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On the 19th of February 2020, the European Commission presented its strategies for Data and Artificial Intelligence envisioning a digital transformation that will work for all within the EU and will promote the values of openness, fairness, diversity, democracy and confidence according to its claims.
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All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this newsletter shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication.
The outbreak of COVID-19 at the end of 2019 has undoubtedly impacted global trade and has created concerns for the year ahead. The aviation sector has largely been affected as a result, since it is also the main method of transport via which the virus has spread. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this newsletter shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication.
Abstract
Amendments effected with Law 4605/2019 (in force as of July 1st 2019) Since the coming into force of the Golden Visa program in Greece, a significant number of overseas investors and their families (over 20,000 with family members included) have opted for the option of investing in Greece in return for the granting of a residence permit. This in turn provides them with - among others - permanent residence and access to EU & Schengen countries. The Greek Government, in an effort to expand the spectrum of investors taking advantage of the said program introduced a new law that allows for opportunities for investments in Greece which are linked with the right for a residence permit. The Greek government implemented changes to the Golden Visa program, one of the most competitive and attractive programs globally, with a law expanding the forms of investments required for eligibility. The revised bill aims to improve and complement the current residence permit scheme (Golden Visa) for third-country nationals investing in Greece and the Invest in Greece, Residency by investment program. In particular, pursuant to Article 42 of Law 4605/2019 (published on the government Gazette on 1 April 2019) which amends Law 4251/2014, some important additional options to the existing legal framework for granting a residence permit through investments in Greece have been introduced. According to the introductory notes of Law 4605/2019, its purpose is the improvement of the current legislative framework on residence permits by taking into consideration the needs of the Greek economy, the interest shown by foreign investors in Greece and the relevant international and EU practice. Current legislation provided that if a non-EU legal entity begins an investment in Greece which is expected to have a positive outcome on national development and the economy, up to ten (10) third country citizens are eligible to be granted a residence permit for the implementation and operation of the specific investment plan. Pursuant to Law 4605/2019 in addition these individuals, up to three (3) additional non-EU citizens with the capacity of a shareholder or executive may apply and be granted a residence permit in Greece provided that the investment is made through a legal entity. New categories of investment However, the most important element of the new Law 4605/2019 is the introduction of new categories of investment which provide the right to non-EU citizens investing in Greece (the “Investors”) to be eligible for a Greek residence permit (the “Residence Permit for Investors”). The new categories of investments are the following:
In the case of a Greek legal entity proceeding to any investment under 1-8 above, and its shareholder is a non-EU citizen, such person may lawfully request his/her entry and residence in Greece, provided that such shareholder holds the total (100%) of the company’s shares. In case, that the investment is performed by a non-EU legal entity, the entry and residence in Greece of up to 3 non-EU citizens who are shareholders or executives of the said entity is permitted, depending on the amount of the investment. In addition to the two aforementioned cases for entry and residence permit eligibility, it would still be possible to grant entry and residence permits to up to ten third country nationals depending on the total amount of investment, employed for the implementation and operation of the investment plan. The competent authority for the issuance and renewal of the residence permits granted to non-EU citizens, is the Department of Immigration Policy of the respective Ministry. The initial duration of the residence permit granted for the aforementioned investments is five years and it can be renewed for another five years provided that the holding of the investment is certified and the remaining conditions for the granting of such residence permit continue to be applicable. The Residence Permits for Investors do not establish any right to work. The Investor acquiring a residence permit may be accompanied by his family members who are granted individual residence permits of equal duration with the Investor’s residence permit. Unmarried children, spouse and spouses’ parents can be granted a residence permit along with the Investor. The above provisions in relation to the new options for granting residence permits to foreign investors in Greece entered into force on the 1st of July 2019. For information about the application process contact Valmas Associates in the relevant section of our website. Source: Invest in Greece All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this newsletter shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication. Overview With a new vision for development, Greece aims to attract foreign direct investments in infrastructure, manufacturing, energy, tourism, agriculture and other sectors through flexible and fast administrative procedures, and by promoting its natural resources, well-educated human capital and other unique comparative advantages in the broader South-Eastern European region. Greece has set up a flexible and fast procedure for non-EU/ EEA foreign investors who wish to obtain an entry visa and a residence permit for the purpose of investment activity in Greece. Residence permits can also be granted to company executives involved in the implementation and/or the operation of the investment project. Up to 10 permits may be issued for an investment project (investors and executives), depending on the investment scale. The investment activity may be implemented through the construction of new facilities (greenfield investments) or business acquisitions, restructuring as well as expansion of current activities (brownfield investments), provided that it has a positive impact on the national economy. Residence permits offered to investors and executives can be renewed every five years, as long as they maintain their position in relation to the investment and the investment continues to be active. In addition, they may be accompanied by their family members - spouse, unmarried children up to the age of 21, and the first degree ascendants of the spouses - who are also beneficiaries of the right to enter and obtain a residence permit. For information about the application process contact Valmas Associates in the relevant section of our website. Legal Framework According to Greek Law: A long-term visa (national visa / D-type visa) is an authorization issued by the Greek consulates for the entry and stay on Greek territory of non-EU/EEA citizens for a period exceeding 90 days and up to 365 days, according to the respective national regulations or European Union law. A residence permit is an authorization issued by the Minis- try of Migration Policy for the legal residence within Greek territory of non-EU/EEA citizens, in accordance with the pro- visions of European Union (Council Regulation (EC) 1030/02, as applicable). There are different categories of residence permits and different types of permits within each category. Employment rights depend on the type of permit issued. The legal basis of the program concerned (entry and residence for investment activity) is found in Article 16 of Law 4251/2014, as amended and completed by Article 8 (par. 21) of Law 4332/2015 and Article 84 (par. 1 to 6) of Law 4399/2016. Details concerning the program implementation, such as the minimum required investment, the procedure and the required documentation, are determined by a Joint Ministerial Decision. Beneficiaries of the residence permit for investment activity Beneficiaries of the right to enter and obtain a permanent residence permit under this program are: a) non-EU/EEA citizens who intend to invest in Greece (investors), either personally or through a legal entity, provided that their investment project meets the conditions set by the legal framework, as outlined below. b) non-EU/EEA citizens, company executives, involved in the implementation and/or the operation of the investment project described (upper management, middle management or experts necessary for the project). The above provision for non-EU/EEA citizen company executives also applies with the same preconditions to domestic established enterprises which are currently in operation and implement a new investment. Up to 10 permits may be issued for investors and executives for an investment project, depending on the investment scale. c) Family members of the non-EU/EEA citizen described above who are granted a residence permit and specifically: - The spouse, - The other spouse or partner with whom a third-country national has a cohabitation agreement in Greece, - Their unmarried children up to the age of 21, - The unmarried children of the dependant or his/her spouse up to the age of 21, provided that the right of custody has been legally granted to the sponsor for his/her children and to the other spouse for the children thereof, - The first degree ascendants of the spouses. These family members are granted residence permits for family reunification which does not include access to employment. Duration-Renewal of the residence permit The residence permit for investment activity (for investors or executives) is granted for a five-year period and is renewed every time for an equal duration, provided that the beneficiary maintains the status (investor or executive) in relation to the investment and that the investment continues to be active. For the family members concerned, their residence permit expires upon the expiry of the sponsor’s residence permit. Note that the unmarried children of the applicant who are originally admitted to the country under the terms and requirements of the residence permit for investment activity are granted residence permits for family reunification until the age of 21. Children reaching the age of 21 are entitled to an autonomous residence permit up to the age of 24 without specific preconditions. This permit is not linked to the status of the family sponsor. After the age of 24, further renewal is possible according to pertinent national immigration legislation. Application fee The cost for the issuance of a national entry visa is €180. The fee for the issuance of a five-year residence permit or for its renewal is €2000 for investors and company executives, and €150 for their family members. Minor children (under 18 years old) are exempted from this fee. The fee for the issuance of the electronic residence permit is €16. Conditions for the investment activity Residence permits for investment activity are granted to non- EU/EEA citizens (investors or executives) in the context of the implementation of an investment project following a positive assessment of the investment by the Directorate for Foreign Capital at the Ministry of Economy and Development. a) Investment activity There are no restrictions regarding the sector of activity or the location of the investment project. The requirement that must be met by the investment is to have positive impact on national development and the economy. Investment activity may be implemented through the construction of new facilities (greenfield investments) or business acquisitions, restructuring or expansion of current activities (brownfield investments). Factors 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. b) Investment cost The legal framework does not set specific limits regarding the total cost of the investment project. However an investor applying for a residence permit under this program should contribute to the investment with an amount of at least €250,000, available through own funds. In addition, the number of permits for executives allowed for each investment project depends on the amount of the total investor contribution. Finally, the total number of residence permits allowed for an investment project cannot exceed 10 (for investors and executives). Process for granting a residence permit for investment activity a) Entry requirement to apply for a residence permit To apply for a residence permit for investment activity, non- EU/EEA citizens must: - either enter the country on a national visa (type-D) issued for investment purposes by the competent consular authority, which is valid for up to one year; or - already legally reside in the country and hold a residence permit either under a definite residence permit or a visa or a residence permit granted by another EU Member State (in this case Schengen rules for temporary stay in a member state apply) or a long-term residence permit (2003/109/EC) granted by another EU Member State. In this case, the in- vestment activity should have been approved prior to the application for the residence permit and non-EU/EEA citizen should legally reside in the country at the moment of submitting the residence permit’s application. b) Granting an entry visa In order to obtain a national visa (type D) for investment purposes, the non-EU/EEA citizen (investor or executive) or his proxy submits an application to the competent Greek consulate, enclosing the necessary documentation for the applicant and the investment project. Family members have the option of entering the country at the same time with the applicant from whom they derive their residence rights (sponsor) or at a later date, and should also be issued the appropriate entry visa. Documentation for investment project (documents a, b and c) should be submitted in printed and electronic form, in Greek (documents issued in other languages should be accompanied with an official translation). In case of difficulty submitting the above information in electronic form or in Greek, assistance can be provided by the Greek consulates. The consular authority will forward the above documentation to the competent department at the Ministry of Economy and Development for assessment with respect to conditions set by the legal framework. The positive opinion of the above department regarding the investment project is necessary for granting the entry visa. A. GENERAL DOCUMENTATION FOR GRANTING A NATIONAL VISA (type- D) a) A passport or other travel document recognized by Greece, with a period of validity which must exceed by three months the expiry date of the visa, having at least two blank pages and issued within the previous ten years. b) Travel insurance with a duration covering at least the entire visa period and providing coverage of costs which might arise in case of repatriation for medical reasons, urgent medical care and/or emergency hospital treatment. c) Criminal record certificate issued by the foreign authorities certifying the criminal record status of the applicant in the country of his/her residence. In cases where the applicant has lived in a country other than that of his/her origin for more than a year before lodging the entry visa application, the consular authority may request a criminal record certificate issued by the country of origin. d) Medical certificate issued by a recognized state or private institution, showing that the person concerned does not suffer from a disease that could pose a threat to public health, as defined by the international data of the World Health Organization (WHO) and the European Union acquis, nor from any other infectious, contagious or parasitic diseases that impose measures to protect public health. B. DOCUMENTATION FOR INVESTMENT PROJECT a) Presentation of the investment project to include: - Details of the existing company or one to be established to pursue the investment activity (name, type of legal entity, share-holder / corporate structure) - Description of the investment project - The location of the investment project - The investment budget and its financing structure - A timetable for implementation of the investment - The forecasted results for the first five years of investment (feasibility study and cash flow forecast) - The total number of jobs to be created by the operation of the investment b) Information concerning the applicant in relation to the contribution to the investment which includes : - A brief curriculum vitae - The applicant’s position and occupation relative to the investment project - The duration of residence in accordance with the investment implementation The above (a and b) should be presented and documented in accordance with the relevant forms available on the website of the program, taking into account the instructions and notes provided on them. c. Documentation for investors’ own funds The documentation of the investor(s)’ ability to fulfill the requirements for own funds should be based on quarterly statements-certificates of bank deposits or securities for individuals, and balance sheets and other financial statements for legal entities. c) Application for the residence permit A non-EU/EEA citizen who has entered the country with a national visa (type-D) for investment purposes should complete the required process for applying for the residence permit before the expiry of the entry visa. In the meantime, visa holders will be able to undertake legal acts and conduct transactions with the competent authorities. The application and the necessary documentation for a residence permit are submitted in person or by a legal representative to the Directorate for Migration Policy at the Ministry of Migration Policy in Greece. Authorization shall be proven in writing by having the authenticity of the authorizing person’s signature verified by any public authority. Since February 20th, 2017, a new procedure for granting non EU-EEC nationals residence permits in Greece was launched, pursuant to Regulation (EC) 1030/2002, as valid, under which all EU Member States will issue an electronic residence permit, which will replace the sticker, typically affixed in a valid passport. 