Knight Frank sees seven investment drivers in Greece
Picturesque views aside, Greece’s economic landscape only adds to the country’s appeal. To celebrate the opening of Knight Frank’s trade office in Greece, he explored seven investment drivers in the country:
Located in Southeastern Europe, Greece comprises thousands of islands across the Aegean and Ionian Seas. With its ancient roots, the country is often called the âcradle of democracyâ – in the 6th century BC, when a new law was proposed in Athens, all citizens were eligible to vote. The word “democracy” also derives from the Greek words for people (demos) and rule (kratos).
Sunsets and scenic views aside, Greece’s strong economic outlook and initiatives designed to spur economic activity are likely to attract more than vacationers.
We are proud to have recently opened a dedicated sales office in the capital of Greece, Athens. To celebrate its launch, we are exploring seven investment drivers in Greece.
Seven investment drivers in Greece
Strong economic outlook
According to the European Commission, the Greek economy is expected to grow by + 6.0% in 2022, which could see the country exceed euro zone forecasts by + 4.5%.
A strategic location
Besides being a renowned destination in its own right, Greece also enjoys a strategic location, connecting investors, tourists and residents with the rest of the world. It is located at the crossroads of Africa, Asia and Europe, all the countries of the latter continent being at three hours maximum.
Greece also offers direct flights to major cities such as London, New York, Dubai, Moscow, Beijing, Shanghai, Singapore and more, paving the way for global trade and making it easy for investors to visit the country from several corners of the world. world.
Member of Schengen, EU, NATO and WTO
Greece is a member of Schengen, the largest visa-free zone in the world. Made up of 26 European countries, all members have abolished their internal borders for the free movement of people. Greek residents can travel freely within the area, and they also have the option of living in another Schengen country for up to three months every six months.
Greece is also a member of the EU, which allows it to benefit from EU infrastructure and funding projects. In addition, Greece is also part of the WTO (World Trade Organization). Meanwhile, its NATO membership protects the country and enables it to contribute to international peace and security.
Attractive visa possibilities
Greece’s investment residency visa, named the Greece Gold Visa Program, is one of the most attractive residency programs in Europe. It requires a real estate investment of 250 K â¬ to be eligible, i.e. half of the investment required in countries like Spain and Portugal (which both require 500 K â¬). The program offers investors and their immediate family members instant five-year residence with no minimum stay requirement, as well as free travel within the Schengen area.
The privilege can be renewed indefinitely, and once participants have resided in Greece for seven years, they can apply for citizenship, which entitles you to all the benefits of living in the European Union.
Initiatives to stimulate economic activity
Greece has implemented a series of initiatives to stimulate economic activity. First of all, a suspension of VAT on the transfer of newly built property until December 31, 2022. This is to encourage building construction and support the real estate market.
Second, a reduction in corporate tax from 24% to 22%. Third, a three-year suspension of capital gains tax (15%), applicable to individuals in the event of a property sale transaction until December 31, 2022.
And finally, the introduction of various new alternative tax regimes for natural persons who transfer their tax residence to Greece.
To benefit from these regimes, certain conditions must be met and professional tax advice must be sought to ensure that one is eligible for the special tax regime or the new regime.
Promising growth in real estate prices
According to our Global House Price Index, which tracks traditional residential price trends in more than 55 countries, house prices in Greece grew by 3.1% annually until March 2021, placing the country at the top of the over Italy and Spain. Although our new office in Greece is exclusively dedicated to assisting commercial investors, these residential results tell a promising story.
An established tourism sector
A quick glance at the beautiful towns, beaches and mountains of Greece is enough to understand why the country is such a magnet for tourists. With a plethora of options for every trip, from the history of ancient Greece to its famous fresh and healthy Mediterranean cuisine, tourism is one of the most important pillars of the country’s economy – accounting for a fifth of that. -this.
And despite the Covid-19 pandemic, Reuters reported in June that Greek Prime Minister Kyriakos Mitsotakis was “cautiously optimistic” that the country would meet its tourism revenue target for 2021.