EXECUTIVE SUMMARY – INVESTORS’ RESIDENCE SCHEMES IN GREECE

General background

In recent years, a number of reforms intended to attract foreign investments and simplify the existing
investment framework were introduced in Greece, in order to facilitate the country’s economic
recovery and growth and contribute to its departure from the economic crisis.

Greece has three investors’ residence schemes: 1) residence by investment in real estate; 2)
residence by investment which will have a positive impact on national growth and the economy; and
3) residence by ‘strategic investment’.

The main legal act regulating these schemes is Law 4251-2014 (‘The Immigration Code’). 1 The
legislation is supplemented by Joint Ministerial Decision 30825-2014, 2 which provides for the
documentation that must filed with the competent authority in order for a residence permit to be
issued.

The main competent authority on migration issues, including the issuance of residence permits and
the social integration of third country nationals, is the Ministry of Migration Policy. Meanwhile, it is
the Ministry of the Interior that is responsible for the legislative framework and procedures for
acquiring Greek citizenship, whilst the Foreign Affairs Ministry is responsible for issuing, renewing
and/or revoking Schengen and national visas. The Ministry of Economy and Development is
involved in the process of granting residence permits for the purpose of independent financial activity
or investment. In addition, a number of public authorities, administrations, directorates and
committees take part in the administration of Greek migration policy. In relation to the country’s
investors’ residence schemes in particular, the role of Enterprise Greece which is the official agency
of the Greek state entrusted with, inter alia, the task of promoting investment in Greece, should be
underlined. This body, which operates as an integrated and unified business development agency,
provides an array of services to investors and business partners (e.g. supports investors in accessing
finance and informs investors of Greece’s institutional, tax, legal and financial framework).

Conditions and procedure

Conditions
The applicable criteria for the residence by investment in real estate scheme are that the
applicant:
a) has legally entered the country with any type of visa or is lawfully resident in the country;
and
b) that (s)he:
1. owns real estate property in Greece, either personally or through a legal entity of
which (s)he owns the total of the company shares, provided the minimum value of the
property is EUR 250,000; or
2. (s)he makes an agreement with a minimum term of ten years for the lease of
1
Law No 4251 Immigration and Social Integration Code and Other provisions of 1 April 2014 ( Νόμος Υπ’Αριθμό 4251-
2014 (ΦΕΚ 80 Α’) Κώδικα Μετανάστευσης και Κοινωνικής Ένταξης και Λοιπές Διατάξεις), Government Gazette of the
Hellenic Republic Issue No 80 Series A available at https://www.kodiko.gr/nomologia/document_navigation/95295/nomos-
4251-2014 (consolidated version in Greek). The residence by investment in real estate scheme is regulated by Article 20B;
the residence by investment which will have a positive impact on national growth and the economy is regulated by Article
16A; and the residence by ‘strategic investment’ scheme is regulated by Article 16B.
2
Joint Ministerial Decision 30825-2014 specifying the documents for the issuance of national entry permits kai the grant and
renewal of residence permit in accordance with the provisions of Law 4251-2014 of 6 June 2014 ( ΚΥΑ 30825/2014
Καθορισμός δικαιολογητικών για χορήγηση εθνικών θεωρήσεων εισόδου και χορήγηση και ανανέωση τίτλου διαμονής
σύμφωνα με τις διατάξεις του ν. 4251/2014) Government Gazette of the Hellenic Republic Issue No 1528 Series B available
(in Greek) here https://www.synigoros.gr/?i=foreigner.el.metanastis-pdya.187118.

Milieu Ltd Executive Summary – Investors’ Residence Schemes in Greece/i

Brussels, July 2018
 hotel accommodation or furnished tourist residences in tourist accommodation
complexes which are worth minimum EUR 250,000; or
3. (s)he makes a time sharing agreement (lease) of at least ten years duration for
property which is worth a minimum of EUR 250,000; such an agreement is the
commitment of the lessor to grant, each year, to the lessee, for the duration of the
timeshare, the use of the tourist accommodation and to provide to them the relevant
services for the determined period of time according to the contract, and the lessee
must pay the agreed rent.

