Greece at a Glance
Moving to Greece
Greece is currently experiencing the worst financial and sovereign debt crisis in 21st-century Europe.
The government is encouraging expats to buy property in Greece and to invest in the tourism industry.
Every foreigner needs to get a residence permit. However, EU citizens do not need a visa to enter the country and stay for less than three months.
The Current Economic Climate in Greece
Greece joined the European Communities (EC), the forerunner of the European Union, in 1981. In 2001 it became the twelfth member of the European Economic and Monetary Union and in 2002 the euro became the official currency of Greece. From 2003 to 2007 the Greek economy enjoyed a healthy growth rate of 4% per annum, largely due to the projects undertaken in preparation for the 2004 Summer Olympic Games in Athens.
The ongoing, infamous financial crisis began in 2009, when the then prime minister, Georges Papandreou, announced that the real budget deficit, as compared to the GDP, was 12.7%. The news created a panic on the financial markets and the credit rating of Greece began to fall to an all-time low of CCC+. Treasury bonds detained by private creditors were rapidly losing value, and in April 2010 Greece admitted that it couldn’t pay its expenses, asking for international help.
From 2010 to 2014, the International Monetary Fund and the EU decided to shoulder two multi-billion euro bailout packages. Owing to that, the Greek debt changed its structure: it switched from private market hands to public hands, as more than 80% of the debt was bought by the IMF and the EU. Since the financial markets did not own the debt anymore, there was no risk of a global crash in case Greece went bankrupt, but the creditors have been, from then on, the Eurozone taxpayers. However, the situation in Greece was not recovering: according to the World Bank, the GDP shrunk from 355 billion EUR in 2008 to 235 billion EUR in 2015, and the government had to implement austerity measures (higher taxes and less government spending) at the demand of their creditors.
The Tumultuous Year of 2015
This situation — especially the austerity measures that hit an already struggling population — resulted in the major political and financial crisis of the year 2015. In fact, the Greek government, led by the liberal-conservative New Democracy party, demanded a third bailout program from the EU. However, the opposition (led by the left-wing Syriza party and its chairman Alexis Tsipras) was against it, fearing that this would bind the Greek people even more strongly to their creditors and the unpopular austerity measures.
As a result of this political deadlock, the Greek parliament could not elect a new president: it had to be dissolved and a call was issued for new elections. In January 2015, Syriza won a historic victory, and Tsipras was sworn in as prime minister. After this change of government, the EU creditors decided to grant a four-month extension for loan repayments. In the meantime, Tsipras asked for a bailout referendum to be held in June 2015: over 61% of Greeks voted against the bailout. This meant that the Greek and Eurozone governments had to meet again for more negotiations in order to avoid a "Grexit".
After a very difficult negotiation round, the third bailout package was accepted by both parties in August 2015 after all. Tsipras, however, paid a high price for the deal: due to dissent within his own party, he lost his majority in parliament. He thus decided to resign and call for new elections in September 2015. Surprisingly enough, Syriza was reelected, and Tsipras was reappointed prime minister, with a new parliamentary majority.
After that, the economic and political situation seems to have been slowly stabilizing. In the last quarter of 2015, the GDP rose by 0.1%, and the European Commission forecasts a GDP growth of 2.7% for 2017. Furthermore, international credit-rating agency Standard & Poor’s upgraded Greece’s rating to B- in January 2016. The unemployment rate is still at an alarming 24%, though, and the general population has been affected greatly by the crisis. The situation as of April 2016 unfortunately remains unstable and subject to change.
Incentives for Expats to Move to Greece
In light of the current crisis, the Greek government is keen to attract investors and entrepreneurs who will give the economy a much-needed boost. To that end, they have opened up several opportunities for prospective expats who want to move to Greece and establish a life there. Third-country nationals, i.e. non-EU citizens, who buy property in Greece valued at 250,000 EUR or higher will be granted a five-year residence permit to move to Greece and may also bring their families with them.
In addition, Greece offers many opportunities for investors and entrepreneurs contemplating moving to Greece to live and work, especially in the tourism industry. There is room for expansion in this sector infrastructure to make Greece a more popular year-round destination for tourists. Areas of interest include developing integrated resorts and residential real estate, upgraded and new marinas, conference centers, etc., as well as infrastructure developing tourism in many areas, such as the wellness and health industry. Another law to stimulate investment and incentives in the tourism sector was passed in January 2016. For instance, it offers a fixed taxation of investments exceeding twenty million EUR for a period of seven years and simplifies the licensing procedures for tourist facilities.
For more information on moving to Greece as an investor or entrepreneur, please visit the website of the Greek government’s Invest in Greece Agency.
Entry Visas for Greece
EU citizens, as well as citizens of Iceland, Liechtenstein, Norway, and Switzerland, do not require an entry visa. They just need to present their passport or identity card when entering the country. Citizens of all other countries must apply for a three-month entry visa at a Greek consulate prior to moving to Greece for employment purposes. This is a “D” type one-entry visa issued for either dependent employment or freelance work.
The following documents are necessary when you apply for a “D” type visa:
- application form completed either in English or Greek
- passport (valid for at least three months after expiration of visa)
- one biometric passport photo
- medical certificate filled out by a licensed doctor
- proof of medical insurance valid in Greece
- excerpt from the penal register issued by your country of origin or current residence
The third-country national must be present in person at the Greek consulate or embassy when submitting their application, and they may also be invited for an interview. Biometric data will be taken from the applicant during their visit. All documents must be in English or Greek. is the visa is valid for three months from the date of entry.
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