Greece has a special tax program to encourage high net worth individuals (HNWI) to transfer their tax residence to Greece. Similar to benefits to pensioners who move their tax residence to Greece, this is a great deal when stacked up to tax systems in other countries, where income for high earners can be taxed up to 50%.
Instead of paying a percentage tax on the foreign income, Greece offers you the possibility to pay a flat rate of 100,000 euros per year on the foreign income by transferring you tax residence to Greece. You can add a family member for 20,000 Euros per year.
The flat rate is applicable for a period of 15 years.
A similar tax system is available in Italy, where taxpayers who join the “Res Non-Dom Program” are taxed with a lump sum of 100,000 Euros on foreign-sourced income, and can add a family member for an additional 25,000 Euros each.
What Are The Requirements?
The individual making the application has not been a tax resident in Greece for 7 out of the last 8 years before they transferred their tax residence to Greece.
The applicant, a relative (spouse or ascendants/ descendants in a straight line) or through a legal entity in which the applicant has the majority of shares, must invest a minimum of €500,000,00* in Greece. The investment can be made in various forms, such as real estate /movable property or shares in a legal entity in Greece.
The amount of investment needs to be at least 500,000 Euros and made within a period of 3 years from the date of application.
*The above condition is not necessary if the applicant already has a resident permit by investment in Greece or the Golden Visa.
How Does the HNWI Greek Tax System Work?
If you elect for this tax regime, the application must be filed by 31 March and supporting documents must be submitted by May.
The taxation under the regime works as follows:
You will pay a flat rate of 100,000 Euros per year, no matter the level of foreign income for the year. If a relative wants to be covered by the provisions, an additional 20,000 Euros per year must be paid.
Foreign sourced income is not subject to reporting to the tax authorities.
It should be noted that any tax paid abroad on income covered by this regime will not be offset against the tax liability according to the scheme.
The individual will also be exempt from Greek inheritance and gift (donations) tax for any foreign assets.
However, Greek-sourced income needs to be declared annually in a personal income tax return and is taxed as Greek personal income tax.
Although the regime applies for a maximum period of 15 years, it is possible to apply for revocation of the status in any tax year during the 15-year period.
For a look into other tax schemes in Greece, like taxes on retirees in Greece, see here. For more information and detailed consultations, we recommend consulting a tax professional with knowledge of these systems.
Do you Have More Questions?
If you are Dutch and have more questions about shifting your tax residence to Greece, contact Ralf Ramakers and his team at M&R Adviseurs.
Mr. Ralf Ramakers has been a tax adviser and member of the Dutch Association of Tax Advisers for 27 years. He specializes in emigration law for Dutch people moving to Greece.
Find out more about M&R Adviseurs here.
