Why did 442 Chinese abandon the Greek Golden Visa to immigrate?

The foreign investor abandoned the "Golden Visa" program and bought a property worth at least 250,000 euros.

European immigrants

The first six months of 2022 are the first year in which inbound and outbound balances are negative. According to data obtained by the Ministry of Immigration and Asylum - General Secretariat for Immigration Policy, all five-year residence permits are issued to real estate investors of at least €250,000, while investors in intangible securities (stocks, bonds, deposits) record losses of approximately 5.66%. That is, a total of 9,614 licenses granted and active from the beginning of the program to December 31, 2021, six months later, the total number of active licenses decreased by 539 to 9,074.

According to the absolute number of E-Real Estates Panhellenic Network of Real Estate Agents, a total of 678 investors left in the first six months of 2022, compared with 143 investors who received five-year residence permits through gold. Visa program.

It is worth mentioning that even during the covid-19 period, the loss of valid licenses was not recorded, on the contrary, the issuance of new licenses to investors was recorded, but they were greatly limited due to effective measures against the pandemic. Since the start of the ambitious investor attraction program, the total number of licenses has never seen a decline like in the first 6 months of the year.

Investors who "renounce" the Greek Golden Visa

According to the General Secretariat for Immigration Policy of the Ministry of Immigration and Asylum, as of December 31, 2022, of the 6,391 valid Chinese "Golden Visa" permits, 442 Chinese remain, and the current number of valid permits is 5,949. It should be noted that 66.4% of the Golden Visa program investors are Chinese investors, ranking first.

Turkish investors have also recorded losses, from 619 valid Golden Visa permits to December 31, 2021, which has now fallen to 587, losing 5.17% or 32 investors. Turks rank second among investors in the mainland Golden Visa program with a ratio of 6.4%.

Russian investors have also suffered a reasonable loss as a result of the sanctions, and they are third in the Golden Visa program. From 599 valid Golden Visa permits to December 31, 2021, they have now dropped to 431, losing 28% or 167 investors.

As of December 31, 2021, iraqi investors' losses are recorded in the total number of licenses, and out of 132 valid "Golden Visa" permits, Iraqi investors now have 123 with a loss of 10.22% or 9 investors. The situation is similar for Egyptian investors, who now have 229 out of 251 valid Golden Visa permits, with a loss of 8.76% or 22 investors.

"Choose" the investor of the Greek Golden Visa

Investors from Iran recorded a positive sign, from 198 valid Golden Visa permits to December 31, 2021, and their number now stands at 229, or 31 new investors. The number of investors recorded by Americans increased by 14.15%, from 106 valid Golden Visa permits to December 31, 2022, and the number of them is now 121, including 15 new investors. At the same time, the number of investors from Lebanon increased from 307 on December 31, 2022 to 341 now, and from 815 to 872 now, an increase of 11.07%.

Greece vs Portugal

The Golden Visa Program lost 73.4% in 2020, compared to 5% in Portugal in 2019. Approved by the SEF Service of the Ministry of the Interior, or 500,000 if newly built.

Since its launch in 2012, Portugal's Golden Visa program has generated more than €5.5 billion in investments by the end of 2020 and more than 15,500 residency visas have been granted.

In 2021, the Golden Visa program showed a positive trend compared to 2020, with new licenses issued increasing by 10.3% to 1,035 new issuances to investors. Portugal, on the other hand, recorded a loss of 26.8%, down from 1,182 investor residence permits in 2020 to 865 investors in 2021. 87% of Portuguese investors choose to buy a property worth at least €500,000. The top investors were Chinese, Americans, Russians and Brazilians, and fourth.

Finally, according to published data, in the first six months of 2022, Greece issued 143 new licenses to investors from third countries. According to the national organization Serviço de Estrangeiros e Fronteiras (SEF), Portugal issued 649 new bonds to third-country investors during the same period, of which 105 were issued to Chinese, 45 to Brazilians and 44 to Indians.

In June, the total investment in portugal's Golden Visa program exceeded 77.9 million, an increase of 44% compared to May (53.8 million) and more than double the 36.4 million in the same month of 2021.

