Investment Incentives Greece

Post Date: April 4, 2016

LEGISLATIVE NEWS & UPDATE IN IMMIGRATION LAW IN GREECE

Unique opportunity for Investors: 

Buy property in Greece & get a 5 year Residence Permit in Greece and in Europe

The Greek government within the framework of inducing investment in Greece enacted into law (Law 4146/2013) the optional acquisition of a residence permit in Greece via the purchase of real estate property in the country. Any citizen of any country in the world, which is not a member state of the European Union (EU), can obtain a five-year long residence permit in Greece, if he/she purchases property worth a minimum of 250,000 euros (value estimated by the tax office).

The option of the five-year long residence permit in Greece is offered not only to those who acquire ownership of immovable property, but also to those who purchase a time-sharing right at a Greek hotel, as well as to those who obtain a lease on a furnished Greek property, provided the worth of such contracts is a minimum of 250,000 euros.

The main point of the law is to allow citizens of countries like Russia, China, USA, Australia and many others, to have easy and unobstructed yearlong access to their Greek apartments, villas and properties in general, without having to apply for a visa each time they want to visit their Greek homes with their families. It is noteworthy that the Greek residence permit in question could have extra benefits for its holders, since their Greek residence permit may offer them travel and residence rights to all the other EU countries.

The five-year residence permit is also offered to the members of the family of the owner of the real estate property (spouse and children under the age of 21). Such residence permit, at least initially, does not provide the right to work in Greece; however, our services of legal planning and our legal teams’ experts are able to provide solutions.  In addition, the residence period in Greece with this type of residence permit is not included in the time required to legally stay in Greece (seven to ten years) to obtain naturalization as a Greek citizen.

Legal conditions per category:

  1. real property acquisition, either personally or through a legal entity: total purchase contract price of 250.000 euros. In case of purchase by spouses with joint ownership, the amount of 250.000 should be covered together by the buyers. The investment of 250.000 euros may be divided in several assets: ex. offices, house, apartment, beach estates, hotels, factories, malls etc. Acquisition may be also through donation or parental concession (useful for transfer from initial investor to his/ her children or other persons).
  2. time –sharing right at Greek hotel: minimum contract duration of 10 years and minimum cost of lease of 250.000 euros
  3. lease of furnished Greek property: minimum lease duration of 10 years and minimum lease cost of 250.000 euros
  4. purchase of a plot of land or acreage and procedures to erect a building, provided that the cumulative value of the land purchase and the contract with the construction company is at minimum €250,000.

 

ADVANTAGES:

  • The slump in demand for real property in Greece resulted in previously “expensive” assets being sold at very low prices. Various opportunities appear to the informed investors who decide to gather several estates. Multiple property ownership might serve the purpose of a broader investment plan.
  • Acquisition is possible through a company scheme, which is included in our main services. Our expertise in planning allows and guarantees:
    • Extremely favourable taxation
    • Easy transfer of the real estate
    • Granting of work permit as well, whereas by mere purchase of real estate the investor is not granted a work permit.
    • Trading activities in EU by EU established company; free transactions; less custom fees and procedures; taxation advantages; easy establishment of affiliated companies – network in the EU
  • The owner may be living or residing abroad, even overseas, without this being an obstacle to the issue or the renewal of their license.
  • While living abroad the owner may increase the return of the investment and get profit from asset management through lease, sublease, EU or government funding etc.
  • Easy five –year permit renewal for as long as the legal ownership status remains unchanged and the contracts of ownership remain in effect.
  • Easy and immediate granting of permit to the family members of the owner: spouse and children under the age of 21.
  • Easy access of the owner’s children to schools, universities and generally institutions in Greece and the EU. The holders of the residence permit have access to public education, analogously to that of Greeks.
  • Access to health services analogously to that of Greeks
  • Residence permit in the category of real estate ownership may be granted even before conclusion of the purchase agreement upon the condition that the investment intention is documented: in this case the applicant should enter Greece with a type D visa and the documented intention to own property should be supported by documentation which prove the financial capacity (e.g., certificate of an A-class certified bank, or other recognized financial institution), which certify the existence of bank accounts or other mobile assets, such as bonds or shares, enough to cover the cost of the investment of at least €250.000, and any other document certifing the intention of the applicant to purchase the property, ex: contract with a law firm or with a real estate office. On the other hand despite the fact that D-type visa only give access to the issuing country, the holder is still allowed to travel around the Schengen area during the validity of his visa (365 days for this type of permit!) under the same conditions as if they held a visitor visa as well. Practically it means that any potential investor may visit Greece and personally supervise any negotiations, or simply have the ability to choose among properties.
  • The owner can take a mortgage out on the property, in the same way as Greeks.
  • A Schengen visa by a different country gives the applicant the ability to enter Greece and settle issues regarding the purchase of the property.

