Greece is seeking to attract hedge funds, major investors and international entrepreneurs, creating a new image for Athens, led by the flagship Ellinikon development, which aims to transform the capital’s waterfront, The Times reports.

Across a vast area in Athens’ southern suburbs, where the old airport operated for six decades until 2001, the Riviera Tower rises 200 meters into the sky with 50 floors, transforming the city’s skyline. The skyscraper, which could be in Dubai, forms part of the major seaside Ellinikon project, which, when completed almost a decade from now, will include 9,000 homes, hotels, offices, retail spaces, medical facilities, schools and a marina.

The first residents are expected to move in next summer.

“It adds yet another piece to the largest urban regeneration project currently under way in Europe, marking the triumph of tomorrow over yesterday,” Prime Minister Kyriakos Mitsotakis said last week at the inauguration of a sports park in the area.

“It is becoming a reality after many years of restrictions and inertia,” he added.

From the debt crisis to a new investment landscape

Ellinikon, on the Athenian Riviera, has evolved into a symbol of Greece’s remarkable transformation over the past decade: from the “sick man of Europe” to one of the fastest-growing economies in the European Union.

The improvement in public finances, with fiscal surpluses and a continuous reduction in debt, has changed the country’s image in international markets.

At the same time, Athens is using a range of targeted tax incentives to attract financial-sector executives, investors and major companies, seeking to follow the path taken by cities such as Milan and even Dubai.

The move by Chris Rokos and hedge fund interest

Reports that billionaire hedge fund manager Chris Rokos is planning to transfer his tax base to Greece have been a significant indication of the new interest.

Rokos, who is considered one of Britain’s biggest taxpayers and has a fortune of around $4 billion, according to the Bloomberg Billionaires Index, is reportedly considering establishing a presence for his company, Rokos Capital Management (RCM), in Athens.

The development followed news that Millennium Management, a US hedge fund with more than $90 billion in assets under management, is also preparing to establish a presence in the Greek capital.

Minister for National Economy and Finance Kyriakos Pierrakakis is expected to visit London, where his presence has fuelled speculation that Greece is seeking to attract more high-net-worth individuals, particularly from the hedge fund sector.

The tax incentives bringing wealthy people to Greece

Greece has introduced special tax regimes to attract investors and executives. Under the new rules, investment professionals who transfer their tax residence to Greece can be taxed at just 5% on carried interest — the share of profits they receive as performance-based remuneration.

To qualify for the regime, certain conditions must be met, including that the Greek corporate entity associated with the activity must incur expenditure of at least €3 million a year in Greece.

At the same time, since 2020, foreign pensioners who transfer their tax residence to Greece have been able to benefit from a flat 7% tax rate on their total foreign-source income for up to 15 years.

The Golden Visa program also remains in force, providing residence permits to non-EU citizens who invest between €250,000 and €800,000 in property, depending on the area and type of investment.

Ellinikon as a new base for international buyers

The residential market at Ellinikon reflects growing international interest. According to Andreas Kampanellas, commercial director of the development’s residential division, around 50% of buyers are Greek, 20% are from the Greek diaspora and 30% are international buyers.

British buyers, often families with children, mainly come from the financial sector or are looking for a place where they can work remotely.

“There are people who relocate for tax reasons. They initially consider Spain, Portugal or Italy and then Greece. The first thing that comes up is Ellinikon,” he said.

Athens more attractive than ever after the crisis

The image of the capital has changed significantly compared with the previous decade.

Ian Lesser, a Greece expert at the German Marshall Fund who has been visiting the country since the 1980s, noted that the crisis had left a visible mark on the city. “There were empty shops, abandoned spaces and a general sense of decline,” he said.

However, he added, growth has accelerated in recent years, with specific sectors of the economy performing very strongly.

Henley & Partners, which specialises in residence and citizenship planning for wealthy clients, says interest in moving to Greece has increased significantly, making the country the second most popular choice.

A significant part of the increase comes from Turkish citizens, who account for almost one-third of Golden Visa applications.

“Greece is now increasingly competing for the attention of the same internationally mobile families who are considering destinations such as Milan and Dubai,” said Mario Rafael, a senior executive at Henley & Partners.