Frequently Asked Golden
Visa Questions

The Golden Visa residence permit does not grant working rights in Greece. Therefore, the holder of a Golden Visa cannot access the work market either as an employee or freelancer. However, the holders of Golden Visa have the right to establish a company in Greece and exercise control as shareholders or non-executive BOD members. Still, they will need to employ someone to appoint the company’s director.

It is indeed imperative to have valid health insurance in Greece for every applicant included in the Golden Visa programme (main applicant and family members) as the Greek Golden Visa law requires that. On the other hand, the Golden Visa law does not oblige you to have your property insured. However, it is always recommended to insure your investment against various risks, but the final decision depends entirely on you.

Typically, only one visit is mandatory for the submission of your biometrics. The rest of the process can be handled by your lawyers through a Power of Attorney (POA). However, it is recommended to travel at least once more at the beginning of the process to sign a POA, open a bank account and choose a property on your own.

Yes, all family members may apply together. The only limitation is that the dependent family members cannot apply before the main applicant. It is also possible for other family members to apply later; however, their residence permit will expire at the same time as the one of the main applicant.

The Greek Golden Visa Law provides that a residence permit is granted to individuals who purchase property in Greece with a minimum value of 250,000 EUR. Furthermore, a residence permit is also granted to individuals who have full ownership of real estate property in Greece of a minimum value of 250,000 euros through a legal entity established either in Greece or in another European Union member state, in which the individual must own 100% of the company shares. Subsequently, since your company is established in UAE, you cannot use it for your Golden Visa planning.

Your 20 years old daughter is considered an adult; however, you will be able to include her in your application as a member of your family, as there are special provisions in the Greek Golden Visa Law for the applicant’s family members. More specifically, residence permits are issued for the investor’s spouse and all their children up to 21 years old, provided they are still unmarried. Subsequently, your daughter’s golden visa will be valid until her 21^st birthday.

Once her Golden Visa expires, she may switch to another type of residence permit, called an “independent residence permit”, for three more years, also granting working rights in Greece. When she turns 24 years old, she may renew it further, according to pertinent immigration legislation (for example, for studies in Greece, employment etc. ) or make a new investment under the Golden Visa Law.

If your children have already exceeded 21 years old, they cannot qualify as dependent family members of a Golden Visa holder. In that case, you may appoint your children as the main investors, and you may qualify as their dependent parent, which comes with no conditions or further requirements.

According to the Greek Golden Visa Law, the investor’s parents and parents-in-law are family members and may also be granted a Golden Visa without further requirements. Therefore, if your parents are divorced, and your father remarried, only your natural mother and father may apply, as your father’s wife is not considered a family member. However, suppose the investor has been adopted by the new spouse of his/her parent. In that case, the foster parent is considered a family member, and he is eligible to apply for a Greek Golden Visa.

The Golden Visa Law does not provide that the applicants should meet any health requirements, unlike other procedures, such as the issuance of a Type D Schengen Visa.
Regarding access to health services, third-country citizens- applicants of Golden Visa and their family members who fall under the provisions of this law, are required to have insurance that covers their healthcare and medical care expenses.

Yes, of course, you are able to include your husband’s 14-year-old daughter from his previous marriage. Since her mother has her custody, at the time of submitting your daughter’s application, you must also present to the immigration authorities her mother’s written consent for the submission of the golden visa application, according to the law governing your family issues.

After choosing the desired property and agreeing on the price with the seller, some basic steps must be followed.

The first step is to conclude the legal due diligence on the selected property to identify if it is free and clear of burdens and encumbrances. This is conducted by a lawyer who will research the previous title deeds at the corresponding land registry or cadastral office going back at least 20 years. An enhanced Due Diligence may be concluded usually in one week, but a first estimate can be obtained within a couple of days. 

If all goes well and the property is clear, then the procedure of the purchase contract begins. A Notary public has to be appointed to evaluate the property file and draft the purchase contract.  The law requires the seller to provide specific documents to the Notary public for the contract to be concluded.  Usually, the seller needs about a month to collect all the required documents. Regarding individual sellers and resales, it is common for the Notary to find mistakes or ask for the issuance of some documents with corrections. Based on that, the average time needed to conclude a real estate purchase is about 6-8 weeks if the property is clear.

However, this time may vary depending on various factors.  For example, if the property is owned by more than 2-3 owners, it might require more time for them to collect all the documents (often, they are different for each one).  Or in case the property is rented or needs any legal amendment to be legally transferred, this might also prolong the time needed for the final purchase contract.

