Residence Permits in Mykonos and Greece – Mykonos Lawyers Firm

RESIDENCE PERMITS IN GREECE DUE TO POSSESSION OF REAL ESTATE PROPERTY ( B5 type)

Owning a property in Greece with a minimum value of €250.000 or €500.000 provide you and your close relatives the legal right to reside legally within Greek territory and to travel to any Schengen country using your residence permit. Our firm in Mykonos has a vast experience in all forms of real estate agreements and can help you in all procedures in order to buy a property in Mykonos or in any other place in Greece. Also, since we specialize in the application of the relative legislation and submitting applications of granting and renewal residence permissions, we will be very happy to help you to acquire a residence permit in Greece, if you decide to buy a property worth 250,000 euros or 500,000 euros (depending on the location of the property) or more.

The text presented below has been published by the State’s institution “ENTERPRISE GREECE”: https://www.enterprisegreece.gov.gr/en/greece-today/living-in-greece/residence-permits

It provides a detailed explanation of the actions required to acquire such a residence permit:

RESIDENCE PERMITS

Submission of the application through a proxy, without the obligation to previously enter Greece.

Non-EU citizens who have made an investment through the three options of the Greek Golden Visa program can apply for a residence permit through a proxy, without the obligation to previously visit Greece. The Power of Attorney for the appointment of a proxy must be signed before a Greek Consular authority οr before a notary public and is duly apostilled or certified by a Greek consulate, as applicable. The non-EU citizen must enter Greece in a period of 12 months from the date of the confirmation receipt of the application, in order to submit his biometric data.

The Immigration and Social Integration Code (Law 4251/2014, Government Gazette 1, no 80) contains provisions that facilitate the stay of third-country investors, whose investments are characterized as strategic investments, via the provision of extended stay time limits for the representatives of investment bodies and their partners.

Moreover, it allows the granting of residence permits to third-country nationals and to members of their families, who purchase real estate property in Greece, the value of which exceeds € 250,000.

Specifically:

A. “Permanent residence permit of the investor.” (Article 20B) and (article 100)

1. By decision of the Secretary General of the Decentralized Administration or the Directorate for Migration Policy of the Ministry of Migration and Asylum, a residence permit for five years, subject to renewal, is granted to a third-country national who:

(a) has legally entered the country with any type of visa or legally resides in the country, even if the type of residence permit that he possesses, does not permit a change of purpose.

(b) has personally the full ownership, possession, and peaceful enjoyment of real estate property in Greece. In the case of jointly owned property, worth 250,000 euros or 500,000 euros depending on the location of the property, the right of residence is granted only if the owners of the property are spouses with indivisible shares in the property. In all other cases of joint ownership, the right of residence is granted only if the joint ownership rate of each joint owner is worth 250,000 euros or 500,000 euros depending on the location of the property.

(c) has the full ownership, possession, and peaceful enjoyment of real estate property in Greece via a legal entity, whose shares are fully owned by him.

(d) has concluded an agreement for at least a ten-year lease of hotel accommodation or furnished tourist residences in tourist accommodation complexes, pursuant to Article 8 par. 2 of Law 4002/2011 (Government Gazette 1, no 180).

(e) has concluded a time-sharing agreement pursuant to the provisions of Law 1652/1986 “Time-sharing agreement and related issues” (Government Gazette 1, no 167), which is in force.

2. The minimum value of the real estate property, as well as the contractual consideration of hotel accommodation or tourist residences leases of this Article, is determined at two hundred and fifty thousand (250,000) euros or 500,000 euros depending on the location of the property, and must have been paid in full upon the signing of the contract.

The increase of the minimum investment amount, depending on the area where the property is located, will apply from August 1st, 2023. Investors are entitled to buy a property with a minimum value of 250,000 euros even in the affected areas, provided that they have already paid a 10% of the property value as a deposit until July 31st, 2023, and finalize the purchase contract by December 31st, 2023 as required by law.

