New Golden Visa Category to Boost Greece’s Startup Ecosystem: A Strategic Shift in Investment Policy
Greece’s Golden Visa program, traditionally associated with real estate investment, is about to undergo a major transformation, marking a shift towards tech and innovation-driven investments. Beginning January 1, 2025, foreign investors will have the opportunity to secure residency in Greece by investing directly into Greek startups registered under the Elevate Greece initiative, an exclusive registry for local startups. This move reflects the Greek government’s strategic commitment to fostering a vibrant entrepreneurial ecosystem, with the revised Golden Visa scheme aimed at channeling foreign capital into high-potential, domestic startups.
Key Highlights of the New Golden Visa Category
The proposed legislation, is open for public consultation until November 19, 2024, outlines the requirements for securing a Golden Visa through startup investments. Here’s a breakdown of the key provisions:
- Minimum Investment Threshold: The Golden Visa will be granted to third-country nationals who invest at least €250,000 in a startup registered with Elevate Greece. This investment can be in the form of equity shares or convertible bonds issued by the startup.
- Eligibility Requirements for Renewal: To renew their Golden Visa, investors must ensure that:
- Their ownership stake does not exceed 33% of the startup’s capital or voting rights.
- The startup creates at least two new jobs within the first year of investment.
- The business maintains these job positions for a minimum of five years.
- Residency Duration and Renewal: Initially, the Golden Visa will be granted for one year and is renewable for two-year intervals, contingent on the continued holding of the investment and fulfillment of all regulatory requirements.
Incentives for Corporate Investment Structures
In an innovative twist, the new framework allows both domestic and foreign legal entities to invest in startups, expanding the pathway to residency for corporate investors. Specifically:
- Domestic Entities: If a Greek-based company makes the investment, a residency permit may be issued to a third-country national holding 100% of the company’s shares.
- Foreign Entities: For international corporations, up to three third-country nationals may qualify for a Golden Visa if each holds at least a 33% stake in the foreign entity making the investment.
A Strategic Shift from Real Estate to Innovation
The Greek government’s reimagining of the Golden Visa program addresses several pressing economic and social concerns. While the traditional Golden Visa successfully attracted billions in foreign capital into the Greek real estate market, it also fueled property price inflation and rental rate increases, aggravating Greece’s housing crisis. Recognizing this, the government aims to redirect foreign investment from real estate to high-value sectors like technology, creating sustainable growth and alleviating pressure on the housing market.
Potential Economic Impact and Benefits for Investors
This shift in policy is expected to:
- Attract Experienced Investors: By lowering the minimum investment threshold to €250,000, Greece hopes to attract venture capitalists and tech investors who are looking to engage with and support high-growth startups.
- Bolster the Startup Ecosystem: Increased foreign capital in the startup sector could lead to job creation, innovation, and enhanced global visibility for Greek startups, particularly those in the Elevate Greece registry.
- Mitigate Investment Risks: Investing in a diverse portfolio of startups or venture capital funds, rather than a single asset like real estate, provides investors with a more balanced risk profile, fostering long-term economic resilience.
Conclusion: A New Era for Greece’s Golden Visa
As Greece’s startup ecosystem continues to evolve, this innovative Golden Visa category could serve as a model for other countries seeking to stimulate tech-based economic growth. By aligning foreign investment incentives with national economic priorities, Greece is positioning itself as a European leader in fostering an inclusive and tech-forward investment climate.
This reformed Golden Visa category will likely make Greece an increasingly attractive destination for global investors eager to participate in the rise of Southern Europe’s tech ecosystem, propelling the country into the next phase of innovation-driven growth.
For investors, this opens a unique gateway into one of Europe’s emerging startup scenes while securing residency in a country known for its lifestyle, culture, and expanding digital economy.