On the other hand, if the seller/s are extremely diligent with collecting the documents required on their side, the procedure can be concluded fast, even within 2 weeks.

The Greek legal system provides a rich and effective mechanism for the protection of ownership rights.

First of all, under Greek law, all ownership rights are registered to public records kept in Books at Land Registries, and in electronic files at the Cadastral Offices. The public character of the above records ensures that everyone has access to the information concerning the ownership status of a property and that this information is official and can be trusted by any interested person, thus creating the necessary legal security.

Furthermore, Greek law allows a property owner to protect his ownership status judicially effectively.

A property owner can file court actions and ask for interim measures against anyone who infringes his/hers property rights. The competent court can issue binding judicial decisions forbidding further infringements of property rights and/or imposing relevant monetary compensation obligations to the violator of the property rights.

Yes, someone can buy or sell property in Greece via a power of attorney (POA).  Through a power of attorney, the principal transfers powers to one or more proxies who may conclude all the required legal actions and transactions on behalf of the principal from A to Z: That is from the initial issuance of a Greek Tax Identification Number on behalf of the principal up to the signing of the final contract and the deed of payment.

Of course, the PoA can be general or more specific depending on the number of powers that the principal wishes to transfer the proxy/ies.

A power of attorney is a legal document therefore its content and the specific mandates it will include have to be drafted and signed by a Greek Notary Public. The  POA has to be addressed to the proxy/ies but it does not need to bare their signature. Only the principal has to sign it in front of the Greek Notary Public or in front of the Greek Consulate in his country of origin. The Notary Public or the Consulate will verify the principal’s signature and validate the Power of Attorney.

In some cases, PoAs drafted by a foreign Notary Public can be accepted as long as they bare the proper certification or Apostille stamp and the legal validated translation in the Greek language.

The POA will be effective until the principal chooses to cease it, which can occur through revocation.  The revocation may concern all the mandates included in the original PoA or specific ones. To revoke a PoA, the principal has to visit either a Notary Public or the Greek Consulate and announce the revocation in writing through a bailiff to the Notary public who has issued it and to the proxies that were included.

Additionally, both the principal and the proxy/ies can specify the duration of the PoA’s validity upon the initial signing.

House insurance in Greece is optional and not obligatory for most property owners. 

There is, however, one case where house insurance is mandatory for the final purchase to take place, and that is when the property is acquired through a bank loan.  In that case, the property has to be insured for the basic risks such as fire and earthquake.

In every other case, it is the owner’s right to choose whether he wants to have his property and its contents insured or not and also choose the spectrum of insurance (basic, full insurance) to protect their investment better.

Yes, it is possible to buy an island in Greece.

As with every other property transaction, it requires extensive legal expertise, and the following should also be taken under consideration:

Greek legislation provides for certain restrictions when it comes to transactions in areas that have been declared as forest areas to protect the natural and cultural environment. As many islands in Greece have parts of them declared as forest areas, legal advice is strongly recommended before making relevant investment decisions.

Furthermore, kindly note that Greek law poses some restrictions to foreign citizens who are not citizens or residents of the Member States of the European Union and the European Free Trade Association when it comes to buying property located in a limited number of border regions. Individuals or legal entities that are affected by the restrictions above can request the lifting of the ban for the border regions by submitting an application that should clearly state the intended use of the property to the competent ministerial committee.

Each part of a real estate transaction undertakes certain obligations imposed by the Greek Civil Code.  The buyer’s main obligation is the purchase price payment upon the terms agreed in the purchase contract. Moreover, the buyer is obliged by law to pay all the relevant transaction costs, namely the property transfer tax, the notary public fees, and the fees for the registration of the purchase contract at the competent Land Registry or Cadastral Office.

The seller’s main obligation is to deliver and transfer the immovable property free from any legal and actual defects. To protect the buyer’s interests, if the buyer detects legal or actual defects after signing the purchase contract, he has the general right to rescission the purchase contract and demand compensation for the seller’s contractual liability.

More specifically, in cases of actual defects, the Greek Civil Code provides the buyer with further special rights as follows: a) the right to demand the repair or the replacement of the sale object with another object suitable for the use and purpose and if this is possible (the aforementioned right applies to movable property) or, b) the right to demand a reduction of the sale price to intended or, c) to rescind from the sale contract.

