The Greek government, through the Ministry of Migration and Asylum, has introduced a significant initiative to attract foreign investments in startups using the Golden Visa program. This framework involves granting a “B.6” residence permit to third-country nationals who invest in Greece, thereby promoting innovation and entrepreneurship.
Conditions for Granting the Permit
Investors must contribute at least 250.000 euros to businesses registered in the National Registry of Startups. The investment may involve acquiring shares through an increase in share capital or bonds through a bond issuance.
Equity Participation and Job Creation
– Participation must not exceed 33% of the company’s capital or voting rights.
– At least two new jobs must be created within the first year of the investment.
– The company must maintain the increased number of jobs for at least five years.
Investments by Legal Entities
If a Greek company invests, then the residence permit is granted to those holding all company shares.
If a foreign/non-Greek company invests, then up to three third-country nationals who hold at least 33% of the capital are eligible for the residence permit.
Procedure and Certifications
The investment must be funded with capital transferred from abroad, which can come from the investor or their close relatives. The application for the residence permit must be submitted within one year of the investment and is reviewed by the Directorate of Foreign Direct Investments. To renew the residence permit, the company must maintain the required jobs, and the investor must retain ownership of the shares or bonds for at least five years.
Duration and Special Provisions
The initial residence permit is valid for one year and can be renewed in two-year increments. Absences from the country do not prevent the renewal of the permit.
Penalties and Obligations
Investors must report any changes to their investments. Non-compliance with the conditions results in a 50.000 euro fine and the revocation of the residence permit.
This new addition to the Immigration Law provides a strong incentive to boost the Greek economy through innovative businesses while offering foreign investors the opportunity to access the Greek market and benefit from its favorable business environment.
Tax Deduction for Individuals on Capital Contributions to Registered Enterprises in the National Registry of Startups and Venture Capital Funds
If an individual (angel investor) contributes capital to: a) A capital company registered in the National Registry of Startups, or b) A Venture Capital Fund established in Greece and managed by a domestic management company for the purpose of undertaking venture financing investments in accordance with Commission Regulation (EU) No. 651/2014 then the individual can deduct up to 50% of the contribution amount from their taxable income. The deduction is applied proportionally to the declared income categories for the fiscal year in which the contribution was made. All capital contributions must be made via bank transfer. The tax deduction applies to capital contributions by individual investors of up to 900.000 euros per tax year, which may be allocated to up to three different businesses or Venture Capital Funds. For entities, the maximum contribution is limited to 300.000 euros.
Law Office Stathaki can help you apply for a Golden Visa investor’s residence permit and navigate this process with professional and to-the-point advice. Contact us today here.
