Is Greece the New Portugal for Easy European Residency?

Once you’ve traveled the Greek islands, you’ll understand why Homer called the Aegean a “wine dark sea.”

Some years ago, my family and I decided to spend time in Greece on our way to our home in Cape Town during the American summer.

We found a lovely hotel at the foot of the Acropolis in Athens, then took an inter-island ferry to Mykonos for four days.

There are many beautiful patches of ocean on the planet, but nothing beats the Aegean. Homer’s description in the Odyssey evokes the profound, mysterious beauty of the water that’s been the lifeblood of Hellenic civilization from time immemorial.

I’ve set foot in almost 90 countries, and returning to Greece is at the top of my list.

And right now, Greece is moving quickly up another list… as a route to gaining residency and a second citizenship in the European Union.

Portugal’s Loss?

As I explained in your April issue, Portugal—long the favorite route to obtain EU residency—seems to be slamming the brakes on its fabled golden visa program.

Although they’re not shutting the program down completely, Portuguese government proposals released in March aim to limit the investment option for residency, but not digital nomad and retirement visas

Whichever way things work out, it seems clear Portugal will become somewhat less attractive for people who want to purchase an offshore property for global diversification.

As a reminder, the Portuguese approach involved qualifying for a long-term residence permit by purchasing real estate for a certain minimum value. The permit didn’t require you to be in Portugal for more than about a week a year, so many visa recipients immediately put their properties on the short-term rental market to make a profit. After five years on a golden visa, even if they didn’t spend very much time in the country, they could apply for Portuguese (and EU) citizenship.

The problem is that the program distorted local real estate markets. Portuguese housing prices rose by 75% in the years after 2012, when the golden visa was enacted. Cities like Lisbon lost huge chunks of their residential housing stock to short-term Airbnb rentals, which drove up long-term rental rates for locals. Apartment rentals in that city rose by a whopping 35% in the last quarter of 2022.

Clearly, that’s not sustainable. But Portuguese geography also played a role. One of the big selling points for the golden visa was the amount of coastal towns and villages on the country’s Atlantic Coast, promising some of the most desirable real estate and lifestyle investments in Europe.

But as Portugal is a nation with a long seafaring tradition, the bulk of the Portuguese population live in these areas. By contrast, the rest of the country is thinly populated. That meant golden visa applicants were crowding into areas already crowded with locals, inevitably pushing up property prices.

Geography Matters

Greece, on the other hand, is a very different story.

Late last year, Greek prime minister Kyriakos Mitsotakis announced a price hike for his country’s residential golden visa. He explained that the required residential investment would probably double.

Many expected this development. Like the Portuguese, Greeks have relatively low incomes compared to the rest of Europe. And like Portugal, Greece saw housing costs rise rapidly in the last decade or so. The financial pressure created by this economic vise would eventually force the government to crack.

But when the Greek government issued the final regulations for its golden visa program in January, the new minimum residential investments only applied to Athens, Thessaloniki, and parts of Mykonos and Santorini. The rest of the country remains under the old investment requirements (more on those in a minute).

Here’s why Greece didn’t follow Portugal and shut down the program entirely…

Portugal’s coastline is approximately 2,800 kilometers (1,730 miles). The ratio of coastline to total land area is 5.9.

By contrast, Greece’s coastline is 15,150 kilometers (9,413 miles). The ratio of coastline to land area is 37.8.

In other words, because it’s a nation of islands and heavily indented peninsulas, Greece has far more capacity to accommodate foreign investors who want to buy or build properties near the sea.

So, by selectively nudging potential golden visa applicants away from pressure points like the big cities and the more popular islands, the country was able to maintain a viable residential investment option.

The question is… is Greece the new Portugal when it comes to golden visas?

The Easiest Golden Visa on The Planet

It certainly seems as if Greece is determined to pick up where Portugal is leaving off.

The vast majority of Greece’s regions will continue to operate under a €250,000 minimum property investment. Golden visas via financial investment and business establishments remain as they were before, at €400,000 and €250,000, respectively.