The main costs involved in buying real estate property in Greece involve:

1. The property transfer tax amounts to 3,09 %. For newly built properties (with a building license from 01.01.2006), the previously mandatory application of 24% VAT on the delivery is currently suspended.
2. Land Registry or Cadastral Office fees that amount to approximately 0,475% of the property price for Public Land Registries and to 0,575% of the property value for Public Cadastral offices. Please note that in the case of a private Land Registry/ Cadastral Office, an extra cost of VAT 24% applies to the 0,3% of the property value.
3. Notary Public Fees amount to approximately 1-2% of the property value.

Please note that the above are the standard fees for any property purchase. Apart from the above, attorney and real estate agent fees should normally be taken under consideration, as well as the applicable banking fees (i.e. to issue a cashier’s check for the property price, a 0,10% of the amount is charged).

Capital gain tax or goodwill tax was introduced in Greece in 2013. Capital gain tax is imposed by a complex system introduced by the Ministry of Finance mainly on the difference between the acquisition price and the sale price of the real estate property, also taking into account some further information. It is always paid by the seller. In practice, the implementation of the aforementioned tax has been suspended by the Greek government since 2014. Currently, capital gain tax is suspended until the 31^st of December 2023.

When you acquire a property that is already rented, you “inherit” the same rights and obligations that the previous property owner had. So, it is advisable always to receive knowledge of the previous rental agreement signed between the previous owner of the property and the current tenants to identify exactly what terms have been agreed upon.  Your lawyer should receive a copy of the previous rental agreement and advice you further regarding the terms and conditions that you are about to “adopt” as the new owner. It is also advisable to conduct background due diligence on the tenant to examine his credibility, which is also something that must be taken into account by the potential buyer before proceeding with the already leased property acquisition.

You should also be aware that the minimum tenancy period is three years under Greek law.  So even if you agree to rent the property for a shorter period, you should know that your tenant has the right to stay in the property for three years as long as he/she fulfils the rental obligations (timely payment of rent).

You should also remember that evicting a difficult tenant can be time-consuming, and legal actions must be taken. Hence, it is better to be fully aware before buying an already leased property.

INDIVIDUALS:

Regarding the rental taxes, please note that the average yield is 3-4% after taxes for long-term leases. Let’s suppose that with the short-term lease, you make the double, i.e. 8% yield, which is 20,000 EUR per year for a property of 250k. The NET rental income is calculated after an automatic deduction of 5% covering possible expenses during the year.

Under the current tax legislation, the rental income is taxed at these rates as follows

• 15% for income up to EUR 12,000; 

• 35% for income from EUR 12,001 up to 35,000;

• 45% for income exceeding EUR 35,001. 

For example, if you receive gross annual rental income EUR 20,000 per year then you will receive (20,000 – 5% automatic deduction =) EUR 19,000 taxable net income, and you will pay:  (12,000 x 15% = 1,800) + (7,000 x 35% = 2,450) = EUR 4,250.

Therefore, for a gross rental income of 20,000, which is a high 8% yield for a 250k property, you will pay 4,250 EUR, which is around 21,25% total tax.

LEGAL ENTITIES:

There is a standard tax rate of 22% for corporate entities that rent real estate without scales. Therefore, if we have to deal with large-scale investments, we recommend acquiring the property through a holding company.

The holder of the Golden Visa residence permit is taxed in Greece for the income produced in Greece.  For example, the rental income one receives from renting the properties they have acquired.  So, in that case, your worldwide income will not be taxed in Greece but in the country where you are considered a tax resident.

In order to become a tax resident of Greece, there are two conditions that need to be fulfilled:

a) if Greece is your permanent residence country where your vital interests (personal and economic) are established.

b) if you spend more than 183 days per year in Greece.

If both conditions are met, you have to declare yourself as a tax resident of Greece, and you will be taxed in Greece for your worldwide income.

All property owners in Greece are subject to an annual property tax (ENFIA), according to the provisions of Law 4223/2013. The annual property base tax varies, as it depends on the special characteristics of each property, which determine its estimated value, i.e., the location, the surface, the floor, the façade, the price zone, the age of the building, the percentage of ownership etc.
Furthermore, rental income is also subject to annual taxation in Greece. Rental income tax rates are the following:
• Rental Income 0-12,000 euros. Tax rate 15%
• Rental Income 12,001-35,000 euros. Tax Rate 35%
• Rental Income over 35,001 euros. Tax Rate 45%

All property owners in Greece are subject to an annual property tax (ENFIA), according to the provisions of Law 4223/2013. The annual property base tax varies, as it depends on the special characteristics of each property, which determine its estimated value, i.e., the location, the surface, the floor, the façade, the price zone, the age of the building, the percentage of ownership etc.
Furthermore, rental income is also subject to annual taxation in Greece. Please check Question 1 for the rental income tax rates.