Portugal's changes to the Golden Visa program

In Portugal, most investors targeting a Golden Visa focus their attention on metropolitan hotspots such as Lisbon and Porto or popular tourist-friendly coastal areas such as algarve beaches. That said, a similar situation has been observed on the mainland in recent years, involving the southern suburbs of N. Attica (Glyfada, Paleo Faliro, Alimo, Voula, etc.), with nearly 80%-85% of investors.

Based on the above, at the beginning of 2020, the Portuguese government proposed that golden visas would no longer be offered to investors purchased in Lisbon, Porto and the Algarve. The move aims to curb speculation and keep prices affordable – available in large cities across the country – and to encourage investment in small towns in low-density areas of the country to boost economic development and support the national real estate market. Grade.

After Portugal announced that it would remove the two cities from the Golden Visa program early next year, on January 1, 2021, Lisbon and Porto stood out, prompting Portugal to accelerate its investment interest in the Golden Visa program and write its own success story. The loss in 2020 was only 5% compared to 2019, which in retrospect was a "trick" by the Portuguese to support the real estate market during the COVID-19 period and at the same time approach foreign investment funds.

On 12 February 2021, the Portuguese government announced changes to the Golden Visa program in the official newspaper Le République, which will initially apply on 1 July 2021 and will be extended from 1 January 2022 due to strong interest.

Now, from January 1, 2022, the rules of the program have changed and geographical restrictions have been imposed on eligible real estate investment areas. These residences are now only open to investors in Portugal and its islands. Therefore, it is only possible to invest in popular cities such as Lisbon or Porto if you invest in commercial/non-residential properties such as offices or shops.

The new rules effectively expand the geographical availability of Portugal and popular islands such as Madeira and the Azores, while supporting domestic real estate in commercial real estate.

Real estate investment requirements to obtain a Golden Visa in Portugal:

Residential Property: Purchase a residential property worth at least €500,000 or €350,000 in a designated outback area of Portugal if you are investing in a restoration project or the property is more than 30 years old and in need of renovation (subject to approval by the state agency SEF). If the residential property is located in a designated "low density" area, a 20% discount applies (i.e. €400,000 and €280,000 respectively)

Commercial property: Purchase commercial property valued at least €500,000 or €350,000 (if you are investing in a restoration project) anywhere in the country. If the commercial property is located in a designated "low density" area, a 20% discount applies (i.e. €400,000 and €280,000 respectively)

Buying real estate in Madeira or the Azores: Buying residential and/or commercial real estate anywhere in the Portuguese Autonomous Islands of Madeira and the Azores is worth at least €500,000 or €350,000 if you invest in a restoration project. Madeira and the Azores are classified as high density, so there is no 20% discount option.

Investment requirements to obtain a Golden Visa in Greece:

The minimum amount to buy a property is €250,000. The property is newly built, or the property needs to be renovated, or the property is over 30 years old, or the property is located in the city or southern suburbs of Athens (Hellinico, Glyfada, Voula, etc.), or in a metropolitan park, or in a regional city (Thessaloniki, Patras, Kalamata, etc.) or a small town. The basic condition is to invest at least €250,000 for the purchase of a property within Greece.

What can Greece do?

The Golden Visa investment programme should immediately adapt to international trends, international data and competitive bases. There is an urgent need for change to incentivize the creation of a new "wave" of investors.

The mainland has all the appropriate "tools" in place to make changes aimed at attracting investment funds immediately. The possibility of changing the number of real estate investments in the Territory area needs to be implemented immediately through the joint ministerial decision of the common authorities, taking into account factors such as development objectives, tourism development and geographical location.

The above application will accelerate investment promotion during the year, act as an incentive for regions that wish to participate in development policies and play a role in tourism, and will also help promote the development of tourism. The Golden Visa program is now implemented at the national level, rather than being concentrated in South Attica as today, where 85% of investment is concentrated.

We can immediately announce an increase in the investment limit for North Attica or a specific suburb from the beginning of 2023, while maintaining €250,000 and/or lowering new investment limits, such as 25%-30%, in areas where their economies must be supported. At the same time, the control of the value of the property by registered appraisers registered with the Ministry of Finance is implemented to avoid past cases that smear the domestic real estate market and the Golden Visa investment program.

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