Greece checks taxpayers who declare residence abroad but live in the country

Greece’s tax authority, the Independent Directorate of State Revenue (AADE), intends to audit taxpayers who, although they have declared their permanent residence outside Greece, live and work in the country.

Most of them have chosen a country with low tax rates while avoiding Greece’s estimated income and checking their bank deposits.

Auditors of the Independent Directorate of State Revenue (AADE) are looking for those who usually live in Greece but declare themselves tax residents abroad to avoid taxes and audits. They pay especially close attention to service sector workers who can work simply with a laptop from anywhere, the so-called “digital nomads.”

In its circular to auditors, AADE clarified the main conditions under which a taxpayer can be considered tax resident abroad: he must live abroad for at least 183 days per yeary, be able to prove this by submitting the appropriate supporting documents, and entrust your tax representation to an authorized person, i.e. tax representative.

According to the law, persons who transfer their tax residence abroad are exempt from paying the estimated cost of living tax (“tekmiriya”) in respect of property located in Greece. In other words, they are not covered by tekmiriya for homes, cars and recreational boats. Also, tekmiriya for the acquisition of assets (real estate, vehicles, etc.) is not applied to them, provided that they do not receive real income in Greece. If they receive income in Greece, for example from rent or interest on deposits, then they are subject to the deemed income regime.

On the other hand, many Greeks who left during the years of the financial crisis and bailout and became tax residents abroad are returning on preferential terms. They make the most of the provisions whereby those (Greeks or foreigners) who move to Greece from a tax point of view receive a 50% discount on the taxation of their income, provided that they are employed in new jobs or start activities as self-employed professionals.

PS They don’t want to seriously check and punish the “digital nomads” whom they wholeheartedly invited to Greece last year? After all, if “YES”, then people will start to run away.

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