With Law 5100/2024, significant amendments were introduced to Article 100 of Law 5038/2023, concerning the process for granting permanent residence permits to investors, commonly known as the golden visa. These changes aim to enhance transparency and impose stricter criteria for investments in real estate by citizens of third countries. These modifications are detailed in Circular 9/25.09.2024 from the Ministry of Migration and Asylum, which provides clear guidelines for the implementation of the new provisions and transitional rules.
Key Changes and Clarifications:
Minimum Investment Value in Real Estate: In high-demand and developed areas such as the Regions of Attica and Central Macedonia, as well as the islands of Mykonos and Santorini, the minimum investment value for acquiring a residence permit has been set at €800,000. The same applies to islands with a population over 3,100, including Evia, which is categorized as an island area for this purpose. For other regions, the investment threshold remains €400,000, facilitating access to those who choose to invest in less densely populated or developing areas.
Restriction on Combining Properties: One of the main features of the new regulations is the prohibition of combining multiple properties to meet the minimum investment threshold. The investment must now be made in a single property. In this case, auxiliary spaces, such as storage areas or parking spaces, may be included, provided they are bought under the same contract, are within the same building, and serve as auxiliary spaces. It is important to note that the total area of the primary spaces must be at least 120 m² where required by law.
Minimum Property Size: For already constructed properties or properties with building permits, the minimum size of the primary spaces must be 120 m². This restriction does not apply to undeveloped plots or properties that do not yet have a building permit.
Change of Property Use to Residence: When a property changes use and is converted into a residence, its value at the time of acquisition must comply with the new legal requirements. However, there are no size restrictions for such properties. The conversion must be completed before submitting the application for the investors residence permit (by 05.04.2024).
Investments in Industrial Buildings: Investments in properties that include industrial buildings are allowed, provided that no industrial activity has taken place in these buildings for the last five years. The size restrictions do not apply in these cases, making it easier to invest in industrial properties that may be converted to other uses.
Investments in Listed Buildings: For investments in listed properties, the minimum investment value applies without a size restriction. To renew the residence permit, the property must be fully restored or reconstructed. The sale of the property before the completion of these works is considered invalid.
Ban on Short-Term Rentals: One of the most significant changes is the prohibition of short-term rentals (e.g., through platforms such as AirBnB) for periods shorter than 60 days. However, long-term leases or the use of properties for tourist businesses offering additional services beyond accommodation are exempt. This ban does not apply to properties acquired under previous provisions or those that complete the investment by the end of the transitional period.
Prohibition on Using Property as a Business Headquarters: Properties cannot be used as a business headquarters or branch, aiming to prevent investment properties from being used for commercial purposes inconsistent with their original residential intent.
Transitional Provisions: For transactions completed by August 31, 2024, investors may finalize the purchase by December 31, 2024, provided a 10% deposit has been paid. If the transaction is not completed in time, investors may transfer their investment to another property by April 30, 2025.
Sanctions and Administrative Penalties: Failure to comply with these provisions may lead to severe penalties, including administrative fines and possible revocation of the investors residence permit.
A new ministerial decision and clarifying circular are expected to be issued to further detail the implementation of the new regulations and address any potential ambiguities.
|