Immigrant investor programs

New applications for five-year residence permits through the Golden Visa program continue unabated, as 1,299 new applications were submitted in the first two months of this year, compared to 1,248 applications submitted in the corresponding two months last year.

Spain is to axe its so-called "golden visa" scheme under which foreign investors get residency for a 500,000-euro-investment in property, to curb the speculation blighting many Spanish cities, Prime Minister Pedro Sanchez has said.

Greece has tightened its Golden Visa rules raising the required investment to as much as 800,000 euros in a bid to help ease a housing crisis.

The successful program that has attracted thousands of Chinese launched in 2014 granting foreigners a renewable, five-year residence permit in return for a 250,000-euro property investment.

Greek authorities have decided to raise the minimum property purchase price for the "golden visa" scheme, which grants residency rights to foreigners in exchange for buying real estate, from 250,000 to 400,000 euros ($433,000) — a staggering 60 percent increase.

The Finance Ministry presented on Thursday changes to the Golden Visa program increasing the minimum amount a third national needs to invest and secure the residence permit, in an effort to tackle the country's housing crisis. 

The government is finalizing its changes to the Golden Visa program, which will now be addressed to a significantly smaller number of investors. Kathimerini understands there will be several and significant changes.

The government is considering to impose restrictions on short-term rental properties acquired through the "Golden Visa" program, as sources say the aim is to increase the availability of properties for long-term rentals.

Real estate professionals, foreign investors and homeowners have been concerned in the past few days over the precise changes being planned to the Golden Visa program.

Reports circulating in the market in recent days regarding the Golden Visa program suggest that the government intends to establish three different investment thresholds, depending on the area where the property in question is located. 

As it emerged from the constructive debate in Parliament on Friday, government incentives to attract foreign capital, such as the Golden Visa program, have ended up causing more distortions in the property market than benefiting the national economy.

The acuteness of the housing crisis, but also the traces of opacity, justify a complete revision of the current regime.