A sharp surge in demand among golden visa investors may make 2023 a blockbuster year for the Greek golden visa program.
Investors pumped in more than €1 billion to the program in the first five months of the year.
Offering fast-track permanent residence in exchange for a €250,000 real estate purchase, the Greek program is one of the most popular golden visa programs in the EU.
There are other investment categories with higher minimum investment options but buying real estate remains the preferred choice of golden visa investors.
The program’s popularity got a boost when Portugal announced its decision, initially, to bar golden visa investors from Lisbon and Porto, and then to terminate the program altogether.
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The law proposing the end of the real estate investment option in the Portugal golden visa program is pending presidential assent, which means anybody wishing to qualify for permanent residence in the EU by buying a home will have to look beyond Portugal.
This is the primary reason why there has been a big surge in the number of applications and the inflow of investments into the Greek program.
Another factor that may have contributed to the program’s popularity is the decision by the Greek government to double minimum investments under its golden visa program.
This increase was to come into force from May 1, 2023, which was then deferred to July 31, 2023.
Golden visa investors rushed to submit their applications before the hike came into force, which may have contributed to the surge.
Impressive Numbers for 2023
Between January and May 2023, the Greek golden visa program registered a staggering 170 percent jump in requests for purchases of residential real estate as compared to the same period of 2022.
The program received 1,444 requests between January and May 2022 while the first five months of 2023 saw a total of 3,900 requests.
The bulk of the golden visa investments have flowed into the real estate sector as property sales have surged by 170 percent to €975 million as compared to €361 million in the first five months of 2022.
Approvals have also risen by 149 percent in the first five months of 2023 as compared to 2022. However, demand has clearly outpaced approvals since investors are facing longer backlogs.
There were 8,351 visa requests submitted between May 2022 and May 2023 with only 35 percent of the requests being approved.
While approvals have jumped in absolute terms, the rise in demand has meant investors may have to wait longer to qualify for permanent residence after applying for the Greek golden visa.
Another important reason contributing to higher demand is sustained American interest in golden visa programs. Until recently, Portugal was the beneficiary of the growing demand for investment immigration among American investors.
With Portugal out of the equation, Greece is a natural and obvious alternative for wealthy Americans seeking permanent residence in the EU.