Margarita V. Stavropoulou
Attorney at Law
Investment programs, commonly known as “Golden Visa Programs” are quite popular during the past few years in many European countries, including Greece, especially after the financial and economic crisis across Europe. These programs shape a scheme, where a third country national could obtain a residence permit or even a claim to the nationality in some cases, under the one and only condition of the investment of an amount of money for the acquisition of real estate property, shares or bonds or other investments according the legal frame of the relevant member state.
Such investments already existed since the 80s (Carribean) and early 90s (United Kingdom) but they have rapidly expanded in recent years amongst European Countries. That is not just a coincidence but it is rather relevant to the fact that countries that have been stricken by the economic crisis and try to find ways for their economies to recover. The attraction of capital and investors is certainly one of them.
The Greek legal frame.
Permanent residence permit for investors.
By virtue of Law N. 4146/2013, the article 36A comes into force and shapes the frame for the granting of residence permit to third country nationals who own real estate property in Greece. The addition of this article to the immigration Law is the first step for the creation of the legal frame of residence for property owners, which exists until today with some amendments on the way and is known as “Permanent Residence Permit for investors”.
- Third country national who has exclusive ownership and possession of real estate property in Greece, with economical value at least 250.000 Euros
- Third country national, who acquires via a legal entity where they own the total amount of shares, the exclusive ownership and possession of real estate property in Greece with economical value at least 250.000 euro.
- Third country national who has concluded a long-term contract for a complex tourist accommodation, according to the provisions of article 8 par. 2 of Law 4002/2011 (Α’180) or a timeshare contract of a tourist accommodation, according to the provisions of Law 1652/1986 , as applicable.
- Third country national who acquires full ownership and possession of a plot, proceeds in a construction and the total value of the purchase and construction is at least 250.000 Euros.
- The members of the family of the above. Members are considered to be the spouse, children under 21 years old and the directive relatives in the ascending line.
According to late amendments of the immigration law the time during which the third country national possesses the residence permit of investor is taken into account for the acquisition of the Greek citizenship.
Residence permit for investment activity.
By virtue of article 16 of Law N. 4251/2014 (Immigration Law) as amended with Law N. 4605/2019 the entrance and residence of third country nationals as investors are permitted under the condition that they make an investment with positive effects in the national development and economy. If the investment is implemented by a legal entity, then it is permitted to up to three persons among the shareholders or executives) to enter Greece and obtain a residence permit, depending on the amount of money which is invested. For the implementation and operation of the investing plan, it is provided that up to 10 more third country nationals are entitled to obtain a residence permit, depending again on the amount of money which is invested. These third country nationals entitled to acquire a residence permit could be the executives, economic and legal advisors, experts etc.
The proposal for the description of the investment by the Department of foreign capitals of the Ministry of Economy is substantial for the approval of entrance and residence of the above third country nationals. The starting point of the process is the competent Greek Consular Office where the application is submitted along with all necessary documents. The permit which is granted has a duration of 5 years and can be renewed for as long the implementation and operation of the investment lasts.
Investment in shares, bonds or bank deposit (at least 400.000 Euros)
The article 16 of Law N 4251/2014 relatively with the investment activity is further amended by the recent Law 4605/2019 and more alternatives of acquiring a residence permit through investment activity are introduced.
Under the new legal frame there is the possibility for a third country national to acquire a residence permit after investing to the following categories:
- -Capital contribution of at least EUR 400 000 in a company registered or established in Greece, excluding Portfolio Investment Companies and Real Estate Investment Companies, for the acquisition of shares issued in course of a capital increase or for the acquisition of bonds in course of issuance of a bond loan, which are being admitted to trading on regulated markets or to multilateral trading facilities operating in Greece.
- Capital contribution of at least EUR 400 000 in a Real Estate Investment Company (REIC) of article 21 of Law 2778/1999 engaged exclusively in investments in Greece, for the acquisition of shares in course of a capital increase.
- Capital contribution of at least EUR 400 000 in a Venture Capital Investment Company of article 5 of Law 2367/1995 for the acquisition of shares or in a Venture Capital Mutual Fund of article 7 of Law 2992/2002 for the acquisition of units, provided that the purpose of the above Alternative Investments Organisations is to invest exclusively in businesses registered or established in Greece.
- Purchase of Greek State’s bonds with a purchase value of at least EUR 400 000 and remaining duration, as of the purchase date, of at least 3 years,
through a credit institution registered in Greece, which also acts as a trustee. - Term Deposit of at least EUR 400 000 with a Greek credit institution, with a minimum duration of one year and a permanent renewal order.
- Purchase of shares, corporate bonds or Greek State’s bonds, with a purchase value of at least EUR 800 000, which are being admitted to trading or are being traded on regulated markets or to multilateral trading facilities operating in Greece.
- Purchase of units with a purchase value of at least EUR 400 000 in a mutual fund established in Greece or abroad with exclusive purpose to invest in shares, corporate bonds or Greek State’s bonds, which are being admitted to trading or are being traded on regulated markets or to multilateral trading facilities operating in Greece on the condition that: (i) the assets of the mutual fund amount to at least EUR 3 000 000 and (ii) the mutual fund and its administrator are licensed by the authority supervising the capital market in the country of its establishment, which for non-EU member states must be a member of the International Organisation of Securities Commission (IOSCO) and must have concluded with the Greek Capital Market Committee a bilateral agreement for the exchange of information.
- Purchase of units or shares of a purchase value of at least EUR 400 000 in an Alternative Investments Fund, established in Greece or another EU member state, with the purpose to exclusively invest in real estate in Greece on the condition that: (i) the assets of the Alternative Investments Fund amount to at least EUR 3 000 000 and (ii) the Alternative Investments Fund and its administrator are licensed by the competent authority supervising the capital markets in the country of their establishment.
The residence permit has a duration of 5 years and the holder has the right to be accompanied by the members of their family. It is a rather complex process and requires due diligence regarding the prompt and adequate preparation of the needed documents at every stage of the procedure.
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