The Greek Parliament has approved several amendments to the tax legislation. From now on it will be profitable for foreigners to spend most of the year in Greece and pay taxes there, especially for the wealthy ones. The country's authorities are counting on it. We asked the lawyer of the Grekodom Development Veroniki Tsakalidou to explain new conditions.
Recently, Greece has approved several important amendments to the tax legislation. Many people have probably heard about the temporary abolition of VAT, which is paid for the purchase on the primary realty market. Thanks to this initiative, you can now save about 20% of the cost of new real estate. Alternative taxation conditions were also adopted for foreign pensioners and wealthy individuals who want to live in Greece.
Preferential Taxes for Foreign Pensioners
The Greek Parliament recently passed a bill (Article 5A of Law 4172/2013) that offers foreign pensioners who wish to move to Greece an additional preferential tax status. Starting this year, pensioners from any country can become tax residents of Greece and pay only 7% of the fixed income tax. Income from sources all over the world is taken into account as well, whether it is pensions, dividends, royalties or rental income.
Conditions
The pensioner applicant is required to:
not being a tax resident of Greece for the previous five out of six years prior to the change of tax residence to the Greek one;
transfer the tax residence from a state with which Greece has a valid agreement on administrative cooperation in the field of taxation;
The tax is paid on July 1 of each year, and applications are submitted before March 31 of each year. Within 60 days of submitting the application, the tax office reviews it and makes a decision whether to approve or reject it. The applicant can change their tax residence to any other one without additional conditions. The maximum duration of the program is 15 years.
Why foreigners need it
Retirees who join this tax scheme will pay income tax on their global income at the rate of just 7%.
The 7% rate is fixed and does not depend on the size of the pension, so it is especially attractive for foreigners with high income.
Why Greece needs it
The new law attracts foreign pensioners to Greece, providing significant tax benefits compared to other countries. For example, Portugal, Italy, Cyprus and Malta may lose income from pensioners who prefer Greece, because they do not offer such favorable tax regimes.
Those who join this scheme may spend at least 183 days in Greece and purchase or lease real estate and thereby stimulate the country's economy.
Examples of residential properties in Greece:
1 200 000 €
Maisonette in Athens, Greece
205 sq.m532
Residence
Duplex for sale with an area of 205 sq.m in Athens. The duplex is located on 2 levels. The ninth floor consists of 2 bedrooms, a living room, one kitchen, one bathroom, one bathroom. The attic consists of one bedroom, living room, one bathroom. The duplex apartment has a corner location. The windows offer a magnificent view of the sea, the...
GREKODOM DEVELOPMENT A.E
120 000 €
House in Chalkidiki, Greece
140 sq.m531
For sale a 2-storey cottage with an area of 140 sq.m on the Sithonia peninsula, Halkidiki region. The ground floor consists of one bedroom, a living room, one pantry. The first floor consists of 2 bedrooms, a living room with a kitchen, one bathroom. The windows offer views of the mountains, the city. The property has a fireplace, air...
GREKODOM DEVELOPMENT A.E
700 000 €
Villa in Sithonia, Greece
200 sq.m431
Residence
For sale 2-storey villa with an area of 200 sq.m on the Sithonia peninsula, Halkidiki region. The first floor consists of a living room, one kitchen, one bathroom. The second floor consists of 3 bedrooms, one bathroom. The property has a fireplace, air conditioning, heating. The property is sold furnished. The property includes a parking space,...
GREKODOM DEVELOPMENT A.E
650 000 €
House in Corfu, Greece
250 sq.m
Residence
We offer you a cottage on the island of Corfu. The cottage was built in the 19th century, has a total area of 250 sq.m., plus an attic floor and consists of 3 levels. The house is adjacent to a plot of 150 sq.m. The exterior of the house was renovated.The cottage needs interior renovation. Within walking distance of the entire infrastructure of...
