Greek residence permit for investors-Eligible investments and monetary thresholds of investments according to Immigration Code

Greek residence permit for investors-Eligible investments and monetary thresholds of investments according to Immigration Code

The current legal framework for granting residence permit to third country citizens for investment activities is provided in article 16 of Law 4251/2014, according to which the limits of investment activities are as follows:

Α.INVESTMENT ACTIVITIES, WHICH GRANT RESIDENCE PERMIT FOR INVESTMENT ACTIVITY ARTICLE 16 OF LAW 4251/2014:

According to paragraph 1 of Article 16 “The entry and residence of third country nationals in Greece, as investors, is permitted in order to make an investment that will have a positive impact on the national development and economy“, under the specific terms and conditions set out in this provision. In the residence permit of third-country nationals of this category, it shall be indicated, as defined in paragraph 8 of Article 16, “Residence permit for investment activity” and in the “Remarks” field the professional status of the holder.“

The following sub-cases are provided for in paragraph C of this provision:

“C.1. The entry and residence in Greece of a third country citizen who has made an investment in one of the following categories is permitted.

1. a capital contribution, in the amount of four hundred thousand (400. 000), at least, to a company having its registered office or establishment in Greece, with the exception of Portfolio Investment Companies and, without prejudice to sub-paragraph b’, Real Estate Investment Companies, for the acquisition of shares in a share capital increase or bonds in the issuance of a bond loan, which are admitted to trading on regulated markets or multilateral trading facilities operating in Greece.
2. a capital contribution of at least four hundred thousand (400,000) euros to a Real Estate Investment Company Limited by Shares (REIT), whose purpose is to invest exclusively in Greece, for the acquisition of shares in order to increase its share capital.
3. a capital contribution of at least four hundred thousand (400,000) euros to a Business Venture Capital Company (BCCC) of article 5 of Law No. 2367/1995 (A’ 261) for the acquisition of shares or to a Mutual Fund for Business Participations (MEFP) under Article 7 of Law No. 2992/2002 (A’ 54) for the acquisition of shares, provided that the aforementioned Alternative Investment Funds (AIFs) have the purpose of investing exclusively in companies having their registered office and/or establishment in Greece.
4. purchase of Greek Government bonds with an acquisition value of four hundred thousand (400,000) euros and a residual maturity, at the time of purchase, of at least three (3) years, through a credit institution established in Greece, which is also their custodian;
5. a fixed-term deposit of at least four hundred thousand (400,000) euros in a domestic credit institution, with a minimum term of at least one year, with a fixed renewal mandate
6. purchase of shares, corporate bonds and/or bonds of the Greek Government, which are admitted for trading or traded in regulated markets or multilateral trading mechanisms operating in Greece, with an acquisition value of at least eight hundred thousand (800,000) euros.
7. purchase of units with an acquisition value of at least four hundred thousand (400,000) euros, in a mutual fund which has been established in Greece or another country and whose purpose is to invest exclusively in shares, corporate bonds or even Greek government bonds, which are introduced for trading or are traded on regulated markets or multilateral trading mechanisms, operating in Greece (under specific conditions)

Β. MORE DETAILS REGARDING RESIDENCE PERMIT AS AN INVESTOR

• In the case of an investment of the above sub-cases a’ to f’ by a legal person, the entry and residence in Greece of third country nationals is allowed as follows:

(a) for an investment of an amount at least equal to that specified in sub-case in case 1, which is carried out by a domestic legal person, the entry and residence in Greece of a third country citizen shall be allowed if he/she holds all his/her shares in the company,

(b) for an investment carried out by a foreign legal person, the entry and residence in Greece is allowed for up to three (3), depending on the amount of the investment, third country citizens who are shareholders or executives of the foreign legal person.

According to the ministerial decision 46440/2019 which is currently in force, for this category the monetary thresholds are:

For cases a-e: minimum amount of investment 800.000Euros for 1 residence permit, 1.600.000Euros for 2 residence permits and 2.400.000Euros for 3 residence permits

For case f: minimum amount of investment 1.600.000Euros for 1 residence permit, 3.200.000Euros for 2 residence permits and 4.800.000Euros for 3 residence permits.

The investment is made with foreign funds, which are transferred to Greece for the purpose of the investment by a third country citizen. The transfer may be made by the spouse and/or relatives by blood or marriage up to the second degree of the investor.

