No, they do not gain citizenship automatically. They only get residence.
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How do the citizenship regulations apply to future children of permanent residents in Greece?
Me and my wife want to apply for a Greek Golden Visa, but would also like to start a family soon after. If our children are born in Greece while we’re there in resident status, do they directly gain citizenship? If not, what is required for them to be eligible?
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The children who have been born in Greece and have attended a school that implements the Greek mandatory curriculum are eligible to apply for citizenship by naturalization. The process is simple and lasts around one year and a half.