Golden Visa applications in Greece are surging before the changes introduced recently take effect, as reports say that wealthy Americans are increasingly looking for supplementary passports.
New applications for five-year residence permits through the Golden Visa program continue unabated in Greece, as 1,299 new applications were submitted in the first two months of this year, compared to 1,248 applications submitted in the corresponding two months last year.
In total, it is estimated that since the beginning of the program until today, 24,000 properties have been acquired with a minimum investment value of 6 billion euros.
The surge in applications is expected to grow before the new requirements take effect at the end of August. Greece is increasing the minimum amount a third national needs to invest and secure the residence permit, to tackle the country’s housing crisis.
In popular regions, such as Attica, Thessaloniki, Mykonos, Santorini and the islands with a population of over 3,100 inhabitants, the threshold increases to 800,000 euros while in other areas the threshold is 400,000 euros and above.
Moreover, investors must purchase a property of at least 120 sq.m. For buildings that have industrial use and are converted into houses, the required amount is 250,000 euros while the required amount for investment in a historic building stands at 250,000 euros.
Spain scraps Golden Visa scheme
The changes in the Greek Golden Visa come, as Spain recently announced that is scrapping the program introduced in 2013 altogether. Critics said it creates inflationary pressure and acts as a back door for dirty money to enter the economy. That prompted Pedro Sanchez’s government to announce in October that the scheme would be phased out.
“We are going to take the necessary measures to ensure that housing is a right and not just a speculative business,” Sanchez said.
The Minister of Housing said that between 2013 and 2023, more than 14,000 such permits had been issued, mostly to citizens of China and Russia.
Americans increasingly look for Golden Visa in Greece
Wealthy Americans are increasingly applying for second citizenship and national residences, including in Greece, according to the leading US law firm Henley & Partners.
It says the wealthy are building these “passport portfolios” — collections of second, and even third or fourth, citizenships — in case they need to flee their home country.
“The U.S. is still a great country, it’s still an amazing passport,” Dominic Volek, group head of private clients at Henley & Partners told CNBC.
“But if I’m wealthy, I would like to hedge against levels of volatility and uncertainty. The idea of diversification is well understood by wealthy individuals around what they invest. It makes no sense to have one country of citizenship and residence when I have the ability to actually diversify that aspect of my life as well.”
According to Henley, the top destinations for supplemental passports among Americans are Portugal, Malta, Greece and Italy.
Greece’s and Portugal’s “Golden Visa” programs are especially popular since they provide a path to residency and citizenship — with visa-free travel in Europe — in exchange for an investment.