Our Law Office has specialization in Tax Law. As Legal Tax Experts, we provide Legal Advice and Representation to help our clients manage their tax affairs and deal with tax authorities, as well as understand their tax obligations. We offer solutions in organizing your income, adhere to the laws and meet your obligations, while focusing on optimal tax structures, to serve our clients’ specialized needs, locally and internationally.
Since 2020, the Greek Government has adopted an alternative way of taxing income, for non-dom individuals, who transfer their tax residence to Greece. Furthermore, the continued efforts of the Greek Government to expand and enhance its network of Double Taxation Agreements with other countries and update existing Tax Treaties, create important opportunities for taxpayers that are interested in transferring their tax residence in Greece, as well as businesses in forming alternative optimal international structures.
Greece has entered into multiple important Double Taxation Agreements (DTA) in order to enable taxpayers to avoid double taxation, resolve tax issues and benefit from alternative taxing schemes.
On Income and Capital, Greece has DTA with the following countries:
Egypt, Estonia, Finland, France, Georgia, Germany, Hungary, Iceland, India, Ireland, Israel, Italy, Korea, Kuwait, Latvia, Lithuania, Luxembourg, Morocco, Albania, Armenia, Austria, Azerbaijan, Belgium, Bosnia-Herzegovina, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Mexico, Malta, Moldavia, Netherlands, Norway, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, San Marino, Serbia, Slovakia, Slovenia, South Africa, Sweden, Spain, Switzerland, Turkey, Tunisia, Ukraine, United Arab Emirates, United Kingdom, United States and Uzbekistan.
On Estates, Inheritances and Gifts Greece has Double Taxation Agreements with the following countries: U.S.A., Spain, Italy and Germany.
The New Provisions of the Income Tax Code in Greece provide important tax incentives for tax residents abroad, who transfer their tax residence in Greece, specifically, for Individuals Investing in Greece, Pensioners, Salaried Employees and Entrepreneurs.
Pensioners that transfer their tax residence to Greece can benefit by the single tax of 7% for their entire international income, which means only 7% tax of the pensions and income that they gain from a foreign country.
The basic criteria that must be met for applying to the Alternative Tax Regime for Pensioners, are:
• The Individual has not been a Greek Tax Resident for the last five years before their tax residence transfer in Greece.
• Tax residents must transfer their tax residence from a country that has a bilateral administrative tax agreement for the avoidance of double taxation with Greece.
The deadline for the foreign pensioners to apply is till 31 of March of the relevant tax year and the regime will be in force for a maximum period of 15 years. We can consult you further and handle the whole process of transferring your tax residence in Greece under the alternative tax regimes.
The new Greek tax provisions provide 50% tax deduction to foreign tax residents, who transfer their tax residency to Greece.
Benefits and incentives of the new tax regime:
1. 7-year exemption from paying the special solidarity contribution, 50% tax deduction on income tax (on earnings in Greece).
2. Employees should be hired in new job positions in Greece.
3. Exemption from the annual objective expenses for housing and passenger cars for private use.
The above exemptions and provisions are applicable, under the following conditions:
1. The applicant was not a tax resident of Greece for the previous 5 out of 6 years prior to the transfer of his tax residence to Greece.
2. Transfers his tax residence from an EU or EEA Member State or from a country with which Greece has a bilateral administrative agreement on tax matters.
3. Provides services in Greece in the context of an employment relationship, which is exercised either in a domestic legal entity or legal entity or in a permanent establishment of a foreign company in Greece or the applicant is a self-employed freelancer and opens a new personal business in Greece.
4. Declares that he will remain in Greece for at least two years.
The new provisions of the Greek Income Tax Code Law, introduces a flat tax rate of €100,000 for any amount of annual WORLDWIDE INCOME for a period of 15 years for individuals who transfer their tax residence in Greece. The Greek Non Dom Tax regime provides for the tax resident in Greece with the right to pay a total amount of 100,000 € per year for any income arising outside the country, irrespective of the sum amount.
The duration of the Greek Tax Regime is 15 fiscal years maximum, on the condition that you meet the requirements set by the Law. The benefits of the Greek Tax Regime for individuals who transfer their tax residence in Greece is not applicable for legal entities.
The above provisions apply, under the following conditions:
1. For the past seven out of eight years, prior to the transfer of tax residence in Greece, the applicant shouldn’t have been a Greek Tax Resident. 2. Proof of Investment in Real Estate of EUR 500,000, or investment in businesses, or transferable securities or shares in legal entities based in Greece, either themselves or their relatives (i.e. spouses, children, parents), or through a legal entity in which they hold the majority of the shares.
Note: Any tax paid abroad on income covered by the Greek Alternative Taxation regime will not be offset against the tax liability of the above persons in Greece.