The applicable criteria for the residence which has a positive impact on national growth and the
economy scheme are not entirely clear. It is the Directorate for Foreign Investments at the Ministry of
Economy and Development that needs to provide a positive assessment of the investment. As noted
by one of the stakeholders consulted (Enterprise Greece) on its website ‘[f]actors taken into account
for assessing the impact on national development and the economy are job creation promotion of
domestic resources and vertical integration of domestic production, export orientation, innovation and
adoption of new technology’.3 The legislation does not provide much clarification as regards the type
of investment and the financial threshold that is required. There are no restrictions regarding the
sector of activity or the location of the investment project, the only requirement being that the
investment is to have a positive impact on national growth and the economy. The legislation also
does not set specific limits regarding the total cost of the investment project, however, an investor
applying under this programme should contribute to the investment with an amount of at least EUR
250,000 available through their own funds. 4

As regards the residence by strategic investment scheme, the legislation does not offer any
clarification about strategic investments and the type or financial threshold of investment that must be
made. Whether an investment is considered ‘strategic’ for the purposes of this scheme depends
entirely on the decision of the Inter-ministerial Committee of Strategic Investments on Inclusion. For
an investment proposal to be included in the Strategic Investments Procedure, the following is taken
into consideration, in particular: (a) the viability of the proposed (or existing) investment and the
investor’s creditworthiness, and (b) the transfer of knowledge and expertise; the estimated
employment retention or growth; the country’s regional or local development; the strengthening of
entrepreneurship and competitiveness of the national economy, and especially industry; the adoption
of innovation and high-end technology; the increase of export activity; environmental protection and
energy conservation.5

There is no requirement for the investor to be physically present in Greece under any of the three
schemes, however, the investor needs to visit Greece once when applying for the residence permit
plus every time (s)he applies for a renewal of the permit (in order to submit his/her biometric
data).

Procedure
Under each of the three schemes, a third country national who makes an investment in Greece
which satisfies the requirements of the relevant scheme can apply for a residence permit. In
addition to the actual/main investor, a number of other persons can apply for residence. Under the
residence by investment which will have a positive impact on national growth and the economy
and the residence by strategic investment schemes, entry and residence are allowed to a maximum
of nine other third country nationals (investors, experts, and executives) to implement the investment.

3
Enterprise Greece, ‘Residence Permits For Investment activity in Greece’ (2017) p. 8 available at
https://www.enterprisegreece.gov.gr/images/public/pdf-files/resident-permits-AUG16_EN_WEB.pdf. Confirmed also in
email communication with Enterprise Greece, 11 May 2018.
4
Enterprise Greece, ‘Residence Permits For Investment activity in Greece’ (2017) p. 8.
5
Strategic Investments, Greek Law Digest, http://www.greeklawdigest.gr/topics/finance-investment/item/230-strategic-
investments (accessed on 3 July 2018).

