Russian candidates have become some of the biggest investors in the popular Greece Golden Visa program.
Over the last five years, Russians have pumped €155 million the Greece real estate market in exchange for permanent residence.
Between January and August 2018, total Russian investment into the golden visa program stood at €10.1 million. In 2017, wealthy investment immigrants from Russia pumped in close to €30 million into the Greek real estate sector.
Greece was a relatively late entrant to the exclusive group of European nations offering investment immigration programs.
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The Greek golden visa program offers a five-year residence permit to any foreigner investing at least €250,000 in a property in the country.
The residence permit can be renewed further provided the minimum investment requirements continue to be met.
European golden visa programs are very popular primarily because wealthy investors gain the unrestricted right to travel, work, and live within the EU.
Russian Demand for the Greek Program
The Russian investment figures are the highest for foreign investment received by Greece from Russia over the past 15 years.
In 2018, Russian investors have focused on properties located in Thessaloniki, Attica, and Corfu.
Steady demand for golden visas is a part of the overall trend of rising foreign investments into various sectors and asset classes in Greece, including real estate.
Why Greece? Much Cheaper than its Peers
The US requires investors to put in at least $1 million ($500,000 if investing in a high unemployment area) and create ten jobs.
Australia requires $5 million with investments spread over government bonds, shares, venture capital funds, and other asset classes.
The UK grants permanent residence to those investing £2 million or higher.
Portugal offers golden visas against property purchases of €500,000. A less-expensive option for €350,000 exists provided the property being purchased is at least three decades old.
Compared to these options, the Greek golden visa program is the cheapest route to gaining permanent residence in the EU.
Why Greece? Attractive Long-Term Investment Option
The prospect of a Greek exit from the EU contributed to prolonged economic upheaval even as other countries recovered from the devastating impact of the 2008 recession.
This slow pace of recovery offers investors a chance to enter Greece and invest at low valuations.
For foreign investors, the chance to obtain permanent residence serves as an additional incentive.
Why Greece? Tourism and Real Estate Combination
In countries like Portugal and Greece, the tourism and real estate sectors share a symbiotic relationship, with positive and negative developments in one sector mirrored in the other.
The revival of tourism after the recent recession has pulled the Greek real estate sector out of its slump.
The golden visa program has contributed to recovering real estate valuations by drawing foreign investment.
Factors like rising rents, rapid redevelopment of properties and steady growth in tourist inflows enhance the potential of the Greek real estate sector.
These reasons make Greece a lot more attractive for golden visa investors as compared to similar programs in Europe and even citizenship by investment programs offered by Caribbean countries.