Greece has proved to be one of the most popular and affordable destinations in Europe for Investors and high-net-worth individuals looking to take proactive measures to safeguard their financial and personal security, as well as ease of travel, and high standard of living.

The country with its stunning scenery and sunny climate has demonstrated its resiliency and attractiveness to foreign investors, according to the fourth edition of EY’s Attractiveness Survey Greece[1] 2022. This has been achieved despite the increased uncertainty and pessimism created by the war in Ukraine and the dramatic increase in energy prices, and due to several reasons mainly the promising business opportunities in the real estate and hospitality sector, as well as the flexible residency scheme. According to the EY survey, the country’s attractiveness is due to the quality of life 75%, transport and logistic infrastructure 73%, telecommunications and digital infrastructure 72%, and skills and availability of the workforce 70%.

Attractive destination

Based on data released by the European Investment Monitor (EIM), total investment projects in the year 2020-2021 accounted for 24% of total Foreign Direct Investments (FDIs) over the last 22 years. Part of this is due to the Golden Visa Program, which was launched in 2013 to revive the housing market from a prolonged slump. The program offers residency to non-EU investors purchasing or renting property worth €250,000. However, the minimum investment in specific geographical^[2] areas like Athens, Thessaloniki, Mykonos, and Santorini will increase to €500,000 as of July 31, 2023. From 2014 to 2021, 9,610 main applicants received their Golden Visa in Greece. From its inception to December 2021, a total of 28,767 Greece Golden Visa permits were granted to the main applicants and their dependents, which yielded a total investment of more than €2.6 billion into Greece.

Flexible program

Investors holding the Greece Golden Visa have the right to live, work and invest in Greece, though, they are not required to live in the country to maintain the Visa. These rights are extended to other EU countries. Greece Golden Visa can be renewed every five years providing that investors maintain their financial investment. Family members can be included in the Golden Visa application including spouse, unmarried children under the age of 21 (and up to 24 if they are a student), and dependent parents of the applicant and their spouse.

High real estate yields

The real estate market in Greece has also shown its resiliency. In the first three quarters of 2022, net FDI in real estate reached €1.28 billion, up by 60.2% compared to the same period in 2021, according to the Bank of Greece. Before the Covid-19 pandemic, foreign investment in real estate in Greece had been rising strongly. Net FDI for real estate surged by 45.3% in 2016, 86.5% in 2017, 172.1% in 2018, and another 28.5% in 2019. Central Athens’ average two-bedroom apartment price[3] is around €630,000, while in the suburbs of Athens, two-bedroom apartments cost around €130,000 to €240,000, relatively less than in the center. Two-bedroom apartments in Crete cost around €190,000. The potential buyer must open a Greek bank account and transfer all the funds required for the purchase (property price, notary fees, registration fees, etc.) to comply with the Greek tax legislation or otherwise to import cast through the Greek Customs Authority.

Real estate investments in Greece can be rented out to provide a consistent income. In central Athens, specifically Athens Historical Center and Kolonaki – Lykavittos, gross rental yields, which is the rent the landlord will earn before taxation, and other costs compared to the property´s purchase price, range from 2.80% to 6.32%. Smaller apartments tend to have higher rental yields than larger ones.

Stunning touristic destination

Tourism is one of the most important industries in Greece, accounting for around 20% of the country’s GDP. In 2022, Greece welcomed around 30 million tourists, making it one of the most visited countries in Europe^[4]. Greece is known for its beautiful islands, with over 6,000 islands and islets in the Ionian and Aegean Seas, of which around 227 islands are inhabited.

Investors looking to obtain a second residency can benefit from myriad business opportunities available in the tourism sector, such as developing eco-friendly and sustainable tourism projects, as well as renovating hotels, resorts, and serviced apartments. The food and beverage sector also presents opportunities for investments in restaurants, cafes, and bars.

Competitive Tax regime

The tax regime in Greece is considered favorable compared to other European countries, with a tax on income received in the country payable on a progressive scale ranging from 9% to 45% depending on wages. A fixed payment program of €100,000 per year is available to those who have high incomes, regardless of the size of their overall income. Rental income is subject to a sliding scale of taxes ranging from 15% to 45%, and the beginning property tax rate is the same as that in other EU nations at 3.09%. Greece has double taxation agreements with 46 other nations, preventing investors from paying taxes in both Greece and their home country.

Visa-free access

Investors holding a Golden visa from Greece, which is a member of the European Union, are entitled to travel without a visa across all 27 countries of the Schengen Zone, including France, Germany, Sweden, and Switzerland.

Golden visa holders wishing to relocate or spend a lot of time in the country will benefit from the highly regarded education and healthcare system, all within an ancient and fascinating landscape.

The Greek residency by investment program is open to adults over 18 years old, who don’t have any criminal record in any country they have lived in. Applicants should also have health insurance in Greece and should show they have the funds to make the required investment. Greece Golden Visa can be issued within 2-3 months for the investor and his or her family. Holders of Greece Golden Visa can apply for citizenship after 7 years of legal residence in Greece. For further information about the program, please visit our website here.

[1] https://www.ey.com/en_gr/attractiveness/22/how-can-greece-become-an-even-more-attractive-investment-destination

[2] https://getgoldenvisa.com/ultimate-guide-to-greece-golden-visa

[3] https://www.globalpropertyguide.com/Europe/greece/Rental-Yields

[4] https://www.schengenvisainfo.com/news/greece-welcomed-2-5-million-tourists-in-q1-of-this-year/