As part of the largest tax regulation in the country’s history, Greece offers tax facilitations to individuals who wish to invest in the country’s economy. According to the government, the change of tax rules will attract investments in Greece, make the financial situation more advantageous for business-men and the upgrade of the budget more clear and stable.
Greece introduces an attractive income tax system for individuals who wish to transfer their tax residence in Greece.
General level of tax factors in European Union
Income tax of individuals in % (maximum percentages)
Conditions for the implication of the provisions of Article 5A L.4172/2013 and necessary documentation:
- According to par. 6 article 6 L. 4172/2013, regardless of the amount of revenues acquired abroad, the residents have the option to pay a stable yearly income tax, which amounts to 100.000 euro. The taxation in Greece becomes even more advantageous in case multiple members of the same family become tax residents of Greece: the participation of each close relative to the program will only cost 20.000 euro per year. As “relatives” area considered the spouse, the parents or the children in straight line. The individuals who have signed a civil partnership are equal to married couples. You are not obligated to mention the income abroad, or to pay separate taxes.
- The participation conditions for the program are investments in Greek Economy and recent transfer of tax residence in Greece. The special condition are as follows: the individual shall not be a tax residence of Greece for the previous seven (7) out of eight (8) years before the transfer of the tax residence. In addition, an investment in Greek economy shall initiate, amounting to at least 500.000 euro, and be completed within 3 years from the application. An investor can be either an individual or a legal entity, with its majority of shares belonging to the applicant. The investment request for a specific amount is not applied in case the applicant holds a residence permit in Greece for investment activity according to the provisions of article 16 L. 4251/2014, as currently in force.
The tax administration accepts application regarding the right to be considered as tax resident from the next fiscal year until 31st of March – the last day of the current fiscal year. The applicant receives an approval in case both necessary conditions are fulfilled. Consequently, within 30 days, the applicant shall pay the whole amount of income tax in one and only installment. During the second and next years of the special tax regime, it is necessary to deposit the tax amount to the Greek State until the last working day of July, and essentially in one installment.
The review of the condition of case a’ par. 1 of this article, viz. the tax residence abroad for seven (7) out of the eight (8) years prior to the transfer of the tax residency in Greece, is conducted based on records kept in the Tax Authority.
More specifically, in case the taxpayer applies for attribution of initial Tax Registration Number or in case he is registered in the records of tax authority as tax resident abroad for seven (7) out of eight (8) years prior to the application submission of tax residency transfer, no documentation is necessary.
In order to validate the “Relative” status, in case it does not emerge from the records of tax authorities, you shall adduce a certification or any other document from a domestic or foreign state authority.
For the review of the condition of case a’ par 1 of the present article, the provisions of joint ministerial decision by Ministers of Finance, Development and Investments are applied, which define the selectable investment categories, the period of their conservation in Greece, the validation procedure of the investment, the monitoring of the investment’s conservation and any other necessary details. In case an individual is a holder of a residence permit of “investment activity in Greece”, according to the provisions of article 16 L. 4251/2014, as long as he adduces this residence permit.
The above apply for applications in execution of the provisions of article 5Α of L. 4172/2013 which were submitted during 2020 and next years, and regarding the transfer of their tax residence for 2020 and onwards. Investments which are required for the implication of the provisions of article 5A L.4172/2013 shall be conducted from the initiation date of these provisions (viz. 12-12-2019, date of publication of L. 4646/2019).