Interpretation of Greece's Golden Visa, the most comprehensive analysis in the history of overseas real estate, immigration to Greece in one step to buy a house to get a permanent residence

Golden Visa and permanent residency

On March 30, 2019, the Greek Parliament formally adopted aNew investment bill to expand the scope of "golden visa" issuanceThe market rumor that has been circulating for more than a year has finally become a bill and will be officially implemented on June 30, 2019. In the past, Greece opened a golden visa in 2013, and non-EU citizens obtained permanent residence in one step by buying a house. After seven years, the Greek government has repeatedly improved. This article provides the most comprehensive and in-depth analysis of investment immigrants obtaining permanent residency. I hope it can help you make a sensible choice based on an in-depth understanding of the Greek "Golden Visa" project.

The 2009 debt crisis

The sovereign debt crisis that broke out in 2009 had a huge impact on Greece's politics, economy and society. From the data point of view, whether it is GDP or GNI, Greece has taken a roller coaster in the past 20 years (a generation's time).

Calculated according to the constant dollar in 2010, the Greek GDP fell back to the level of around 2001 in 2018 (below)

Calculated according to the constant dollar in 2010, the per capita gross national income of Greece fell back to the level before 1998 in 2018. (The following figure)

Why Greece needs a golden visa (Golden Visa)

Investing in a country starts with studying history and understanding the data. From understanding these, it is also clear why Greece has introduced a "golden visa" policy, and why Greece needs permanent residence to attract external investors to buy real estate. Let's look at the following analysis:

Property prices fall

According to data published by the European Mortgage Association, Greece is one of the countries with the highest homeownership rate in Europe (its homeownership rate is 80%, while the European average is 69.3%), and real estate accounts for a large proportion of Greek family wealth The proportion, as far as ordinary families are concerned, I think it must exceed 80% at least. In other words, the core asset of the Greeks is real estate. Although Greek house prices have experienced some recovering growth in the past year or two, compared with the highest house prices in 2007 before the debt crisis, Greek house prices fell by more than 40%, leaving many Greeks with mortgages or loans to build houses in financial trouble , Also caused a very serious chain reaction.

The government needs to increase taxes

According to data from the Greek Independent Public Revenue Authority (AADE), as of November 2017, Greek taxpayers have owed a total of more than 100 billion euros in state fees; there are about 4.21 million Greek taxpayers included in the debt list of the Greek government, accounting for approximately 40% of the total population of Greece.

The financial industry needs to be activated

The bank's bad debt rate has been high for a long time, which has led banks to dare not lend. According to data released by the International Monetary Fund, the NPL ratio of Greek banks has increased from around 20% in 2009 to around 45% in 2017. According to what we have learned, at least 50% and above non-performing loans originate from personal housing mortgage loans. In the face of the high non-performing loan rate, Greek banks generally chose to "learn loans": due to the reduction in people's income, the bank's deposits also decreased accordingly, which also led to a reduction in the bank's loanable funds, coupled with rising non-performing loans Rates and lack of confidence in the future have led Greek banks to generally “reluctant to lend”. Similar to China, the main channel for Greek companies to obtain funds is to apply for loans from banks. In the context of bank "credit", it is difficult for Greek companies to obtain the funds that are in urgent need of development. This further leads to the lack of economic recovery and unemployment in Greece. As a result of high levels, falling taxes, and rising tax rates, Greece is in a vicious circle.

Golden visa! Golden Visa: 2013 version

Greece’s “Golden Visa” Act in 2013, non-EU families, including related children up to the age of 24 and parents of both spouses, can obtain permanent residence status through the purchase of a property worth 250,000 euros, and it only takes a short time. It can be approved within 3 months (in some regions, it takes less time) to become the most competitive permanent residency program in Europe. Permanent residence in Greece allows visa-free travel to all countries in the Schengen area for up to 90 days. The golden visa provides family members with freedom to travel and live freely in the EU, leading to an excellent European education and medical system.

Greece opened up a one-step permanent residency status. In 2013, the Golden Visa (Golden Visa) version first let the homeowner unravel, then let the bank and government unravel, which ultimately helped Greece stop the vicious circle and enter a virtuous circle.

