Ioanna Michalopoulou, Managing Partner LLM
Angelos Georgamlis, Τrainee Lawyer
Greece, like many European countries, has come under pressure to reassess residence-by-investment programs. “Golden visas” granted through real estate investments have attracted capital, but they have also contributed to rising housing prices and have offered limited long-term economic value beyond construction and rental activity. At the same time, Greece’s startup ecosystem has been developing quietly. Hundreds of technology-driven startups in the fields of health, financial services, and, of course, artificial intelligence have emerged and are growing at a rapid pace.
The Golden Visa for startup investments, provided for under Article 100A of Law 5038/2023, constitutes an incentive for the inflow of foreign investment capital into Greece, particularly following the changes to the conditions for granting residence permits to third-country nationals through investments in real estate.
Specifically, pursuant to the applicable legislation, a residence permit is granted in Greece to third-country nationals who contribute at least EUR 250,000 to the capital of a company registered in the National Registry of Startups, for the acquisition of shares through a share capital increase. The acquired shares may not exceed 33% of the company’s share capital, while the company must create at least two new jobs within the first year following the investment and maintain the same total number of employees, increased by two positions, for a minimum of five years from the date of the investment.
The investment may be made by both natural and legal entity. In the case of a domestic legal entity, a residence permit may be granted to a third-country national provided that they own 100% of the company’s shares. If the legal entity is not headquartered in Greece, the residence permit may be granted to up to three individuals who hold at least 33% of the share capital of the foreign legal entity.
Furthermore, the third-country national holding a valid residence permit is required to retain the shares for five years from their acquisition. If, after the lapse of the minimum holding period, the investor disposes of the shares, they retain their residence permit provided that they acquire new shares under the conditions of the same article within two months. In cases of bankruptcy or corporate restructuring of the company, even before the expiration of the minimum holding period, the residence permit is not revoked if the third-country national acquires shares in another company within two months, even if the purchase of shares or the investment is carried out using funds derived from the liquidation of the initial investment. In all the above cases involving changes to the investment, the investor and their family members retain the residence permit already granted until the completion of the certification procedures of the new overall investment and the issuance of the residence permit based thereon.
Why, however, should a foreign investor choose this pathway to obtain a residence permit in Greece?
By investing in Greek startups, investors obtain permanent residence in Greece, with the right to visa-free travel throughout the Schengen Area. This provides unparalleled opportunities for business expansion across Europe, with an accessible investment amount that is significantly lower than the average required in other European countries. Moreover, one of the most important features is the extension of the residence permit to the investor’s entire family, including children under the age of 21 and dependent parents of both the applicant and their spouse.
What differentiates investment in startups from investments in real estate is the absence of a minimum residence requirement, offering investors the flexibility to live and operate outside Greece, throughout the Schengen Area as mentioned above. On the other hand, if the investor wishes, after a seven-year holding period of their investment, to apply for long-term residence status, they must comply with the minimum residence requirements set by law, namely residence in Greece for at least six months (183 days) per year.
A cornerstone of the Golden Visa program is the tax incentives provided to angel investors under Law 5162/2024. In particular, a third-country national who invests in startups under the above conditions may deduct from their taxable income an amount of up to 50% of the contribution made, in the tax year in which the contribution took place. This measure applies to capital contributions by natural persons, up to a total amount of EUR 900,000 per tax year, invested in up to three different companies, and up to EUR 300,000 of invested capital per company.
This arrangement becomes even more favorable for nationals of countries that have concluded double taxation avoidance agreements with Greece, such as China and India. Double Taxation Avoidance Agreements are international treaties that regulate the taxation of income connected with more than one country, with the primary aim of preventing the same income from being taxed twice. In particular, taxes on income from investment activities—and not only—that are paid in the country of origin are credited against the corresponding tax payable in the investor’s country of tax residence. In other words, tax paid in China or India is offset against tax payable in Greece.
An additional tax incentive for angel investors is the Non-dom (non-domicile) regime, which is primarily addressed to high-net-worth investors. This is a unique program that allows foreign nationals who transfer their tax residence to Greece to avoid taxation on foreign-source income by paying an annual lump-sum tax on income earned abroad, regardless of the amount of such income and without any obligation to declare foreign income in Greece. More specifically, an applicant for the non-domicile tax regime must not have been a Greek tax resident for the previous seven years prior to transferring their tax residence to Greece, and their investment in Greece must exceed EUR 500,000. The lump-sum tax amounts to EUR 100,000 per year, fully discharging any tax liability on foreign income, while there is also the possibility of extending the regime to family members upon payment of an additional lump-sum tax of EUR 20,000 per family member per year.
In conclusion, the granting of a residence permit in Greece through investment in startups constitutes a modern, flexible, and strategically targeted tool for attracting high-quality investment capital. Unlike traditional real estate investments, this model channels resources into the real economy, strengthens innovation, and promotes job creation, while offering investors access to the Schengen Area without any minimum residence requirement. Combined with tax incentives for angel investors, investment in Greek startups emerges as a comprehensive and competitive pathway for obtaining a residence permit, particularly for third-country investors with a long-term investment horizon.