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 (6) years old, and the digital signature requirement applies to all citizens over the age of twelve (12) years. d) Exceptional Procedures for non EU/EEA citizens who legally reside in Greece (Law 4399/2016) In order to facilitate the process for non EU/EEA citizens who intent to invest in Greece and legally reside in the country, either under a definite residence permit, or a visa, or a long- term residence permit (2003/109/EC) granted by another EU member state, it is possible for them to submit an application with the documentation of the investment project to the authorities in Greece. This application is submitted to the Directorate of Migration Policy (Ministry of Migration Policy), which forwards it to the component department for its required relevant opinion (Ministry of Economy and Development. After the issuance of a positive opinion, the respective non EU/EEA citizen, under the precondition that he/she legally resides in the country, shall submit an application for a residence permit along with all the necessary documentation as described below. e) Provisions during the application processing period The authorities receiving the application and all the necessary documentation issue a certificate valid for one year which constitutes an evidencing document/certificate of legal residence of the person concerned in the country. Until the residence permit is issued Certificate holders are entitled to all benefits of the residence permit they have applied for. Hence, they can proceed with any legal formalities related to their investment and can contact with all the relevant authorities. Once the Directorate for Migration Policy at the Ministry of Migration Policy verifies that the application fulfills all necessary conditions, a five-year residence permit is granted. DOCUMENTATION FOR RESIDENCE PERMIT APPLICATION - Application form - Four (4) printed digital passport photos, also stored in digital form(CD) - A fee paid and obtained through the “e-paravolo” platform ac- cording to article 38 par. 6 of Law 4546/2018, which amounts to €2000 for residence permits of up to a five year duration for investors and company executives (code 2112). For family members the fee amounts to €150 (code 2107). Minor children (under 18 years old) are exempted from this fee; - A positive assessment of the investment by the Directorate for Foreign Capital at the Ministry of Economy and Development. - Certification by the competent national insurance agency that the applicant has applied for the required insurance - A fee paid and obtained through the “e-paravolo” platform ac- cording to provisions of Law 4018/2011 article 1, which amounts to €16 concerning the printing of the separate document (electronic residence permit). - Certified copy of a valid passport or travel documents recognised by Greece and with the relevant valid entry visa, where required; In addition For executives: the contract of employment For family members: Declaration for their marital status Renewal of residence permits The required renewal (every five years) of the residence permit is a simple procedure, as long as the beneficiary maintains his status in relation to the investment, which must continue to be active. The application and required documents are submitted in person or by proxy to the Directorate for Migration Policy at the Ministry of Migration Policy in Greece. DOCUMENTATION FOR APPLYING FOR RENEWAL OF RESIDENCE PERMIT A. GENERAL DOCUMENTATION - Application form - Four (4) printed digital passport photos also stοred in digital form (CD) -Certified copy of a valid passport or travel documents recognized by Greece -Certification by a national insurance agency for the cost of hospitalization and medical care. - A fee paid and obtained through the “e-paravolo” platform according to article 38 par. 6 of Law 4546/2018, which amounts to €2000 for residence permits of up to a five year duration for investors and company executives (code 2112). For family members the fee amounts to €150 (code 2107). Minor children (under 18 years old) are exempted from this fee; B. SPECIFIC DOCUMENTATION For Investor: - Solemn declaration (officially certified) by the applicant or the legal representative of the investment activity that it is still in operation or that the current activity being pursued is a continuation or evolution of the initial business. - Tax clearance certificate - License for the operation of the company/business. For executives - Employment contract - Tax clearance certificate For family members - Declaration by the sponsor that the family status has not changed - Tax clearance certificate and insurance certificate of the sponsor - Copy of the birth certificate for any child born in Greece The submitted foreign documents must be certified and officially translated into Greek. There are two types of certification: a. The apostille stamp provided by the relevant foreign authority on the foreign document for countries that are parties to the Hague Convention, and for which Greece has not is- sued a warning; b. Certification by the Greek consulate in the country of origin of the document for any countries that are not parties to the Hague Convention. Foreign public documents can be translated: a. By the Translation Service of the Ministry of Foreign Affairs in Greece (Athens); or b. By an attorney who is a member of a Greek bar association and whose signature must be certified by the bar association. During the residence permit renewal, the applicant must provide again his biometric data (digital photographs and fingerprints). Third country nationals who have already been provided with a residence permit in the form of a sticker affixed on their passport, do not need to replace it with the electronic residence permit, as this will be acceptable for all transactions both within Greece and in other member-countries of the EU until its expiry. Its re- placement with an electronic residence permit will be carried out either at its renewal or if necessary at the re-issue which can take place due to loss of the passport on which it is affixed. Frequently Asked Questions 1. Is it necessary to hire a lawyer to collect the documentation? There is no legal requirement to collect and process the documents through a lawyer. In cases where the applicant does not speak Greek and/or is located outside Greece, it may be preferable to ask for assistance from a legal representative or a proxy who is in Greece to facilitate the process. 2. Who is considered a family member? According to the law, family members of non-EU/EEA citizens entering the country are: - The spouse, - The spouse or partner with whom a third-country national has a cohabitation agreement in Greece, - Their unmarried children up to the age of 21, - The unmarried children of the dependant or his / her spouse up to the age of 21, provided that the right of custody has been legally granted to the sponsor for his/her children and to the other spouse for the children thereof, - The first-degree ascendants of the spouses. These family members are granted residence permits for family reunification. 3. Can my relatives in the ascending line (namely my parents and my spouse’s parents) or my children who are over the age of 18 accompany me, and be included in the family provision? First degree ascendants of the spouses are included in the provision above. Unmarried children up to the age of 21 are granted a residence permit for family reunification. When they turn up 21, they are able to receive an autonomous residence permit up to the age of 24, renewable under pertinent immigration legislation. 4. Can I travel to other countries within the EU with the residence permit for investment activity? Are there any conditions related to this? Yes. Holders of a residence permit are able to travel to other Member States for up to three months within a six-month period according to Schengen Borders Code. 5. Does the residence permit for investment activity give access to labour market? Can my family members work in Greece? The holders of a residence permit have access to the exercise of investment activity (as legal representative, president, board member or chief executive officer), while the executives of the investment have access to dependent employment for the needs of the investment. The family members of the investor are not granted access to the labor market, while the family members of the executives have the same access to labor market as the sponsor. 6. Does the residence permit give me the right to apply for citizenship? According to the decision of the Minister of Interior no. 130181/6353/27.3.2018, published in the Government Gazette 1208/Β/2.4.2018, the residence permits of Real Estate Owners and Investors have been added to the categories of residence permits that are eligible for the submission of an application for the acquisition of Greek citizenship. In this case, the applicants must fulfill all the preconditions of the Greek Citizenship Code applied for the acquisition of Greek citizenship by naturalization. The above ministerial decision applies only to investors them- selves, and not to company executives and family members, who must first obtain the long-term residence status, which is a prerequisite for naturalization. 7. What is the arrangement regarding access to education and health services? Can the children of the residence permit holder attend a Greek public school? The holders of the residence permit have access to public education equal to nationals. Regarding access to health services, non-EU/EEA citizens and their family members who fall under the regulations of the current immigration law must have national or private -if provided by national legislation- insurance that covers their healthcare and medical care expenses. 8. Can I purchase a car with Greek license plates for my transportation needs in the country? Yes, under the specific regulations of the Ministry of Transport which apply to non-EU/EEA citizens. 9. Is it required by the investor to prove financial adequacy? The appropriate documentation is required for all investors (individuals and legal entities) participating in the financing of the project (not only for the individuals applying for residence permit), proving their ability to pay their own funds. 10. If 8 non-EU/EEA citizens decide to invest €2,000,000 in a business in Greece, are all investors and 2 executives entitled to a residence permit? Each investor who participates in the financing of the project with an amount of his own funds of at least €250,000 is entitled to a residence permit. So if the investors participate equally with the above amount (i.e. each one by €2,000,000/8 = €250,000), all of them are entitled to a residence permit (provided that the total number of permits for investors and executives does not exceed 10). However, if one investor participates more than the others, investors participating with own funds of less than €250,000 cannot be granted a residence permit under this program. According to legislation, for investments (investors’ contribution) from €1,000,001-€3,000,000, 2 residence permits may be issued for executives (provided that the total number of permits for investors and executives does not exceed 10). Therefore, even if residence permits are granted to all eight investors, residence permits can also be issued to 2 executives since the total number (8+2) does not exceed 10. 11. What happens in cases where someone tarnishes their criminal record, either in their country of origin or in Greece, during the period their residence permit is valid? This leads to the revocation of the residence permit. 12. Does the residence permit continue to be valid if the business activity is transferred/terminated? In cases when the business activity is transferred/terminated, the non-EU/EEA citizen loses the right to reside in Greece on the basis of this residence permit. For more information contact Valmas Associates in the relevant section of our website. Source: Invest in Greece