“ The consideration is paid by 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 or through a POS installed by a payment provider, operating in Greece, by charging a debit or credit card issued by a bank in the name of the buyer, to a beneficiary’s account held in a payment service provider, as provided in Article 4(11) of Law 4537/2018, operating in Greece. The afore-mentioned payments may be also executed by the buyer’s spouse or family members by blood or affinity, up to 2^nd degree”.

By joint decision of the Ministers for the Interior and Finance, the value of the above real estate property may be adjusted and shall result from the property value stated in the contracts or from the lease agreements.

3. Το third country nationals, real estate property owners, the possibility of leasing that property is granted.

4. The above third-country national may be accompanied by the members of his family to whom, at their request, an individual residence permit is issued, that expires together with the residence permit of the sponsor.

Family members shall mean:

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.

5. The above permit may be renewed for an equal duration, each time, provided that the real estate property remains in the ownership and possession of the third-country national or the agreements of paragraph 1 of this remain in force and all other requirements, provided by law, are fulfilled. Periods of absence from the country shall not disrupt the renewal of the residence permit.

“The resale of the real estate property during the period of validity of the residence permit, to another third-country national shall provide the right to the granting of residence permit to the new buyer with simultaneous withdrawal of the vendor’s residence permit.”

6. The residence permits, being granted pursuant to paragraphs 1 and 4 of this Article, do not establish the right of access to any form of employment.

7. The minimum investment amount stands at €250.000, except for North, Central and South Sector of Athens, and municipalities of Thessaloniki, Vari, Voula, Vouliagmeni, Mykonos and Santorini, where minimum investment amount stands at €500.000.

The increase of the minimum investment amount, depending on the area where the property is located, will apply from August 1st 2023.

Q&A

Should I inform my lawyer or notary public that I wish to apply for a permanent residence permit for investors before buying the property?

If you wish to use the property you are buying to apply for a permanent residence permit for investors, you need to inform your lawyer in due time, so that they make sure your investment meets all requirements provided by the immigration law, on top of the minimum investment amount

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 is recommended to ask for the support of a lawyer. In case you opt for a remote investment and submission before entering the country, it is mandatory to appoint a proxy (lawyer).

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 or partners without a civil partnership agreement.

Can I travel to other countries within the EU with the permanent residence permit for investors? 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 permanent residence permit for investors is able to travel to other member states for 90days every 180 days, under the same conditions which apply to the holder of a visa, 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 permanent residence permit for investors provide access to any type of employment. 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.

Note that the 3-year residence permit granted to children 21-24 years old provides them with access to 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 or €500,000, as applicable, include the Value Added Tax (Φ.Π.Α)? What should the value of the investment be if the ownership / sale document include the name of both spouses?

The amount of €250.000 or €500,000 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.

This does not apply to properties located in regions where the minimum investment amount stands at €500,000. In such regions, potential investors are eligible for a residence permit only if their investment comprises (1) one property with a minimum value of €500,000.

Can I buy commercial property or a combination of commercial and residential properties or land?

The law states that €250,000 or €500,000, as applicable, must be the stated price on the contract. It does not distinguish between commercial and residential properties. You may only combine properties in regions where the minimum investment amount stands at €250,000.

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?

Τhe 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:

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.
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.

Is it required of the buyer to prove economic capacity?

Proof of financial capacity is not included in the supporting documents, provided in the Law, to be submitted to the Aliens and Immigration Division of the Ministry of Immigration and Asylum, for granting a permanent residence permit for investors.

The income of the applicant is checked for the purposes of issuing the type D Visa and must be proven by documentation which proves their capacity (e.g. Certificate by class-A recognized 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. 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 or €500,000, depending on the location of the property.

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, as well as to apply for a permanent residence permit for investors in Greece.

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.

In conclusion, Greek law grants foreign citizens legal permission to reside within the whole of the Greek territory, including of course its beautiful islands along Aegean Sea, such as Mykonos, demanding only the purchase of a real estate of specific value. “Mykonos Lawyers Firm” represented by our well qualified associates would be very pleased to inform you of the various kind of permissions and advise you throughout the procedure in order for you to fulfill your desire of acquiring a residence permit in Greece.