The "Golden Visa" Crackdown: Portugal and Greece Changes Explained

For over a decade, wealthy individuals could secure residency in the European Union simply by purchasing a vacation home. These “Golden Visa” programs offered a straightforward deal: you invest in the local economy, and the country grants you residency rights and visa-free travel within the Schengen Zone. However, the era of easy access via real estate is coming to a rapid close. Faced with soaring housing costs for locals and pressure from the European Commission, popular destinations like Portugal and Greece are aggressively tightening their rules.

If you are looking to secure a plan B in Europe, you need to navigate these new regulations carefully. Here is exactly what has changed and which doors remain open.

Portugal: The End of the Real Estate Route

Portugal has long been the most popular Golden Visa destination due to its low stay requirements and reasonable investment thresholds. However, the program became a victim of its own success. In response to a severe housing crisis in cities like Lisbon and Porto, the Portuguese government introduced the “Mais Habitação” (More Housing) bill, which fundamentally altered the landscape of the program in October 2023.

What Has Changed?

The most significant change is the total elimination of real estate investment as a qualifying route. You can no longer purchase residential or commercial property to qualify for the Golden Visa. Furthermore, capital transfers (simply moving 1.5 million euros into a Portuguese bank account) are no longer accepted.

The New Investment Options

While the property route is closed, the Portuguese Golden Visa is not dead. The government has shifted the focus toward contributions that support the broader economy rather than the property market. As of 2024, the primary routes include:

• Investment Funds (€500,000): This is now the most popular option. You must invest a minimum of €500,000 in a qualifying venture capital fund or private equity fund. These funds cannot be directly connected to real estate.
• Cultural Heritage Donation (€250,000): You can donate to an entity responsible for the recovery or maintenance of national cultural heritage. If the project is in a low-density area, this amount drops to €200,000.
• Scientific Research (€500,000): Investing in research activities conducted by public or private scientific institutions.
• Job Creation: You can invest in an existing company (or create a new one) that creates at least five permanent jobs, combined with a capital injection of €500,000.

The key benefit of the Portuguese program remains: you only need to spend an average of seven days per year in the country to maintain your residency.

Greece: Significant Price Hikes for 2024

Greece has taken a different approach. Rather than banning real estate investment entirely, they have drastically increased the price of entry to cool down demand in saturated markets.

The Tiered System

Previously, a €250,000 investment in any property in Greece was sufficient to secure a visa. In 2023, this was raised to €500,000 in specific high-demand areas. As of September 1, 2024, the government has implemented a new, stricter tier system:

• Zone A (€800,000): In the most popular areas, the minimum investment has skyrocketed to €800,000. This tier applies to the entire region of Attica (which includes Athens and the port of Piraeus), Thessaloniki, Mykonos, Santorini, and islands with a population over 3,100.
• Zone B (€400,000): For the rest of the country (mostly mainland rural areas and smaller islands), the minimum investment has increased from €250,000 to €400,000.

Exceptions to the Rule

There are two specific scenarios where investors can still qualify with the old €250,000 threshold, regardless of location:

1. Commercial-to-Residential Conversions: If you buy a commercial property (like a factory or office) and convert it into a residential home.
2. Historic Restoration: If you purchase a listed building of historical interest and commit to fully restoring it.

Short-Term Rental Ban

A crucial new detail for investors is a restriction on how you use the property. To combat the housing shortage, properties purchased under the new Golden Visa rules cannot be used for short-term rentals (like Airbnb). If you plan to rent out your property, it must be for long-term leases only.

Why is Europe Cracking Down?

These changes are not arbitrary. They are a direct response to two main pressures:

1. The Housing Crisis: Locals in cities like Lisbon, Athens, and Madrid have been priced out of their own neighborhoods. Foreign investors buying properties to turn them into short-term vacation rentals reduced the supply of long-term housing, driving up rents and purchase prices. Governments are now prioritizing affordable housing for citizens over foreign capital.
2. EU Pressure: The European Commission has long criticized Golden Visa schemes, arguing they pose security, money laundering, and tax evasion risks. They have urged member states to shut these programs down. Ireland closed its program in February 2023, and the Netherlands followed suit in January 2024. Spain is currently in the process of canceling its real estate visa route as well.

Action Plan for Investors

If you are still interested in European residency, the window of opportunity is narrowing, and the costs are rising.

For Portugal, the strategy has shifted from being a landlord to being a passive investor. You must perform due diligence on the available Investment Funds. Look for funds that are regulated by the CMVM (Portuguese Securities Market Commission) and have a transparent track record.

For Greece, if your budget is under €400,000, you must be willing to take on a project. The “conversion” route (turning an office into an apartment) offers excellent value at the €250,000 entry point, but it requires navigating Greek construction bureaucracy. If you prefer a turnkey luxury property in Athens or the Cyclades, you must now budget at least €800,000.

Frequently Asked Questions

Is the Golden Visa program ending in Spain? Yes, it is likely ending soon. In April 2024, Prime Minister Pedro Sánchez announced the government’s intention to scrap the real estate investment route for Golden Visas. While the legislation has to pass through parliament, experts advise acting immediately or looking at other countries if Spain is your goal.

Does the Portuguese Golden Visa still lead to citizenship? Yes. After holding residency for five years, you can apply for Portuguese citizenship. You must pass a basic Portuguese language test (A2 level) and demonstrate ties to the community. The time you spend waiting for your residency card approval now counts toward the five-year clock.

Can I buy multiple properties in Greece to meet the €800,000 threshold? Under the new rules effective September 2024, the investment must be in a single property. You cannot purchase two apartments worth €400,000 each to meet the €800,000 requirement. The property must also have a minimum surface area of 120 square meters.

Are there any other European countries with easy Golden Visas? Hungary recently launched a “Guest Investor Program” in 2024, which includes a real estate fund option for €250,000 or a residential property acquisition for €500,000. Italy also offers a “Dolce Visa,” but it is focused on substantial investments in Italian companies or government bonds rather than real estate.