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this newsletter shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication. The government of Greece introduced a procedure to obtain residence permits, which can be renewed every five (5) years, for owners of real estate by third-country citizens, the value of which exceeds €250.000, adopting a friendlier stance towards those who wish to own real estate property in Greece. This guide provides information on the preconditions, the process and the supporting documentation required to obtain these residence permits. It also addresses important questions regarding this new type of residence permit for owners of real estate property. SECTION Α General information on residence permits for real estate owners in Greece Residence permits in Greece. 3 A residence permit is any documentation issued by the Greek authorities, according to which a third country citizen is given the right to reside legally within Greek territory, in accordance with the provisions of the European Union (Regulation 1030/02 as applicable). Different categories of residence permits exist, as well as different types of permit within each category. Employment rights depend on the type of permit issued. Applications for the granting and renewal of residence permits are submitted directly to the municipality or the relevant authority of the Aliens and Immigration of the Decentralised Authority in the applicant’s place of residence, apart from certain specific types of residence permits for which applications are submitted to the Department for Migration Policy at the Ministry of Migration Policy. Residence permits for real estate owners and who they apply to. A residence permit for real estate owners is a new type of residence permit, for third country citizens who have entered the country legally on any kind of visa (type C or D) or are legal residents in the country, even if the residence permit they hold does not allow for change of residence scope. Beneficiaries of the right of entry and the permanent residence permit, which shall be renewed every five (5) years, are: a) third country citizens who own real estate property in Greece, either personally or through a legal entity based in Greece or another EU member state, of which they own the total of the company shares, provided the minimum value of the property is €250.000; b) third country citizens who have signed a lease agreement – for a minimum of 10 years – for hotel accommodations or furnished tourist residences in integrated tourist resorts according to article 8, paragraph 2 of Law 4002/2011 (Government Gazette 180 A'), provided the minimum cost of the lease is €250.000; c) third country citizens who either reside legally, with a residence permit, in Greece, or wish to enter and reside in the country, and who have full ownership and possession of real estate property in Greece, which they have purchased before the enactment of law 4146/2013, provided that they had purchased the real estate property for a minimum of €250,000 or the current objective value of their real estate property is at a minimum of €250,000; d) third country citizens who purchase a plot of land or acreage and proceed to erecting a building, provided that the cumulative value of the land purchase and the contract with the construction company is at minimum €250,000. e) third country citizens who have signed a timeshare agreement (lease), based on the provisions of Law 1652/1986. A time share lease, according to the provisions of article 1 of law 1652/1986 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. Tourist accommodation for the implementation of this law refers to hotel units and generally tourist facilities operating under the permission of the Hellenic Tourism Organization (EOT) and have been subject to the provisions of the law by decision of the Secretary General of E.O.T. Timeshare is agreed for a period of one (1) to sixty (60) years. f) third country citizens who are adults and who fully and legally own real estate property in Greece, the minimum value of which is €250,000, and is acquired through intestate succession, will or parental concession. g) family members of the third country citizens described above. According to the law, family members of third country citizens entering the country are: a. Spouses, b. the other spouse or partner with whom a third-country national has a cohabitation agreement in Greece, c. The direct unmarried descendants of the spouses, who are under the age of 21, d. the direct unmarried descendants of the supporter or of the other spouse/partner , provided that their custody has been legally entrusted to the sponsor (for his/her children) and to the other partner (for his/her children), under 21 years of age, e. the direct relatives of the spouses in the ascending line. Preconditions for a residence permit for real estate owners in Greece. 5 The following conditions must be fulfilled to receive a permanent residence permit of investor, which shall be renewed every five (5) years: a) The real estate property must be owned by and be in possession of its owners. b) In cases of joint ownership, where the value of the property is €250.000, the residence permit is only granted if the owners are spouses or partners with a cohabitation agreement in Greece, with undivided ownership of the property. In all other cases of joint ownership, the residence permit is only granted if the amount invested by each of the joint owners is at least €250.000. c) If the owner has acquired the property through a legal entity, the applicant must own 100% of the company shares. d) The residence permit is also granted in cases where the third country citizen is the owner, either directly or through a legal entity, of more than one real estate property with a combined value of at least €250.000. e) In cases where the applicant wants to enter the country with a type D visa, 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 recognised financial institution), which certify the existence of bank accounts or other mobile assets, such as bonds or shares, which can cover the cost of the investment of at least €250.000, and which certify the intention of the applicant to purchase the property (contract with a law firm or with a real estate office). f) In the case of third country citizens who have signed a lease of at least 10years for hotel accommodations or furnished tourist residences in integrated tourist resorts, provided the minimum value of the lease is €250.000, the contract must require a single payment of the lease for the equivalent of the ten year leasing of the property. In all cases outlined above, the value of the real estate property will be determined based on the value of the property, or the lease, indicated in the contract of purchase. The value of the property, according to law 4251/2014, is the amount stated explicitly on the contract which has been submitted for the purchase of the real estate property. The objective, or assessed, value of the property is not relevant, unless it corresponds to the amount which was, according to the contract, paid for the sale of the property. Entry Visa requirement to obtain a residence permit for real estate owners. An entry Visa, that is, legal entry in the country, is necessary to obtain a residence permit for owners of real estate property. Following the issuance of a residence permit, and for its duration, there is no need for a Visa. Pursuant to Law 4251/2014, any third country citizen who has entered the country legally holding a visa of any type or is a legal resident of the country irrespective of their status or type of residence permit, has the right to apply for a residence permit. Duration of the residence permit for real estate owners. This residence permit is permanent.. The holder of the residence permit is however required to renew it every five (5) years. Renewal of residence permits for owners of real estate - Preconditions. The residence permit shall be renewed every five (5) years. To renew the residence permit, the following conditions must be met: The real estate property must remain in the full ownership of the applicant. The relevant leases/contracts must be ongoing. Absences from the country do not impede the renewal of the residence permit. The resale of the real estate property, during the period when the residence permit is valid, to another third country citizen provides to the new owner the right to a residence permit along with a simultaneous revocation of the seller’s residence permit. SECTION Β Issuing process and the necessary documentation for a residence permit for real estate property owners The process for the issuing of a residence permit for real estate property owners. Step 1: Issuing an entry Visa for Greek Territory The interested party must submit an application for an entry visa to the Greek consulate authority in their country of origin. Step 2: Collecting the documentation for the issuing of the residence permit Applicants for a residence permit for real estate owners, valued at €250.000, must provide the following documents: Two copies of the application document; Four recent colour photos (passport type, printed as well as in Compartible Disc form); Certified copy of a valid passport or travel documents recognised by Greece and with the relevant valid entry visa, where required; A fee paid and obtained through the "e-paravolo" platform according to provisions of article 38 par. 8 of Law 4546/2018, which amounts to €2000 for residence permits of up to a five year duration for real estate owners (code 2112). For family members the fee amounts to €150 (code 2107). Minor children (under 18 years old) are exempted from this fee. A fee paid and obtained through the “e-paravolo” platform according to provisions of Law 4018/2011 article 1, which amounts to €16 concerning the printing of the separate document (electronic residence permit). Certification by an insurance agency for the cost of hospitalisation and medical care. To certify that this condition is fulfilled, the following are accepted: - Insurance contracts which have been signed outside Greece, provided that they explicitly mention that they cover the interested party for the duration of their stay in Greece. - Insurance contracts which have been signed in Greece. In case the seller is a third country citizen, he must submit a certificate from Aliens and Immigration Department of the competent Decentralised Authority, whether this property has been used for issuing a residence permit for real estate owners. The above, applies also to the sale of the property by legal entity. Depending on the specific case, the following documentation may need to be submitted in addition to the above: 1. Residence permits for third country citizens who own and possess, either wholly or jointly, property in Greece. A contract of purchase stating that “the contract of sell and purchase of the property is not subject to conditions or exemptions, the total price amounts to ..... which has been paid in full with a crossed bank cheque to a bank account of the beneficiary, held in a credit institution operating in Greece or with a credit transfer, as defined by Law 4537/2018 article 4, par. 24 (Official Government Gazette Α ́ 84) to a beneficiary’s bank account held in a payment service provider, as defined by Law 4537/2018 article 4 par. 11 operating in Greece. Proof of transfer of the contract by the competent Land Registry and a certificate issued by the Land Registry or national cadastre agency attesting to the non-existence of any encumbrance. 2. Residence permits for third country citizens who own property in Greece through a legal entity, where the applicant owns all shares A contract of purchase stating that “the contract of sell and purchase of the property is not subject to conditions or exemptions, the total price amounts to ..... which has been paid in full with a crossed bank cheque to a bank account of the beneficiary, held in a credit institution operating in Greece or with a credit transfer, as defined by Law 4537/2018 article 4, par. 24 (Official Government Gazette Α ́ 84) to a beneficiary’s bank account held in a payment service provider, as defined by Law 4537/2018 article 4 par. 11 operating in Greece. Proof of transcription of the contract by the competent Land Registry and a certificate issued by the Land Registry or national cadastre agency attesting to the non-existence of any encumbrance. 3. Residence permits for third country citizens who have a lease – for a minimum of 10 years – for hotel accommodations or furnished tourist residences in integrated tourist resorts Notarised copy of the lease for the hotel accommodations or furnished tourist residences in integrated tourist resorts, which demonstrates a single payment of €250.000 and includes a mention of the granting of the relevant operation licence by GNTO (Greek National Tourism Organisation) Proof of title transfer from the land registry where the relevant lease contract has been transferred 4. Residence permits for third country citizens who have purchased real estate property in Greece before Law 4146/2013 came into effect: If the payment submitted before Law 4146/2013 came into effect is smaller than two hundred and fifty thousand euro (250,000) but the current objective (assessed) value of the real estate property exceeds or is equal to this amount, a certification by a notary must be included in the documents that are submitted, stating: “From the verification of the contract with number .for the purchase of real estate property, it can be concluded that the full payment of the cost of the real estate property has been completed, it no longer has any conditions, exemptions or deadlines, and the objective (assessed) value of the real estate property as it stands today is equivalent to the amount of .....”. In this case it is also necessary to submit the contract of purchase for the real estate property or properties, the value of which is at minimum €250,000, proof of title transfer from the Land Registry where the relevant contract has been transferred and a certificate issued by the Land Registry or national cadastre agency attesting to the non-existence of any encumbrance. 5. Residence permits for third country citizens who purchase plots of land or acreage and erect a building. The following additional documents must be submitted: i. contract for the purchase of the plot of land or acreage, and ii. contract with the construction company for the erection/restoration of the residence, which has been submitted to the tax office according to the law iii. building permit in the name of the applicant iv. invoices by the contractors and the corresponding proofs of payment. 6. Residence permits for third country citizens who have signed a timeshare agreement (lease) based on the provisions of Law 1652/1986, for hotel units and generally tourist facilities operating under the permission of the Hellenic Tourism Organization (EOT). The following additional documents must be submitted: i) Timeshare contract for a minimum period of five years which should state the corresponding price per year; ii) Proof of transfer registration issued by the competent Land Registry; iii) A certificate issued by the National Tourism Organisation (EOT) that it has been informed of the conclusion of the particular timeshare contract. 7. Residence permits for family members of the third country citizen Recent family status certificate from foreign authorities which certifies the family relationship Step 3: Submitting the documents Applications for the residence permits must be submitted to the one-stop service of the Alien and Immigration Department at the Decentralised Authority where the property of the interested party is located. For more information on your case, please contact the one-stop shop of the Decentralised Authority where the property is located. Step 4: 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 entered the country legally, 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 Since February 20, 2017, the new procedure for granting non EU-EEC nationals residence permits in Greece was launched, pursuant to Regulation (EC) 380/2008, under which all EU Member States will issue an electronic residence permit, which will replace the sticker, typically affixed in a valid passport. (a) If the investor submits his application in person or accompanied by his attorney, will be called to submit, on top of the application and the related specific documents required by the law (joint ministerial decision 31399/2018 - Category C 3.2.), the following: 4 printed digital passport photos, also stored in digital form(CD) A sample of his digital signature A fee of 16 euro, which covers the cost of supply, printing and secure handling of the e-card, paid through the “e-paravolo” online payments platform Completion of the fingerprinting process (for two fingers) (b) If the application is filed by an appointed attorney, in the absence of the interested investor, then written notification will be given for the applicant to define a specific date for submitting his biometric data, required for the issue of the residence permit, in consultation with his attorney, so that this date is convenient for the applicant. If the applicant’s travel arrangements change and thus cannot attend the biometrics appointment, then he should promptly inform the competent authority through his attorney so as a new date for the appointment is fixed. In any case, since the applications must be handled quickly and should not remain pending for a long time, the attendance of the applicant for submitting his biometric data should be completed within six months from the time of application and in any case before the lapse of 1 year. One of the major advantages enjoyed by holders of permanent investor residence permit, is that following their initial entry into Greece, they have no other obligation to stay in the country for any length of time, without affecting in any way their residence permit. Therefore as the investor, after signing the property purchase contract or even after filing the application for his investor permanent residence permit, may depart from Greece it is necessary to instruct the relevant department, where his application was filed, about the attorney through whom communication between the department and the permit holder will be carried out, whenever necessary. 