1. Residence permit acquisition in Greece
The acquisition of a residence permit within the EU is not an easy task, but each country has specific conditions, under which this procedure may be accelerated. The most attractive choice are investments in Greece, which allow the resolution of the immigration matter, as Greece is considered a very attractive place for permanent residence.
The acquisition of residence permit in Greece is possible under the condition of investing at least 250 thousand euros to the country’s economy. Purchasing (one or more) properties in Greece for the aforementioned amount, collecting the necessary document package and submitting an application for a residence permit is all you have to do. The conditions for acquiring a residence permit have been significantly reduced within the context of the Golden Visa Scheme in Greece.
- granting of residence permit for 5 years
- automatic granting of residence permit to children below 21 years and parents of the investors
- no obligation to reside in the country
After the five-year period, the residence permit may be renewed under the condition that the property remains at the ownership of the investor. The property purchase in Greece from 250.000 € and above is one of the lowest financial conditions within the European Union for acquiring a residence permit. For example, in Spain or Portugal, the residence permit is issued following an investment of 500 thousand euro to the economy of the country, while in Cyprus this limit is 300 thousand.
The investment amount is lower in comparison to other countries
2.Many interesting investment programs
Today, there are several investment proposals -buildings for renovation in Athens and Thessaloniki. The best option today would be investments towards the future, for example, development projects investments, which will start to produce profit after the completion of their renovation and then will provide a stable income. Buildings or whole floors in buildings within the city centers are presenting great interest, since the demand for long-term rentals remains high. The prices for this kind of rents remain high.
In addition, there are interesting suggestions of investments in the hotel industry. This applies for areas with high tourism in Greece- Chalkidiki, Crete, Corfu. The investment in hotel industry is the most characteristic example of profitable businesses in Greek market.
You may benefit from the administration of a hotel, as well as the further resale, which is as profitable. Several hotel units have received financial support from the state this year, due to the covid situation and therefore continue to operate. The decrease in prices did not happen, but interesting offers have appeared. Until 2021, the recovery of the tourism industry is expected in Greece, which makes possible the acquisition of a beneficial property with future potential.
3.Tax benefits of the purchase and possession of properties (VAT cancellation/ENFIA decrease)
The Greek Ministry of Finance during 2020 approved a three-year grace period for VAT (24%) deposit in primary properties. This is a significant decision for the specialized market.
The Greek Ministry of Finance decided to proceed to the change of the VAT deposit procedure for properties, in order to revive the market and the supply of crucial benefits to owners of small-scale and medium-scale properties.
Individuals and companies who own any property in Greece, are obligated to pay the Unified Real Estate Tax (ENFIA). The calculation is done according to the market value of the property, its location, the number of floors, the age of the building and the façade status. On 21st July 2020, the Greek Prime-Minister, Kyriakos Mitsotakis, announced an immediate decrease at 22% of the ENFIA tax, in order to decrease it further at 30% until the end of 2021.
The extensions, along with the ENFIA reduction and the creation of motives for the modernization of buildings, will lead, according to the Ministry, to the modernization of the construction field.
4.Suspension of the Capital Gains Tax
The sale of residencies and apartments is a beneficial business, and therefore Greece has established a Capital Gains Tax. But, until the end of 2022, its implication will be suspended. According to amendments of the current legislation, two properties may be sold without the deposit of this specific tax, within two years. If a third and further transactions are concluded, this is considered as business activity and the Capital Gains Tax is implicated.
Therefore, if you are about to invest in Greece, do it now, when the country has created the most favorable conditions for attracting foreign capitals.