Getting a Greek Tax Registration Number (AFM) is mandatory for everyone acquiring real estate assets in Greece or/and opening a bank account. Possessing a Greek TIN does not create any obligations for its holder.

Escrow accounts may be a common way of payment for property acquisition in other countries. However, in Greece, escrow accounts are not regulated for such actions, and the acquisition of a property should proceed in specific ways to comply with the Greek tax provisions and European anti-money laundering regulations as well.

The amount intended for the purchase of real estate should come from your own personal bank account from your country of origin to your personal bank account in Greece.  Then you can proceed with the payment through your Greek bank account to the seller’s account either through bank transfer or through a crossed bank cheque. 

If you don’t want to be exposed to potential severe tax fines or be subject to possible investigation from the Greek Financial Intelligence Unit, this is the recommended way to proceed with a real estate purchase in Greece.

If you are the owner of any type of real estate in Greece (either residential or commercial) and you wish to lease it, then it is imperative to hire a lawyer to guide you through the legal aspects of the procedure.
Your lawyer will be the one who will draft the text of the rental agreement and the specific terms and conditions in that. This way, you will be 100% sure that your interests will be protected and that the rental agreement will be according to the provisions of Greek law.

Yes, a foreigner can be engaged in constructing an immovable property.

To be engaged in such an activity, it is common for a construction agreement to be signed between the constructor and the owner of the plot of land, apartment or apartment building.

This type of construction agreement usually contains all the relevant details concerning the construction works undertaken by the constructor, like an analytical description of the construction works and their specific cost, the constructor’s remuneration, the way and the time his remuneration will be paid off, his obligations towards the owner of the property if the work Is not duly completed.

Common clauses of such agreements include the obligation of the constructor to carry out on his own accord, at his own expense and with his due diligence, the works required to complete the task of constructing an immovable property (or, e.g. renovating an apartment), in due time, following the instructions given by the owner of the property, following the rules of science and art, by making use of qualified and experienced staff and appropriate materials.

Also, a constructor is usually responsible for paying the salary and the insurance contributions and deductions in favour of insurance agencies for the work of staff who may be involved in the construction and for holding or issuing all the necessary building permits required by law for the performance of the construction work.

Currently, Greek law does not provide the possibility to apply for a Golden Visa using bitcoins or other kinds of cryptocurrency, as the law stipulates that the relevant investments should be made in the euro currency, the official currency of Greece. Be cautious when you hear that a Golden Visa can be granted using bitcoins. Even if you get the golden visa, you may be exposed to potential tax or money laundering investigations.

Nevertheless, the Greek Golden Visa program is a residency-by-investment program that evolves dynamically over the years, so maybe in the future, the possibility to invest using bitcoins or other kinds of cryptocurrency may also be provided.

Foreigners in Greece can finance property purchases with a bank loan and a mortgage, as Greek nationals do. The process could be outlined as follows:
Each banking institution defines what kind of documentation they will require from the interested person to estimate his/her financial background and thus the loan size they are willing to grant. Kindly note that some Greek banking institutions may require more extensive documentation from foreign citizens for compliance purposes.
After the Bank calculates the loan size, it will also need to ensure that the loan can be paid off. So, it calculates the size of the mortgage notation that will be imposed on the property. Information about the property that will be burdened will also need to be supplied to the Bank. A Bank-appointed engineer will proceed in estimating the property’s value for the Bank to grant a pre-approval of the loan.
At this point, the notarial deed of the purchase contract can be signed. A deadline will be mentioned in the contract, at which the buyer is obliged to pay off the purchase amount to the seller, provided that the loan will have the Bank’s final approval. The parties can also agree to a second deadline, in case the loan is not approved, for the buyer to find a different banking institution to grant him a loan.
Afterwards, the purchase contract is submitted to the Bank, which finalises the loan’s approval. The official loan agreement is signed, and the Court procedure to impose the mortgage notation of the property is set forward. As soon as the property is renovated, the loan can be cashed out, usually by the issuance of a crossed-check in order of the Seller that the Buyer will receive at the Bank department.
Lastly, an official protocol for the payoff of the property price should be signed before a Notary Public where the Seller will declare that the purchase amount has been paid off and that he has no further claims against the Buyer.