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. This confirmation is valid for one year and it constitutes an evidencing document until the residence permit is issued. 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 authority where it has been submitted yet it may not exceed two months after all the necessary documents have reached the competent authority. 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 (one year). 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. Procedure for residence permits for family members. According the information above, third country citizens can be accompanied by their family members, who will be granted the appropriate entry Visa. Members are: a. Spouses, b. the other spouse or partner with whom a third-country national has a cohabitation agreement in Greece, c. the direct unmarried descendants of the spouses, who are under the age of 21, d. the direct unmarried descendants of the supporter or of the other spouse/partner , provided that their custody has been legally entrusted to the sponsor (for his/her children) and to the other partner (for his/her children), under 21 years of age, e. the direct relatives of the spouses in the ascending line. 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. These family members are issued with a residence permit of the same duration as the applicant, but this permit does not include access to employment. The children of the applicant, who have been originally admitted to the country under the terms and requirements of residence permit for property owners, are issued with a residence permit for family reunification until the age of 21. After that, it is possible to acquire a renewal as an independent residence permit until they reach the age of 24 and then it is possible to renew it further according to pertinent immigration legislation. 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 (6) years old, and the digital signature requirement applies to all citizens over the age of twelve (12) years. Documents and certificates for the renewal of residence permits. The renewal of the residence permit requires different documents, including: In all cases: A filled-in application Four recent colour photos (passport type, printed as well as in Compartible Disc form); A true copy of a valid passport or travel documents recognised by Greece. A certified copy of the previous residence permit, only in cases where the permit is not attached to the passport that is submitted Certification by an insurance agency for the cost of hospitalisation and medical care. To certify that this condition is fulfilled, the following are accepted: - Insurance contracts which have been signed outside Greece, provided that they explicitly mention that they cover the interested party for the duration of their stay in Greece. - Insurance contracts which have been signed in Greece. Additionally, and depending on the case, the following documents are required to renew a residence permit, provided that real estate property with a value of €250.000 has been purchased: 1. Renewal of residence permits for third country citizens who own and posses, either wholly or jointly, property in Greece the property remains under the possession and ownership of the interested party, or the lease in question is still in force. 2. Renewal of residence permits for third country citizens who own property in Greece through a legal entity, where the applicant owns 100% of the shares the property remains under the possession and ownership of the interested party, or the lease in question is still in force. 3. Renewal of residence permits for third country citizens who have a lease – for a minimum of 10 years – for hotel accommodations or furnished tourist residences in integrated tourist resorts the property remains under the possession and ownership of the interested party, or the lease in question is still in force. 4. Renewal of residence permits for family members, according to article 20, case B, paragraph 4 of Law 4251/2014, of the third country citizen Certification by an insurance agency for the cost of hospitalisation and medical care Declaration by the sponsor that the family circumstances have not changed Copy of the birth certificate for a child born in Greece Under immigration legislation, 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 100 euro has been paid. During the residence permit renewal, the applicant must provide again his biometric data (digital photographs and fingerprints), through the procedure described above, ie if the request is not filed in person, the person concerned and their family members are invited to attend and complete the procedure at a set date, following consultation with their attorney. Replacement of Residence Permits Third country nationals who have already been provided with a residence permit in the form of a sticker affixed on their passport, do not need to replace it with the electronic residence permit, as this will be acceptable for all transactions both within Greece and in other member-countries of the EU until its expiry. Its replacement with an electronic residence permit will be carried out either at its renewal or if necessary at the re-issue which can take place due to loss of the passport on which it is affixed. Indication of the place of birth (town) of the applicant Recording of the place of birth as a mandatory field during filing the residence permit application. If the birth place is not mentioned on the passport, the applicant must submit an official public document of his country of birth or origin, officially translated and legally authenticated, on which the birthplace will be clearly stated. On the translation of the said document, it is essential that the place name is also written in Latin characters, even if the language of the country of origin does not use the Latin alphabet. 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: a. The Apostille stamp for countries that are parties to the Hague Convention b. Certification by the Consular The Apostille stamp: For countries that are parties to the Hague Convention, and for which Greece has not issued a warning, 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: a. By the Translation Service of the Ministry of Foreign Affairs, or b. A lawyer, who must be a member of a Greek bar association, with a certification of their signature by the Bar Association. Cost associated with the application process for the residence permit for owners of real estate. Interested parties are subject to the fee for the issuance of a five year residence permit amounting to €2000. At the time of application for the residence permit a fee is paid, which covers the cost of supply, printing and secure handling of the electronic residence permit, set at 16 euro per card. This fee is independent from the respective Application fee, even if the applicant is exempt from paying the fee (eg minors), and collected in the form of electronic fee (e-paravolo). The obligation to pay the fee applies to all third country citizens, whose applications for residence permits are successful and eventually lead to their issue, including children under 6 years old, although fingerprinting is not required. SECTION C Frequently Asked Questions Is it necessary to hire a lawyer to collect the documentation? There is no legal requirement to collect and process the documents through a lawyer. In cases where the applicant does not speak Greek and / or is located outside of Greece, it may be preferable to ask for the support of a legal representative or proxy who is in Greece, to facilitate the process. Who is considered a family member? According to the law, family members of third country citizens entering the country are: a. Spouses, b. the other spouse or partner with whom a third-country national has a cohabitation agreement in Greece, c. The direct unmarried descendants of the spouses, who are under the age of 21, d. the unmarried children of the supporter or of the other spouse/partner, provided that their custody has been legally entrusted to the sponsor (for his/her children) and to the other partner (for his/her children), under 21 years of age. e. the direct relatives of the spouses in the ascending line. Can my relatives in the ascending line (namely my parents and my spouse’s parents) or my children who are over the age of 18, accompany me (in cases of real estate ownership in Greece), and be included in the family provision? What about the children who turn 18 during the period when their parents’ residence permit is valid? Ascendants are included in the provision above but not children over the age of 21. Children of third country nationals, who have been admitted to Greece under the terms and requirements of residence permit for property owners, are granted a residence permit for family reunification until the age of 21. After that, it is possible to acquire a renewal as a 3-year independent residence permit until they reach the age of 24 and then it is possible to renew it further according to pertinent immigration legislation. Are unmarried partners entitled to a residence permit? Family members do not include unmarried partners. Can I travel to other countries within the EU with the residence permit for owners of real estate? Are there any conditions related to this? Yes. The residence permit and long-term visas are valid as far as the free movement of the person in the Schengen area is concerned. Any citizen who holds a long-term visa (such as the residence permits for real estate owners) which has been issued by a member state and are valid for one year, are able to travel to other member states for up to 3 months within a six month period, under the same conditions which apply to the holder of a residence permit, while they are also granted a right for multiple entries. Can the residence permit be considered as a work permit? Can my spouse, the legal representative of my company, my children, or myself, work in Greece? In no case does the residence permit provide access to any type of employment. Employment, according to paragraph 6, article 20, of Law 4251/2014, does not include the exercise of economic activity in the capacity of a shareholder or a Chief Executive Officer for an already existing company. The family members that have been issued a residence permit for the same duration as the sponsor are similarly not granted access to the employment market. Does the residence permit give me the right to apply for citizenship? According to the decision of the Minister of Interior no. 130181/6353/27.3.2018, published in the Government Gazette 1208/Β/2.4.2018, the residence permits of Real Estate Owners and permanent residence permit for Investors have been added to the categories of residence permits that are eligible for the submission of an application for the acquisition of Greek citizenship. In this case, the applicants must fulfill all the preconditions of the Greek Citizenship Code applied for the acquisition of Greek citizenship by naturalization. The above ministerial decision applies only to the real estate owners and investors themselves, and not their family members, who must first obtain the long-term residence status, which is a prerequisite for naturalization. Does the amount of €250,000 include the Value Added Tax? What should the value of the investment be if the ownership / sale document include the name of both spouses? The amount of €250.000 refers to the price indicated on the contract. In cases of joint ownership of the real estate property by spouses, the residence right is granted to both spouses. Can I obtain more than one piece of property, the individual value of which is less than €250.000, if the combined value is equal or greater than € 250.000? You are entitled to residency rights irrespective of whether you own one or more properties, provided that their combined value is equal to or greater than €250.000. Can I buy commercial property or a combination of commercial and residential properties or land? The law states that €250.000 must be the stated price on the contract. It does not distinguish between commercial and residential properties. Are there any restrictions that apply to the real estate market? (e.g. location, size in square meters, or other factors). 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 and Skyros, as well as the former regions of Nevrokipi in the former prefecture of Drama; Pagoniou 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. Can I travel in Schengen countries directly, after my residence permit has been issued, from my country, or do I need to first come to Greece? You can arrive to any Schengen country you wish to. What is the arrangement regarding the access to education and health services? Can the children of the residence permit holder attend a Greek public school? The holders of the residence permit have access to public education, analogously to that of Greeks. Regarding access to health services, third country citizens and their family members who fall under the regulations of the current law, must have insurance that covers their healthcare and medical care expenses. To prove this condition, the following documents are accepted: i. Insurance contracts which have been signed outside Greece, provided they explicitly mention that they cover the applicant for the duration of their stay in Greece ii. Insurance contracts which have been signed in Greece Can I purchase a car with Greek license plates for my transportation needs in the country? Yes, under the specific regulations of the Ministry of Transport, which apply to third country citizens. Can I take a mortgage out on the property in order to receive a loan? You can take a mortgage out on the property, in the same way as Greeks. Is it required of the buyer to prove economic capacity? The income of the applicant must be proven by documentation which proves their capacity (e.g. Certificate by class-A recognised bank or an official financial institution or other recognised institutions to store bonds) and certify the existence of bank accounts or other transferable securities, especially shares or bonds (the above are checked for the issuance of a type D visa). In all cases, before the contract, the price of the real estate is paid via a crossed bank cheque or through another banking transaction. If 8 third country citizens jointly buy a property for €2.000.000, are all the joint owners entitled to a residence permit? Yes, provided that the amount invested by each one is €250.000. What happens in the cases where someone tarnishes their criminal record, either in their country of origin or in Greece, during the period of when their residence permit is valid? This leads to the revocation of the residence permit. If someone holds a long-term Visa for a different Schengen country, does this Visa need to be cancelled to obtain a visa in Greece? A Schengen visa by a different country gives the applicant the ability to enter Greece and settle issues regarding the purchase of the property. Does the residence permit continue to be valid if the real estate property is transferred/reselled? In cases when the real estate (property) is transferred, the third country citizen loses the right to residence. In case of resale of the property during the period of validity of the residence permit to another third country citizen, the right to a residence permit is granted to the new buyer along with a simultaneous revocation of the seller’s residence permit. Is it possible to rent the real estate property to third parties? Third country citizens who own real estate have the right to rent their property. For further information please contact Valmas Associates in the relevant section of our website. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this newsletter shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication.
