support to the war in Ukraine may have gained EU citizenship or privileged access to the EU, including the ability to travel freely within the Schengen area, under these programmes.
To address these immediate risks, the Commission also recommends that Member States assess whether citizenship granted under the "golden passport" scheme to Russian or Belarusian nationals on an EU sanctions list in relation to the war in Ukraine should be revoked.
Residence permits granted under the investor residence program to Russian or Belarusian nationals subject to sanctions should be revoked immediately, following an individual assessment and in compliance with the principle of proportionality, fundamental rights and national law of states members.
Which countries have abolished the golden visa regime?
In February 2022, the UK government scrapped the golden visa scheme that allowed wealthy foreign nationals to settle in the country in return for bringing some of their wealth with them. The decision to end the regime came as part of a move to curb money laundering from Russia.
In February 2023, Ireland also banned its golden visa scheme – the Migrant Investor Scheme – which allowed residency in the country in return for a donation of €500,000 or a three-year annual investment of €1 million in the country.
Ireland had already suspended the program for Russian citizens in March 2022 as part of sanctions imposed on the country over the invasion of Ukraine.
In February 2023, Portuguese Prime Minister Antonio Costa announced that the country was also ending the program a to tackle property speculation and rental prices. Until now, foreigners could either buy a property or invest some of their wealth in the country – known as capital transfer investments – in exchange for residency. Between January and August 2022, the program brought almost 398 million euros to the country, according to Portugal's national news agency LUSA.
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Source: OT (Οικονομικός Ταχυδρόμος), Ναταλία Δανδόλου
See the whole article in greek:
https://www.ot.gr/2023/03/09/oikonomia/akinita/golden-visa-ti-isxyei-stin-eyropi-i-katastasi-stin-ellada/
