Citizenship by investment in real estate in Greece

Citizenship by investment in real estate in Greece

Foreign citizens who invest in real estate property in Greece can be granted a five-year residence permit for themselves and their family members. This is a permanent residence permit which can be renewed every five years, provided that the investor retains ownership of the property.

According to the new legislative framework on monetary thresholds, for the purchase of property, for areas of the Northern, Central and Southern sector of Athens and the municipality of Vari – Voula – Vouliagmeni of the Region of Attica, the Municipality of Thessaloniki and for islands of Mykonos and Santorini, the minimum value of the property at the time of its purchase is set at the amount of €500.000. However, the Greek legislator provides the opportunity to purchase property in these areas with the previous value of €250.000 under the condition of advance payment of 10% of the purchase price until the 31st of July 2023 and the completion of the investment (purchase of property) until the end of 2023.

For other areas in Greece, the relevant threshold remains €250.000.

More details about the framework:

• This residence permit is granted to foreign citizens who have entered Greece legally on any kind of visa – type D (long term visa) or type C (short term visa) – or who already reside legally in Greece, or have not yet entered Greece.
• Foreign citizens can acquire real estate property either personally or through company incorporated in Greece (or in another EU country), in which they own the total number of shares.
• In the case of investment through the purchase of immovable property in the areas where the investment price is defined at €500.000, the investment shall be made in the same building. In the case of an investment through the purchase of an undivided co-ownership interest in real estate, the minimum value of the co-ownership interest is set at €500.000 and the investment shall be made in the same building. While in the case of investment through the purchase of immovable property at the price of €250.000, the investment can be made in one or more different buildings.
• Furthermore, the option for joint ownership of a property with a total value of €250.000 or €500.000 respectively is provided, insofar as the property owners are two spouses jointly owning the property.
• Other options for obtaining Golden Visa via real estate investment are: a) the conclusion of a long-term contract for a complex tourist accommodation, in accordance with par. 2 of article 8 of Law No. 4002/2011 (A’ 180) or a timeshare tourist accommodation contract, in accordance with the provisions of Law No. 1652/1986 (Α’ 167), b) the acquisition of full ownership and possession as an intestate or testamentary heir or as a result of a parental gift, immovable property with an objective value at least equal to the values above.
• The price of €250.000 / €500.000 does not include taxes, fees (solicitor, public notary, real estate, land registry) or other charges. The owner can rent the property to third parties.
• The agreed price or rent shall be paid in full in the following ways: a) by bank cheque to a payment account of the seller held in a credit institution operating in Greece, b) by credit transfer, and c) through a POS installed by a payment service provider operating in Greece, by debiting the buyer’s bank credit or debit card to the payment account of the seller held in a payment service provider. The above payment may also be made by the spouse or relatives by blood or marriage up to the second degree of the buyer.
• The applicant must acquire a Greek Tax ID number in order to acquire property.
• Although, it is referred that the price can be paid via credit transfer, it is advisable for practical reasons that the applicant opens a bank account in a Greek bank.
• Application for residence permit must be submitted in Greece only after the purchase of the property has been completed and the price has been fully paid. Upon the time of submission of the application, the purchase contract must include no special terms and conditions that could reverse or cancel the transaction. The corresponding notary certificate is included in the needed supporting documentation for the Golden Visa application. There must also be submitted a certificate by the notary, mentioning the details of the contracting parties, of the property, the method and details of payment of the consideration, the existence of any other contractual condition and whether the property was originally purchased by the seller for the issuance of an investor’s permanent residence permit.

• Regarding family members upon their request, are granted an individual residence permit which expires at the same time as the residence permit of the owner who purchased property in Greece. According to the law, in this case, family members are a) spouse, b) the direct descendants of the spouses (children) who are under the age of 21, and c) the direct relatives of the spouses in the ascending line (parents).

Step by step Procedure:

1. Foreign citizens can either:
2. I) enter Greece with a touristic visa (type C visa) to find the desired property and proceed to the purchase of the property and -after the purchase is completed- apply for residence permit before this or a possible second C visa expires. This may be a stressful procedure in terms of the time needed to find the property and complete the purchase. It is possible, during the short term stay of visa C, to sign a proxy and appoint an attorney at law, to run the whole procedure, after finding the property. The applicant must enter Greece once more for giving biometrical data, after filing the application.

or

1. II) enter Greece with a D visa which gives them the right to reside in Greece for one year, during which they must find the desired property, complete the purchase, and then apply for residence permit before this one-year visa expires. This choice is preferable if the applicant intends to stay in Greece, to pursue the whole process himself. However, because the issuance of a type D visa is more demanding than the issuance of C visa, it is not recommended, if no such interest exists, considering the options for foreign citizens can be very flexible.

or

IIII) not enter Greece and carry out the whole procedure remotely. In this case the prospective buyer of property can be represented by an attorney at law in all steps of the procedure and all the competent authorities for the purchase of the property purchase and the filing of application for the issuance of the residence permit. In this case the applicant will be required to enter Greece just to provide biometrical data.

