February 3, 2023

Athens News

News in English from Greece

4,500 tax ‘immigrants’ arrive in Greece

Since June 2022, the number of workers choosing to come to Greece has quadrupled. Those who “move” to the country to officially work here have a 50 percent tax rebate on their income, as well as exemption from vehicle ownership tax for seven years.

More than 4,500 foreign taxpayers came to work in Greece. According to the Ministry of Finance, the number of employees who choose to come to Greece to work because the legal framework is now particularly favorablehas quadrupled since June 2022, with thousands of applications still pending.

However, not only employees decide to become Greek tax residents. wealthy investorsThere are 124 who came to Greece and they will have to invest a total of 62 million euros over three years. Some have opened “family businesses”, that is, family wealth management companies. One of them, of Greek origin, moved his tax residence to Greece and “opened” the first special purpose family property management company

More than 4,500 applications of individuals wishing to work in Greece have been approved by the competent authorities, and more than 1,500 are under consideration.

Under what conditions can a citizen apply to be included in the context of “tax immigrant”:

• The person has not been a Greek tax resident in the previous five years.

• Moves its tax residence out of a member country EU or the EEA, or from a country with which there is an agreement on administrative cooperation in the field of taxation with Greece.

• Provides services in Greece in the context of an employment relationship carried out either in a local legal entity or in a permanent establishment of a foreign company in Greece. The same privileges apply to individuals who transfer their tax residency to Greece in order to carry out self-employment activities in Greece.

• He declares that he will stay in Greece for at least two years.

Three years of action tax relief provisionsaimed at attracting new foreign tax resident investors, 124 individuals changed their tax status. Investments in real estate or business, or securities, or shares, or shares in companies based in Greece (based on estimates and for new branches) will amount to at least 62 million euros over three years.

Status “non-dom” was introduced into Greek tax law in December 2019 and applies to individuals who intend to become Greek tax residents by investing in the Greek economy. There are two conditions-requirements that must be met in order for a person to become a Greek tax resident:

• Must not have been tax resident in Greece for the previous 7 out of 8 years prior to transferring their tax residence to Greece.

• The person himself or through a legal entity, or one of his relatives (ie spouse, direct ancestors or descendants) has invested an amount of at least 500,000 euros in Greece.

The investment must be completed within three years from the date of application. Individuals eligible for preferential tax treatment will be taxed on their foreign source income, no matter how much, with an annual flat tax of €100,000.

As for foreign pensioners, since 2020, 335 applications from at least 21 countries have been approved, and 120 are being processed. By law, pensioners pay a tax calculated at the rate of 7% on all income received abroad each tax year.

Source link