Foreigners buy property for Golden Visas

Investors from non-EU countries played a leading role in the increase of foreign investments in Greek real estate in 2022, mainly aspiring to secure a residence permit through the Golden Visa program.

According to Bank of Greece data on foreign inflows, from 1.97 billion euros in 2022 (a 68% increase compared to 2021), the largest increase is recorded from countries outside the EU. Some €1.26 billion flowed in from third countries, an amount that constituted 64% of the total. This is a 100% increase compared to 2021, when the amount invested had not exceeded €628 million.

Investments from eurozone countries also moved upward, albeit not as fast. Last year a total of €590 million flowed in from the eurozone, or 25% more than in 2021, when €473 million had flowed in. A 49% increase to €106 million was also noted by investments from other EU countries, led by Bulgaria with €53 million invested, from €31 million in 2021.

What becomes clear is the close connection between capital flows in the Greek real estate market and the Golden Visa program, essentially the driving force for the significant increase in such investments in recent years. Data show the bulk of investments by third-country citizens are linked to securing a residence permit.

According to Migration Policy Ministry data, last year 4,363 requests for residence permits were submitted. Calculating as a minimum investment amount of €250,000, this figure translates into €1.09 billion, when the total inflows from non-EU citizens amounted to €1.26 billion. Given that some purchases concern properties of greater value (or more than one property), it is likely the entire €1.26 billion invested last year was linked to Golden Visas.

That trend is not only continuing this year, but has actually soared: In the year’s first four months 3,064 new requests were submitted, for investments of at least €766 million. This is up by 155% from January-April 2022, when 1,200 applications were submitted. The ministry has issued 1,474 new permits, 165% more than last year’s 557 permits.

Buying interest from China has not yet returned to pre-pandemic levels, which makes last year’s performance even more significant. According to BoG data, inflows from Hong Kong, the main source of Chinese capital, rose last year by 254% to €294 million.