The new provisions of the Tax Law 4646/2019 of the Hellenic Republic which entered into force in the beginning of March of 2020, establish the perfect conditions for high-income individuals to transfer their tax domicile to Greece.
Due to this new “non-domicile” regime introduced by the Hellenic government , physical persons who transfer their tax residency to Greece shall receive significant tax deductions on the totality of their worldwide income generated outside the territory of the Hellenic Republic. Consequently, the applicable tax rate shall be equal to € 100,000 per year, subject to an investment of € 500,000 in the national real estate or business sector which must be finalized within a period of three years, from the date of submission of the application.
The maximum duration of affiliation in this program corresponds to a timeframe of 15 years. The physical person becomes a tax resident of Greece and is subject to taxes on foreign-sourced income by paying a flat tax rate of one hundred thousand euros (€ 100,000) per each fiscal year, without the obligation to justify the origins of that income. Members of the applicant’s family (parents, non-dependent adult children, etc.) can be included within the same application and shall consequently be subject to a flat tax imposition of € 20,000 per person, regardless of their income.
This innovation of the Tax System introduced by the new Law 4646/2019 aspires to an intensive growth of the national economy through the introduction of capital to the country.
According to recent economic studies, the Greek government’s proposal is starting to generate significant interest from British citizens who wish to keep their tax residency in an EU member state that offers favorable tax conditions. In fact, investments into the Greek economy through sectors such as the tourism industry, the maritime domaine and manufacturing can generate a return of approximately 5-10% per year, numbers that are hard to beat in other economies, under the present financial conditions.
1. The applicant must not have been a tax resident of the Hellenic Republic during the past 7 out of the last 8 years.
2. The applicant must possess proof of the investment in the Hellenic Republic. The investment may be made by the applicant or by a member of their family or through a legal entity where the applicant holds the majority of the shares.
3. The income generated in Greece is taxed in accordance with the general provisions, that is, the income tax scale.
4. The tax is paid in a single installment and is not subject to any type of compensation with other tax obligations or credit balances.
The present article is for informational purposes only and does not, under any circumstances, constitute legal advice. For further information on the subject, please contact our firm and one of our attorneys shall be glad to assist you.
Advocate – Legal Consultant
Arsen Theofanidis LLC