1. Issuance of Tax ID Number.
2. Opening of a bank account.
3. Finding the property-Due Diligence by attorney at law, to confirm the status of the property.
4. Purchase of the property.
5. Signing of insurance contract.
6. Filing the application electronically.

In the case of choosing a C visa: supporting documentation for the visa is significantly simpler than visa D type required documentation.

In case of choosing a D visa: supporting documentation for the visa includes also:

a) proof of financial capacity (e.g., certificate of an A-class certified bank, or other recognized financial institution), which certify the existence of bank accounts or other mobile assets, such as bonds or shares, which can cover the cost of the investment of at least €250.000 /€500.000 and b) contract with a law firm or with a real estate office which will certify the intention of the applicant to purchase the property.

Other general conditions to be met (examined before entering Greece for the issue of Visa of any type):

• Certificate of criminal record
• Insurance policy that covers healthcare and medical expenses during residence in Greece
• Health certificate (this is attached to the application for visa)

It is important to clarify that if the applicant chooses to run the process remotely, none of the above documents is submitted upon the filing of Golden Visa application, but the prerequisites must exist, so a clean criminal record is a prerequisite even if the corresponding document is not submitted.

Supporting documentation for filing Golden Visa application:

• Application Form
• Four passport type photographs in physical form.

• Certified copy of a valid passport or travel document
• Fees for the card (€16) and for the application (€2000 or €150 for family members)
• Insurance contract
• Notary’s certificate with the details of the contract and for the payment of the price
• A certified copy of the contract
• Certificate of the Land Registry proving that the contract has been registered
  and that no encumbrances or third parties claims against the property exist.
• Other documents per case (lease agreement or purchase of plot and constructing
  a building etc.)

Fees and expenses:

For the purchase contract:

• Transfer Tax of 3% calculated on the price of the property
• Land Registry fees (4,75‰ or 5,75‰ depending on whether the property is registered in Land Registry or Land Cadastral) *these fees are for purchase contracts, not long-term lease agreements (calculated as above)
• Notary Fees (0,8-0,65% calculated as above)
• Lawyer fees
• Insurance fees (depending on the company and the coverage)

For the Golden Visa application

• Deposit of fees €2000 for the submission of application for residence permit for owner of property and fees of €16 for the card
• Deposit of fees €150 for each family member plus €16 for the card

 

Travel to other Schengen Countries:

Both long term visa and residence permit give the holder the right to travel to other Schengen countries as a Schengen member national, but it does not grant the right to live and work in other Schengen countries.

 

Remarks:

• The residence does not provide access to any form of employment. Only the exercise of economic activity as shareholder, Director or Managing Director of a company is permitted. Family members that are granted a residence permit for the same duration as the owner of the estate (sponsor) are similarly not granted access to any form of employment, but all have the same access to public education (school, universities) as have Greek citizens.
• The owner has the right to rent out the property.
• In the case of reselling the property prior to the expiration of the five-year period, the new owner can apply for residence permit, but at the same time the seller (and any family members that got a residence permit together with him) lose the right of residence acquired by the investment.
• Absence from the country does not impede the renewal of the residence permit. In fact, the foreign citizen, after the issue of the residence permit, is allowed but not obliged to live in Greece.
• Time Frame: After application for residence permit, it generally takes approximately 2-3 months until the issuance of residence permit.
• Acquisition of Greek citizenship by naturalization: This residence permit allows its holder to access long-term residence status, which is one of the qualifications required for naturalization, provided that the foreign citizen has actually lived in Greece, if he/she is interested in long term residence permit of citizenship by naturalization (subject to pertinent immigration legislation).
• Children are granted a residence permit for family reunification up to the age of 21. After that it is possible to acquire a renewal as a 3-year independent residence permit until the age of 24 and then it is possible to renew it further according to pertinent immigration legislation.
• There are restrictions on properties located in border regions of the country (border regions are specifically indicated by law). Individuals or legal entities that wish to buy property on border islands or border mainland need a special permission to do so.

 

 

*             The information is accurate to the best of our knowledge as at the time of writing. We have no obligation to update it. We accept no responsibility against any third party who is not a client of the firm and has not signed the terms of our engagement.