ENTRY VISA REQUIREMENT

Either a type C Schengen visa, or a type D national visa is necessary to obtain a residence permit for owners of real estate. If the foreign citizen needs a long period for research a type D national visa is appropriate. If 90 days per six-month period is long enough, then a type C Schengen visa suffices. In both cases, the application for a residence permit must have been submitted before the expiration of the visa. The applicant preferably should choose to submit the application through a proxy person

  • Type C—Schengen visa: its holder may stay in Greece and the other Schengen countries for up to 90 days per six-month period. This period start on the day of the first entry in the Schengen area. If the visa is valid for one entry and the citizen of a third country wishes to enter Greece again, he/she should request a new visa.
  • Type D—national visa: there is a special provision for real estate property owners or perspective buyers. Its duration is up to 365 days. Its holder may stay in Greece during the whole period and travel to or from Greece as often as desired. He/she may travel to other Schengen countries for a up to 90 days per six-month period.

SUPPORTING DOCUMENTS IN ORDER TO SUBMIT AN APPLICATION FOR RESIDENCE PERMIT

  • Three (3) recent color photos
  • Copy of a valid passport or other travel document recognized in Greece bearing an entry visa, whenever an entry visa is required
  • Health certificate from a Greek state hospital or other medical facility or from a medical doctor proving that its bearer is free from any contagious disease that may endanger public health. It is not requested for applicants with a type D Visa.

Furthermore, the following supporting documents are required:

  • In case it concerns an individual, who has ownership and possession of a real estate property:
    • Copy of the purchase title of the property/ies worth of at least 250.000 Euros.
    • A notarian certificate that the property deed fulfills all the lawful requirements
    • Proof that the property title was properly registered at the local Land Registry.
    • Certificate proving that medical or health expenses of the applicant will be covered.
  • In case an individual acquires ownership and possession of a real estate property through a legal entity:
    • Copy of the purchase title of the property/ies worth of at least 250.000 Euros.
    • A notarian certificate that the property deed fulfills all the lawful requirements
    • Proof that the property title was properly registered at the local Land Registry.
    • Copy of the charter of the legal entity
    • Certificate proving that medical or health expenses of the applicant will be covered.
  • In case that hotel accommodation or furnished tourist residences in a combined tourist facility are leased for a period of at least ten years
    • Copy of a notarian act concerning the lease of hotel accommodation or furnished tourist residences in a combined tourist facility are leased for a period of at least ten years. The above facility must be registered at the Greek National Tourism Organization (GNTO)
    • Proof that the lease contract was properly registered at the local Land Registry
    • Certificate proving that medical or health expenses of the applicant will be covered.
  • In case the application concerns the members of the family of the person who is requesting or has requested a residence permit
    • Certificate proving that medical or health expenses of the applicant/s will be covered.
    • A recent certificate of family status from a foreign authority proving the relationship be-tween the main applicant and the members of his/her family.

 

LANGUAGE REQUIREMENT FOR THE DOCUMENTATION – TRANSLATION AUTHORITIES

The documents that are required for the application for a residence permit must be submitted in Greek, except for the documents issued by foreign authorities, which need to be certified. There are two types of certification:

  • The Apostille stamp for countries that are parties to the Hague Convention: the Public Administration accepts the Apostille stamp which is provided by the relevant foreign authority on the foreign document.
  • Certification by the Consular: For any countries that are not parties to the Hague Convention, a certification by the Greek consular in the country of origin of the document is required.