A concise guide for residency permits for Investment activity is now published by Valmas Associates. Source: Invest in Greece All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this newsletter shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication. Greece a unique location to live Greece, a full EU Member State, scores high on all major factors taken into consideration when choosing a new country for relocating, such as quality of life, regulated environment, secure living conditions in urban and rural areas, access to efficient services, residence privileges for family members, free- dom to travel, among others. Despite its small size, Greece features a particularly diverse natural environment, providing many recreational opportunities. This, combined with a spirited lifestyle blending both ancient and modern Mediterranean culture, makes Greece a simply extraordinary place to be - and a wonderful place to call home. Investment Opportunities in Greece Nowadays, Greece presents unique investment opportunities through business development models that promote its competitive advantages and investment potential in various sectors of production: Overview With a new vision for development, Greece aims to attract foreign direct investments in infrastructure, manufacturing, energy, tourism, agriculture and other sectors through flexible and fast administrative procedures, and by promoting its natural resources, well-educated human capital and other unique comparative advantages in the broader South-Eastern European region. Greece has set up a flexible and fast procedure for non- EU/ EEA foreign investors who wish to obtain an entry visa and a residence permit for the purpose of investment activity in Greece. Residence permits can also be granted to company executives involved in the implementation and/or the operation of the investment project. Up to 10 permits may be issued for an investment project (investors and executives), depending on the investment scale. The investment activity may be implemented through the construction of new facilities (greenfield investments) or business acquisitions, restructuring as well as expansion of current activities (brownfield investments), provided that it has a positive impact on the national economy. Residence permits offered to investors and executives can be renewed every five years, as long as they maintain their position in relation to the investment and the investment continues to be active. In addition, they may be accompanied by their family members - spouse, unmarried children up to the age of 21, and the first degree ascendants of the spouses - who are also beneficiaries of the right to enter and obtain a residence permit. For information about the application process please contact us. You can either download the guide by pressing the link on the cover image above or visit our section Investment Migration Costs, Tax and Benefits of Acquisition, Ownership & Sale of Real Estate Property in Greece7/14/2018 The Article below is part of a work in progress (hence some information may be incomplete or inaccurate) on Greek Real Estate Law from Ioannis Valmas, to be published by a leading Publishing House in Greece in late autumn 2018. It is aiming to serve as a guide to existing and prospective investors in real estate property in Greece. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this article shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication. Introduction Greece’s real estate market has been demonstrating clear signs of recovery and Athens, among other areas, has been at the epicenter of real estate investments from investors from all over the world. Local prices are still well below pre-crisis levels making Greece an undisputed buyer’s market. According to the Bank of Greece, in Q1/2017, Athens property was 44% cheaper than its 2008 peak. A. Costs related to the purchase & sale of real estate property in Greece A1. Costs for Purchase of Property in Greece A purchase agreement for Real Property in Greece is effectuated through the drafting of the notarial deeds and the subsequent signing of the final Contract for the Sale of Property by the seller and buyer (or their proxies). Buying Real Property in Greece bears various associated costs/fees which can be divided in the following sub-categories: 1. Notary fees: They are paid by the buyer of real property, and cover the drafting and approval of certificates provided by the sellers (approximately 1.2-1.4% of the tax value or purchase value of the property although they can considerably vary as page numbers, copies of deeds etc. increase costs particularly in respect to transactions of low value properties). 2. Legal Fees: They are paid by the party that the lawyer represents, and albeit not compulsory they are strongly advised as a lawyer shall, among others, commence due diligence and a historical check of the titles (deeds) from previous to current owners, proof reading of the contracts for sale, representation of the buyer at the signing of the deeds making sure everything is in order, registration of titles to the Land Registry and Cadastral Authorities etc. Lawyer fees are freely negotiated between the parties and vary depending – among others - on the experience of the lawyer, the complexity of the matter at hand etc. 3. Realtor Fees: The estate agent's fees are not specified by law and fees are freely negotiated between the contracting parties and subject to a written agreement. Usually a fee of a percentage of 2 percent of the purchase price of the property is agreed between the realtor and the seller/buyer (2 percent charged to each side), yet this arrangement may vary, depending on the transactional value and various additional factors that may raise or decrease the said norm of 2 percent. The legal framework for the conditions of providing realtor services as well as the rights and obligations of realtors are determined by the Greek Civil Code (703-707) and Law 4072/2012 (Articles 197-204). Fees/costs can be higher for small value properties. 4. Property Registration Fees: Fees related to the Registration of Real Property in the relevant Land registry and/or Cadastral Office (0.5-0.7% of the property value). Fees/costs are higher for small value properties. 5. Property Transfer Tax: As of 01/01/2006 (in respect to buildings for which the building permit was issued after the said date), a VAT of 24 percent is imposed on the purchase value on the first sale of newly built buildings by a manufacturer, or by a person who deals professionally with the construction and the sale of buildings. For all other properties that do not fall under the above category, the transfer is charged with a real estate transfer tax at 3.09 percent. Assessment of Property Tax The value of property in Greece is assessed according to the so called system of objective value (also known as tax value). This system provides for a minimum value of real property according to objective criteria such as location, size, shared facilities in the area, age of a building etc. This system has been imposed so that the tax authorities have a minimum value as reference when imposing taxes in relation to property ownership/purchase-sale/inheritance. In cases of sale of property, the transfer tax is calculated on either that “objective value” or the value agreed in the purchase agreement, whichever is the highest. The objective values are usually significantly lower than the market values. Since not all areas in Greece have been valued/assessed, when there is no such assessment, the tax authorities make an estimate of the value according to similar transactions in the area or other available data. 6. Golden Visa Government Fees: Additional Duties apply to the applicants of Golden Visa, i.e. to people who immigrate to Greece by Investment in Real Estate over the value of 250,000 EUR under the auspices of Article 20, paragraph B of Law 4051/2014. Although these duties are not related to the property transaction, they should be taken into consideration when evaluating costs. According to Article 38 paragraph 8 of Law 4546/2018, with effect from September 12th 2018, in regards to applications for residence permit for owners of real estate property, the State Fee will be 2000 EUR per adult. This fee will be borne by both new applicants or applicants who renew for another 5 years. The residence permit must be renewed every 5 years. As aforementioned this State fee is for the grant of the residence permit and not property related. A2. Costs for Sale of Property in Greece 7. Betterment Tax for Sellers: Pursuant to Article 41 of Law 4172/2013, a betterment tax on the transfer of real estate, will be imposed on the seller of real estate property in Greece with a coefficient of 15 percent calculated upon the profit the seller made by the sale of the property when compared to the original purchase value of the property. There are reduction factors limiting the amount of tax a seller will be called to pay upon the profits from the resale of his/her property based on amount of time they kept ownership and other factors. In the event a property has not been purchased and e.g. has been inherited or gifted, then the acquisition price will be based on the tax originally paid when one inherited or was gifted the property. The coming into effect of the above provision has been keeping on getting postponed since its inception and subsequent enactment and it has now further been suspended until the 31th of December 2018. Simplified Example: An individual buys on the 1st January 2019 an apartment for 20,000. EUR and sells it within the same year for 30,000. They will subsequently be taxed with 15 percent tax upon the 10,000 EUR profit, i.e. their tax will be 1,500 EUR and will have to be paid with a payment order before the notary public (who will in turn hand the payment to the tax office) at the day of the sale. However, the longer an owner keeps ownership of the property the less of the betterment tax they will be called to pay. The following table demonstrates the progressive reduction. This is progressively dropping to 60% if one has kept ownership of their property for more than 26 years.A further reduction factor is the following: If a seller has possessed the property over 5 years before selling it, a 25.000 EUR amount will be tax free. 8. Higher Taxes for Repeat Sellers: It is worth noting that under Article 21, paragraph 3 of Law 4172/2013, the tax office may consider a private person as a business for tax purposes (thus taxing at a considerably higher rate than above under paragraph 7) if he/she makes three sales of property within a period of 2 years. An exemption to the above rule is when the sale involves properties that have been inherited or gifted by relatives up to the second degree, or properties that have been owned over 5 years. B. Cost related to ownership of real estate property in Greece The ownership of real estate property in Greece is subject to the ENFIA Tax (Uniform Tax on the Ownership of Immovable Property). Under Article 1 of Law 4223/2013 (as amended by Law 4509/2017) it is set out that any natural or legal person or legal entity that owns real estate property that is located in Greece, is subject to the said tax. Under Articles 4-5 it is defined that the tax consists of 1. a principal tax imposed on each real estate property and 2. a supplementary tax imposed on the total value of the property rights on real estate property of the taxpayer subject to tax. B.1 Principal ENFIA Tax ENFIA Principal Tax is calculated by multiplying the square meters of the property by the principal tax per square meter (depending on the location of the property, use of the property and other coefficients); thus, determining these tax values per sq. m. is part of a complex process undertaken by experts appointed by the Hellenic Government and it is subject to periodic reviews and changes. B.2 Supplementary ENFIA Tax for Natural Persons (Private Individuals) ENFIA does not only include the Principal ENFIA Tax, but also the Supplementary ENFIA Tax, which is imposed by the following scale (a progressive tax rate) when the value (or accumulative value if more than one properties are owned) of real property assets of individuals exceeds the value of €200.000 (formerly €300.000): B.3 Supplementary ENFIA Tax for Legal Persons or Legal Entities The supplementary ENFIA is also imposed on the property of legal entities, which is calculated at a rate of 5,5‰ although it is subject to discounts, such as 3.5‰ for the properties owned by non profit organizations. B.4 Further Taxation on Offshore Legal Entities Additionally, the Greek legislator introduced by virtue of Article 15 of Law 3091/2002 (as amended by Law 4446/2016), the liability of certain legal entities (such as offshore companies), that have full property rights or bare ownership or usufruct property in Greece, to pay an annual special property tax of 15%. Several exceptions from this tax obligation are set out by virtue of Article 15 paragraphs 2-4 Law 3091/2002, such as for companies that have their headquarters in Greece or another EU country (typically SA and Ltd companies), on a. the condition that the shares of the companies are owned by individuals or that these companies declare the individuals who are owners of their shares, and b. that these individuals have been issued with a tax registration number in Greece. C. Income Tax from Real Estate Property in Greece Every natural person/individual that owns property in Greece is entitled to lease their property and generate income, so long as they declare the profits/income to the tax authorities. No residence permit is required for this type of activity as it is not a business activity per se. This is calculated as follows: Example: If an individual has earned 20,000.00 EUR from leasing his/her property, they will be taxed at a 15% rate for the first 12,000.00 and 35% for the remaining 8,000.00. Furthermore, a solidarity levy at a coefficient of 2.2% up to 10% (depending on the total income) is imposed if the annual income exceeds 12,000.00 EUR. D. Inheritance Tax for the Succession on Real Estate Property in Greece As a general remark it is worth noting that by virtue of the Greek Civil Code there are two different types of succession in Greece: a. intestate succession and succession by virtue of a will. Pursuant to the Greek tax legislation, Greek Inheritance Tax is assessed on the current value of the total property inherited. Property means any kind of movable and immovable property located in Greece, regardless of the descendant’s nationality. The taxable value of real estate property inherited is the objective value (it is calculated on the basis of certain predetermined factors set by the Ministry of Finance and it is also called tax value) on the day of death of the deceased. Immovable assets located abroad are not subject to Greek Inheritance Tax, regardless of nationality and residency. The tax rates vary, depending on the relationship between the deceased (inherited person) and his/her heirs. Tax rates are based on a progressive scale at varying coefficients. Rates thus depend on the parties’ relationship and range from 1% to 40%, while there is a tax-free amount (which depends on the proximity of the relationship which is categorized in three classes/categories). As a general rule, the closer the relationship to the deceased, the lower the tax rate. For example, in case of inheritance from the deceased individuals to their spouses or children, the respective rates range from 1% to 10%, whereas the tax-free amount is up to EUR 150,000. CATEGORY A This category includes the surviving spouse and all the descendants of the deceased, as well as his/her surviving parents. According to Law 3719/2008 in this category is also called as heir the surviving cohabitation agreement’s partner. CATEGORY B This category includes the third degree blood relatives, such as surviving grand-parents, brothers and sisters, nephews/nieces. CATEGORY C This category includes any other blood relative or non relative. Below follows an explanatory table that can help in the calculation of tax depending of the category which the heir belongs to: E. Donation Tax & Parental Grants for Real Estate Property in Greece The acquisition of real estate property through donation is subject to the same tax categories as inheritance tax. The respective tax return should be filed with the tax authorities before the signing of the donation contract before a notary. F. Real Estate Investment Companies In the light of a fast recovering real estate market, large companies have begun investing in the real estate sector in Greece (Cosco in Piraeus, Canadian Fairfax Financial Holdings in EFG Eurobank Properties, Lamda Development in The Hellinicon Urban Development Project etc.). Under the auspices of Laws 4141/2013, 4209/2013, 4281/2014, Real Estate Investment companies are companies limited by shares (special purpose S.A. companies), established with the sole aim to acquire and manage real estate property in Greece. Their minimum share capital must be twenty five million Euros (€25.000.000) at a minimum, fully payable upon establishment of the company. The share capital of the company consists of contributions of cash, money market instruments, securities and property, immovable or movable, which serve the operational needs of the company. Prior to the issuance of permission for establishing a Real Estate Investment Company, the Stock Market Commission must approve. A similar permission is required when an existing company is converted into a Real Estate Investment Company. In order to grant permission, the Stock Market Committee evaluates the investment plan, the organization, the company’s technical and financial assets, the reliability and experience of the individuals that are going to manage the company and the suitability of the people establishing it, in order to ensure the good/sound management of the company. The company has, among others, the obligation to invest its funds as set out below: A) A minimum of 80% of its assets in Real Estate. Investment in real estate properties in third countries outside EEA is permitted so long as it does not exceed 20% of the Company’s property portfolio value. B) Deposits and stock market instruments, according to article 2 paragraph 14 of Law 3606/2007. C) Invest in movables required for the company’s operational needs that (in addition to the real estate acquired by the company to service such needs) that must not exceed ten percent (10%) of the total assets value, at the time of acquisition. Among other provisions, · It is prohibited to transfer company owned real estate property to company founders, shareholders, members of the board of directors, general managers or managers, their wives or blood and affinity relations up to the third degree of kinship. · The company must pay annual dividends to its shareholders of at least fifty percent (50%) of its annual net profits. A lower percentage, or no percentage, may be distributed, following a decision by the Assembly, under the condition the company statutes include such a provision, either for the creation of an extraordinary non-taxable reserve fund made up of other earnings besides capital profit or for distributing free shares to the shareholders by increasing the share capital, according to the provisions of Codified Law 2190/1920. · Real estate investment companies must pay tax with a coefficient set at ten percent (10%) of the valid European Central Bank intervention rate (Interest Reference Rate) plus one (1) point, and is calculated on the average of the investments, plus the available funds, in current prices. In case of a change of the Interest Reference Rate, the new calculation value is valid as of the first day of the month following the change. The tax is payable to the competent Tax Authority within the first fifteen days of the month following the period recorded in the bi-annual investment tables. Upon payment of the aforementioned tax, the company’s and shareholders’ tax obligations are fulfilled. G. Benefits to Real Estate Owners in Greece: Golden Visa - Immigration by Investment In Real Estate in Greece According to the provisions of Article 20 Law 4251/2014 (Immigration and Social Integration Code) third country nationals (and their children under 21,parents, spouses and spouses' parents) who purchase real estate property the value of which exceeds € 250,000, are granted residence permits renewed every five years, so long as they keep ownership of the property. These permits – among others - allow for free travel within the EU and Schengen areas. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this newsletter shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication.
