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They are turning their backs on the golden visa

Foreign investors are turning their backs on the “golden visa” grant program for the acquisition of real estate with a minimum value of 250,000 euros.

The first half of 2022 is the first year in which the balance of arrivals and departures is negative. According to the data obtained from the Ministry of Immigration and Asylum – General Secretariat of Immigration Policy, the total number of five-year residence permits issued to real estate investors of at least 250,000 euros, but also to investors now in intangible securities (shares, bonds, deposits), records losses of 5.66%. That is, from the total of 9,614 licenses that had been granted from the start of the program until 31/12/2021 and were active, six months after the total number of active licenses are reduced by 539, now numbering 9,074.

According to the data of E-Real Estates Panhellenic Network of Real Estate Agents, in terms of absolute numbers, a total of 678 investors left in the first half of 2022, compared to 143 investors who obtained a five-year residence permit through the golden visa program.

It is worth mentioning that, even in the midst of COVID-19, no losses of active licenses were recorded, on the contrary, issuances of new licenses to investors were recorded, but they were significantly limited due to the measures in force against the pandemic.

Never since the start of the ambitious program to attract investors has there been a numerical decline in total permits such as this in the first half of the year.

The investors who “abandoned” the Greek golden visa

Based on the data of the General Secretariat of Immigration Policy of the Ministry of Immigration and Asylum, out of 6,391 active “golden visa” permits for Chinese that were up to 12/31/2022, 442 Chinese left and the active permits now number 5,949. It should be noted that 66.4% of investors in the golden visa program are Chinese investors, occupying the 1st position.

Losses are also recorded by Turkish investors, who, from 619 active “golden visa” licenses until 31/12/2021, have now fallen to 587, recording losses of 5.17% or 32 investors. The Turks occupy the 2nd position of investors in the golden visa program in our country, with a percentage of 6.4% of the total.

Justified losses due to the sanctions are also recorded for Russian investors, who occupy the 3rd place in the golden visa program. From 599 active “golden visa” licenses to 31/12/2021, they have now fallen to 431, recording losses of 28% or 167 investors.

Losses are recorded in relation to the total number of permits up to 31/12/2021 to Iraqi investors, which, out of 132 active “golden visa” permits, now number 123, recording losses of 10.22% or 9 investors. A similar picture for Egyptian investors, who, out of 251 active “golden visa” permits, now number 229, recording losses of 8.76% or 22 investors.

The investors who “chose” the Greek golden visa

A positive sign is recorded by investors from Iran, who, from 198 active “golden visa” permits until 12/31/2021, now number 229, i.e. 31 new investors. An increase in investors by 14.15% is recorded by the Americans, who, from 106 active “golden visa” permits until 12/31/2022, now number 121, i.e. 15 new investors. At the same time, an increase of 11.07% was recorded in investors from Lebanon, who now number 341, from 307 on 31/12/2022, as well as investors from other countries, who, from 815, now number 872.

Greece Vs Portugal

In 2020 the golden visa program recorded losses of 73.4% compared to 2019, when Portugal recorded losses of only 5%. It should be noted that the golden visa program in Portugal requires an investment of 350,000 euros for old properties that need renovation and require approval from the SEF service of the Ministry of the Interior, or 500,000 euros for newly built properties.

By the end of 2020 Portugal’s golden visa program had generated more than €5.5 billion worth of investment since its inception in 2012 and more than 15,500 residence visas have been granted.

In 2021, the golden visa program registered a positive trend compared to 2020, increasing the issuance of new permits by 10.3%, reaching 1,035 new issuances to investors. Portugal, on the other hand, recorded losses of 26.8%, from 1,182 residence permits to investors in 2020 to 865 investors in 2021.

87% of investors in Portugal chose to buy properties worth at least €500,000. Topping the list of investors in order were the Chinese, the Americans, the Russians and fourth the Brazilians.

Finally, according to the published data, Greece in the first half of 2022 has issued 143 new licenses to investors from third countries. Portugal for the same period has issued 649 new ones to third-country investors, according to the state agency Serviço de Estrangeiros e Fronteiras (SEF), of which 105 to Chinese, 45 to Brazilians, 44 to Indians.

In June, total investments in Portugal’s golden visa program reached more than 77.9 million, marking a 44% increase compared to May (53.8 million), while more than doubling from the 36.4 million recorded in the same month of 2021.

The real estate investment requirements to obtain a Golden Visa in Portugal

Residential property: Purchase of residential property in designated inland areas of Portugal, worth at least €500,000 or €350,000 if investing in a restoration project or if the property is over 30 years old and in need of renovation (requires approval from the state agency SEF). If the residential property is located in a designated “low density” area, then a 20% discount applies (ie €400,000 and €280,000 respectively).

Commercial property: Purchase of commercial property anywhere in the country, worth at least €500,000 or €350,000 if investing in a restoration project. If the commercial property is located in a designated “low density” area, then a 20% discount applies (ie €400,000 and €280,000 respectively).

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

Source: Capital

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