Greece offers new incentives for relocation.

High-net-worth individuals have already taken action quickly when the don-domicile tax scheme was introduced earlier in 2020. Greece as a tax haven is not reserved to the upper class, retirees and executives, employees and other entrepreneurs also have their shares as well.

L.4646/2019

Greek Non-Domicile Tax Residence Scheme

Alternative taxation of income arising outside Greece for individuals who transfer their tax residence in Greece

• Exhaustion of tax liability for any foreign-sourced income by paying an annual flat tax of €100.000, regardless  of the amount of income earned abroad  and with no obligation to declare any  foreign income in Greece.
• exemption from any inheritance or donation tax, as regards any property abroad.

L.4714/2020

Retirees re-domiciling into Greece

Foreign pensioners and alternative taxation of their foreign source income

• A 7% flat tax applies on foreign source pensions and any other foreign source income
• Effective tax rate is subject to application of Double Taxation Conventions (DTCs) between Greece and relevant source states. Under most DTCs between Greece and OECD states  taxing rights on pensions are in principle  attributed to the state of tax residence (save  for pensions related to governmental  functions).
• An exemption from special solidarity contribution applies.

L.4758/2020        

Transfer of tax residence of individuals in Greece (“Digital Nomads”)

Exemption from paying income tax and solidarity tax on 50% of their Greek employment income

FAMILY OFFICES

The Greek Parliament ratified a new law introducing a special tax regime to attract private family offices that caters to ultra-affluent clients with lower taxes.

The new legislation allows family wealth management firms with at least five employees and an annual expenditure of minimum €1m ($1.2m) to knock off staff costs and operating expenses from their tax bill.

• Such offices will be taxed using the ‘cost plus method’ (CPM) under the OECD’s transfer pricing guidelines for tax purposes.
• The tax authorities will undertake a 7% profit margin on incurred expenditures.
• The corporate income tax rate in Greece is currently at 24%. With the new law, the effective tax rate on family wealth management firms will stand at 1.68%.