The investment migration landscape witnessed remarkable developments throughout 2023, yet the onset of 2024 has already surpassed expectations. Significant alterations to programs, price adjustments, geopolitical intricacies, and novel policies are reshaping the realms of citizenship by investment and Golden Visa initiatives.
After a period of uncertainty and conflicting information, the Greek government has clarified the revised investment criteria for the Greece Golden Visa Program.
Recent weeks have been marked by fluctuating reports and official statements hinting at impending changes to the program’s real estate investment guidelines. Amid this ambiguity, the government evaluated various proposals, considering different investment levels across regions and contemplating restrictions on short-term leasing options.
Key points to note include:
- Specific regions in Greece will enforce new minimum investment thresholds, with some requiring €400,000 and others €800,000.
- Applicants have the option to secure the current investment thresholds by making a 10% deposit before September 30th and finalizing their investment by December 31, 2024.
- Property owners will be prohibited from renting out their properties for short-term stays, such as through Airbnb and Vrbo.
The updated criteria establish two primary zones for investment:
- 1.A minimum investment of EUR 800,000 in designated areas, including the Administrative Region of Attica, Thessaloniki, Mykonos, Santorini, and islands with over 3,100 residents.
- 2.A minimum investment of EUR 400,000 for other regions in Greece. Investments must be in a single property of at least 120 sqm.
Additionally, the government introduces two notable exceptions to these investment thresholds:
– A reduced minimum investment of EUR 250,000 applies to commercial-to-residential conversions, allowing investors to purchase commercial properties worth at least EUR 250,000 and convert them into residential units.
– Restoration of historically or culturally significant buildings also qualifies for a reduced threshold of EUR 250,000, provided renovations are completed within five years of residency renewal.
New usage restrictions for properties include a ban on short-term rentals and a prohibition on commercial-to-residential conversions being used as registered company headquarters. Violations may result in residence permit revocation and a EUR 50,000 fine.
The effective date of these regulations is the 31st of the current month. However, a transitional period allows applicants to secure the current investment thresholds by making a 10% deposit before September 30th and completing their investment by December 31, 2024. Investors failing to meet this deadline have until April 2025 to invest in an alternative property while still benefiting from the existing thresholds.
Spain Bids Farewell to its Golden Visa
On April 8, 2024, Spain startled the EU and investment circles by announcing the termination of its Golden Visa program. Although technically offering three investment avenues, Spain’s real estate option, starting from €500K, stood out as the most sought-after and viable channel.
While Spain’s Prime Minister Pedro Sánchez specified the end of the real estate option, it effectively signals the demise of the entire program. Spain, among Europe’s top destinations for HNW expats and affluent travelers, had its Golden Visa cherished for investment diversification and lifestyle security.
Following Portugal’s lead from the previous year, Spain’s move mirrors the removal of the real estate option, replaced by a revamped Private Equity Fund option.
Portugal’s Golden Visa Private Equity Fund has garnered significant interest, emerging as one of the most coveted EU programs.
No official deadline has been announced for Spain’s Golden Visa, nor have details surfaced regarding a replacement for the real estate channel.
Hungary – Pioneering the EU’s Latest Golden Visa
Hungary is poised to unveil the EU’s newest Golden Visa, expected to be accessible by July 2024.
The introduction of Hungary’s Guest Investor Visa comes as a surprise twist, considering the suspension of its previous Golden Visa program nearly five years ago, despite its significant popularity.
Anticipation akin to that surrounding its former program is building around the new Guest Investor Visa initiative.
Distinguished among its EU counterparts, Hungary’s new Golden Visa promises a 20-year residency card, presenting three distinct real estate investment avenues with a minimum investment threshold starting at €250,000.
Initially extending until September 2024, investors were permitted to leverage 2023 investment rates. However, the recent announcement has curtailed this extension by a month, setting the new deadline at August 31, 2024.
Turkey’s Citizenship Program: An Impending Price Adjustment?
Rumors persist regarding another prospective price revision for one of Europe’s favored citizenship programs, Turkey’s citizenship by investment initiative.
In 2023, the Turkish government augmented the minimum real estate investment from $250,000 to $400,000. Recent speculations suggest an additional $200,000 increase, potentially raising the minimum to $600,000. While official statements from the Turkish government are pending, this speculated hike aligns with recent policy shifts and strategies. This presents a time-sensitive scenario for investors, given Turkey’s prompt implementation of regulatory changes, leaving little room for deliberation.
2024 : A Crossroads for Visa-Free Travel for Non-EU Citizens
Over the past decade, global mobility rights have encountered persistent challenges, with erstwhile dominant passports like those of the US and UK failing to maintain top rankings since 2020.
EU and Asian passports continue to wield unparalleled influence. A significant paradigm shift is anticipated between 2024 and 2025: the demise of unrestricted visa-free access.
While the US operates stringent ESTA eVisa requirements, the UK and EU are instituting their own versions—the ETA and ETIAS, respectively.
EU citizenship or legal residency will be the only exemptions from ETIAS, rendering an EU Golden Visa potentially more potent than certain national passports.
The investment migration industry is undergoing a significant transformation due to a confluence of factors. These changes are driven by various economic, political, and social dynamics globally:
- 1. Market Demand: Increasing globalization has led to a surge in demand for alternative residency and citizenship options, driven by individuals seeking mobility, security, and access to better opportunities for themselves and their families.
- 2. Regulatory Pressures: Governments are under heightened scrutiny to ensure the integrity and transparency of their citizenship and residency programs. Regulatory changes are often responses to concerns about money laundering, tax evasion, and security risks associated with these programs.
- 3. Geopolitical Shifts: Changing geopolitical landscapes, such as Brexit or tensions between nations, can influence the attractiveness and viability of certain investment.
While ETIAS won’t affect travelers currently requiring visas for the Schengen Zone, those enjoying visa-free access face a new requirement—ETIAS pre-entry approval.
Leave a Comment