4,500 tax "immigrants" arrived
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Over 4,500 employees, 124 investors and 335 pensioners – Magnet the new low tax regime
More than 4,500 workers left abroad to work in Greece , several of whom are Greeks who had left during the years of the memorandums.
According to the data of the Ministry of Finance , the number of workers who decided to come to Greece to work, as the legislative framework is now particularly favorable, has quadrupled since June 2022, while there are also thousands of pending applications. However, it is not only the employees who decide to become tax residents of Greece. The wealthy investors who have come to Greece amount to 124 and who will have to make a total investment of 62 million euros within three years. Several have started and are preparing family offices, i.e. family wealth management companies. In fact, one of them, of Greek origin, has transferred his tax residence to Greece and "opened" the first oneSpecial Purpose Family Property Management Company (EESDOP) .
As far as pensioners are concerned, the pandemic seems to have played a decisive role, as new applications have "frozen".
Employees
More than 4,500 applications of natural persons wishing to work in Greece have been approved by the competent services, while more than 1,500 are pending.
These are mainly Greeks who left the country during the years of the memorandums and are returning to Greece in a new job, while they are taxed at a very low tax rate. The interest in being subject to the new provisions is increased, given that they provide for exemption from income tax and from the special solidarity levy for natural persons who move their tax residence and will be employed in new jobs or start an activity as self-employed of 50% of the income they will earn in Greece for seven years. According to the decision, those who "move" to Greece for tax purposes will have a 50% discount from the taxation of their incomes, as well as exemption from the presumption of possession and use of a vehicle.
The conditions
The relevant decision defines, after all, under what conditions someone can request to be included in this context:
• He was not a tax resident of Greece in the previous five of the six years before the transfer of his tax residence to Greece.
Many Greeks who left during the great economic crisis are returning.
• Transfers his tax residence from an EU member state. or the EEA or from a state with which an administrative cooperation agreement in the field of taxation is in force with Greece.
• Provides services in Greece in the context of an employment relationship, exercised either in a local legal person or legal entity or in a permanent establishment of a foreign company in Greece. The same privileges apply and are applied accordingly for natural persons who transfer their tax residence to Greece, in order to carry out an individual business activity in Greece.
• He declares that he will remain in Greece for at least two years.
Investors
In the three years of implementation of the regulation on tax incentives aimed at attracting new foreign tax residents - investors, 124 natural persons have transferred their tax domicile. Investments in real estate or businesses or securities or shares or shares in companies based in Greece (based on estimates and for new affiliations) will amount to at least 62 million euros within three years.
The "non-dom" status was introduced into Greek tax legislation in December 2019 and concerns natural persons who intend to become Greek tax residents by investing in Greece. There are two conditions – requirements that must be met in order for a person to become a tax resident of Greece:
• Should not have been a Greek tax resident for the previous 7 of the 8 years prior to the transfer of his tax residence to Greece and
• The person himself or through a legal entity or one of his relatives (ie spouse, direct ascendants or descendants) to invest an amount of at least 500,000 euros in Greece. The investment may concern real estate, businesses, securities or shares in legal entities registered in Greece. The investment should be completed within three years of the submission of the application. Individuals subject to this beneficial tax regime will be taxed on their income from foreign sources, regardless of its amount, with an annual flat tax of 100,000 euros.
Pensioners
As far as foreign pensioners are concerned, 335 applications from at least 21 countries have been approved since 2020 and 120 are being processed. By law, pensioners pay a tax calculated at a rate of 7% on all income earned abroad each tax year.
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