Our updated Golden Visa Greece Guide is ready to download. if you seek an expert Greek Golden Visa Lawyer to represent you or if you require general information click on the link: Golden Visa Greece guide All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this newsletter shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication.
Ioannis Valmas has authored the chapter on Greece for Corporate Jet Investor's Guide on Aircraft Registration and Tax. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this newsletter shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication.
Outline of the Real Estate Owners' Residence Permit in Greece: By virtue of article 20 of the Greek “Immigration & Social Integration Code” (Law 4251/2014) third-country nationals and their family members (spouses, children and parents) can issue a renewable five-year residence permit in Greece on the basis that they own immovable property in Greece valued at €250.000 for all renewal periods (with each renewal taking place every five years). Non-EU Nationals obtaining the 5-year residence permit may:
The competent Greek authorities provide the applicants with a certificate of receipt of the application, permitting the third-country national to stay in Greece until the authorities reach a final decision on the application. The resident permit is typically issued by the competent authorities within a period of maximum two months after submitting the application. CAUTIONARY NOTE WHEN PURCHASING REAL ESTATE IN GREECE: In recent years some "immigration agencies" (especially in China) and local realtors in Greece have appeared in the market offering "competitive" packages by allocating very cheap properties and selling them at a whopping profit. You need to be cautious as you may end up getting a property that its real value may be much less than 250.000 EUR. Whereas this will still grant you the residence permit (as long as you paid over 250.000), it is not a sound investment if the property's real market value is e.g half of what you paid. Appointing an independent Greek lawyer from is vital in getting your money's worth and protects you from either "immigration agencies" or realtors bloating the property's prices. Contact our Real Estate and Immigration Lawyers for more info. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this newsletter shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication.
GREEK INHERITANCE LAW: Valmas & Associates - Greek Law Firm is a law practice with legal experience for clearing up Greek inheritances on behalf of expatriates and foreign nationals. Greek Inheritance Law is regulated by the Hellenic (Greek) Civil Code, Art. 1710 – 2035. It is similar to French and German Inheritance law, but it is radically different from English and American inheritance law. Our Greek Inheritance lawyers provide legal assistance in Greek inheritance issues which include tracing property titles anywhere in Greece; investigating the legal and actual status of the property to be inherited, providing full legal reports including documentation & evidence such as photographs. Greek Inheritance Law (part of the Hellenic (Greek) Civil Code) provides the passing of the deceased's property to his legal heirs in two ways: by virtue of a will or through the rules related to intestacy. 1. WILLS: In case that the deceased has left a Greek will, the bequest of the inherited property, i.e. the transfer of the property under the names of his heirs, appointed by the deceased, and to what property parts they are entitled to, is arranged according to the provisions of the Greek will. The law provides three types of Greek wills: • The Holographic Will: It is written entirely by the hand of the testator, who writes the date of the Will, and signs same, verifying its content. • The Public Will: It consists of the testator's last will and testament and is executed before a Notary Public under the presence of three witnesses. • The Mystic/Secret Will: It is validly executed as follows: The testator delivers the document to the Notary Public, stating that the document consists of his last Will and testament, under the presence of three witnesses. Upon the passing away of the testator, the will has to be probated before the competent Court or before the competent Embassy or Consulate in order for the Greek Will's content to become known to anyone. Every person holding a Greek will is obliged to take care of its probate. The Greek will is probated, only if the original document can be submitted before the competent Probate Court or Consulate, regardless of its validity. Copies of wills cannot be probated. 2. INTESTACY RULES: In case that the deceased has not left a will, or in case that the will has been nullified or in case that the will settles only parts of the deceased's inheritance, the succession is settled by law through the rules of intestacy. As aforesaid, If the deceased has not left a will of any kind, or the will is void for any reason or settles only a part of his/her property, this person is considered to be in intestacy, and its succession is regulated by provisions of the law. The legal heirs are organized by the law in categories, called “classes” or "ranks". Classes of heirs exclude the classes below them i.e. class 1 excludes class 2 and so forth. 1. The first class includes children and grandchildren of the deceased. The latter are called to the inheritance only if the former have predeceased. 2. In the second class shall be called together the parents of the deceased, his brothers and sisters, as well as children and grandchildren of his predeceased brothers and sisters. Parents and brothers and sisters shall inherit by equal portions while the children or grandchildren of predeceased brothers and sisters per stripes. Children of a predeceased brother or sister shall exclude grandchildren of the same stripes. Half-brothers and half-sisters when concurring with parents or full brothers and sisters or children or grandchildren of the latter (of full brothers and sisters) shall receive one half of the portion attributable to full brothers and sisters. Children or grandchildren of predeceased half-brothers and half-sisters shall also receive one half portion. 3. In the third class shall be called the grandfathers and grandmothers of the deceased and among the descendants of such grandparents their children and grandchildren. Children inherit by equal portions and exclude grandchildren of the other stripes. Grandchildren inherit per stripes. 4. In the fourth class shall be called the great grandfathers and the great grandmothers of the principal. Great grandfathers and great grandmothers living at the time of devolution shall inherit by equal portions irrespective of whether or not they belong to the same or to different lines. A surviving spouse shall be called as heir in an intestacy together with the other relatives of first rank for one fourth and with the relatives of other ranks for one half of the estate. The spouse shall in addition receive as accretion, independently of the rank of his calling, the furniture, utensils, clothes and other similar domestic objects that were being used either by the surviving spouse alone or by both spouses. However, where there are children of the spouse who died, the needs of such children shall also be taken into consideration in so far as this is prescribed by special circumstances or on grounds of indulgence. 5. In the fifth class, where there are no relatives of the first, second, third and fourth rank a surviving spouse shall be called as heir in intestacy for the whole of the estate. 6. In the sixth class in he absence of all the above, the State inherits the estate of the deceased. ACCEPTING THE GREEK INHERITANCE: Greek Inheritance Law does not provide of a specific deadline for accepting an inheritance. On the contrary, the law provides a specific deadline for the renouncement of the Greek inheritance right on a deceased's Greek estate. This deadline expires within four (4) months upon the deceased's passing or after the Greek will's probate by the competent Court or Consulate. Said deadline expires a year after the deceased's passing or after the Will's probate, in case that the deceased's last domicile was abroad or if his heir became aware of the passing while he was residing abroad. After the passing of the above deadlines for renouncement, it is conferred that the heir has accepted the estate and has substituted into the rights and obligations arising from the Greek Inheritance. The heir has the right to accept the Greek Estate by stating clearly that he accepts same, finalizing the Acceptance of Inheritance proceedings. However, in case that the Greek Inheritance consists of real estate property, the Acceptance of Inheritance is accomplished through the execution of an Acceptance of Inheritance Deed before a Notary Public, which has to be registered before the competent Greek Land Registry (Ypothikofilakeio/ Υποθηκοφυλακείο) of the property's location and in some cases maybe the Greek Cadastral Land Registry (Ktimatologio/ Κτηματολόγιο) as well. The heirs, (in intestacy or by virtue of a Will), must file an inheritance tax statement within 6 months, if Greece domiciled, or within 12 months, if they live abroad. The time limit for the submission of the tax statement in principle begins as of the passing; and/or the Greek will's probate date. The inheritance tax obligation is subject to an assessment of the Estate's tax value in consideration of consanguinity levels to the deceased and applicable tax exemptions. The procedure of the Probate and the Acceptance of an Greek Inheritance, may be accomplished through a Special Power of Attorney to a specialized Greek Lawyer, like Valmas & Associates - Greek Law Firm. MINIMUM FORCED INHERITANCE SHARE (Nomimi Mira/Νόμιμη Μοίρα) In Greece the minimum forced inheritance share (“Nomimi Mira/ Νόμιμη Μοίρα”) employed by the Hellenic (Greek) Civil Code so that it limits a testator’s right to dispose of his estate freely. The underlying purpose of the minimum forced inheritance share is the safeguarding of the testator’s close relatives and spouse. In practice, according to the Hellenic Civil Code, a testator is prohibited from excluding from his will his children, spouse and parents. A part of the testator’s estate must be distributed to the above relatives. The minimum forced inheritance share must be equivalent to half of the inheritance share that each individual family member would be legally entitled to, had the testator died intestate (i.e. without leaving a will). However, the minimum forced inheritance share is reduced accordingly where any contributions that the testator may have granted to each of the above heirs while living, are found. Please contact us for more information on our services, rates and cost for advice and representation.
