The article provides an overview of the updated regulations related to the Greek Golden Visa program, focusing on the new property investment thresholds, tax obligations, and restrictions on renting properties in the sharing economy (e.g., Airbnb). One of the key updates is a prohibition on short-term rentals and subletting for certain properties.
Translation of the Official Explanatory Circular on Golden Visa Updates: Key Facts Extracted
The article provides an overview of the updated regulations related to the Greek Golden Visa program, focusing on the new property investment thresholds, tax obligations, and restrictions on renting properties in the sharing economy (e.g., Airbnb). One of the key updates is a prohibition on short-term rentals and subletting for certain properties.
For us, the most important change is:
The aforementioned prohibition on short-term rentals and subletting in the context of the sharing economy does not apply to real estate properties if private agreement for purchase was signed and at least 10% deposit was paid before 1 September 2024. Such properties still can be rented out on a short-term basis, ensuring continued profitability for those investments.
Reference to the official Circular
Article 64 of Law 5100/2024 (A’ 49) amended Article 100 of Law 5038/2023, which defines the requirements for granting permanent residency permits to investors (Investor Residence Permit, B5). Specifically:
• The amendments to paragraphs 2(a) and 2(b) of Article 100 of Law 5038/2023 concern the minimum investment value required to secure the right to receive a permanent residency permit as an investor.
• For specific regions such as Attica, Thessaloniki, Mykonos, Santorini, and islands with populations over 3,100 (based on the latest census), the minimum value of the real estate investment required at the time of purchase is set at 800,000 EUR. This value applies to both purchased real estate and the total contractual rent under specific agreements of paragraph 5, Article 100 of Law 5038/2023. Notably, Evia is classified as an island region and is subject to the 800,000 EUR minimum.
• For the rest of the country, the minimum value for property purchase and the total contractual rent is set at 400,000 EUR.
• A new limitation applies that the minimum investment value must pertain to a single property. Additionally, for properties with a building permit or constructed real estate, there is a minimum floor area of 120 square meters for the main living areas. This minimum does not apply to undeveloped land or properties lacking a building permit (e.g., vacant land or lots) or to properties converted from commercial use to residential use.
• According to paragraph 2(g) of Article 100 of Law 5038/2023, it is now possible to invest in real estate with the aim of converting it into residential space. The required minimum property purchase value is 250,000 EUR, applicable to a single property. There are no restrictions on the floor area of the main spaces (the 120m² limit does not apply), provided the change of use to residential has been completed before the application for the permanent investor residency permit.
• This change of use must occur after April 5, 2024 onwards, and the change can be carried out by either the buyer or the seller of the property.
• The provisions also apply to investments in industrial buildings, provided these buildings have not hosted an operating factory for at least the last five years. There are no restrictions on the surface area of these properties if the industrial structure is converted to residential use.
• Investments made through the purchase of a heritage building (or part thereof) for restoration or reconstruction purposes are eligible for the investor residence permit, provided the minimum value of the property is 250,000 EUR.
• If the investment concerns a heritage building, the restoration or reconstruction must be fully completed before the first renewal of the residence permit. If the building is sold before the completion of restoration or reconstruction, the sale is considered invalid.
• Under the new provisions, real estate acquired for the purpose of receiving or renewing an investor residence permit cannot be leased for short-term rentals, particularly in the context of the sharing economy, as defined by the relevant laws (e.g., Law 4446/2016). Properties cannot be sublet either.
• Specifically, the prohibition does not apply to long-term rentals, subletting for professional use (e.g., hotels), or properties where the main use has been converted to residential (as per paragraph 2(c) of Article 100). Properties that are part of the transformation of industrial buildings into residential use are also excluded from the restriction.
• The above prohibition of short-term rental and subletting in the context of the sharing economy does not apply to properties in relation to which private agreement for purchase was signed and at least 10% deposit was paid before 1 September 2024.
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