GREKODOM DEVELOPMENT A.E
270 000 €
House in Sithonia, Greece
96 sq.m322
Residence
For sale a 3-storey cottage with an area of 96 sq.m on the Kassandra peninsula, Halkidiki region. The ground floor consists of one storage room. The first floor consists of a living room with a kitchen, one shower room. The second floor consists of 2 bedrooms, one shower room. The windows offer a magnificent view of the sea, the mountains, the...
GREKODOM DEVELOPMENT A.E
865 000 €
House in Athens, Greece
369 sq.m85
Residence
For sale 3-storey house of 369rs in Attica. The ground floor consists of living room, one kitchen, one shower WC. The first floor consists of 4 bedrooms, living room with kitchen, one bathroom, one shower WC. The second floor consists of 4 bedrooms, living room with kitchen, one bathroom, one shower WC. A magnificent view of the sea, the...
Mercury Group
1 000 000 €
House on Dodecanese, Greece
558 sq.m1
Residence
For sale a Villa 558 sq.m in the suburb town of Ialyssos. The Villa is divided into 2 floors and basement. The basement has an area of 48 sq.m, ground floor of 282 sq.m., and first floor 228 sq.m. There are 6 parking spaces. The property can also be divided into 2 villas. 1) basement 48 sq.m, 1st floor 200 sq.m, 2nd floor 150 sq.m and garden...
Mercury Group
320 000 €
Flat in Athens, Greece
100 sq.m1
Residence
For sale apartment of 100rs in Athens. The apartment is situated on the floor. Flat has interior layout. There are solar panels for water heating, a fireplace and air conditioning. The owners will be leaving the furniture with the sale.
Mercury Group
1 500 000 €
House in Athens, Greece
1300 sq.m1075
Residence
For sale 2-storey villa of 1300rs in Attica. The ground floor consists of 5 bedrooms, living room with kitchen, 3 bathrooms. The first floor consists of 2 bedrooms, 2 living rooms, 2 kitchens, 2 bathrooms. A view of the mountain opens up from the windows. There is a fireplace, air conditioning and heating. The owners will be leaving the...
Mercury Group
580 000 €
Townhouse in Athens, Greece
240 sq.m643
Residence
For sale maisonette of 240rs in Attica. The maisonette has 3 levels. The ground floor consists of one bedroom, living room with kitchen, one bathroom. The first floor consists of living room with kitchen, one WC. The second floor consists of 3 bedrooms, 2 bathrooms. A magnificent view of the sea, the mountain opens up from the windows. There is...
Mercury Group
90 000 €
Maisonette in Pieria, Greece
170 sq.m741
For sale a townhouse with an area of 170 sq.m on the Olympic Riviera. The townhouse is located on 2 levels. The first floor consists of 2 bedrooms, a living room with a kitchen, a living room, 2 bathrooms. The second floor consists of 2 bedrooms, a living room, one kitchen, one bathroom. The windows offer views of the mountains, the city. The...
GREKODOM DEVELOPMENT A.E
150 000 €
House in Lasithi, Greece
60 sq.m321
For sale 1-storey cottage with an area of 60 sq.m on the island of Crete. The cottage consists of 2 bedrooms, a living room with a kitchen, one bathroom. The windows offer views of the city. The property is sold furnished. The property includes a garden.
GREKODOM DEVELOPMENT A.E
300 000 €
House in Kassandra, Greece
100 sq.m431
Residence
For sale 1-storey cottage with an area of 100 sq.m on the Kassandra peninsula, Halkidiki region. The cottage consists of 3 bedrooms, a living room, one kitchen, one shower room, one bathroom. The property has a fireplace. The property is sold furnished. The property includes a garden.
GREKODOM DEVELOPMENT A.E
117 000 €
Flat in Athens, Greece
51 sq.m211
Apartment for sale with an area of 51 sq.m in Athens. The apartment is located on the fifth floor and consists of one bedroom, living room, one kitchen, one bathroom. The windows offer mountain views. The facility has heating. The apartment is located in the Kalifeya district.