Milieu Ltd Executive Summary – Investors’ Residence Schemes in Greece/ii

Brussels, July 2018
The application procedure for the investors’ residence schemes consists of the following stages:
 Once an entry visa has been obtained – or whilst lawfully resident in the country – the
applicant must submit an application for a residence permit to the one-stop service of the
Alien and Immigration Department at the Decentralised Authority where the property is
located or at the Migration Department of the Ministry for Migration Policy (for the residence
by investment in real estate scheme) or to the Directorate for Migration Policy at the Ministry
of Migration Policy in Greece (for the residence by strategic investment and the residence
which has a positive impact on national growth and the economy schemes).
 A list of documents must be submitted together with one copy of the application document,
four recent passport photos, a certified copy of a valid passport or travel document, and a
certification by an insurance agency for the cost of hospitalisation and medical care. In
addition, an application fee of EUR 500 (for the residence by investment in real estate and
the residence which has a positive impact on national growth and the economy schemes) or
EUR 600 (for the residence by strategic investment) must be paid through the e-paravolo
platform plus a fee of EUR 16 which covers the cost of supply, printing and secure handling
of the electronic residence permit. Applicants will also have to submit their biometric data.
For the residence which has a positive impact on national growth and the economy scheme, a
positive assessment of the investment by the Directorate for Foreign Investments at the
Ministry of Economy and Development must accompany the application; whilst for the
residence by strategic investment, the decision by the Interministerial Committee of Strategic
Investment which characterises the investment as strategic must be submitted with the
application and the other documents.
 The authority receiving the application will issue a confirmation that the application has
been submitted, which is valid for one year and serves as an evidentiary document until the
residence permit is issued. Holders of the confirmation receipt are entitled to the benefits of
the residence permit they applied for.
 Once the authority that received the application, has verified that the application fulfils all
necessary conditions (and in the case of the residence by investment in real estate scheme
once they have the positive decision of the Secretary General of the Decentralised
Administration), a five-year (for the residence by investment in real estate and the residence
which has a positive impact on national growth and the economy schemes) or a ten-year (for
the residence by strategic investment scheme) residence permit is issued.
 The residence permit can be renewed more than once, as long as the initial conditions
(required for the issuance of the first-time issued residence permit) continue to be satisfied.
According to Art. 9 of Law 4251-2014, applications for the renewal of residence permits of
all categories must be filed at least two months before the expiry of their active residence
permit. Late submission of the renewal application is possible, up to one month from the
expiry of the active license, provided that a fine of EUR 50 has been paid. During the
residence permit renewal, the applicant must provide again his/her biometric data (digital
photographs and fingerprints). The duration of the renewal is the same as the one of the
permit being renewed (either five or ten years).

Applications may be turned down when the legal conditions are not met. A common reason for
turning down an application under the residence by investment in real estate scheme is the failure
of the applicant to comply with the specific procedure that must be followed for payment of the
consideration for the property. There has been a very low application rate for the other two schemes
and the stakeholders consulted believe that no applications under these schemes have been turned
down to date. Applications for cancellation of a decision on the rejection, withdrawal or renewal of a
residence permit (appeals) must be filed with the competent administrative court within a reasonable
period of time and not more than six months from delivery of the contested decision in accordance

Milieu Ltd Executive Summary – Investors’ Residence Schemes in Greece/iii

Brussels, July 2018
with the provisions of Article 15 of Law 3068/2002.6

Security and ex-post checks

There are no requirements for a clean criminal record or checks on the origin of the money
specifically for the residence by investment schemes. However, the legislation provides that a
residence permit can only be granted to third country nationals who are not considered to pose a threat
to public policy, national security or international relations and are not registered in the national
databases of undesirable aliens. It is not clear from the legislation if international crime databases
must also be consulted. The checks are carried out when the residence permit application is assessed
and – where applicable – where there is an application for renewal of the residence permit.

No information on the implementation of ex-post checks was retrieved.

Family members
Under all three schemes, the family members of the investor and – in the case of the residence by
investment which will have a positive impact on national growth and the economy and the residence
by strategic investment schemes – experts/executives, can apply for an individual residence permit,
which remains valid for as long as that of the main beneficiary. For the purposes of the residence by
investment in real estate scheme, family members are defined in the legislation as: a) the spouse; b)
the direct descendants of both spouses or of either spouse, who are under 21 years of age; d) direct
ascendants of the spouses. For the purposes of the residence by investment which will have a positive
impact on national growth and the economy and the residence by strategic investment schemes,
family members are defined as a) the spouse; b) the unmarried children of the spouse under 21 years
of age; c) the unmarried children of the sponsor or of the spouse, provided the sponsor or spouse have
legal custody; d) ascendants in the first degree of the spouses.

