Lease permit to be granted to foreign property holders

Visa holders will soon obtain lease permit for their properties 

 

Summer Villa in AiginaBased on informations published on local news, the Ministry of Development will soon improve the incentives given to 3rd-country citizens who aim to obtain a 5-year residence permit holders by purchasing real estate in Greece.

The government looks into offering past and potential Greek property buyers a lease permit for their properties, a motive not granted before. The existing tax rates applied to rental income will be applied to those owners too. Currently, these rates make a 11% cut in annual income up to 12.000€, while triples to 33% for any income above this level.

The Ministry of Development has received lots of requests about this issue lately, mainly by Chinese and Russian property holders who aim to lease their properties for the time for time they are vacant. The revisions are expected to be officially announced in the coming weeks, while a way to obtain Greek citizenship through real estate purchase is till not considered for offer.

By the end of 2013, Engel & Völkers Athens North was quoted in “Kathimerini” a major Greek financial newspaper, with the company’s market analysis projecting that Greece’s residence permit policy should be considered as a catalyst leading to the sector’s turnaround, rather than being the main force to market recovery.

It was mentioned that such a much anticipated trend reversal needs to focus mainly on the improvement of the basic macro-economics figures, and the provision of serious investment incentives allowing both local and foreign investors to interact productively with the State without bureaucracy hindering progress.

Merely a quarter into 2014, the company’s projections were proved to be spot on. The number of visas issued fall behind the Greek government’s initial projections, and the blames should be put mainly on the State’s lag to incorporate market rules into its policies that were finally discouraging foreign investors, leading them to temporarily halt transactions in the real estate business. 
However, the macro climate seems to finally improve significantly with lots of foreign businesses being established in the background offering the necessary trust to a European State that took the strongest bullet in heart of its distressed economy and managed to sustain any damages that could otherwise seriously challenge the unity of EU.

Greece revives slowly but steadily from what stunned EU a few years ago. Although opposing politic parties assume an underselling role in the government’s success path, the thumbs up sign is already given by most engaging financial parties around the world to the State that currently is in charge of the European Presidency for the first half of 2014.

 

We cordially encourage our customers and colleagues all around the world, to entrust the illuminating result that is shown at the end of a 5-year long tunnel, and indulge in the premium offer Greece always presented to its citizens and visitors alike: Sheer beauty of the scenery in any given colour palette, bright sunlight, crystal clear seas, and people that are offer true hospitality to every visitor.

 

Engel & Völkers Athens North offers worldwide its professional practice and very individualised services to all people and institutions actively looking to enjoy the best of Greek real estate. We are looking forward to presenting you with the best options in the best addresses in Greece.

 

 

Theo Bosdas
Engel & Völkers Athens North
Managing Director


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