• The duration of the residence permit is five years and is renewed for an equal period each time, provided that the implementation of the investment or its operation continues after its completion. Periods of absence from the country shall not constitute an obstacle to the renewal of their residence permit’.
• The above-mentioned third-country nationals may be accompanied by their family members who, upon their request, are granted a residence permit for family reunification, which shall expire at the same time as the residence permit of the sponsor.
• The provisions applying for these categories of residence permits shall also apply to the entry and residence of third country nationals in the context of new investments made by domestic companies already operating or by third country nationals already legally residing in Greece and holding a residence permit for independent economic or investment activity.
• The investment is made with foreign funds, which are transferred to Greece for the purpose of the investment by a third country citizen. The transfer may be made by the spouse and/or relatives by blood or marriage up to the second degree of the investor.
• The third country national holding a valid residence permit under the above provisions, may liquidate the investment in order to invest, within an exclusive period of two (2) months, in another category herein or in real estate, in accordance with par. B of Article 20. In this case, the third country citizen shall retain the residence permit already granted until the procedures for the certification of the new overall investment and the granting of the residence permit thereunder are completed. The above shall also apply to the members of the applicant’s family.
• A third country national may make an investment in more than one of the categories referred to above and up to three (3) distinct investments in total. If the investment is made in more than one category, the minimum required amount of the total investment shall be determined on the basis of the category with the highest required amount of investment.

C.CURRENT PROCEDURE

• Before applying for the residence permit for one of the above cases, the foreign citizen must first enter the country with national visa (VISA D).
• To issuing a national visa for entry to country under the provisions of article 16 of L. 4251/2014 the general following shall be submitted to the competent Greek consular authority.
• The investor may submit the application with the supporting documents immediately after the completion of the investment in one of the “categories of investment” referred to in paragraph C. 1 of article 16 of the Law 4251/2014 and in any case not later than the completion of one (1) one year after the start of the investment.
• The consular authority shall, within one (1) month of receiving the receipt of the application with the supporting documents, shall forward it to the with the supporting documents to the Foreign Capital Division of the Ministry of Development and the Ministry of Foreign Affairs of the Ministry of Development and Investment for the purpose of certifying the realisation and retention of the investment. The above-mentioned state service shall examine the information submitted and within one (1) month of receipt, issue a the relevant certification, which it shall forward to the to the consular authority with notification to the Directorate of Post to the consular office, to the Directorate of Immigration Policy of the Ministry of the Ministry of Citizens’ Affairs, in order, provided that the other to issue the national entry visa, subject to the other conditions “Α5. Investment in securities or bank deposit’.

Exceptions from issuing VISA D

• Third country nationals who have legally entered the country with any kind of visa or are legally residing in the country, if they meet the conditions of paragraphs A’ or B’ or C’, are not obliged to leave the Greek territory to apply for a residence permit in accordance with these paragraphs.
• Third country nationals who have legally entered the country with any kind of entry visa or are legally residing in the country, may submit to the Directorate of Migration Policy of the Ministry of Migration Policy an application for certification of the realization and retention of an investment under paragraph C’, accompanied by the documents specified, as the case may be.

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.

D.CONDITIONS TO BE MET

• The applicant must meet the general provisions for issuing any type of VISA and provide the correspondent documents, i.e. criminal record, insurance that covers healthcare and medical expenses during residence in Greece, Health certificate, which are the general documents, plus must submit the special documents for specific VISA D, i.e. documents proving that the applicant is in the financial position to proceed to the purchase of the property in Greece and mandate to an agent/lawyer (special for D).
• The fee for applying for the certain residence permit is 2000Euros.
• Also, an insurance contract from a private Insurance company covering all risks and the amount of benefits covered must be issued.
• Recent certification, not earlier than two months ago, from the Foreign Capital Division of the Ministry of Development and Investment for the realization and retention of the specific investment.
• There are extra document which must be submitted, when the investor is a legal entity, for example declaration of the legal entity with its details, and for a foreign legal entity the proposed third country citizens (shareholders or executives) for permission to enter and reside in Greece, certificate from the relevant Chamber of Commerce or other Public Authority of the country of establishment of the legal entity for its legal existence and operation etc, the latest official financial statements of the legal person, evidence of its corporate composition or a copy of the minutes of a recent decision of the Board of Directors concerning the entry and residence permit in Greece of the person concerned, indicating his/her status (shareholder or executive), in case of a foreign legal entity.

 

E. MONITORING THE FULFILLMENT AND RETENTION OF THE INVESTMENT

After the issuance of the residence permit, the investment, there are obligations for retention of the investment, for which the competent authority is the Directorate of Foreign Capital of the Ministry of Development and Investment. This authority informs the Directorate of Immigration Affairs of the Ministry of Protection of Citizen Protection for any change in the retention of the investment and also must be informed by the citizens who have obtained a residence permit in Greece for “investment in securities or deposit” of any changes in the retention of the investment for which the residence permit has been granted in Greece, within two months from the time of the change, with supporting documentation, if applicable. In addition, if the investor is a legal entity, they must notify the same Service and within the same time limit of any change in the status in the entity (shareholder or officer) of the person who has obtained a residence permit in Greece. Additional obligations exist, when the investor is a legal entity.

Finally, according to the New Immigration Code, which starts from 01/01/2024, the above thresholds change.

 

 

*             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.