Family members are not obliged to submit their application for initial residence permit simultaneously
with the investor, they have the option to submit it subsequently, whenever they enter the country.
Family members have the same obligation pertaining to the collection of biometric data: the
requirement to provide their fingerprints applies to all third country nationals over six years old and
the digital signature requirement applies to all citizens over the age of twelve. Recent family status
certificate from foreign authorities which certifies the family relationship must be submitted in
addition to the other documents that must be submitted when applying for a residence permit. 7 The
residence permit shall be valid for as long as the main beneficiary’s own residence permit is.

Monitoring of the proceedings and the authorities involved

There is no cap/limit for the number of successful applications under the three schemes.

The legislation does not provide for any scrutiny mechanisms to monitor the actions of the competent
authorities different from the appeals that can be filed against their decisions. In addition, the
stakeholders consulted have not been entirely clear about the scrutiny mechanisms or the reporting
obligations in place.8

Rights

6
Law No. 3068 Compliance of the Administration with judicial decisions, promotion of judges of regular administrative
courts to the level of State Counsellor and other provisions of 14 November 2002 (Νόμος Υπ’ Αριθμό 3068 Συμμόρφωση της
Διοίκησης προς τις δικαστικές αποφάσεις, προαγωγή των δικαστών των τακτικών διοικητικών δικαστηρίων στο βαθμό του
συμβούλου Επικρατείας και άλλες διατάξεις), Government Gazette of the Hellenic Republic Issue No 274 Series A available
(in Greek) at https://www.kodiko.gr/nomologia/document_navigation/177203.
7
Enterprise Greece, ‘A brief guide to Residence Permits for real estate owners in Greece’ (2017) p. 14, available at
https://www.enterprisegreece.gov.gr/images/public/pdf-files/guide_eng_low.pdf.
8
Information gathered through consultation with national stakeholder (Head of Legal Coordination and Control Unit,
Directorate of Migration Policy, Ministry of Migration Policy, competent authority for granting naturalisation, 26 February
2018).

Milieu Ltd Executive Summary – Investors’ Residence Schemes in Greece/iv

Brussels, July 2018
All persons (including the family members of the investors) that are granted a residence permit under
these schemes enjoy free movement within the Schengen Area for up to three months within a six-
month period. They also have access to public education equal to that of Greek nationals. If they
make use of healthcare services, this is covered by their private insurance as it is a requirement of the
schemes that the beneficiaries have insurance that covers their healthcare and medical expenses.

It should be noted that beneficiaries of the residence by investment in real estate scheme do not have
the right to access any type of employment however ‘employment’ in this context does not include the
exercise of economic activity in the capacity of a shareholder or Chief Executive Officer of
companies established before the application for a residence permit under this scheme. Moreover,
beneficiaries of the residence by strategic investment and residence by investment which has a
positive impact on national growth and the economy schemes have access to the exercise of
investment activity, while the executives of the investment have access to dependent employment
for the needs of the investment.

No other benefits have been identified and no legal or policy instruments provide that the
beneficiaries of the three schemes have a special tax status.

Other matters

Link with citizenship

The legal framework in Greece does not grant holders of residence permits the right to obtain
citizenship. The beneficiaries of these schemes would have to go through the normal naturalisation
procedure to obtain citizenship,9 which requires possession of a (permanent or long-term) residence
permit and lawful residence in Greece for seven years; sufficient knowledge of the language, history
and culture of Greece; a clean criminal record; sufficient subsistence means (have met obligations
before the Greek tax authorities evidenced by payslip or a copy of the income tax statement of the last
fiscal year); and oath of allegiance within the year after the person has been naturalised.

