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How can I lease out the property I purchased for the Greek Golden Visa program?

I am wondering if I would be able to lease out and collect rent on a residential property in Greece and still get a residency permit through the Golden Visa program so that I can travel freely within the EU. Also, what are the tax implications of owning property in Greece?

  • Energopiisi SA Investment Consulting Services
    August 14, 2018

    According to the provisions of Greek immigration law, no minimum residence is required in the country for property owners granted the permanent residency permit. Additionally, any third-country citizen who owns real estate has the right to rent his property and enjoy rental income without any further prerequisites. Regarding the taxation for rental income, please be advised that is being taxed on a scale basis as following: For income up to 12,000 euros, the rate will be 15 percent. For revenue ranging from 12,000 to 35,000 euros, the rate will increase to 35 percent, while for income from 35,000 euros or more, a tax rate of 45 percent will be imposed. For property tax, please be advised that it is annual and is within the range 0.7% to 1.2% on value of the property, as determined by the tax authority. It is also influenced from factors like the age of the building, floor of the property, if the area is commercial or residential, etc. Of course, since you have already the property, the exact figures are determined.

  • Papalois & Associates Legal
    August 14, 2018

    Of course you can lease your property and collect the rent. You still retain the residency permit. For owning a property, you pay enfia tax every year. The tax amount depends on the size of the property, the location, the value, etc. There is no standard rate. But you won't pay much, around 250 euros to 350 euros for an apartment.

  • Pantazis & Associates Law Firm
    September 24, 2018

    Actually, that is the common practice. You may buy the property and, after that, rent it. You don’t have any obligation to stay in Greece.

  • Valmas Associates
    August 15, 2018

    A lease/tenancy agreement to a third party does not affect your eligibility for the program or your current standing in case you have already been admitted to it. You are also entitled to split the 250,000-euro investment in several properties instead of one. Also, income from a lease of immovable property is not considered as income from business activity and forms a distinct category allowing every foreigner who owns property in Greece to lease her/his property without having to form a business or get a residency permit for this purpose. You can collect rent and get taxed on your income accordingly (income from immovable property), although you may have to consult with a professional in your home country about the tax implications of earning income in a third country (Greece). Owning property in Greece is further subject to the ENFIA Tax (Uniform Tax on the Ownership of Immovable Property). Under Article 1 of Law 4223/2013 (as amended by Law 4509/2017), it is set out that any natural or legal person or legal entity that owns real estate property in Greece is subject to the said tax.

  • Dafni Siopi & Associates Law Firm
    August 16, 2018

    You can lease your property and maintain the residency permit without any problem. The immigration code allows this potential to Golden Visa holders. If you lease your property, you will be obliged to pay 15 percent tax for the income that you will have from leasing the property.