While the Greek golden visa scheme offers various advantages, as we’ve discussed in a previous post, the initiative also has drawbacks.
The program works by giving non-EU nationals an opportunity to become residents in the EU country through hefty financial contributions, with a primary emphasis on real estate investments.
This post will explore the disadvantages of Greece Golden Visa.
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What is golden visa in Greece?
Rolled out in 2013, the Golden Visa program is a well-known investment-based residency scheme designed to draw in foreign capital to back the economy.
In certain regions, especially urban centers, new restrictions have been put into place that raise the minimum investment limits. The objective of this modification is to draw in superior investments and enhance the general dynamics of Greece’s real estate industry.
Greece Golden Visa Disadvantages
- Economic volatility and external variables, such as dependence on tourism, can have an unanticipated impact on the Greek real estate market. Those who invest in real estate and want steady returns may be exposed to hazards due to this instability.
- For some prospective participants, the minimum investment may be a tad much to afford.
- Being a property owner in Greece also comes with a lot of other expenses, such as upkeep, levies, and insurance. The total return on investment may be impacted by these recurring expenses. They can raise the initial cost by up to 12%.
- Working in Greece or other EU nations is not permitted with the golden visa. While living in Greece, investors must find other sources of income, which may trim their range of options.
- It may be necessary to obtain legal counsel to successfully navigate the golden visa application procedure due to its complexity. For investors, it becomes much more complicated to ensure compliance with all regulatory obligations.
- While residence is permitted, acquiring citizenship necessitates a lengthy commitment, requiring 183 days of residence annually for seven years in a row in addition to Greek language competency.
- Investors should be aware that changes in tax legislation and residency requirements may have an effect on their financial status and responsibilities as foreign residents.
- You will be penalized if you utilize your property investment for short-term rentals like Airbnb. This restriction reduces the investment’s ability to generate revenue.
Greece Golden Visa Update
As of September 1, 2024, below are the main Greek golden visa changes as per reports:
The implementation of a dual-zone system that differentiates between areas with various minimum investment amounts is one significant modification. This change seeks to consider both local market conditions and economic policies intended to draw in foreign investors.
The revised minimum investment requirements are as follows: 800,000 euros for properties in high-demand locations like Athens and well-known islands, and 400,000 euros for houses in certain regions.
Moreover, a minimum area of 120 square meters is required for all properties.
It’s crucial to remember that golden visa homes cannot be used for rentals in the short term.
Investors are only allowed to buy a single property.
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