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this newsletter shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication.
BREXIT, EU & INTERNATIONAL ARBITRATION: 1. The Legal Instruments Utilized on International Arbitration in the UK: A very important point that needs to be made as an introductory note is that the legal instruments governing international arbitration at the London seat are: 1. the New York Convention on the Recognition and Enforcement of Arbitral Awards 1958 and 2. the English Arbitration Act 1996, the law that provides the framework for international and domestic arbitration in the UK Both are not connected to EU law and the Act of 1996 does not incorporate EU law in any sense whatsoever. Also, English Law has traditionally been the law of choice for contracts and International Agreements particularly Contract Law which has remained virtually untouched by EU legislation and developed/evolved through the passage of centuries. In the light of the above it seems unlikely that London will be affected as an International dispute resolution centre of choice. 2. Strengths of London Arbitration Seat: London is one of the most reputable, popular and trusted arbitral seats in the world. The reasons for this reputation have never depended on membership of the EU. The reasons for this have been the following: a. The UK arbitration legislation is modern, comprehensive, concise and clear, as it provides a framework for resolving a dispute by arbitration, it does respect the parties’ choice of arbitration, limits judicial intervention and is in line with international treaties. b. The UK possesses a high level of experienced, independent and efficient judiciary c. The UK provides the ability to parties to be represented in arbitration by lawyers from anywhere in the world London has all of these important qualities. None requires membership of the EU or is dependent on it. Also, other leading centres for international arbitration, including Hong Kong and Singapore and those in Switzerland have thrived wholly outside of the EU. 3. The Example of Switzerland: International Dispute Resolution in Asia and Switzerland have been thriving despite the fact that neither Hong Kong, Singapore or Switzerland have acceded to the EU. Switzerland is a neutral country and hosts many international organizations, fora or dispute settlement institutions/centres, including the United Nations, the World Trade Organisation (WTO), the World Intellectual Property Organisation (WIPO), the International Federation of Consulting Engineers (FIDIC), the International Air Transport Association, the Court of Arbitration for Sport (CAS/TAS), the International Olympic Committee (IOC) and major international sports organizations such as FIFA and UEFA. Many international contracts referring to arbitration in Switzerland are governed by Swiss law, as a neutral law, easily accessible for lawyers. Contract negotiators and drafters from all over the world are attracted by the clear and concise legal framework Swiss law provides. UK and London provide equally the same quality in resolving international disputes with the London Court of International Arbitration. In essence the UK can keep its leading position as an International Arbitration Centre at the dawn of Brexit and for years to come. Published by Ioannis Valmas on: http://kluwerarbitrationblog.com/2016/07/08/guest-posts-on-brexit/
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this newsletter shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication.
If you can demostrate that you have income in excess of 2000 EUR per month you could be eligible for the grant of a Residence Permit in Greece once you meet a series of preconditions necessary for the grant of the said permit. We can provide you assistance from the very beginning prior to getting a VISA at your local Consulate and up to the acquisition of your Permit from the Authorities here in Greece thus supporting you at every stage of the process. Please use the contact form in the relevant page within our website for more information on this type of Residence Permit and visit the relevant section within our website: Immigration Law in Greece All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission of the publisher. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to the publisher. Full acknowledgment of author, publisher and source must be given. Nothing in this newsletter shall be construed as legal advice. Professional advice should therefore be sought before any action is undertaken based on this publication. A Guide to Residence Permits for real estate owners in Greece. The government of Greece instated a procedure to obtain permanent residence permits, which can be renewed every five years, for owners of real estate by third-country citizens, the value of which exceeds €250.000, adopting a friendlier stance towards those who wish to own real estate property in Greece. This guide provides information on the preconditions, the process and the supporting documentation required to obtain these residence permits. The guide also addresses important questions regarding this new type of residence permit for owners of real estate. If you would like more information beyond the scope of this guide, or any clarifications, please contact the General Secretariat of Population and Social Cohesion of the Ministry of Interior. Section A General information on residence permits for real estate owners in Greece A residence permit is any documentation issued by the Greek authorities, according to which a third country citizen is given the right to reside legally within Greek territory, in accordance with the provisions of the European Union. Different categories of residence permits exist, as well as different types of permit within each category. Employment rights depend on the type of permit issued. Applications for the granting and renewal of residence permits are submitted directly to the municipality or the relevant authority of the Aliens and Immigration of the Decentralised Authority in the applicant’s place of residence, or to the General Secretariat for Immigration of the Ministry of the Interior. Residence permits for real estate owners and who they apply to. A residence permit for real estate owners is a new type of residence permit, for third country citizens who have received a Visa for the same purpose. Beneficiaries of the right of entry and residence, for a period of five years, are: a) third country citizens who own real estate property in Greece, either personally or through a legal entity of which they own all the company shares, provided the minimum value of the property is €250.000; b) third country citizens who have signed a timeshare agreement (lease) – for a minimum of 10 years – for hotel accommodations or furnished tourist residences in integrated tourist resorts according to article 8, paragraph 2 of Law 4002/2011 (Government Gazette 180 Issue A), provided the minimum cost of the lease is €250.000; c) third country citizens who either reside legally, with a residence permit, in Greece, or wish to enter and reside in the country, and who have full ownership and possession of real estate property in Greece, which they have purchased before the enactment of the current law 4146/2013, provided that they had purchased the real estate property for a minimum of €250,000 or the current objective value of their real estate property is at a minimum of €250,000; d) third country citizens who fully and legally own real estate property in Greece, the minimum value of which is €250,000, and which they acquired through a donation or parental concession. The right to a residence permit in this case can only be exercised by the receiver of the donation or parental concession. e) third country citizens who purchase a plot of land or acreage and proceed to erecting a building, provided that the cumulative value of the land purchase and the contract with the construction company is at minimum €250,000. f) third country citizens who have signeda ten-year timeshare agreement(lease), based on the provisions of Law 1652/1986. A time share lease, according to the provisions of article 1 of law 1652/1986 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. g) family members of the third country citizens described above.1 Preconditions for a residence permit for real estate owners in Greece. The following conditions must be fulfilled to receive a residence permit: a) The real estate property must be owned by and be in possession of its owners. b) In cases of joint ownership, where the value of the property is €250.000, the residence permit is only granted if the owners are spouses with undivided ownership of the property. In all other cases of joint ownership, the residence permit is only granted if the amount invested by each of the joint owners is at least €250.000. c) If the owner has acquired the property through a legal entity, the applicant must own 100% of the company shares. d) The residence permit is also granted in cases where the third country citizen is the owner, either directly or through a legal entity, of more than one real estate property with a combined value of at least €250.000. e) 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 recognised financial institution),whichcertifytheexistenceofbankaccountsorothermobileassets,suchas bondsor shares, which can cover the cost of the investment of at least €250.000, and which certify the intention of the applicant to purchase the property (contract with a law firm or with a real estate office). f) In the case of third country citizens who have signed a lease of at least 10 years for hotel accommodations or furnished tourist residences in integrated tourist resorts, provided the minimum value of the lease is €250.000, the contract must require a single payment of the lease for the equivalent of the ten year leasing of the property. According to the law, family members of third country citizens entering the country are: a. Spouses who are over the age of 18, as well as unwed children under the age of 18 where there is shared custody, including children that have been adopted., b. Other unwed children under the age of 18, of the other spouse, including children that have been adopted, provided that the applicant is their legal guardian. An independent residence permit is issued for the children of third country citizens who have been accepted into Greece based on the terms and conditions of article 36A and turn 18 years old. In all cases outlined above, the value of the real estate property will be determined based on the value of the property, or the lease, indicated in the contract of purchase. The value of the property, according to law 4146/2013, is the amount stated explicitly on the contract which has been submitted for the purchase of the real estate property. The objective, or assessed, value of the property is not relevant, unless it corresponds to the amount which was, according to the contract, paid for the sale of the property. Entry Visa requirement to obtain a residence permit for real estate owners. An entry Visa is necessary to obtain a residence permit for owners of real estate . Following the issuance of a residence permit, and for its duration, there is no need for a Visa. Primarily in order to serve interested parties, obtaining a type D visa was chosen, because of the advantages that this visa provides to the holder (free movement in the Schengen area, duration for up to one year, right to multiple entries and the like). It was shown in practice that the majority of interested third country citizens choose a type C visa to enter the country. Based on this fact, the right to submit an application for a residence permit is available to any third country citizen who legally resides in Greece, irrespective of their status or the type of residence permit they possess. This includes those who hold a type C Visa and those applying for asylum. Duration of the residence permit for real estate owners. This residence permit is valid for 5 years. Renewal of residence permits for owners of real estate - Duration and Preconditions. The residence permit can be renewed. More specifically, the residence permits may be renewed for the same duration and for as many times as the applicant requests. To renew the residence permit, the following conditions must be met: The real estate property must remain in the ownership and possession of the applicant. The relevant leases must be ongoing. Absences from the country do not impede the renewal of the residence permit. Section B Issuing process and the necessary documentation for a residence permit for real estate owners The process for the issuing of a residence permit for real estate owners. Step 1: Issuing an entry Visa for Greek Territory The interested party must submit an application for an entry visa to the Greek consulate authority in their country of origin. Step 2: Collecting the documentation for the issuing of the residence permit Applicants for a residence permit for real estate owners, valued at €250.000, must provide the following documents: Two copies of the application document; Three recent colour photos; Certified true copy of a valid passport or travel documents recognised by Greece and with the relevant valid entry visa, where required; Health certificate from a Greek public hospital or private doctor, certifying that the applicant(s) (third country citizen(s)) does not have any condition which, according to international epidemiological standards and the World Health Organisation, can pose a risk to public health. In order to obtain this certificate the interested party must undergo a clinical examination, a chest x-ray and a tuberculosis test (Mantoux). Note: Third country citizens who enter the country with a type D Visa which has been issued according to the provisions of article 36A’ of law 3386/2005, are exempt from the obligation to submit a health certificate as a required document for the issuance of the residence permit, provided that they produce an exact and certified hard copy of the corresponding medical certificate which they have submitted to the competent consulate authority in their country of origin. This exemption is allowed provided the corresponding copy of the medical certificate is completed from a recognised state or private institution, according to the degree of credibility of the health services of the third country, which certifies that the third country citizen does not have any condition which can pose a risk to public health, according to the international epidemiological standards and the World Health Organisation, and does not have, as well, as any other infectious, contagious or parasitic diseases which necessitate the imposition of safety measures for the protection of public health, and hence fully correspond to the provisions of article 10, law 3386/2005, and Ministerial Decision 933/2009. Depending on the specific case, the following documentation may need to be submitted in addition to the above: 1. Residence permits for third country citizens who own and posses, either wholly or jointly, property in Greece A copy of the contract for the purchase of the property or properties which have a minimum value of €250.000 Notarisation stating that the contract fulfils the conditions required by the law for the granting of residence permits to real estate owners in Greece (article 6 paragraph 2 of law 4146/2013), and a confirmation by the notary that “the contract for the purchase of the real estate property does not have any conditions, exemptions or deadlines according to the provisions of paragraph 2, article 6, of law 4146/2013, and the full payment has been made”. Proof of title transfer from the competent land registry Certification by an insurance agency for the cost of hospitalisation and medical care. To certify that this condition is fulfilled, the following are accepted:
