1. Greece’s new government, elected in summer 2019, announced a three-year suspension of VAT on property investments
VAT, in other words, Value Added Tax, is probably one of the main obstacles, which prevents foreign investors from participating in the real estate market of any foreign country. The measures taken by the newly elected Greek government aim at reviving the real estate market and attracting foreign investments.
2. Tax cuts
On July, 21 Greek Prime Minister, Kyriakos Mitsotakis, announced the immediate curtailment of the Unified Property Tax (ENFIA) by 22%. His goal is to reach a further tax reduction of 30% within the next three years.
3. Opportunity to obtain a European residence permit by investing in Greece
Among the Mediterranean countries, Greece has the most affordable Golden Visa program. In Spain, for example, the minimum investment requirement of residency by real estate investment is €500.000. In Cyprus residence permit can be achieved by completing a real estate investment, the value of which is more than €300.000. In Greece, on the contrary, the minimum investment amount should be €250.000. In addition, the three-year VAT suspension will have a positive impact on the Greek “Golden Visa” program for sure.
4. Greece is a member of the Schengen Area
The residence permit in Greece gives investors and their families the right to travel to other member states of the Schengen Area. This freedom of choice and movement makes the Golden Visa program an exceptionally powerful and useful tool when building one’s future.
5. Greece’s property market is showing steady growth
According to the National Bank’s data as of 2 September, 2019 apartment prices rose by 7.7 %, compared with a corresponding period of 2018. More precisely, in Athens, where Airbnb real estate is very popular, the prices rise by 11.1 % on a yearly basis.
6. Tax cuts for business
The new government has planned a reduction in the corporate tax rate ranging from 28 to 24 percent for the year 2020 and 20 % for 2021. It has also promised curtailment of dividend taxes, ranging from 10 percent to 5 percent the next year.
7. Greece`s geographic location
Greece enjoys a geographically strategic location, ideal for those who seek to enter the European market or to expand their business in other parts of the world. As a member of the EU and the Eurozone, Greece offers access to the rapidly growing regional markets, thus being an excellent gateway, without any trade barriers, for more than 140 million consumers in Southeastern Europe and the Eastern Mediterranean.
8. Top tourist destination
Greece has always been and will always remain one of the best tourist destinations in the world. Since 2018 Greece has been at the top of its game as far as tourism is concerned. According to the World Tourism&Travel Council (WTTC) forecasts, by 2028 tourism will account for 22.7% or almost a quarter of the country’s GDP, and in the next decade, investment in this sector will grow by 5.5%, in other words by 5.5 billion euros.
9. Low-level risk country
After the economic turmoil, there is a low risk of political upheaval. Greece has a stable democratic system and strong ties with key European economies, in comparison with other countries with emerging economies in Latin America, Africa or even in Eastern Europe.
10. The successful conclusion of the EU program
As of August 2018, Greece has successfully concluded the EU stability assistance program. In the past few years, the Greek economy has shown strong signs of recovery and improvement. Last year, GDP growth was about 1.8 percent. In the same breath, a 2 % growth rate is expected the next year, thanks to a new tax bill and the reform program, aiming at increasing foreign investments in the country.