An equally important illustration of the country’s commitment to the program is that the application process went fully digital in November 2022. The entire process can be done online, making it much easier and less time consuming. It’s now easier than applying for a Schengen visa.

At the same time, the regulations were amended to allow applicants to assign a power of attorney to someone in Greece, allowing them to apply for a tax number, open a Greek bank account, acquire property, and complete other transactions via proxy before they even arrive in the country.

The Greek program also allows families to pool their money to invest in properties. Many residents and citizenship by investment programs around the world demand extensive due diligence on every single individual contributing money to an application. In Greece, all of this can be conducted by a bank, in a much simpler way than in other countries.

Finally, Greece has no problem allowing individuals to borrow from foreign banks to fund their investment. From the Greek perspective, it’s still foreign money coming in. In other words, Greece is interested in the cash flow, not in high net-worth individuals per se. This makes it a particularly attractive program for “ordinary” folks.

Taken together, this makes the Greek golden visa process the simplest not just in Europe, but on the planet.

Going Greek

How alluring is Greece as a potential destination?

I’ve given away my own bias already. I think it’s a gorgeous country, dominated by one of the most beautiful bodies of water I’ve ever seen. The culture—especially the food—is highly attractive. (Like South Africans, Greeks have a taste for lamb.)

Though best known for its sun-drenched islands, Greece also boasts lively ski resorts, world-class dining, ample wildlife (including wild dolphins, loggerhead turtles, bears, wolves, badgers and monk seals), and enough forests, lakes and canyons to keep even the keenest hiker busy for decades. City-lovers will have their hands full too, with ample museums, cafés, and stroll-worthy cobblestoned streets to explore. (For more on where to live in Greece, check out this month’s feature story.)

And if all that isn’t enough to lure you to Greece, the cost of living might. From housing to dining out, healthcare to hair care, the average cost of living in Greece is significantly lower than in the U.S. A couple can live well on around $1,900 a month here.

Now consider some of the relaxed conditions of its golden visa program:

The program fees are minimal. The investors permit costs €2,000, plus €150 per additional family member. By contrast, Portugal charges over €5,000 for each family member, as well as a €2,500 renewal fee every year.

There is no minimum residence requirement. Although I would expect most people would want to be physically present in this glorious country for at least part of the year, you don’t have to if you don’t want to.

Other than coming from a non-European Economic Area country, there are no restrictions on who can acquire a golden visa. Many other countries have banned applicants from certain countries.

Citizenship via naturalization can happen after seven years if you meet an annual minimum physical presence.

And, of course, you have visa-free access to the EU.

On the downside, Greek politics are less stable than in Portugal. Greeks have always been quite passionate and tend to express themselves with abandon. But the country is a stable democracy and shows no signs of serious dysfunction.

The Greek banking sector went through a torrid time during the global financial crisis, but eventually pulled through. In fact, Greek government bonds have recovered amazingly well in the last decade. The Greek stock market has also had one of the best runs among southern European nations—in fact, it’s doubled the performance of the S&P 500 so far in 2023. (My colleague Jeff Opdyke wrote about the Greek stock market in your April issue).

That leaves the question of lifestyle. Like most Mediterranean nations, Greece has a more relaxed attitude towards life than many other countries, including the U.S. In my experience, though, things work very well and the people are friendly, hospitable, and efficient. They just don’t sweat the simple stuff as much as some other nationalities.

But the big question is whether the investment opportunities under the revised Greek program suit potential migrants. Clearly, the authorities want investors to buy, renovate, or build in smaller cities and towns, in rural areas, and on the less popular islands, like Skyros and Skopelos, part of the Sporades island group. (Of course, if you’re willing to pay more, you’re welcome to acquire property in the areas with a higher minimum investment.)

After having visited the country myself, my opinion is that anyone looking for a relaxed, low-stress, small-town atmosphere and lifestyle would be perfectly happy in parts of the country that are off the beaten path. Greece is well served by a network of high-speed ferries that connect even the most remote islands to the mainland. Those same ferries supply the islands with consumer goods, so it’s not as though necessities (and luxuries) are hard to come by.

All in all, I’d say Greece is more than the new Portugal… it may be even better.