07
Oct 2024
Interest in Greece’s Golden Visa program has grown recently, attracting more investments from the UK, the US, and Israel.
However, this increase comes as concerns about fraud linked to the program rise, which could create problems for future investors.
Increased demand for Greek residency by investment
In the past year, investments through Greece’s Golden Visa program have grown significantly.
Investors from Israel showed the highest growth rate, with a 70% increase compared to last year, obtaining 271 permits, up from 159. British and American investors also saw increases of 51% and 47%, respectively.
Many Britons are interested in Greek residency for easier travel within the European Union (EU), especially since Brexit has limited this privilege.
The rising interest is also due to instability in other regions, leading investors to seek more stable markets.
Greece’s property market, with its affordable prices and access to the EU, continues to attract those seeking both safe investments and convenient travel options.
Allegations of fraudulent activities emerge
Despite the growing popularity of the Golden Visa program, there have been reports of fraud, particularly involving Chinese investors.
Greece’s Anti-Money Laundering Authority recently found irregularities in property purchases through the Golden Visa scheme.
Chinese nationals bought properties using funds from pyramid schemes, sometimes with the help of fraudulent real estate agents. In one case, properties bought in Attica were seized after proof of illegal activity.
An investigation showed that the scheme involved at least one Chinese partner, law firms, and intermediaries who tricked Chinese buyers by inflating property prices
Some properties bought for €100,000 were resold for €250,000, leading to large profits at the expense of the buyers. In other cases, investors paid for properties that were never delivered, causing financial losses.
(Image courtesy of Petra Nesti via Pexels)
Property agents under investigation for fraud
A separate investigation by Greece’s Anti-Money Laundering Authority is targeting several property agents suspected of taking down payments from investors without delivering the properties.
This fraud mainly targeted Chinese nationals and seems to involve housing development companies working only with non-EU investors seeking Golden Visas.
The suspected network allegedly sold the same property multiple times to different investors, leaving many victims without either the property or their money.
This highlights the urgent need for better regulation and oversight of the Golden Visa program to protect future investors.
Changes to Greece’s Golden Visa requirements
In response to these issues, Greek authorities have tightened regulations on the Golden Visa program. The minimum investment amount has increased in popular areas like Mykonos, Thessaloniki, and Santorini, from €500,000 to €800,000.
This change aims to stabilize the housing market and address high rent prices. This increase is also intended to attract more stable investors and reduce the risk of fraud.
Greek Prime Minister Kyriakos Mitsotakis suggested that further increases may apply to other areas with similar problems, highlighting the government’s efforts to regulate the market and protect both buyers and residents from rising property prices.
(Image courtesy of Uiliam Nörnberg via Pexels)
Challenges await visitors and future residents
The recent changes to Greece’s Golden Visa program affect different types of visitors, from tourists to migrants seeking permanent residence in the EU.
For short-term visitors, reports of fraud and irregularities might make Greece seem less attractive as an investment destination.
For long-term residents or migrants, the stricter regulations present additional challenges. The higher minimum investment makes it more expensive to get a Golden Visa, which could change the type of applicants.
These changes also come as the European Travel Information and Authorization System (ETIAS) is set to launch, adding new travel requirements for non-EU nationals entering the Schengen Area.
Together, ETIAS and stricter Golden Visa rules suggest that gaining EU residency will be harder, especially for those without significant financial resources.
Call for stricter immigration control
Greece’s stricter Golden Visa rules could affect broader EU immigration policy, especially for investment-based residency programs. Reports of fraud and tighter regulations might lead other EU countries to review their own programs and consider stricter measures to prevent similar issues.
Discussions at the EU level about tightening controls on residency-by-investment programs are likely to gain traction.
As Greece faces scrutiny and countries like Portugal rethink the benefits and risks, the future of Golden Visas in the EU may involve more unified standards and greater oversight to ensure fairness and transparency across member states.
Greece’s Golden Visa amid new challenges
Greece’s Golden Visa program is still a way for foreign nationals to gain EU residency through property investment. However, recent reports of fraud and irregularities pose serious challenges.
Prospective investors should research carefully and work with verified agencies to avoid scams.
The government’s efforts to increase regulation and raise investment thresholds aim to bring stability and protect investors. These changes signal a new phase for the program, with stricter checks, higher costs, and a more selective process.
As Greece balances attracting investors with protecting the housing market, the future of the Golden Visa program could set an example for EU-wide reforms in investment-based immigration.
