The Anti-Money Laundering Authority has launched a thorough investigation into the opaque world of the Golden Visa program, following information from Chinese authorities to its head, Honorary Prosecutor of the Supreme Court, Charalambos Vourliotis. The investigation targets criminal networks involved in real estate purchases in Greece, aiming to secure residency under the Golden Visa scheme.
Recently, two properties purchased by Chinese nationals in Attica were seized by the Authority after evidence surfaced linking the owners to a pyramid scheme in China centered around real estate in Greece.
Fraud Scheme Reports indicate that a network has defrauded numerous unsuspecting Chinese individuals who dreamed of securing visas for Greece and, by extension, Europe. They paid deposits for properties that were never delivered. Chinese authorities even reported suicides among the victims. The Greek authorities have been asked to investigate, as it is suspected that the criminal network has connections in Greece.
In light of this, the Anti-Money Laundering Authority plans to expand its investigation into real estate purchases under the Golden Visa program. It has come to light that, until now, there has been no scrutiny of the source of funds used to acquire properties.
Many of these properties are purchased at inflated prices due to intermediaries, while most remain vacant, exacerbating the severe housing crisis in Athens.
The Scam The scheme is orchestrated by real estate companies, often involving at least one Chinese partner. These companies collaborate with law firms, Chinese agencies, and other intermediaries. They operate in property sales, earning hefty commissions from buyers seeking a Golden Visa in Greece. They target areas like Piraeus and western suburbs, where the Golden Visa threshold was once low at €250,000 (now raised to €800,000).
The intermediaries convince property sellers to agree to higher declared prices than what they actually receive. For example, they buy properties for €100,000 but sell them to Chinese buyers at more than double the value, meeting the €250,000 threshold for the Golden Visa. The properties are recorded as being sold for €250,000, but the actual value is only €100,000.
Illegal Profits Taxes are paid on the declared value of €250,000, while the difference between the sale price and the recorded amount (€150,000) is returned by the property sellers and split among the intermediaries. The property seller receives their money, the Chinese buyer gets their residency permit, and the intermediaries pocket a large commission. However, the investigations reveal that things don’t always go smoothly, with the Chinese buyers often bearing the brunt of the fraud.
Despite restrictions, the Golden Visa program continues to attract interest. Between 2018 and July 2024, 33,544 Golden Visa applications were submitted (initial and renewals), of which 21,086 were approved. Chinese citizens lead the requests for permanent residency, with 7,128 permits (56%). They are followed by Turkish citizens with 970 permits (7.6%), Lebanese with 694 permits (5.5%), and the UK with 468 permits (3.7%).
Currently, 81% of applications under review are for initial Golden Visa grants, while only 19% are for renewals, with the majority coming from China and Turkey.
