According to the Greek government’s newest Decisions the Attica Region is classified as a “High Danger Zone”. In view of the strict measures for the prevention of CoVid 19 that will be in force in the area from 3rd to 30th November 2020, KCH Law Firm would like to inform its esteemed clients:
The legislation regarding Golden Visas in Europe has undergone significant changes in 2020.
To be more specific, the most important of those changes took place in Cyprus.
On 29th September 2020 Ministerial Decision No A1217 was published in the Government Gazette of Greece. This decision concerns foreign pensioners who wish to transfer their tax residence to Greece. According to this decision those pensioners will pay a 7% flat income tax for their all of their income obtained abroad. The whole amount of the aforementioned tax will be paid annually in one installment until the end of July.
On the 11th of October 2020, the final form of the notarial certificate that foreign investors applying for a residence permit need to submit along with the rest of the necessary supporting documents was published in the Government Gazette No 4483.
Among other things, this certificate needs to include information about the parties of the contract, information regarding the real estate, the price of the real estate, the means of payment (crossed bank cheque, credit transfer, POS transaction, credit card or debit card) and payment details. This certificate must also specify whether or not the contract is subject to a resolutory condition and whether or not the property was previously used by the seller to acquire a residence permit.
This certificate must be provided by the same notary who wrote the real estate purchase contract. According to Article 20B of Law 4251/2014, in the event that the applicant fails to provide this certificate, their application to be granted a residence permit through the purchase of real estate will be rejected.
Taking the abovementioned into consideration, it is evident that notaries have now a very important role in the issuance of Golden Visas to foreign investors as the approval of their application depends on the validity of this certificate.
Law No 4714/2020 brought important changes favoring donations made by Greek residents who used to reside abroad, as well as parental or monetary donations made by parents, Greek or foreign nationals, to their child for the purpose of buying a property that will be used by the child as their main residence. Those new favorable provisions reflect the numerous efforts made over the years by the Greek government to create a favorable environment for investments and main residence purchases as well as drive the Greek Real Estate market forward. This is all part of a greater effort to increase the country’s economic growth.
Το be more precise:
In order for this tax exemption to be applied it is an essential prerequisite for the parents to prove their donation will be used by the child to purchase property that will be used as the child’s main residence.
It should be noted that the aforementioned provisions do not apply retroactively but take effect after the date the aforementioned law was published in the Government Gazette (FEK).
For more information regarding the supporting documents and written evidence required by the applicants, the monetary sums on which tax exemption is applied as well as the specific dates the aforementioned provisions take effect, please do not hesitate to contact us.
For the first time in May 2013, third-country nationals who purchased real estate in Greece, for the minimum price of 250.000 euros, were given the chance to acquire a residence permit for themselves and their family members.
Since 2013, the law concerning the acquisition of “Golden Visa” was amended several times. The purpose of those amendments was to make the whole process easier for investors and prevent criminal acts, such as money laundering. For example, the law provides that payment must be made by means of crossed cheque or any other kind of bank transaction. In any case, all transaction details must be stated in the presence of a notary.
What should an investor in Greece take into account:
For any real estate purchase in Greece, buyers have to hire a lawyer and a notary to protect their legal interests. This applies to anyone buying real estate in Greece, Greeks or foreigner nationals.
After the Golden Visa law was enacted, the role of both notaries and lawyers became even greater, because in order to avoid criminal acts, such as money laundering, notaries now have to verify in the contract that the payment was made by means of crossed cheque or bank transaction. After several amendments to the law, payment by bank transfer was permitted as well. The law also states that all payment details need to be included in the contract. The parties of the contract also need to provide a statement regarding whether or not the real estate was previously used for the acquisition of a Golden Visa.
Starting from 2019, new specific regulations permitted payment by POS, debit or credit card. Payment can now be made by the investor’s spouse as well as their relatives by blood or by marriage up to the second degree. If a third party pays the amount for the acquisition of real estate, their relationship with the investor must also be verified in the contract.
Starting from 2020, notaries have to issue a certificate containing the personal information of the parties of the real estate purchase contract, information concerning the real estate, means of payment, the specific details of the transaction and whether or not the real estate was previously used for the acquisition of a Golden Visa by the seller.
Generally speaking, multiple amendments over the years have made the Golden Visa law quite complex. A sensible course of action for an investor is to find a lawyer and a notary who are already familiar with each other and are used to working together. That way, they will be able to communicate more easily and cooperate harmoniously.
It is obvious, that the successful completion of purchase of real estate and the subsequent acquisition of Golden Visa would not be possible without involving a lawyer, specialized in real estate transactions and the close cooperation between the notary and the lawyer, who always strive to protect the legal interests of the buyer.
