The Greek Golden Visa Program: Residence Permit by Investment (Law 4251/2014)

It is also noteworthy that Art 16 applies accordingly to the entry and residence of non-EU citizens in the context of new investments realized by Greek undertakings, already operating, or non-EU citizens already residing in Greece holding residence permits for independent economic activity (par.7 Article 16 A.1.)

In addition, Art. 20 of the Code tries to stimulate the domestic land market by regulating the granting of a residence permit to third-country nationals investing in real estate properties in Greece with a value of at least € 250,000 through sales, lease or timesharing
agreement. The amount of € 250,000 must have been paid in full upon the signing of the respective contract.

More specifically, by decision of the Coordinator of the Decentralized Administration, a five-year residence permit is granted to a third country national that: (a) have legally entered the country with any type of visa or legally reside in the country, even if the type of
residence permit that they possess does not permit change of purpose, (b) have the full ownership, possession and peaceful enjoyment of real estate property in Greece. In the case of jointly owned property worth € 250,000, the right of residence is granted only if the owners of the property are spouses with indivisible shares in the property. In all other cases of joint ownership, the right of residence is granted only if the joint ownership rate of each joint owner is worth € 250,000, (c) have the full ownership, possession and peaceful enjoyment of real estate property in Greece via a legal entity headquartered in Greece or in another EU country, whose shares are fully owned by them, (d)
have concluded a long-term contract for a complex tourist accommodation, according to the provisions of article 8 par. 2 of Law 4002/2011 (Α'180) or a timeshare contract of a tourist accommodation, according to the provisions of Law 1652/1986 , as applicable, (Government Gazette 1, no 180), (e)  have acquired  full ownership as inheritors (either by will or by law due to death) or due to parental grant, of immovable property of an objective value of two hundred and fifty thousand (250,000) euros, and is an adult.

Said permit may be renewed for an equal duration, each time, as long as the real estate property remains in the ownership and possession of the third-country national or the aforementioned agreements remain in force and all other requirements, provided by law, are fulfilled. Periods of absence from the country shall not disrupt the renewal of the residence permit. Moreover the possibility of re-selling the property to another third-country national is granted, providing the right to the granting of a residence permit to the buyer with simultaneous withdrawal of the vendor’s residence permit. 

In the same context, in the event of a contract for the sale of property at any price, the seller, (i.e.) a third-country national, must provide a certificate from the local Aliens and Immigration Service of the Decentralized Administration on whether the property has been used for the issuance of a permanent residence permit. The above applies proportionally to the sale of a property by a legal person whose shares are wholly owned by a third-country national.

Is it a time-consuming procedure to issue a residence permit within the framework of investments?

Through the removal of all bureaucratic obstacles and the initiation of a rapid licensing procedure for the implementation of investments, accompanied by a minimized time limit for the issuance, the contribution of the Immigration becomes essential to the promotion of the national economy. Therefore, the Code has adopted a rapid licensing procedure (fast track) for the entry and residence of third-country nationals who fall within the abovementioned categories.

The procedure and issuance of a residence permit for third-country nationals who make an investment “with a positive impact on national economy” includes two stages, namely the granting of a VISA followed by the granting of a residence permit. More specifically, upon characterization of the investment as one having a positive impact on national economy, an application -along with the supporting documents required by law- is submitted to the Greek Consular Authority of the area of residence of the interested person(s), which, within one month, forwards them to the Directorate of Foreign Capital of the Ministry of Economy, Infrastructure, Shipping and Tourism. The said Directorate, examines the application within a month and forwards the relevant report to the competent Consular Authority in order for the required national visas to be issued.
It should be noted however, that practice shows that so far it is not easy for the competent authorities   to follow these short-term deadlines.

As for “Strategic” Investments, once an investment has been characterised as such, an application with the required documents is submitted to the Directorate for Migration Policy to the Ministry of Interior, with the residence permit being issued within five (5) days from the date when the application was submitted’. (par. 3 of Art 16 B.1.).

The Code provides for the possibility of granting residence permits to the members of the families of third country nationals who proceed to the purchase of real estate property in Greece, the value of  which exceeds € 250,000 (Article 20). Accordingly, art. 16 stipulates that
the investor may be accompanied by the members of their family to whom, at their request, an individual residence permit is issued, that expires together with the residence permit of the sponsor. Family members shall mean: (a) the other of the spouses or partners with whom the third-country national has a cohabitation agreement in Greece (b) unmarried joint children of spouses or partners under the age of 21, (c) the unmarried children of the sponsor or of the other spouse or partner, provided that the custody of the sponsor's child has been legally entrusted to him / her for the children of his / her spouse or partners under 21, (d) the direct ascendants of the spouses or partners.

