Golden visa programs of Greece and Cyprus offering residency-by-investment modified

The changes to the golden visa programs of Greece and Cyprus are expected to have a significant impact on immigration. (Reuters)

By Varun Singh

Greece and Cyprus have recently updated their Golden Visa programs to attract more investors while addressing housing shortages. Greece’s Golden Visa program has raised the minimum investment threshold from €250,000 to €800,000 in specific areas, including Attica, Thessaloniki, Mykonos, and Santorini, effective as of March 31, 2024. The new rules also include a transitional period for applicants to lock in the current investment thresholds by making a 10% deposit before September 30 and finalizing their investment by December 31, 2024.

Cyprus’s Golden Visa program, a Permanent Residence program that can lead to citizenship, requires an investment of €300,000 plus 5% VAT. The program is under increased scrutiny due to stricter controls and new criteria, such as annual data submissions from beneficiaries and providing a clean criminal record from their country of origin every 3 years.

These changes aim to balance the need to address housing shortages with the desire to continue attracting foreign investment, ensuring the integrity of residency and citizenship pathways for investors.

Greece’s Golden Ambitions

Greece’s Golden Visa program, initially a popular choice for affordable European residency, has undergone significant changes. The minimum real estate investment requirement has been revised, with a tiered structure based on location: Zone A (€800,000) includes central, southern, and northern Attica, Athens capital region, central Thessaloniki, Mykonos, and Santorini, potentially including Crete, the Cyclades, and the Dodecanese islands. Zone B (€400,000 to €500,000) covers areas with rising prices since last year’s minimum increase. Zone C (€250,000) includes municipalities with less foreign real estate demand.

Despite the increased financial commitment, the program continues to offer a plethora of advantages, including visa-free Schengen Area access and potential high returns on investment. The inclusion of family members in the application remains a key feature, ensuring that the benefits extend beyond the primary investor.

These changes aim to address Greece’s housing shortage by relieving pressure on housing availability. The nation has faced rising rents and property prices, pricing many Greek citizens out of homeownership. By implementing stricter golden visa requirements, Greece hopes to counterbalance the potential loss of competitiveness compared to other European golden visa programs.

Cyprus’s Strategic Shift

Cyprus’s Golden Visa program has undergone significant changes in recent years, including new restrictions and stricter controls. The program, which grants permanent residence in Cyprus for an investment of €300,000, has faced criticism and scrutiny due to issues such as compliance checks and the granting of passports to criminals and those at high corruption risk.

In response to these concerns, the Cyprus Ministry of the Interior has agreed to enforce stricter controls on the program. These measures include toughening the criteria for the fast-track visa program for third-country nationals and implementing new requirements for annual data submissions and clean criminal record certificates from investors’ countries of origin. Failure to meet these requirements will result in the cancellation of immigration permits for investors and their families.

The investment criteria for the program have remained the same, with a minimum investment of €300,000 required. However, the program has seen modifications in dependent eligibility and renewal criteria. The new regulations lower the range of family members qualifying as dependents, excluding parents and parents of the spouse and adult children. The required annual income for the principal applicant and dependents has also been increased.

Investors must now demonstrate that they have not divested from their original investment asset and must provide evidence that they continue to meet the income and investment requirements. The funds for the investment must be directly deposited from the main applicant’s account or their spouse’s if they are included as dependents.

These changes aim to address concerns of abuse and corruption in the program and maintain the integrity of residency and citizenship pathways for investors. However, they also raise questions about the future of such programs in Cyprus and the EU, as policymakers must balance the need to attract investment with the need to ensure security and compliance.

The Broader Impact: Economic Renaissance

The changes to the golden visa programs of Greece and Cyprus are expected to have a significant impact on immigration. The revised Greek golden visa program will raise the minimum investment threshold from €250,000 to €800,000 in specific areas, such as Zone A (Central, southern, and northern Attica; Athens capital region; central Thessaloniki; Mykonos and Santorini islands, potentially including Crete, the Cyclades, and the Dodecanese islands).

This increase could potentially deter some investors, as other European golden visa programs offer lower minimum investment amounts. However, Greece’s strong economy, quality of life, and faster path to citizenship compared to most European nations may counterbalance the uncertainty caused by the changes.

In Cyprus, the golden visa program was revamped to address weaknesses and eliminate potential exploitation. The changes include raising the minimum income requirement for the main applicant and their dependents, as well as requiring proof of sustained investment and income levels at renewal. These modifications could lead to a decrease in demand for the program due to its loss of competitiveness compared to other countries.

Overall, the impact of these changes on immigration will depend on how they are perceived by potential investors and the extent to which they affect the attractiveness of these countries’ residency-by-investment programs. While the new rules may deter some investors, the strong economic rebound and high quality of life in Greece, as well as the stricter controls in Cyprus, could still attract a significant number of high-net-worth individuals seeking residency and access to the European Union.

Implications on third-country nationals

The changes to Cyprus and Greece’s golden visa programs have several implications for third-country nationals:

Increased Income Thresholds: Cyprus has increased the income thresholds for third-country nationals applying for permanent residence under its Golden Visa program. This change may affect those who were previously eligible but now need to meet the higher income requirements.

Stricter Due Diligence: Cyprus has introduced stricter due diligence procedures for all applicants, including background checks and enhanced financial due diligence. This could potentially lead to a longer and more complex application process for third-country nationals.

Changes in Dependent Eligibility: Cyprus has altered the criteria for dependents, requiring parents, parents-in-law, and adult children to make their own investments instead of being attached to the main applicant’s application. This may affect families seeking to obtain permanent residence together.

Higher Investment Threshold: Greece is considering raising the minimum investment threshold for its Golden Visa program, which could make the program less attractive to some third-country nationals.

Tiered Investment Minimums: Greece’s proposed changes include tiered investment minimums based on location, which could impact the decision-making process for third-country nationals considering investing in real estate.

Conclusion: The Future of Investment Immigration

The modifications to the Greek and Cyprus Golden Visa programs mark a pivotal moment in investment immigration. With the dawn of 2024, these Mediterranean nations are poised to become even more appealing to discerning investors, promising a blend of lifestyle and financial rewards. As the global economy evolves, Greece and Cyprus stand ready to welcome a new era of prosperity and growth through their revamped residency-by-investment initiatives.

(Author is MD, XIPHIAS Immigration)