Greece is a beautiful country with a rich history, stunning landscapes, and delicious cuisine. But did you know that it also offers tax incentives for individuals who transfer their tax residence to Greece? That's right! The Greek government has introduced a series of measures to attract foreign investors and professionals, including a generous tax break of up to 50%.
So, what exactly are the tax incentives for individuals who transfer their tax residence to Greece? Here's a breakdown:
- Tax Break for 7 Years
Individuals who transfer their tax residence to Greece can benefit from a 50% tax break on their worldwide income for the first 7 years. This means that only 50% of their income will be subject to Greek taxation, while the remaining 50% will be exempt.
- Tax Incentives for Investors
In addition to the tax break, Greece also offers tax incentives for individuals who invest in certain sectors of the economy. For example, investors who purchase Greek real estate or invest in renewable energy projects can benefit from reduced tax rates, tax exemptions, and other incentives.
- Access to EU Markets
By becoming a tax resident in Greece, individuals can gain access to the European Union (EU) markets. This means that they can take advantage of the EU's free movement of goods, services, capital, and people, which can have a significant impact on their business operations.
- Low Cost of Living
Compared to other European countries, Greece has a relatively low cost of living. This means that individuals who become tax residents in Greece can enjoy a high standard of living at a lower cost than in other countries.
Furthermore, according to an article of the Greek website “moneyreview.gr” published in January 2023, the transfer of tax residence to Greece is becoming increasingly popular among employees, self-employed persons, pensioners, and investors, as it is accompanied by a favorable tax regime.
To date, 4.500 people, most of whom left the country during the debt crisis, have returned, and are employed or self-employed in Greece. In fact, 1.500 new applications are under consideration. Under the special scheme to which they are subject, they will pay 50% of their tax liability for the next seven years.
According to data from the Ministry of Finance, the number of employees who have decided to come to Greece, as the legislative framework is now particularly favorable, has quadrupled since June 2022, while there are thousands of pending applications.
Moreover, high-net-worth investors who have come to Greece amount to 124 and within the next three (3) years, will have completed their investments worth of a total value of 62 million euros. Not to mention that several people are transferring their tax residence to Greece and have initiated the establishment of Special Purpose Family Asset Management Companies. In fact, an investor, has already transferred his tax residence to Greece and
managed to incorporate the first Special Purpose Family Asset Management Company (in Greek “EESDOP”).
When it comes to foreign pensioners, 335 applications from at least 21 countries have been approved since 2020 and 120 are currently being processed. Under the law, foreign pensioners pay tax every tax year at a rate of 7% on all income earned abroad.
In alignment with the above, it is clear that Greece offers a range of tax incentives for individuals who transfer their tax residence to the country. So, if you're considering a move to
Greece, make sure to take advantage of these incentives and reap the benefits of your new home!