Buy a house, give your identity, live forever

After the introduction of Golden Visa in 2013 in Greece, the European market for housing immigrants gradually turned to Greece in 2015 to 2017. Intermediaries found this virgin land after the debt crisis and led investors into the market, so Greece bought a house and sent an identity like Harry Bo. Special movie preview, the news is blooming everywhere, the charm of permanent residence, let the Greek housing market gradually pick up.

Who is the biggest beneficiary of the golden visa

Greek house prices bottomed out,One step permanent residencyIt is indeed very attractive, but the biggest beneficiaries are Greek landlords, especially those with more than two houses; secondly, lawyers, real estate agents and other practitioners engaged in "golden visa" related business-it is estimated that 1000 Individuals with incomes above the euro, no more than 10,000 people; followed by banks, the channels of bank profits include the recovery of overdue loans and auction houses; the last beneficiary is the government, although the government can receive part of the income, but due to rising rents High, the government has to pay rent (housing) subsidies to low-income people, which makes the government's "gold visa" this "new business" to obtain very limited gains, and also has a limited role in boosting the Greek economy.

Calculate the cost of buying a house

Use of this websiteComputer for the cost of buying a golden visa, Calculate property tax, intermediary fee transaction tax, registration fee, lawyer fee.

The government needs more than a sip of soup

To put it in an image, the 2013 basic version of the "Golden Visa" plan gave away permanent residency. The government only drank a little bit of soup from it. It is only equivalent to drizzle to boost the Greek economy. The government also hopes to introduce The continuous flow of water is the internal reason why the Greek government launched the 2019 enhanced version (upgraded version) of the "Golden Visa" program.

Golden visa! Golden Visa: 2019 version

Considering the base of Greece’s population of 10 million (of which about 4 million are concentrated in the Attica region where the capital Athens is located), the Greek government can “sell” “golden visas” annually, for example, no more than 10,000, It is equivalent to one-thousandth of the size of the Greek population-for comparison, the United States, as a traditional immigration country, attracts about 1 million legal immigrants into the United States each year, while the United States has a population of 327 million, and 1 million legal immigrants account for about the United States population. Three ten thousandths of the total. In the case of limited permanent residence "saleable quantity", the only feasible way to increase income is to increase the unit price. So, with the 2019 enhanced version of the "Golden Visa" program.

Golden visa: 400,000 euros can choose to start a company to obtain permanent residence

Invest at least 400,000 euros in the Greek office of a company registered in Greece or an overseas company, or invest at least 400,000 euros in a Greek bank or a Greek mutual fund set up specifically to invest in Greek stocks and bonds. The details can be Refer to this article:Nine ways to get a permanent residence in Greece with a golden visa In addition to buying a house, there are eight options for Golden Visa Greece

Golden visa! Golden Visa: 2020 version, rich version

Greece, which has gradually recovered from the economy, has emerged from the haze of the real estate market and is more active in attracting powerful entrepreneurs. Under this preamble, the Greek government understands that entrepreneurs usually have investment in many countries in the world and are active in the country. And cannot live permanently in one place. Unlike the golden visa, the Greek government needs to increase its attractiveness, provide funds for entrepreneurs’ operations, create or strengthen economic development conditions, and have the obligation to attract international investment through taxable preferential treatment, and promote higher levels of employment and higher Efficient economic activities, permanent residence is no longer the only factor attracting high-asset families. So proposedNon-domScheme.

Non-dom's new attitude towards overseas assets

The new Article 5A of the Greek Income Tax Law (Law No. 4172/2014), as amended in 2020, provides for an alternative taxation system for natural persons transferring their tax residency in Greece,Within 15 years, the annual unified tax on global income is 100,000 euros, and does not matter the total annual income. In fact, Non-dom is not a Golden Visa. Although applicants can also obtain status and live in Greece, Non-dom provides better overseas tax optimization and redefines offshore asset planning. height. Please refer to:Greece Non-Dom Special Tax Resident