The translation of foreign public documents can be done:

  • By the Translation Service of the Ministry of Foreign Affairs, or
  • A lawyer, who must be a member of a Greek bar association, with a certification of their signature by the Bar Association.

 

RESTRICTION TO AREAS OF REAL PROPERTY PURCHASE

 

There are restrictions on properties located in border regions. It should be noted that as border regions are defined the prefectures of the Dodecanese, Evros, Thesprotia, Kastoria, Kilkis, Lesvos, Xanthi, Preveza, Rodopi, Samos, Florina, Chios, and the islands of Thera (Santorini) and Skyros, as well as the former regions of Nevrokipi in the former prefecture of Drama; Pogoniou and Konitsas in the prefecture of Ioannina; Almopia and Edessa in the prefecture of Pella; and Sintiki in the prefecture of Serres. Individual or legal entities, which are affected by the restrictions above, can request the lifting of the ban for the border regions, along with their application, which should clearly state the intended use for the property. The decision to lift the ban is made by the Minister of Defence, following the submission of an application.

 

Nevertheless, our law firm’s services provide solutions to acquire property even in these areas, mainly by use of a corporate scheme.

 

PROCEDURE OF FILING OF THE APPLICATION

Step 1: Submitting the documents

Applications for the residence permits must be submitted to the one-stop service of the department in the Decentralised Authority.

 

Step 2: Procedures until the final issuing of the permit

Upon arrival

A third country citizen who intends – and has the necessary supporting documentation – to own real estate property or to lease hotel accommodations or furnished tourist residences and has received a Visa entry for this purpose, is required to complete the required actions to apply for the residence permit before the expiry of the entry visa. In this case, the prospective applicant is able to undertake legal acts and transactions with the competent authorities, using their entry visa.

 

Application process

The submission of the application for the issuance of the residence permit, the submission of additional documentation, the receipt of the residence permit or of a rejection, or any additional documentation from the relevant file, can be done either in person by the third country citizen, or through a proxy, preferably a lawyer. Third country citizens who have never entered Greece are not allowed to submit an application for a residence permit via a proxy. The applicant is allowed to enter the country, to assign their representation to a lawyer, either with a proof of authenticity of their signature issued by a police authority or with a notarized power of attorney, and then depart from the country and not be present during the submission of the application for a residence permit and/or the granting of the relevant permit. Consequently, it is possible to submit the application via proxy, under the condition that the person submitting the application also submits an original passport of the third country citizen. It is possible, in the same way, to receive the type A certification and the residence permit. The relevant provision will be valid until the establishment of an independent document which will replace the unified type of residence permit. For the submission of the independent document, the presence of the third country citizen will be necessary, because of the requirement to obtain biometric data. The documentation outlined in the previous steps should be attached and submitted with the application.

Documentation check

The authorities receiving the application will issue a confirmation that the application has been submitted, provided that all the necessary documentation has been submitted with the application. The confirmation is valid for one year.

 

Application processing timeframe

The owner of the real estate property is not affected by the duration of the processing of their application, from the moment the application is submitted to the relevant authorities until the issuing of a decision by the Secretary General of the Decentralised Authority regarding their residence permit. After the application has been submitted, the applicant receives a receipt confirming the submission of the application, which is valid for one year. The time required to process the application depends on the specific locality where the application was submitted and the volume of pending applications. Authorities have been instructed to give priority to this type of application, and all efforts are made to process the applications within two months.

 

Provisions during the application processing period

The third country citizen, who has submitted an application and received the confirmation receipt described above, can reside legally in the country for the duration of the confirmation receipt. The holder of the confirmation receipt is entitled to the benefits of the residence permit that they have applied for. Hence, they can proceed with any legal transaction regarding their investment and can transact with all the relevant authorities.

 

Issuing of the decision

Once the authority of Aliens and Immigration of the Decentralised Authority has verified that the application fulfils all necessary conditions and, in accordance with the decision of the Secretary General of the Decentralised Administration, they will issue a five-year residence permit.

 

Interested to invest in Greece? Contact our firm to get started!