Real estate investments threshold through Golden Visa increases up to €800.000
Real estate investments threshold through Golden Visa increases up to €800.000

Real estate investments threshold through Golden Visa increases up to €800.000

RE+D magazine

Prime Minister Kyriakos Mitsotakis announced a package of measures that will put more houses on the market in response to a topical question from the president of PASOK - KINAL, Nikos Androulakis.

The Prime Minister, Mr. Mitsotakis, addressed the issue of the shortage of doctors in certain areas where there has been an increase in tourist development. He noted that short-term rental options have decreased the number of homes available for long-term rentals, leading to a 40% increase in rent compared to 2018. He also emphasized that this problem is a result of the collapse of the real estate market a decade ago. While acknowledging the importance of this increase, he reminded everyone of the starting point they began from after the previous crisis.

Mr. Mitsotakis mentioned that the issue of property prices is complex and not easily solvable. He recognized that this problem is not just specific to Greece but is pan-European, and different countries have varying structures and cultures.

The Prime Minister also highlighted that while Greece has a relatively high rate of home ownership, 3 out of 10 people are forced to rent. He acknowledged the benefits of the golden visa measure which brought in a lot of funds, but stated that he would later address what they believe should be done. 

Finally, Mr. Mitsotakis mentioned that the economy has changed course, leading to an increase in material prices and interest rates.

Regarding the golden visa, he said that 7% of real estate transactions in recent years were related to the golden visa. 

"We raised the limit. I think we need to go further. Indeed, the division of regions in Attica, you rightly point out, has created pressure on Western Athens. What we are discussing with the finance minister is a further increase in the threshold for golden visa investments, and it will concern all areas under pressure on rents. It can go to 800,000 euros. We need to discuss whether we want to keep the low limit in areas where there is no pressure. Very soon there will be further intervention by the government, not with a complete abolition of the measure and I also hear your proposal as to whether those who have golden visa properties should be obliged to lease them long-term", he added

Mr. Mitsotakis also spoke about the "My Home" program, he said that 9,826 files worth 1 billion have been approved. "Indeed, it is a very positive program because someone gets a subsidized loan and pays a monthly installment that is significantly lower than if they were renting the particular house. This is an expensive program. We have reached the limits of the resources we have available," he said.

"Already today there is rent support for many categories. 46,000 students get a housing allowance", he noted while saying that through PPP "we are proceeding with the construction of 5 modern residences where 8,000 students can be accommodated".

"There is currently a rent allowance of 210 euros per month for 240 families," he added, noting that the government is also moving forward with policies for the homeless.

"This government proves in practice that, first and foremost, it stands by the most vulnerable. There are no second class citizens. There are not a few things that have been done with housing cutting edge, and very soon, a housing policy portal with all the programs will be operational. But let's not hide, a complex problem requires time, dedication, flexibility in handling and awareness of the footprint that each measure will leave. Above all, there is value in speaking the language of truth. The general aphorism that we are not at all interested in the issue of housing accuracy is wrong. All measures must be costed. Nor is the Recovery Fund the panacea for every disease. Closed properties that belong to municipalities. Of course, but also tell the mayor of Athens. Let him allocate his closed properties not to collectives, but to vulnerable citizens", added the prime minister.