Invest in Greece: Best Ways to Make the Most of Your Money

 

Are you looking for the best ways to invest in Greece? You’ve come to the right place. In this article we’re looking at some of the top ways to invest in Greece, ensuring you make the most of your money.

In this guide you’ll learn about:

• Why investing in Greece is a good option
• How to invest in Greece
• Top investment opportunities
• How to finance your investment, and more

Why Consider Investing in Greece?

Investing in Greece presents high potential returns and strategic advantages, offering diverse opportunities for investors with the right approach and thorough market understanding.

Economic recovery and growth prospects

Greece has been undergoing a steady recovery since the economic crisis of the early 2010s. The economy has shown signs of robust growth, supported by strong tourism, a rise in exports, and a healthy shipping sector. International investors are increasingly seeing the potential in Greece’s markets, driven by improvements in economic stability and policy reforms that foster a more business-friendly environment.

Strategic location and infrastructure

Greece’s strategic location at the crossroads of Europe, Asia, and Africa makes it an attractive hub for businesses looking to expand their reach. The country boasts a modern infrastructure, including major ports, airports, and a reliable road network, which facilitates easy access to the rest of the European Union and beyond. Investing in Greece provides a gateway to the broader European market and the growing economies of the Balkans and Eastern Europe.

Investment incentives and government policies

The Greek government has introduced various incentives to encourage foreign investment. These incentives encompass tax breaks, subsidies, and expedited procedures for large-scale projects. The Greek Golden Visa program, which grants a renewable permanent residence permit to non-EU citizens who invest in Greece, is especially sought after. This initiative not only stimulates the Greek property market but also grants investors access to the Schengen Zone, thereby increasing their freedom of movement within Europe.

Emerging sectors and opportunities

Several sectors in Greece are ready for investment, including tourism, renewable energy, technology, and real estate. The Greek real estate market offers various opportunities, from residential properties to commercial real estate. Additionally, sectors such as agriculture, food processing, and pharmaceuticals are experiencing growth, driven by both domestic demand and export potential. The ongoing digital transformation across industries also creates opportunities for technology and innovation investments.

How to Invest in Greece

Understanding your options is an essential part of investing in Greece. Whether you’re interested in real estate, capital transfer, or share, corporate bonds, and government bonds, the Greece Golden Visa has an option to fit your investment needs.

Greece Golden Visa

The Greece Golden Visa program was introduced by the Greek government in 2014 to boost the Greek economy. It is a residency-by-investment scheme that allows non-EU/EEA nationals and their family members to obtain renewable permanent residence permits in Greece. The program has been one of the most successful investment programs in Europe.

Real estate investment

The Greece Golden Visa has a four-tier system with various options for real estate investment in Greece. Here is a breakdown of the options:

Tier one: Minimum investment of €800,000 in high demand areas like Attica (including Athens), Thessaloniki, Mykonos, Santorini, and islands with populations over 3,100 residents. Tier one requires the purchase of a single property that is at least 120 square meters, offering investors a prime opportunity to secure valuable real estate in some of Greece’s most sought-after locations.

Tier two: Minimum investment of €400,000, focusing on all other regions of Greece. Tier two investments are designed specifically to promote growth in less populated areas of Greece, encouraging investors to look beyond major investment hubs. Like tier one, the property must be a single unit of at least 120 square meters.

Tier three: Minimum investment of €250,000, with a focus on converting commercial property to residential. There are no restrictions on size or location, however, the conversion must be complete before applying for the Greece Golden Visa.

Tier four: Minimum investment of €250,000, with a focus on properties with historical and cultural significance. Here, investors fully restore the properties to enhance the rich and historic culture of Greece.

Conditions for purchasing property in Greece

There are certain conditions for purchasing property in Greece, including:

• The investor must show that they are the sole and rightful owner of 100 percent of the company’s shares if they purchased the property through a legal entity
• Investors must provide proof that they own the property

Note: Golden Visa holders are prohibited from renting their Golden Visa properties for short term stays (e.g. Airbnb). Violations may result in cancellation of the Golden Visa and a fine of €50,000.