2. Residence permits for third country citizens who own property in Greece through a legal entity, where the applicant owns all shares A copy of the contract for the purchase of the property or properties which have a minimum value of €250.000 Notarisation stating that “the contract for the purchase of the real estate property does not have any conditions, exemptions or deadlines according to the provisions of paragraph 2, article 6, of law 4146/2013, and the full payment has been made”. Proof of title transfer from the competent land registry Copy of the statute of the legal entity which clearly indicates that the third country citizen owns all company shares Certification by an insurance agency for the cost of hospitalisation and medical care 3. Residence permits for third country citizens who have a lease – for a minimum of 10 years – for hotel accommodations or furnished tourist residences in integrated tourist resorts Notarised copy of the lease for the hotel accommodations or furnished tourist residences in integrated tourist resorts, which demonstrates a single payment of €250.000 and includes a mention of the granting of the relevant operation licence by GNTO (Greek National Tourism Organisation) Proof of title transfer from the land registry where the relevant lease contract has been transferred Certification by an insurance agency for the cost of hospitalisation and medical care 4. Residence permits for third country citizens who have purchased real estate property in Greece before law 4146/2013 came into effect: If the payment submitted before law 4146/2013 came into effect is smaller than two hundred and fifty thousand euro (250,000) but the current objective (assessed) value of the real estate property exceeds or is equal to this amount, a certification by a notary must be included in the documents that are submitted, stating: “From the verification of the contract with number ....... for the purchase of real estate property, it can be concluded that the full payment of the cost of the real estate property has been completed, it no longer has any conditions, exemptions or deadlines, and the objective (assessed) value of the real estate property as it stands today is equivalent to the amount of .....”. In this case it is also necessary to submit the contract of purchase for the real estate property or properties, the value of which is at minimum €250,000, and a proof of title transfer from the land registry where the relevant contract has been transferred. 5. Residence permits for third country citizens who purchase plots of land or acreage and erect a building. The following additional documents must be submitted: i. contract for the purchase of the plot of land or acreage, and ii. contract with the construction company for the erection/restoration of the residence, which has been submitted to the tax office according to the law iii. building permit in the name of the applicant iv. invoices by the contractors and the corresponding proofs of payment. 6. Residence permits for third country citizens who have a timesharing lease of at least ten year duration, for hotel accommodations or tourist furnished accommodations in integrated tourist resorts. The following additional documents must be submitted: i. contract for the timeshare of at least ten years duration, which states the exact amount to be paid every year. ii. Proof of title transfer from the competent land registry iii. certification by the Greek National Tourism Organisation that they have been informed of the establishment of this timeshare lease. 7. Residence permits for family members of the third country citizen Certification by an insurance agency for the cost of hospitalisation and medical care Recent family status certificate from foreign authorities which certifies the family relationship Step 3: Submitting the documents Applications for the residence permits must be submitted to the one-stop service of the department in the Decentralised Authority in the place of residence or the Municipal authorities in the location of the property in the cases where the transfer of residence by the Aliens and Immigration authority of the Decentralised Administration has not been completed. For more information on your case, please contact the Municipality where your property is located. For a list of all Municipalities and Decentralised Authorities please contact us. Step 4: 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. This means that 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. Procedure for residence permits for family members. According the information above, third country citizens can be accompanied by their family members, who will be granted the appropriate entry Visa. Family members have the option of entering the country at a later date from the applicant, from whom they draw their residence rights. These family members are issued with a residence permit of the same duration as the applicant, but this permit does not include access to employment. The children of the applicant, who have been originally admitted to the country under the terms and requirements of residence permits, are issued an independent residence permit when they reach the age of 18 which can be renewed annually until their 21st year. Further renewals are possible in accordance with immigration legislation. Documents and certificates for the renewal of residence permits. The renewal of the residence permit requires different documents, including: Two copies of the application document Three recent colour photos Certified true copy of a valid passport or travel documents recognised by Greece. There are certain exemptions which require that the applicant submits a declaration stating the specific reasons why they are unable to present these documents or documentation supporting that they do not possess these documents (e.g. documents by a consular authority of their country of origin which has been officially certified and translated). In any case, a public authority document, either Greek or from the applicant’s country of origin, must be submitted to verify the identity information of the applicant (a passport, irrespective of its expiry date, an identity card, a birth certificate). The assessment of the exemptions is done on a case-by-case basis. A certified copy of the previous residence permit, only in cases where the permit is not attached to the passport that is submitted Additionally, and depending on the case, the following documents are required to renew a residence permit, provided that real estate property with a value of €250.000 has been purchased: 1. Renewal of residence permits for third country citizens who own and posses, either wholly or jointly, property in Greece Proof of transfer from the competent land registry Certification by an insurance agency for the cost of hospitalisation and medical care 2. Renewal of residence permits for third country citizens who own property in Greece through a legal entity, where the applicant owns 100% of the shares Proof of title transfer from the competent land registry Certification by GEMI (Geniko Emboriko Mitroo-G.Ε.ΜI.) or the Administrative Court, that the statute of the legal entity has not been altered Certification by an insurance agency for the cost of hospitalisation and medical care 3. Renewal of residence permits for third country citizens who have a lease – for a minimum of 10 years – for hotel accommodations or furnished tourist residences in integrated tourist resorts Proof of transfer from the land registry where the relevant lease contract has been transferred Certification by an insurance agency for the cost of hospitalisation and medical care 4. Renewal of residence permits for family members, according to paragraph 1, article 54 of Law 3386/2005, of the third country citizen Certification by an insurance agency for the cost of hospitalisation and medical care Declaration by the sponsor that the family circumstances have not changed Copy of the birth certificate for a child born in Greece 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: a. The Apostille stamp for countries that are parties to the Hague Convention b. Certification by the Consular The Apostille stamp: For countries that are parties to the Hague Convention, and for which Greece has not issued a warning, 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: a. By the Translation Service of the Ministry of Foreign Affairs, or b. A lawyer, who must be a member of a Greek bar association, with a certification of their signature by the Bar Association. Contact us for translating services. cost associated with the application process for the residence permit for owners of real estate. Interested parties are only subject to the Visa fee, which is €75, except in cases where bilateral agreements provide for a reduced fee or a waiver. Section C Frequently Asked Questions Is it necessary to hire a lawyer to collect the documentation? There is no legal requirement to collect and process the documents through a lawyer. In cases where the applicant does not speak Greek and / or is located outside of Greece, it may be preferable to ask for the support of a legal representative or proxy who is in Greece, to facilitate the process. Who is considered a family member? According to the law, family members of third country citizens entering the country are: a. Spouses who are over the age of 18, as well as unwed children under the age of 18 where there is shared custody, including children who have been adopted b. Other unwed children under the age of 18, of the other spouse, including children who have been adopted, provided that the applicant is their legal guardian. Can my parents or my children who are over the age of 18, accompany me (both in the cases of strategic investments or in cases of real estate ownership in Greece), and be included in the family provision? What about the children who turn 18 during the period when their parents’ residence permit is valid? No parents or adult children are included in the provision above. Children who become adults during the period when the residence permit is valid will be granted a separate residence permit. Are unmarried partners entitled to a residence permit? The family members do not include unmarried partners. Can I travel to other countries within the EU with the residence permit for owners of real estate? Are there any conditions related to this? Yes. The residence permit and long-term visas are valid? as far as the free movement of the person in the Schengen area is concerned. Any citizen who holds a long-term visa (such as the residence permits for real estate owners) which has been issued by a member state and are valid for one year, are able to travel to other member states for up to 3 months within a six month period, under the same conditions which apply to the holder of a residence permit, while they are also granted a right for multiple entries. Can the residence permit be considered as a work permit? Can my spouse, the legal representative of my company, my children, or myself, work in Greece? In no case does the residence permit provide access to any type of employment. Employment, according to paragraph 3, article 36A, of Law 3386/2005, does not include the exercise of economic activity in the capacity of a shareholder or a Chief Executive Officer. The family members that have been issued a residence permit for the same duration as the sponsor are similarly not granted access to the employment market. Does the residence permit give me the right to apply for citizenship? The years covered by the residence permit for real estate owners are not taken into account for the required years for the granting of citizenship to residents. Does the amount of €250,000 include the Value Added Tax? What should the value of the investment be if the ownership / sale document include the name of both spouses? The amount of €250.000 refers to the price indicated on the contract. In cases of joint ownership of the real estate property by spouses, the residence right is granted to both spouses. Can I obtain more than one piece of property, the individual value of which is less than €250.000, if the combined value is equal or greater than € 250.000? You are entitled to residency rights irrespective of whether you own one or more properties, provided that their combined value is equal to or greater than €250.000. Can I buy commercial property or a combination of commercial and residential properties or land? The law states that €250.000 must be the stated price on the contract. It does not distinguish between commercial and residential properties. Are there any restrictions that apply to the real estate market? (e.g. location, size in square meters, or other factors). 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 and Skyros, as well as the former regions of Nevrokipi in the former prefecture of Drama; Pagoniou 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. Can I travel in Schengen countries directly, after my residence permit has been issued, from my country, or do I need to first come to Greece? You can arrive to any Schengen country you wish to. What is the arrangement regarding the access to education and health services? Can the children of the residence permit holder attend a Greek public school? The holders of the residence permit have access to public education, analogously to that of Greeks. Regarding access to health services, third country citizens and their family members who fall under the regulations of the current law, must have insurance that covers their healthcare and medical care expenses. To prove this condition, the following documents are accepted: i. Insurance contracts which have been signed outside Greece, provided they explicitly mention that they cover the applicant for the duration of their stay in Greece ii. Insurance contracts which have been signed in Greece Can I purchase a car with Greek licence plates for my transportation needs in the country? Yes, under the specific regulations of the Ministry of Transport, which apply to third country citizens. Can I take a mortgage out on the property in order to receive a loan? You can take a mortgage out on the property, in the same way as Greeks. Is it required of the buyer to prove the source of their income? The income of the applicant must be proven by documentation which proves their capacity (e.g. Certificate by class-A recognised bank or an official financial institution or other recognised institutions to store bonds) and certify the existence of bank accounts or other transferable securities, especially shares or bonds. If 8 third country citizens jointly buy a property for €2.000.000, are all the joint owners entitled to a residence permit? Yes, provided that the amount invested by each one is €250.000. What happens in the cases where someone tarnishes their criminal record, either in their country of origin or in Greece, during the period of when their residence permit is valid? This leads to the revocation of the residence permit. If someone holds a long-term Visa for a different Schengen country, does this Visa need to be cancelled to obtain a visa in Greece? A Schengen visa by a different country gives the applicant the ability to enter Greece and settle issues regarding the purchase of the property. Does the residence permit continue to be valid if the real estate property is transferred? In cases when the real estate (property) is transferred, before the end of the five year term, the third country citizen loses the right to residence. Is it possible to rent the real estate property to third parties? At present, the provisions of paragraph 2, article 6, of law 4146/2013 do not allow the rental of the real estate (properties). In the draft law “Ratification of the Migration and Social Integration Code” which has been submitted, a provision is included according to which third country citizens who own real estate property in Greece will be granted the ability to rent their real estate property. For more information visit the relevant section within our website: Golden Visa Greece and Invest in Greece |
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About the Author |
Ioannis Valmas LLB, LLM, (MSc) is Managing Partner at Valmas Associates and a Greek trial attorney and legal advisor that has represented – almost exclusively – since 2008, overseas clients (from government bodies to private individuals) for their administrative, business and personal legal matters in Greece gaining a stellar reputation abroad. He has lived abroad for almost a decade and earned several degrees from UK Universities. He has attended seminars at US Universities (Harvard and Stanford Law Schools). He has been a member of the Athens Bar Association for over a decade. He is appointed before the Court of Appeals and licensed to practice law throughout the territory of the Hellenic Republic, Greece. His writings on Greek Real Estate Law, Aviation Law and Shipping have been widely published in recent years by publishers in Greece and abroad.
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