As provided in the provisions of article 21, the third country nationals, holders of a residence permit, enjoy almost the same freedoms and rights as nationals, namely the freedom of movement and installation within the Greek territory, the right to insurance and social care, the right to education etc.
 

Enterprise Greece is the competent national body, under the supervision of the Ministry of Economy and Development, to attract foreign direct investment in Greece. In so doing, Enterprise Greece benefits investors, businesses and the general public in the most efficient and effective way.

Launched in July 2013 by Enterprise Greece, the Greek golden visa program, apart from the above aforementioned investments, grants a five-year residence permit in return for an investment in real estate. There is no minimum stay requirement and children up to the
age of 21 are included in the family application. The permit is granted for five years and may be renewed every five years if the property investment is retained. It is not necessary to live in the country in order to retain and renew the residence permit. Hence, an investor of a third country could issue a residence permit via the real estate program and in the run of five years investigate the option of proceeding to any further investments.

As far as investment by real estate is concerned, it is worth noting that on the basis of the latest available statistics kept by the Ministry of Immigration Policy (30 April 2017), the Greek Golden Visa program is showing an increasing trend with residence permits for
property owners being set at 1,684, and of family members (spouses, ascendants, descendants) at 4.095. China ranks first followed by Russia, while Egypt ranks third and there is an increased stream from Turkey. The Agency that welcomes investments and promotes export has published some facts and figures according to which in 2018 more than 1.395 residence permits have been issued for investors coming from China. If someone adds this number of permits with the permits issued the past years, then it amounts to a total of
3.644 residence permits only for Chinese citizens. (See https://www.enterprisegreece.gov. gr/en/greece-today/living-in-greece/residence-permits)

In comparison to other countries the Greek Golden Visa Program appears to be one of the most competitive programs. Its financial requirements are the lowest as well as appear to be more convenient and flexible for the investors from third countries since there is no requirement for physical presence. The Golden Visa program has attributed to the enhancement of the Greek economy by 1 billion Euros. This amount is expected to be increased in the upcoming years. In this regard, the fee for the application has increased from € 500 to € 2,000.
 

The landscape of investment activity in Greece is currently changing, and the Greek Government, oriented to the main objective of attracting capital from abroad, is introducing new institutions of investment structures to cover most of the needs of prospective investors, who appear to have a remarkable investment interest since 2015, accompanied by the possibility of obtaining a residence permit, subject to the conditions specifically defined in Law 4251/2014 as in force.

The new legal framework was recently adopted by Law 4605/2019 (Government Gazette A 52 / 01.04.2019), and it is expected to enter into force three (3) months after the publication of the said Law.

Under the explicit provision of the law, a third-country national who has invested in one of the following new investment categories, subject to the specific conditions stipulated therein, is allowed to enter and reside in Greece:

1. a capital contribution of at least EUR 400,000 to a company which has its registered office or establishment in Greece, with the exception of Portfolio Investment Companies, and Real Estate Investment Companies subject to (b), for the acquisition of shares or bonds.
2. a capital contribution of at least EUR 400,000 to a Real Estate Investment Company (REIC) (article 21 of Law 2778/1999), which aims to invest exclusively in Greece, for the acquisition of shares in a share capital increase.
3. a capital contribution of at least € 400,000 to a Closed-end Investment Company (CIC) or to a Closed-end Mutual Fund (CMF), provided that the above Alternative Investment Institutions (AIF) are intended to exclusively invest in companies headquarters or establishment in Greece.

• Provision for partial participation payment
• For the investment in CICs, a single bank account shall be created, from which disbursement is allowed, provided that the sum of a. its remaining balance,    b. the nominal value of the residual investment in the AIF and c. the balance in the blocked account (created in the event of a partial payment) is at least equal to the amount initially invested on the basis of which the residence permit has been granted. d. Purchase of Greek Government bonds, with a minimum acquisition cost of 400,000€ and a residual maturity of at least three (3) years at the time of purchase, via a Credit Institution established in Greece, which will also be the custodian of these bonds.
  e. Term-deposit of a minimum amount of 400.000€ at a domestic Credit Institution, of at least one-year duration, with a standing order for renewal.
  f. Purchase of shares, corporate bonds and / or Greek Government bonds, which are admitted for trading or are traded on regulated markets or multilateral trading mechanisms, that are operating in Greece, with an acquisition value of at least 800,000€.
  • It is required that a unique bank account is created, with a credit institution established in Greece, which would be of exclusive use, for the operations of the investment and the subsequent portfolio management transactions and with the restriction not to disburse any amount from the liquidation of the securities except for its re-investment to the said securities, so that the average annual balance of the above account does not exceed twenty per cent (20%) of the amount of the initial investment.

g.Purchase of units of a minimum value of 400,000€ of a mutual fund incorporated in Greece or another country and with scope to invest exclusively in shares, corporate bonds and or Greek Government bonds that are admitted for trading or are traded on regulated markets or multilateral trading mechanisms, operating in Greece and provided that aa) the fund's assets amount to at least  3,000,000€ and bb) the mutual fund and its manager are licensed by the authority overseeing the capital market of the country in which it is established, which for countries outside the European Union  is required to be a member of the International Organization of Securities Commissions (IOSCO) and have a bilateral information exchange agreement with the Hellenic Capital Market Commission.