After holding the visa for seven years, the holder can apply for Greek citizenship through naturalization. To be eligible, the applicant must have continuously resided in Greece for at least 183 days per year for each of the seven years. Additionally, applicants must demonstrate fluency in the Greek language.

Greek Golden Visa: Alternative Investment Options

The Golden Visa scheme is the best for property investments in Greece, with the projected annual growth rate of the Greece residential real estate market set to reach 3.53 percent between 2024 and 2029. However, if you don’t want to tie your money up in property, several other options can yield the same results.

Capital contribution

You can invest at least €500,000 in a Greek registered or operating company (excluding portfolio and real estate investment firms). This investment can be used to acquire shares during a capital increase, or bonds listed on regulated markets or multilateral trading platforms in Greece.

Another option is to invest at least €500,000 in a real estate investment company focused exclusively on Greece, specifically for acquiring shares in a share capital increase. You can also invest a minimum of €500,000 in a closed-end investment company or a closed-end mutual fund, provided that these entities exclusively intend to invest in companies based or established in Greece.

Share, corporate bonds, or government bonds

You can acquire shares or corporate bonds with a minimum investment of €800,000. These securities should be listed for trading or actively traded on regulated markets or multilateral trading platforms in Greece.

You can also invest in Greek government bonds with a minimum investment of €500,000 and a remaining maturity of at least three years at the time of purchase. This investment should be facilitated through a domestic credit institution established in Greece, which will also act as the custodian for these bonds.

Another option is to invest €350,000 in units from a mutual fund incorporated in Greece or another country, with the explicit purpose of exclusively investing in shares, corporate bonds, and/or Greek government bonds listed for trading or actively traded on regulated markets or multilateral trading platforms in Greece.

Lastly, you can acquire units or shares with a minimum value of €350,000 from an alternative investment fund established in Greece or another EU country, dedicated exclusively to investments in immovable property within Greece.

Capital transfer

A fixed-term deposit of at least €500,000, held in a Greek bank account or another national credit institution, maintained for a minimum of one year with an automatic renewal arrangement in place.

General Steps to Investing in Greece

Investing in Greece requires a strategic approach, encompassing thorough research, legal compliance, and financial planning. Here are some of the essential steps to ensure a successful investment, from understanding the legal framework and conducting due diligence to securing financing and executing your investment strategy.

• Research and Due Diligence: Understand the market dynamics, identify potential investment opportunities, and assess risks.
• Legal and Financial Advisory: Engage with local legal and financial advisors to navigate regulatory requirements and optimize tax implications. Luckily, taxes for the Greece Golden Visa provide a range of incentives.
• Investment Structure: Decide on the structure of your investment, whether through direct acquisition, joint ventures, or other financial instruments.
• Property Purchase: For real estate investments, ensure all legal documentation is in order and consider employing a notary to oversee transactions.
• Business Setup: For business investments, register the company, obtain necessary licenses, and comply with local employment laws.
• Financing: Secure financing through local or international banks, venture capital, or government grants.

Financing Your Investment in Greece

In Greece, investors have access to a variety of financing options to support their investment projects. Bank loans from both local and international banks offer competitive terms, particularly for real estate and business investments, with some banks providing specific products tailored for international investors.

Additionally, various EU funding programs and grants are available for projects in sectors such as renewable energy, technology, and agriculture, aiming to boost economic development and innovation. The Greek government also provides incentives, including grants and subsidies, for investments in strategic sectors through initiatives like the Investment Incentives Law.

Moreover, Greece’s venture capital and private equity market is emerging, with funds focusing on startups and expanding businesses in high-growth areas such as technology and renewable energy. The Golden Visa program offers another financing avenue, allowing non-EU investors to obtain residency by investing in real estate, which can also provide access to favorable financing options through local banks.

Lastly, crowdfunding and alternative financing platforms are becoming increasingly popular, offering another route for raising capital, especially for innovative and smaller-scale projects.

