Property in Crete with a residency permit
Foreign nationals can purchase properties in Crete, Greece, with full ownership. This presents an accessible opportunity to expand an investment portfolio and acquire a second home in a developed European country while securing a residence permit. The Golden Visa scheme has been specifically developed for foreign citizens investing in residential or commercial spaces.
At present, the minimum cost of property in Crete to obtain a residence permit is €250,000. However, from 31 August 2024, this amount will rise to €400,000 and €800,000 (depending on the tourist potential of the chosen location). The updated scheme for obtaining a Golden Visa in Greece by property investment introduces several important restrictions on foreign buyers:
- To obtain a visa, the investor must purchase a single property rather than multiple properties with a combined cost.
- The minimum living area must exceed 120 m², meaning popular compact studios, small houses, and apartments in Greece cannot be used to apply for a residence permit.
- The investor holding a visa cannot let the acquired property on short-term leases. Breaching this rule may result in the residence permit being revoked and a fine of up to €50,000.
However, the Greek government has established two exceptions where the minimum investment amount remains at €250,000. The first exception involves the purchase of historic buildings with a commitment to restore them, which must be completed within 5 years to retain the residence permit. The second exception pertains to the renovation of commercial properties that are then converted into residential use. All construction work in this case must be completed before applying for a residence permit. These exceptions maintain the current investment requirements regardless of the region and do not impose conditions on the minimum property size.
Residence permit in Greece by buying property in Crete
The process begins with selecting a suitable property that aligns with the requirements and investment objectives. It is also crucial to seek qualified legal advice to ensure every step complies with the country’s laws and the conditions of the Golden Visa programme.
Once a suitable property is identified and the terms of the deal are agreed upon, the next step is opening a bank account. This is necessary as all transactions related to the real estate purchase and subsequent residency application must be conducted through a Greek bank. Additionally, the buyer needs to obtain an individual tax number (AFM), which is used for all tax and financial operations in the country.
The next significant step involves finalising the transaction, including full payment of the unit’s cost and completing all necessary documentation to confirm ownership.
After completing the formalities associated with the purchase, the required documents must be gathered and submitted to the immigration office to apply for a visa. This includes not only proof of purchasing a flat or villa in Greece but also other requirements, such as evidence of sufficient financial resources to live in the country, health insurance, and additional paperwork necessary to meet the conditions of the Golden Visa programme.
The long-term residency, granted as a result of this investment, provides a wide range of opportunities. The owner can legally reside in the country, access all social benefits, and travel freely within the Schengen Area without needing additional visas. Furthermore, after 7 years of lawful residence in Greece, there is an option to apply for citizenship, which opens up even more prospects for living and working in Europe.
It is important to note that the Golden Visa programme is not the only way to legally reside in the country. For those who do not plan to invest in real estate, there are various other options, such as the Digital Nomad Visa in Greece, catering to remote workers, freelancers, and entrepreneurs.
Investment real estate in Crete
Purchasing properties in Crete for investment purposes enables income generation through renting or future resale. Real estate values and rental rates continue to rise each year. Yields vary depending on the type of property, its size, and the level of comfort, potentially reaching 5–7%. However, it is important to note that buyers must choose between qualifying for a visa and using the property to generate income from short-term rentals.
Foreign nationals buying real estate in Crete typically choose several popular areas with high investment potential. Chania attracts with its beautiful landscapes and high demand from tourists and locals, making it suitable for rental investments. Rethymno is renowned for its historical monuments and unique architecture. Heraklion, the largest city in the island, boasts well-developed infrastructure. The housing demand here is extremely high, making it an ideal location to make long-term investments. The choice of area hinges on specific goals—whether for personal residence, rental income, or long-term investment.