Portugal has increased the restrictions for granting golden visas. For a moment he even considered canceling the program. It ultimately keeps it in place, but excludes real estate as an investment vehicle for this purpose. On the contrary, it rewards the placement of funds in investment funds.
The tightening of the program in Portugal is one of the factors that have boosted the demand for golden visas in Greece. However, it is also a good reason to review the corresponding framework in our country. The golden visa was a good idea at a time when the Greek economy was looking for support and the real estate market was in a lethargy. Today, the country has stabilized its finances and is attracting foreign capital more easily. On the contrary, the take-off of demand for the purchase of a residence causes social side effects.
The golden visa is not the primary, let alone the only reason for the difficulty in finding affordable housing. But it also plays its role, in a market that has overheated and rests on a sector crucial for social cohesion: the first home. Now, in the balance of policy making, the advantages of the golden visa through real estate are rather smaller than the disadvantages. After all, a country should raise capital because it is truly attractive for investment; thanks to its institutional framework, development prospects and human resources. Besides, the golden visa regime has been systematically targeted by the Commission, as a tool that also favors controversial personalities, in terms of transparency and moral integrity. But it is indeed a means of raising foreign capital which has contributed to the recovery of the economy.
To the extent that we are going to maintain it, we should probably reform it. If we go the way of Portugal, we will perhaps make the program less attractive. But we will have taken a measure to relieve Greek households – easing the frenzied demand for property, rationalizing the cost of housing – and we will have turned the program towards investments with a greater chance of adding value to the economy.
Announcing the ceiling on the price of baby milk yesterday, the Prime Minister said that he is particularly concerned about the financial burden on young families. But it’s even more important for a new family to pay a rent that matches their income.
I’ve tried to avoid the cliché, but I’ll give in: Do it like Portugal.