Challenges and Considerations for Investing in Greece

Investing in Greece presents numerous opportunities, but it also comes with specific challenges that investors should consider, including:

• Bureaucracy and Regulatory Complexity: Navigating Greece’s bureaucratic processes can be time-consuming and complex. Investors may encounter delays and administrative hurdles in obtaining permits and approvals, which can slow down investment projects.
• Economic Volatility: Although Greece has made significant strides in economic recovery, residual volatility and uncertainty remain. External economic shocks or internal fiscal issues could impact investment returns and economic stability.
• Property Rights and Legal Issues: Securing clear property titles can be challenging due to historical land ownership disputes and unclear zoning regulations. This can complicate real estate transactions and increase legal risks.
• High Taxation and Compliance Costs: Greece has relatively high taxes on property and income, which can affect the profitability of investments. Additionally, the cost of compliance with local tax laws and regulations can be significant, particularly for foreign investors unfamiliar with the Greek taxes.
• Infrastructure and Service Quality: While major urban centers like Athens have well-developed infrastructure, some regions may lack modern amenities and services. This can affect the attractiveness and viability of investments, especially in rural or underdeveloped areas.

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

Frequently Asked Questions About Investing in Greece

What is the Greece Golden Visa program?

The Greece Golden Visa program grants a renewable permanent residence permit to non-EU citizens who invest at least €250,000 in Greek real estate. This permit allows investors and their family members to live in and visit Greece and travel freely within any Schengen country.

How can I obtain Greek citizenship through investment?

While the Greece Golden Visa investment program provides residency permits, obtaining Greece citizenship typically requires longer residency and meeting specific criteria, including language proficiency and integration into Greek society. However, successful long-term residency through investment can pave the way to citizenship.

What taxes will I need to pay when investing in Greece?

Investors must pay property taxes, income tax on rental income, and potentially capital gains tax upon the sale of the property. Greece also has Value Added Tax (VAT) on property transactions, though certain exemptions may apply for first-time homebuyers or specific types of property investments. Additionally, Greece taxes worldwide income, however, investors may benefit from the Greek non-dom tax regime.

Are there any restrictions on foreign ownership of property in Greece?

Generally, there are no restrictions on foreign ownership of property in Greece. However, properties located in certain border areas may require special permission from the Ministry of Defense.

How stable is the Greek real estate market?

The Greek property market has shown signs of stability and growth, particularly in urban centers like Athens and tourist hotspots. Government incentives and a recovering economy contribute to a positive outlook, making it a viable option for long-term investment.

Do you need a Greece residence permit to purchase real estate?

No, you do not need a Greek residency permit for buying property in Greece. Foreign investors, including non-EU citizens, can buy property in Greece without holding a residence permit. However, obtaining a residence permit can offer significant advantages.

What are the best sectors to invest in Greece in 2024?

Greece has various thriving sectors that are ideal for foreign investors. Some of the top investment options for Greece in 2024 include real estate, agriculture, tourism, renewable energy, shipping and maritime, and construction, to name a few.

How to invest in Greek startups and innovative businesses?

There are a few steps for investing in Greek startups and innovative businesses. You should research the industry you are investing in, connect with local networks to meet with other investors and entrepreneurs, consult with experts to ensure you have a full understanding of your investment options, and consider speaking directly with founders to make a direct investment and negotiate terms.

What are the risks of investing in Greece in 2024?

Despite signs of recovery, investors in Greece face risks such as a complex bureaucracy, increasing public debt, and a slow judicial system. Additionally, geopolitical tensions, dependence on tourism, and a lack of industry diversification persist. However, recent upgrades to investment grade have slightly improved the outlook for investing in Greece.

Are there restrictions on foreign ownership or investment in Greece?

No, Greece generally imposes no restrictions on foreign ownership or investment, allowing investors to own 100 percent of a Greek company without a minimum capital requirement. However, specific sectors like banking, insurance, and financial services may require permits, and all investments must adhere to anti-money laundering (AML) regulations.