Greece lowers Golden Visa Investment under new startup option, raises due diligence concerns

Greece has been planning to launch new startup investment option to expand its Golden Visa Programme. However, the upgrades have come with major concerns regarding the due diligence procedures as the new option will offer a residency programme for only €250,000. 

The announcement was made during the 88th Thessaloniki International Fair by Greek Prime Minister Kyriakos Mitsotaki who referred to it as the part of the economic strategy. 

According to the upgrades, the new startup option will allow foreign investors to obtain a 5-year residency permit of Greece through just €250,000. With the investment, the applicants will contribute to the startups in the country.  

Besides this, the government has not made any other announcement regarding the new upgrades and its details. People are seeking proper statement from Kostis Hatzidakis- Minister of Finance about the details of the new startup option and other upgrades in the Golden Visa Prgramme. 

The Greek Golden Visa Programme has been gaining popularity as some reports suggested that over 30,000 applications are still under processing and awaiting a review from the authorities. The scenario showed a need for careful consideration and processing of the application, further raising concerns about these applicants' background checks. 

The statement has also been released by former Greek Government Official, stressing the need for stringent due diligence procedures on the applications. He said that the Golden Visa Programme will become more accessible to a wider range of people due to the reduction in the minimum investment amount. 

The increased accessibility will further increase the risk of negligence on the part of the due diligence as the overwhelming number of applications could compromise the robust background checks on the applicants, as per the minister. 

Restrictions by European Union

Amid the rising popularity of Greek Golden Visa Programme, the due diligence procedures have been facing uncertain situation, leading to the concerns regarding its integrity. However, European Union always paid keen attention to the background checks aspects of these programmes, aiming to escape threats and secure the borders. 

Due to this, the EU has come up with a new roll-out programme called EIAS- European Travel Information and Authorization System which is scheduled to be implemented in 2025. 

Greek Golden Visa Programme

Greece offers a capability to get residency in the country through its Golden Visa Programme with an investment of minimum 250,000. Under the programme, the investors are allowed to get residency by investing in different investment options and open doors to Europe. 

Earlier, the investment of 250,000 is made by the applicants on real estate development from making purchase in commercial properties to residential structures from the listed sites. The option was considered by the investors due to its flexibility and no limitation to the location or size of the properties. 

In addition to that, there is also an investment option of 400,000 through which applicants are asked to purchase single property which must be at least 120 square meters. Greece also offers other options to the investors with entrance to 10-years leasing agreement for hotel accommodations or furnished tourist residents, valued of over EUR 400,000 or EUR 800,000 depending on the location.   

The traditional financial instruments provide chance to invest EUR 500,000 as part of the fixed-term deposit in a Greek credit. The investors are also allowed to invest EUR 500,000 in those inclised towards more liquid investments. The investment can be allocated to purchasing Greek Government Bonds with a maturity of at least three years. 

The investors are allowed to get Greek stock by purchasing shares, corporate bonds or government bonds worth of least EUR 800,000. With an investment of EUR 350,000, the investors can invest in stocks of a mutual fund.