Golden Visa and Real Estate Inheritance: Ensuring Smooth Succession Planning in Greece

Reading time: 15 minutes

Table of Contents

• Introduction
• Understanding the Greek Golden Visa Program
• Real Estate Inheritance Laws in Greece
• Succession Planning for Golden Visa Holders
• Tax Implications of Real Estate Inheritance in Greece
• Legal Considerations for Non-EU Heirs
• The Role of Professional Advisors
• Case Studies: Successful Inheritance Planning
• Future Outlook: Potential Changes in Greek Inheritance Laws
• Conclusion
• FAQs

Introduction

As Greece continues to attract international investors through its Golden Visa program, the intersection of real estate investment and inheritance planning has become increasingly important. This comprehensive guide explores the intricacies of succession planning for Golden Visa holders in Greece, with a focus on real estate inheritance laws, tax implications, and strategies for ensuring a smooth transfer of assets to heirs.

The allure of owning property in Greece, particularly villas in kalamata and other picturesque locations, has contributed to the popularity of the Golden Visa program. However, investors must also consider the long-term implications of their investments, including how these assets will be passed on to future generations.

Understanding the Greek Golden Visa Program

The Greek Golden Visa program, launched in 2013, offers non-EU nationals the opportunity to obtain residency permits through qualifying investments, with real estate being the most popular option. To qualify, investors must purchase property worth at least €250,000, a threshold that has remained attractive compared to similar programs in other European countries.

Key Benefits of the Greek Golden Visa

• Residency rights for the investor and family members
• Visa-free travel within the Schengen Area
• No minimum stay requirements to maintain the visa
• Potential path to citizenship after seven years of residency

These benefits have made the program particularly appealing to investors from countries such as China, Russia, and Middle Eastern nations, who seek both investment opportunities and enhanced global mobility.

Real Estate Inheritance Laws in Greece

Greek inheritance laws are based on the principle of universal succession, meaning that heirs inherit both assets and liabilities. The law recognizes both testate succession (inheritance through a will) and intestate succession (inheritance without a will).

Key Aspects of Greek Inheritance Law

• Forced heirship rules protect certain family members
• Spouses have inheritance rights, which vary based on the presence of other heirs
• Non-Greek wills may be recognized under certain conditions
• EU Succession Regulation (Brussels IV) allows choice of law in cross-border cases

For Golden Visa holders, understanding these laws is crucial to ensure their real estate investments are transferred according to their wishes.

Succession Planning for Golden Visa Holders

Effective succession planning for Golden Visa holders requires a multifaceted approach that considers both Greek and international legal frameworks. Here are key strategies to consider:

1. Drafting a Comprehensive Will

Creating a will that is valid under Greek law is essential. This document should clearly outline the distribution of assets, including real estate holdings acquired through the Golden Visa program. It’s advisable to have the will drafted in both Greek and the investor’s native language to avoid any misinterpretation.

2. Utilizing International Estate Planning Tools

For investors with global assets, consider using tools such as trusts or foundations, which may offer more flexibility in asset distribution. However, it’s crucial to ensure these structures are recognized and effective under Greek law.

3. Considering Lifetime Gifts

Strategic gifting of property during the investor’s lifetime can be an effective way to transfer assets while potentially reducing inheritance tax burdens. However, this must be carefully planned to comply with both Greek tax laws and Golden Visa requirements.

4. Maintaining Golden Visa Status for Heirs

Investors should explore options for maintaining Golden Visa status for their heirs, which may involve structuring investments to meet ongoing program requirements.

Tax Implications of Real Estate Inheritance in Greece

Understanding the tax landscape is crucial for effective succession planning. Greek inheritance tax rates vary based on the relationship between the deceased and the heir, as well as the value of the inherited assets.

Inheritance Tax Rates in Greece

It’s important to note that these rates are subject to change, and professional tax advice should be sought for the most current information.

