Greece Plans to Offer Golden Visas to Start-Up Investors

Encouraged by huge response to The Residency by Investment Program of Greece, also known as the Golden Visa Program, Greece is planning to expand it to start-up investors who will eligible for a five-year residence permit if they invest $275,957 in the local start-ups, which could be converted into citizenship after seven years.

The government has made changed to the Residency by Investment Program of Greece which came into effect on September 1. However, the minimum amount required for investments in start-ups in some parts of the country, such as Thessaloniki, Mykonos and Santorini, as well as islands with a population of over 3,100, are between $551915 and $883,064.

Launched in 2013, the Golden Visa Program made a significant contribution to Greece’s economy and the government received 4,734 applications for in the first seven months of the year bringing more than $1.32 billion into the country’s economy. In fact, the government has around 30,000 applications still pending which have to be processed for a review.

Greek Prime Minister Kyriakos Mitsotakis made the announcement during the opening of the 88^th International Thessaloniki Fair on Monday where he outlined several initiatives to boost the economy and support low-income Greeks, including increases in pensions and civil servant salaries, as well as reductions in social security contributions.

The move also aligns with the Prime Minister’s plans to attract foreign investment to develop economy besides increase the capital infusion into the Greek tech sector.

The Greek start-up ecosystem became popular during the financial crisis a decade ago and it has been in focus since then. Greece has emerged as a hub for start-ups in various sectors such as AI, transportation, energy, and tourism, attracting investors from all over the world.

“I am only bringing suggestions for useful and effective options instead of a bag of frivolous benefits, emphasising a series of measures to increase wages, address housing challenges and support families,” the Prime Minister said.

Over 180,000 Active Ventures

According to estimates, there are 170 active start-ups for one million people in Greece, which makes more than 180,000 active ventures and the investors mostly prefer RetailTech, AI, and AgriTech to support the start-up ecosystem.

A report entitled “Start-ups in Greece 2023-2024: Venture Financing Report,” which was released by Found.ation and EIT Digital, over 70 companies were funded with more than $535.36 million and only one-fifth of them were founded by women in 2023.

There are 13 active Greek venture capital firms focusing mainly on start-ups, with a total capital of $596.07 million. They invested in 62 start-ups in 2023, covering approximately 85% of the total deal volume.

In 2023, there was a significant participation of 33% from investment schemes based in America in Greek start-ups. Overall, 78% of investments came from abroad. Angel investors participated in 42% of investment rounds, a notably impressive figure, the report noted.

Eleven new acquisitions were recorded in the year, some exceeding $110.38 million in value. The US-based technology giants, including Hewlett Packard Enterprise, Cisco, Dell, and Intel, completed successful acquisitions in 2023, indicating a growing interest in Greek start-ups, the report said.

co-founder of Found.ation and partner at Velocity.Partners Dimitris Kalavros-Gousiou said that this quietude should not be mistaken for stagnation. Rather, it’s the precursor to a significant shift we anticipate in 2024, as these funds begin actively deploying capital in the market.

“Contrary to the domestic slowdown, international and domestic venture capital (VC) and private equity (PE) firms have actively engaged in funding Greece-originated enterprises. This trend is not just a silver lining but a robust testament to the maturity and resilience of our venture market,” he added.