• It is required that a unique bank account is created, with a credit institution established in Greece, which would be of exclusive use for the realization of  the transactions and of the subsequent portfolio management transactions and the collection of dividends as well.
• It is required that a record of unit-holders is kept with the credit institution
• Provision for mandatory re-investment in securities with a 20% cap on the average annual balance of the account - exception for investing basis the scope of the investment, covering management expenses, dividend distribution and redemption of units

h. Purchase of units or shares with a minimum purchase value of 400,000€ of an Alternative Investments Fund (AIF) established in Greece or another country of the European Union and intended to exclusively invest in immovable property in Greece, provided aa) the assets of the AIF amount to at least 3,000,000€ and bb) the AIF and its manager are licensed by the authority that supervises the capital market of the country in which it is located.

• It is required that a unique bank account is created, with a credit institution established in Greece, which would be of exclusive use for the transfer of the funds related to the realization of the investments and to the collection of the funds from their exploitation or liquidation.

• Keeping a unit-holder record with the credit institution

• Provision for a mandatory investment of funds in real estate with a ceiling for the average annual balance of 20% of the account of the nominal value of the units of the AIF - an exception for disbursement for investment in the purpose of the AIF, coverage of management costs and distribution of dividends or share redemption. 

It should be noted that a regulatory framework is provided for the realization and holding of the investment for each of the above investment categories.

In case of investment of categories (a) to (f) by a legal person, the entry and stay in Greece of third country nationals is allowed as follows:

(a) For any investment of a minimum amount equal to the one defined above, which is carried out by a domestic legal person, a third-country national is allowed to enter and reside in Greece if they hold all of the company's shares.

b) For any investment made by a foreign legal person, up to three (3) citizens of third countries are allowed to enter and reside in Greece, depending on the amount of the investment, who are shareholders or executives of the foreign legal person.

The number of third-country nationals will be determined by the Joint Ministerial Decision of Ministers for Migration Policy, Economy and Development and Foreign Affairs, depending on the amount of the investment, which may not be less than twice the minimum amount specified in the investment categories specified above.

Special supporting documents for new investments:

 Pending publication of Joint Ministerial Decision for their definition (article 136 (12) Law 4251/2014 as amended by, art. 42(2) Law 4605/2019).

The application for entry to Greece and the supporting documents shall be submitted to the competent Greek consular authority of the investor's place of residence within the next year following the investment year. Within one (1) month of receipt, the consulate shall have sent them to the competent authority to certify the realization and holding of the investment, ie the Directorate of Foreign Capital of the Ministry of Economy and Development.

The above service examines the supporting documents submitted and transmits within a month (1) of their receipt to the consular authority relevant certification in order to obtain the national entry visa for "investment in securities or bank deposit". To  third-country nationals who have received a national visa for an investor, provided that they have submitted a recent certification of the competent department for the holding of the investment and the other required supporting documents referred to in Article 136, paragraph 1, a residence permit is issued by decision of the Minister of Immigration Policy, of five years, renewed for an equal period of time each time, provided that the holding in question is held and the other conditions for granting the license are met. The Migration Policy Directorate of the Ministry of Migration Policy is responsible for examining the application and issuing a decision to grant or renew the residence permit to third-country nationals who have invested as per the new provisions. The residence permit shall be withdrawn or refused if the conditions for granting it are no longer fulfilled.

Family members:

Citizens of third countries who are subject to the provisions hereof may be accompanied by their family members as provided for by law.

It is not established on the basis of these specific residence permit

Is there a special arrangement for prospective investors legally resident in the country?

Third-country nationals who have legally entered the country with an entry visa or otherwise legally reside in the country, are not required to leave the Greek Territory in order to apply for a residence permit, if they meet the requirements of the investment plans as set forth.

• The new law provides for the description of the application process

The authority that proposes for the investment is responsible for monitoring its progress after the issuance of the residence permit and reports to the Ministry of Immigration Policy on any change. To this end, investors are required to submit, in the first two months of each year or whenever requested by the competent authorities, the relevant supporting documents specified, where appropriate, in the decision under the first or second subsection of Article 136 (12) (pending their definition by a JMD).