In recent years, Greece has introduced a series of favourable tax regimes aimed at attracting foreign individuals, professionals and entrepreneurs who wish to transfer their tax residence to Greece. Among these incentives, Article 5C of the Greek Income Tax Code (Law 4172/2013) provides a significant tax advantage for eligible individuals who derive income from employment or individual business
activity in Greece.
The objective of the regime is to encourage the relocation of highly qualified professionals, executives, entrepreneurs and self-employed individuals, while simultaneously strengthening investment and economic activity in Greece.
Unlike the alternative tax regime for high-net-worth individuals - non-Dom regime- which concerns foreign-source income, Article 5C is designed primarily for employees, executives, professionals and entrepreneurs who will actively work and conduct business activity in Greece.
Key Points & Criteria
Eligibility for the regime is subject to the following conditions:
- The individual must not have been a Greek tax resident for five (5) out of the six (6) years
preceding the transfer of their tax residence to Greece. - The transfer of tax residence must take place from an EU or EEA Member State, or from a
jurisdiction that has an administrative cooperation agreement in tax matters in force with Greece.
The individual must undertake to remain in Greece for a minimum period of two (2) years. - Application Procedure and Deadlines: The application for inclusion in Article 5C is lodged with
the competent Authority, which examines whether the statutory requirements are fulfilled and
subsequently issues the relevant approval or rejection decision. The timing of the application
depends on the date on which the individual commences employment or their individual business
activity in Greece.
Advantages
- For a period of seven (7) consecutive tax years, 50% of the income derived from employment or
individual business activity carried out in Greece is exempt from income tax. The remaining 50% is
taxed under the general Greek income tax rules. - Exemption from Objective Expenses: Individuals benefiting from Article 5C are also exempt, for
seven tax years, from the annual deemed income calculation relating to their main and secondary
residences, and privately owned passenger vehicles.
Greece's competitive tax regime for foreign employees/entrepreneurs offers more than favourable tax treatment. It provides a clear and regulated legal framework for individuals wishing to transfer their tax residence to Greece, while reinforcing Greece’s attractiveness as a destination for long-term relocation within the European Union.
At Georgaki & Partners Law Firm we advise international clients throughout every stage of their relocation to Greece. We provide comprehensive legal and tax assistance to foreign employees, executives, professionals, entrepreneurs and self-employed individuals, seeking to benefit from this strategic tax regime. From assessing your eligibility and managing the transfer of your tax residence, to ensuring full, ongoing compliance with the Greek legal framework, our team ensures a seamless transition. Given that the regime operates under strict statutory deadlines and documentary requirements, careful tax and legal planning before relocating is highly recommended.
Contact Georgaki & Partners Law Firm today to strategically plan your move to Greece with
confidence.