Legal Considerations for Non-EU Heirs

Non-EU heirs inheriting property in Greece face additional considerations, particularly if they wish to maintain Golden Visa benefits:

• Residency status: Heirs may need to apply for their own Golden Visa if they wish to reside in Greece
• Property ownership restrictions: Some areas may have limitations on non-EU ownership
• Currency controls: Transferring inherited assets out of Greece may be subject to regulations

Careful planning and legal advice can help navigate these challenges and ensure a smooth inheritance process for non-EU heirs.

The Role of Professional Advisors

Given the complexity of cross-border inheritance and the specific requirements of the Golden Visa program, engaging professional advisors is crucial. Key professionals to consult include:

• Greek real estate lawyers specializing in international property transactions
• Tax advisors with expertise in Greek and international tax law
• Estate planning specialists familiar with both Greek and the investor’s home country laws
• Golden Visa consultants to ensure ongoing compliance with program requirements

These professionals can work together to create a comprehensive succession plan that addresses all legal, tax, and practical considerations.

Case Studies: Successful Inheritance Planning

To illustrate effective succession planning strategies, consider the following case studies:

Case Study 1: Chinese Investor with Multiple Heirs

A Chinese investor with a €500,000 property portfolio in Greece structured his investments to allow each of his three children to inherit properties that independently met the Golden Visa threshold. This approach ensured that all heirs could maintain residency rights post-inheritance.

Case Study 2: Russian Entrepreneur Using a Trust Structure

A Russian entrepreneur used an international trust to hold her Greek real estate investments. This structure provided flexibility in asset distribution and potential tax benefits while ensuring compliance with both Greek and Russian legal requirements.

Case Study 3: Middle Eastern Family Business Succession

A Middle Eastern family incorporated their Greek real estate holdings into their broader business succession plan, using a combination of corporate structures and individual ownership to optimize tax efficiency and ensure business continuity across generations.

Future Outlook: Potential Changes in Greek Inheritance Laws

As Greece continues to attract international investment, there is ongoing discussion about potential changes to inheritance laws and the Golden Visa program. Investors should stay informed about:

• Possible adjustments to inheritance tax rates and thresholds
• Changes to Golden Visa investment requirements
• Evolving EU regulations on cross-border succession

Maintaining a flexible succession plan that can adapt to regulatory changes is advisable.

Conclusion

Effective succession planning for Golden Visa holders in Greece requires a nuanced understanding of both Greek inheritance laws and international estate planning principles. By carefully considering legal, tax, and practical implications, investors can ensure their real estate assets are smoothly transferred to their chosen heirs while potentially maintaining valuable residency benefits.

The key to success lies in proactive planning, engaging expert advisors, and staying informed about regulatory changes. As the Greek real estate market continues to attract international investors, the importance of robust succession planning cannot be overstated. By addressing these considerations early and thoroughly, investors can protect their legacy and provide lasting benefits to future generations.

FAQs

1. Can non-EU heirs inherit Golden Visa properties without losing residency rights?

Non-EU heirs can potentially maintain residency rights by applying for their own Golden Visa, provided the inherited property meets the minimum investment threshold. However, they may need to go through a new application process.

2. How often should Golden Visa holders review their succession plans?

It’s advisable to review succession plans at least every 2-3 years or whenever there are significant changes in personal circumstances, Greek laws, or international regulations affecting cross-border inheritance.

3. Are there any restrictions on selling inherited Golden Visa properties?

While there are generally no restrictions on selling inherited properties, doing so may affect the heir’s ability to maintain Golden Visa status. It’s important to consult with a Golden Visa specialist before making any decisions to sell.

4. Can a Greek will override forced heirship rules?

While a Greek will can express the testator’s wishes, it cannot completely override forced heirship rules. However, careful planning and the use of international estate planning tools may provide some flexibility within the legal framework.

5. How does the EU Succession Regulation (Brussels IV) affect Golden Visa holders?

Brussels IV allows individuals to choose the law of their nationality to govern their entire estate, potentially providing more flexibility in succession planning. However, this choice must be explicitly made in a will or separate declaration to be effective.

Article reviewed by Annice Schmeler, Head of Investment Properties | Commercial Real Estate Strategist | Delivering 20%+ Annual ROI for Clients, on March 18, 2025