Investment Residence Permits expanded on Intangible Assets

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Abstract

• The existing legal framework on residence permits has been extended to investments on intangible assets in Greece.
• Up to three Shareholders or executives of foreign legal entities investing in Greece may be granted residence permits on top of the ten non-EU citizens who are being granted residence permits for the implementation and operation of the related investment plan. 

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:

1. Capital contribution of at least €400,000 in a company with registered seat or establishment in Greece, excluding Portfolio Investment Companies, for the acquisition of shares by capital increase or acquisition of bonds which are being admitted to trading on a regulated market or to a multilateral trading facility operating in Greece;
2. Capital contribution of at least €400,000 for the acquisition of shares by capital increase in a Real Estate Investment Company of Article 21 of Law 2778/1999 which aims exclusively to investments in Greece;
3. Capital contribution of at least €400,000 for the acquisition of shares in a Venture Capital Investment Company of Article 5 of Law 2367/1995 or to a Venture Capital Mutual Fund of Article 7 of Law 2992/2002 provided that the aforementioned Alternative Investments Funds are aiming to invest exclusively in companies with registered seat or establishment in Greece;
4. Acquisition of Greek State’s bonds of at least €400,000 with remaining duration at the date of the acquisition of at least three (3) years, through a credit institution seated in Greece which is also acting as a trustee;
5. Term Deposit of at least €400,000 in a Greek credit institution with a minimum term of one year and a permanent renewal order;
6. Purchase of shares, corporate bonds or bonds of the Greek State which are being admitted to trading or are being traded on regulated markets or to a multilateral trading facility operating in Greece of at least €800,000.
7. Purchase of share parts of at least €400,000 in a mutual fund which has been established in Greece or in another country and aims to invest exclusively in shares, corporate bonds or bonds of the Greek State, which are being admitted to trading or are being traded on regulated markets or to a multilateral trading facility operating in Greece provided that: (i) the amount of the assets of the mutual fund is at least €3,000,000 and (ii) the mutual fund and its administrator are licensed by the competent authority in the country of its registered seat, which for non-EU member states should be a member of IOSCO and which should have entered into a bilateral agreement for the exchange of information with the Hellenic Capital Markets Commission; and
8. Acquisition of parts or shares of at least €400,000 in an Alternative Investments Funds (AIF) which has been established in Greece or another EU member state and invests exclusively in real estate in Greece, provided that (i) the amount of the assets of the AIF is at least €3,000,000 and (ii) the AIF and its administrator are licensed by the authority.

For specific types of investments (under 3, 6, 7 and 8 above), the opening of an exclusive account in a credit institution established in Greece is required and the disbursement of amounts from this account is subject to restrictions.

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.