The Ministry's decision on the changes to the legal framework of Law 4778/2021, which introduced the possibility of managing the financial flows and family assets of individuals by family asset management companies, the so-called "family offices", is in the final stage.
Specifically, under the new Law, individuals with tax residence in Greece may manage their assets, investments and cash flows held, either directly or indirectly - from legal persons and entities - through "family offices", which will be established for the sole purpose of providing support to individuals in the management of the aforementioned resources and will maintain a non-profit character. This legislative provision has attracted the interest of a large number of families, both domestic and foreign, who are awaiting the Ministerial Decision in order to proceed with the necessary procedures for the establishment of the wealth management companies in Greece. According to the latest statistics, more than 2,000 individuals have already applied to become tax residents in Greece.
In addition, the Ministry is heading towards the adoption of a radical change in the implementation of the new Law, in order to allow the establishment of “family offices” not only to tax residents of Greece, but also to individuals who maintain their tax domicile abroad. Besides, in other countries such as Monaco and Singapore, a more extensive legal framework has been implemented in order to allow foreign tax residents to set up such companies.
At the same time, the Ministry's decision is expected to complete the framework for the establishment and operation of family offices, following Law 4778/2021, the framework of which is expected to bring investment and economic benefits to our country. Specifically, the minimum annual expenditure of each company is set at 1 million euros, the workforce of these companies will consist of at least five people for the first year of operation, while the possibility of outsourcing their work as an aid to achieve their purpose is also provided for, thus enhancing the employment of further workforce.
Finally, it is worth noting that the establishment of the family offices will be combined with the implementation of particularly favourable tax measures, such as the exemption of companies from income tax and from the special solidarity tax of 50% of the income they will earn in Greece for a period of seven years.
For more information on the operation of family offices and on the provision of our services for their establishment, please contact our experienced team of lawyers at info@georgakilawfirm.com.