GREKODOM DEVELOPMENT A.E
240 000 €
Flat in Athens, Greece
77 sq.m321
Apartment for sale with an area of 77 sq.m in Athens. The apartment is located on the fifth floor and consists of 2 bedrooms, a living room with a kitchen, one bathroom. The facility has solar panels for water heating, air conditioning, awnings, heating. There is an elevator in the building. The property includes a parking space. The apartment...
GREKODOM DEVELOPMENT A.E
470 000 €
Flat in Athens, Greece
93 sq.m211
Residence
For sale apartment of 93rs in Athens. The apartment is situated on the 1st floor. consists of one bedroom, living room, one kitchen, one shower WC, one dressing room. Flat has front layout. There is air conditioning, awnings and heating. Building has a lift. There is an alarm system installed. Extras included with the property: parking space....
Mercury Group
139 000 €
Maisonette in Chania, Greece
67 sq.m322
A 67 sq.m townhouse for sale on the island of Crete is under construction. The townhouse is located on 2 levels. The ground floor consists of a living room with a kitchen, one kitchen, one shower room. The second floor consists of 2 bedrooms, one shower room. The windows overlook the mountains and the forest. The facility has solar panels for...
GREKODOM DEVELOPMENT A.E
290 000 €
House in Chalkidiki, Greece
120 sq.m432
Remote TransactionRental property
For sale a 3-storey furnished house of 120m² on a plot of 150 m².
It consists of 3 bedrooms, living room, kitchen, 2 bathrooms, 1 WC and verandas with beautiful sea view.
Also, there is: diesel heating, fireplace, electric appliances, storeroom, garden.
The distance till the sandy beach is 1,1 km.
El Greko
86 000 €
Flat in Chalkidiki, Greece
34 sq.m11
An apartment of 34 sq.m is for sale on the Kassandra peninsula, Halkidiki region under construction. The apartment is located on the ground floor and consists of a living room with a kitchen, one shower room. There is no elevator in the building. The owners have a communal swimming pool on site.
GREKODOM DEVELOPMENT A.E
290 000 €
Flat in Thessaloniki, Greece
90 sq.m321
Residence
An apartment of 90 sq.m is for sale in the suburbs of Thessaloniki under construction. The apartment is located on the fourth floor and consists of 2 bedrooms, a living room with a kitchen, one shower room. The object has solar panels for heating water, heating. There is an elevator in the building. The property has a roof garden. The property...
Another legislative initiative is aimed at attracting wealthy investors to the country. They have asked to change their tax residency to Greek and replace all income taxes from sources around the world with a single fixed payment of €100,000 per year.
Conditions
This tax regime is intended for individuals who:
have not been tax residents of Greece for the previous 7 out of 8 years prior to the change of their tax residence,
have invested (as an individual or a legal entity in which they have a controlling interest) €500,000 in the last three years prior to submitting the application. You can invest in real estate, business or private property, in shares or shares of legal entities based in Greece.
Instead of the second condition you can submit a Greek residence permit for investors, according to the Article 16 of law 4251/2014.
Residence or tax residence in Greece for at least 183 days, regardless of whether they are continuous or cumulative over the course of a year.
The application for change of residence and alternative taxation is submitted to the tax administration before March 31 of the financial year. A decision is made within 60 days from the date of submission and an act on the administrative assessment of the tax for the first year is issued in relation to the taxpayer and each of his relatives. The tax must be paid annually in one payment before the last business day of July. You can use the “flat” taxation program for 15 years.
Why should foreigners participate
The "flat" tax regime may apply to the applicant's relatives, if an additional tax of €20,000 per family member is paid.
The tax is fixed, i.e. it does not depend on the amount of the applicant's global income. Fixed taxation is more beneficial for people with high incomes than tax rates.
Why Greece needs it
The ability to apply fixed taxation attracts foreign investors to Greece, providing significant benefits compared to other countries.
Those who join this scheme will spend at least 183 days in our country, and will invest at least €500,000 in the Greek economy. They may purchase or rent real estate.
