Spain, Greece and Portugal are among the most recent to revise their golden visa programmes to attract foreign investment. The chief reason for the revisions in many EU countries is the housing crisis that was supposedly created after foreign investors started buying up property leaving locals unable to afford housing.

Greece Golden Visa Revamp: Higher Investment Thresholds

The Greece Golden Visa program, a sought-after residency opportunity for affluent non-EU citizens, has long enticed investors aiming to secure Greek residence through real estate ventures.

Originally introduced in 2013, the Golden Visa program in Greece permitted residency through a minimum real estate investment of EUR 250,000, with investors receiving a renewable five-year residency permit contingent upon maintaining their investment. However, in January 2023, the Greek Government doubled the minimum investment requirement from EUR 250,000 to EUR 500,000.

On March 21 2024, the updated regulations for the Greece Golden Visa were announced by Kostis Hatzidakis, the Minister of National Economy and Finance of Greece.

The updated rules for the Greece Golden Visa are expected to take effect by May 2024 at the latest.

Some of the new updates are summarised as follows:

1. The minimum property purchase requirement rises to €800,000 from €500,000 for investors looking at real estate in areas of Attica, Thessaloniki, Mykonos, Santorini, and islands with a population exceeding 3,100. This higher threshold reflects the premium property values in these sought-after areas. Similarly, in these same areas, investors committing to long-term tourist accommodation complexes or timeshare contracts must now invest a minimum of €800,000, up from the previous €500,000.
2. For property purchases in other locations (Zone B), the minimum investment increases from €250,000 to €400,000. This zone encompasses desirable regions with slightly lower real estate values compared to those in Zone A.
3. Lastly, in Zone C the investment threshold remains at the previous minimum of EUR 250,000. This zone covers the majority of municipalities in Greece, offering investors access to more affordable real estate options while still enjoying the benefits of Greece's investment immigration program. The €250,000 threshold remains for commercial premises intended for conversion into residential properties and for listed buildings earmarked for restoration.

Investors have the option to purchase a share in undivided co-ownership of a property valued at least €400,000 or a minimum of €800,000.

• While properties can be rented out, they cannot be offered for short-term leases.
• Properties converted into residences cannot be utilised as commercial headquarters or branches.
• Violating either of the last two conditions results in the loss of the 5-year residence permit and incurs a fine of €50,000.

Spain Axes Golden Visa Program to Combat Soaring Housing Costs

Spain will end golden visas granted to foreign nationals as announced on Monday, April 8 by the Spanish Prime Minister, Pedro Sánchez.

This will prevent “speculative investment” by foreign investors, according to the Prime Minister. Presently, many citizens are unable to afford housing because real estate prices have been forced upwards by foreigners seeking a golden visa in Spain.

Golden visas allow non-EU nationals to obtain a three-year residence and work permit, provided they invest at least €500,000 in a Spanish business or real estate. These visas were introduced in 2013 by the conservative government of Mariano Rajoy, who wanted to revive investments in the country during an economic slump caused by the financial and real estate crisis.

Up until 2023, 6,200 visas were issued for property investment, as reported by Transparency International. Transparency International is a global civil society organisation dedicated to combating corruption.

Transparency International revealed that almost half of Spain's Golden Visa recipients were Chinese, totalling 2,712 individuals. Russians made up the next largest group of recipients with 1,159 visas, then Iranians with 203, Americans with 179 and Brits with 177 visas.

The Spanish government is determined to eliminate the programme to ensure that "housing is a fundamental right rather than merely a target for speculative business."

The Prime Minister emphasised that the majority of visas granted were associated with property purchases in cities like Madrid, Barcelona, Valencia, Málaga, Alicante, and the Balearic Islands - areas experiencing significant housing market pressures, making it exceedingly difficult for residents who work and pay taxes there to find affordable accommodation.

However, critics argue that abolishing the golden visa will not address the underlying issues. Francisco Iñareta, from the Idealista property portal, remarked, "The housing problem in Spain, whether in terms of sales or rentals, is not caused by the Golden Visa, but rather by the increasing scarcity of housing supply and the rapid growth in demand."

Portugal Tweaks Golden Visa: Housing Crisis Takes Priority Over Investment Boom

In Portugal, the golden visa is also undergoing some modifications to address the country’s housing issues. The programme now no longer allows real estate investment to qualify for a golden visa.

Golden visas attracted over €530 million in investments in the last year alone, as reported by the Portuguese Association of Residential Tourism and Resorts (APR), a nonprofit dedicated to promoting residential tourism in Portugal, but the government aims to address its housing crisis by discontinuing its golden visa programme.

The APR suggests that when these visas are eliminated, over 1,000 jobs could potentially be affected within the next two years. However, Prime Minister António Costa contests this, stating that only a small fraction of golden visa holders have actually generated employment through their investments.

Additionally, APR underscores the long-term economic ramifications. A study commissioned by the association last year revealed that golden visa holders contribute approximately six times the value of their initial investment within five years.

APR expresses concerns that the ban on the golden visa will have a devastating impact on tourism and investment in tourism-related products in Portugal. The association argues that many properties purchased by golden visa holders are tailored for tourists and are not suitable for everyday living by Portuguese families.

Certain tourist destinations, like Madeira and the Azores,  have already voiced their concerns about the local economic consequences of the ban.

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