According to Themistocles Bakas, President of the Panhellenic Network E-Real Estates, οhe British are targeting the Greek golden visa and in the new tax law.
Ο Combination the impact of the Covid-19 pandemic and the end of the transitional period for the UK's withdrawal from the EU, has led more than half of UK investors to worry about the economy.
At the same time, the lack of progress in the negotiations between London and Brussels on the Brexit poses further challenges. Until recently, the most prevalent scenario was exit without an agreement, with uncertainty being a disincentive for investors to plan for the future.
A few days ago, the American investment bank JPMorgan increased by 10% the chances of achieving commercial Brexit deal, which reported that the odds have increased to 70% from 60%.
In his statements the British Prime Minister Boris Johnson said that trade talks with the European Union «look difficult» and that there is a difference that needs to be bridged, but the door remains open for further negotiations.
The fear that the Brexit will have high impact on financial services businesses and the demand for office space is already there.
At the same time, there are many foreign investors (Chinese, Arabs, etc.), mainly multimillionaires, who have targeted the real estate of Great Britain, both for the investment returns - their investment positioning in the metropolis of real estate, the educational system for their children, but, at the same time, in the acquisition of Visa Investor Tier 1, which is granted to persons who invest at least 2 million pounds in the country for their free movement to EU and Schengen countries.
The profile of investors in the UK, who have obtained free movement through Visa Investor Tier 1, cannot be correlated with the profile of foreign investors investing in our country.
The largest percentage of «golden» visa investors in our country, do not invest mainly with the aim of investment - the investment opportunity, but the a residence permit and freedom of movement in the EU, with the aim of both expanding their business in the EU and having their children attend European universities.
Sure, the Greece may aim to attract high quality foreign investors through its investment opportunities and its many advantages, but if we look at the relevant studies on the key factors that attract the «high» caste of investors, the decision to invest is not related to the amount of investment, but to the general infrastructure of the country in question.
It is no coincidence that Chinese investors who applied for a Tier 1 Investor Visa in the UK in 2020 recorded an increase of 32% over the previous year, according to the Home Office. The main reason they chose England was that they value the UK's education system and want to settle permanently for their children's education.
Meanwhile, high net worth investors from Brazil, Russia, India, China and South Africa accounted for 64% of the total demand for gold visas in 2019, double the amount in 2015.
We should not assume that the investors who have chosen the UK so far because of Brexit will immediately choose other markets. We believe that there will be a combination of moves - investments by interested investors targeting the UK property market. We believe that investors wishing to reside and invest in the UK will invest in parallel in EU countries that require small amounts of investment to hold a golden visa at the same time.
We believe that Greece will mainly approach British citizens who wish to hold a «golden» visa for free movement to EU and Schengen countries.
There are quite a few British people who operate professionally in many EU countries and are now looking for a solution, because the data after Brexit will change radically.
Already the interest in obtaining the Greek «golden» visa from British nationals has increased, but the dominance of demand is concentrated in Cyprus, Spain and Portugal. According to reports in the English press, there was an increase in interest in Greece by 30% and in Cyprus by 50% in the last few weeks.
In addition, many British citizens are looking for countries with lower income tax rates. According to a study by UHY (Urbach Hacker Young International Limited) in 2019, tax rates on wages in the UK are higher than the European average. The rate in the UK is 46.1%, while the European average is 44.2%.
Lately, several real estate companies in England have been publishing articles informing Britons about Brexit solutions, tax and investment opportunities, in conjunction with the golden visa.
Particular reference is made to our country's new tax law, under which foreign pensioners will be subject to a tax rate of 7% on all their income for a period of ten years. The basic requirement is that foreign pensioners will have to transfer their tax residence to Greece and stay in the country for more than six months per year.
At this point in time, the interest shown by the British is a very important development. Let's not forget that the programme Golden Visa has been almost frozen by the pandemic and could resume with even more momentum than in the recent past, adding another important source country for investors.
Ultimately, UK property buyers have been among the most active in the Greek property market for several years. Now, they will have an additional incentive to invest in Greece.
Alexandra Pitsouni