Statistics and economic impact

Statistical data on the number of applications is not available. There are some publicly available
statistics regarding the number of successful applications, however, these are not presented in a clear
manner. The overall number of residence permits granted under the residence by investment in real
estate scheme since its adoption (by the end of February 2018) is 2369. This would mean that an
estimated EUR 592 million would have been raised through investment in real estate since the
adoption of the scheme (taking into consideration that the minimum threshold is set at EUR 250,000).
According to the stakeholders consulted, around ten residence permits were granted under the other
two schemes. Since there is no way to know how many specific permits were granted under each of
these schemes and that the law does not establish any financial thresholds for these schemes, no
estimations on the amount of income from these permits can be made. Nonetheless, Enterprise Greece
indicated a minimum threshold of EUR 250,000 for an investment to qualify as having a ‘positive
impact on national growth and the economy’ (see above ‘Conditions’). If all ten permits have been
granted to permits of these category, the total income would amount to EUR 2.5 million. In addition,
in consideration of the applicable fees, an additional EUR 1.3 million 10 would have been generated
from these schemes.

9
Law 3284/2004 Greek Nationality Code (3284/2004: Περί Κυρώσεως του Κώδικα της Ελληνικής Ιθαγένειας), Official
Gazette No 217, issue A, last amended by Law 4332/2015, available at (in Greek, original):
http://www.ypes.gr/UserFiles/f0ff9297-f516-40ff-a70e-eca84e2ec9b9/atyphCodeNom3284-2004.pdf (hereinafter, GNC),
Article 5.
10
This figure is obtained from multiplying the average of EUR 500 (investment in real estate and investment with a positive
impact) and EUR 600 (strategic investment) [550] by the total number of applications (2, 369 in real estate + 10 positive
investment and strategic investment) = EUR 1.3 million.

Milieu Ltd Executive Summary – Investors’ Residence Schemes in Greece/v

Brussels, July 2018
Neither the legislation examined nor the stakeholders interviewed have noted the existence of
mechanisms to monitor the economic impact and financial revenues of investors who have been
granted residence in Greece. The Directorate of Migration Policy of the Ministry of Migration – one
of the stakeholders interviewed – is not aware of any studies carried out to assess the economic and
financial efficiency of residence schemes. However, it was noted that in general lines, the schemes are
judged as satisfactory, demonstrating stable growth with the corresponding increase in proceeds for
the State.11 According to Enterprise Greece, 12 there are clearly very positive impacts both in terms of
the direct income received from the schemes and in particular from the residence by investment in
real estate scheme (more than EUR1.3 billion to date) and in the form of other financial (income from
transaction and other taxes) and other benefits, mainly increased activity in some economic sectors as
a result of the activities of the investors (e.g. money spent by investors when they visit Greece,
tourism, estate agents, other professionals (e.g. lawyers)), construction industry for building of new or
renovating old properties)).

In July 2018, the Greek Ministry for Migration Policy announced its intention to propose an
amendment to the law which – if approved – will expand the Greek residence by investment
programmes, to cover investors who have made at least one of the following investments in Greece:
 Investment of at least EUR 400,000 in a company based or headquartered in Greece
(excluding portfolio investment companies and real estate investment companies)
 Investment of a minimum of EUR 400,000 in a real estate investment company aimed at
investing exclusively in Greece, by acquiring shares in a share capital increase
 Investment of at least EUR 400,000 in a business holdings company for acquiring shares
exclusively in companies based or headquartered in Greece
 Acquisition of Greek government bonds from a local credit institution, spending a minimum
of EUR 400,000 with a maturity date at least three years ahead
 Placing a minimum of EUR 400,000 in a time deposit at a Greek credit institution for a fixed
term of at least 12 months with a fixed order for renewal
 Investing a minimum total of EUR 800,000 in shares, corporate bonds or Greek government
bonds that trade in regulated markets
 Investment in shares costing at least EUR 400,000 in an alternative investments corporation
set up in Greece or in another EU country aimed at investing exclusively in real estate in
Greece, under certain conditions.

11
Interview with Head of Legal Coordination and Control Unit, Directorate of Migration Policy, Ministry of Migration
Policy, Member State competent authority for granting naturalisation, 26 February 2018.
12
Interview with Director General for Investments, Enterprise Greece, 23 March 2018.

Milieu Ltd Executive Summary – Investors’ Residence Schemes in Greece/vi

Brussels, July 2018