The country’s Golden Visa program would now accept startup financing, according to plans unveiled by Greek Prime Minister Kyriakos Mitsotakis. At the 88th Thessaloniki International Fair a comprehensive economic strategy was unveiled which includes the current action.
With the new investment channel, international investors can invest €250,000 in Greek businesses and receive a residence permit for five years. However, comprehensive information about this new alternative has not been made public by the government.
The suggested startup funding option, according to Christos Th. Vardikos of Vardikos and Vardikos demonstrates Greece’s commitment to fostering innovation and drawing in foreign talent. He points out that this €250,000 approach would “open doors for tech-savvy investors wishing to participate in Greece’s burgeoning startup scene.”
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This decision is consistent with Mitsotakis’ overall agenda for economic growth and innovation. Mitsotakis emphasized that he presents “only suggestions for useful and effective options” rather than “a bag of frivolous benefits,” detailing some policies to raise wages, support families, and address housing issues.
The economic plan includes 45 measures, such as pension increases, minimum wage increases, and entrepreneurship-boosting initiatives.
The Golden Visa program’s startup investment option fits into this framework, with the potential to bring new finance and talent to Greece’s technology sector.
The Golden Visa program entered a transitional period on September 1, 2024, when new real estate investment thresholds went into effect.
Investors must now contribute €800,000 to attractive sites including Attica, Thessaloniki, and popular islands with more than 3,100 residents. However, the program continues to offer two €250,000 real estate investment options: converting commercial assets to residential use or repairing listed buildings.
Vardikos emphasizes that various parts of these choices require further clarification. “Within the next days, the government should clarify the conditions of how a converted commercial property into a residential property is eligible for the €250,000 threshold,” the economist said. “The rumor that the commercial property must have been neglected for the previous five years is another cause for concern.
The Golden Visa scheme has grown in popularity. Almost 30,000 unprocessed applications are now awaiting assessment. In the first seven months of 2024, investors submitted 4,734 applications, with the potential to deposit more than €1.2 billion into the Greek economy.
Vardikos emphasizes the significance of determining “how this new option will integrate with the existing investment pathways and the program’s current backlog of applications.”
The backlog of Greek golden visa applications
Even before the Golden Visa amendments went into effect, Greece’s commercial property sector expanded rapidly. Transactions exceeded €800 million in the first half of 2024, representing a 15% rise over the previous year. Office buildings and hotels accounted up 70% of the overall transaction volume.
The government has also imposed limits on Golden Visa holders’ property use, forbidding short-term rentals and the use of transformed homes as corporate headquarters. Failure to comply may lead to the cancellation of the permit and a fine of €50,000.
Monthly data for Greek golden visa applications
The Golden Visa program also provides numerous more investment alternatives, all of which need a minimum commitment of €400,000. These include investments in Greek corporations, real estate investment firms, and venture capital funds.
Investors can also buy Greek treasury bonds make term deposits at Greek banks or put their money into Greek-focused mutual funds and alternative investment vehicles. One alternative calls for an investment of €800,000 in Greek treasury bonds, corporate bonds, or shares listed on Greek exchanges.
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