Greece Offers Foreign Pensioners Tax Breaks
foreign pensioners in Greece
A law establishing a unique tax framework for foreign pensioners in Greece or retirees who move to Greece has been published in the Official Gazette.
A flat seven percent tax rate will be applied to qualifying taxpayers’ overseas income under the special tax plan, which is intended to entice foreign pensioners in Greece and retirees to apply for Greek residency.
Individuals must not have been a tax resident in Greece for at least five of the six years prior to qualifying for the scheme in order to be eligible for the flat tax. A tax cooperation agreement for administrative purposes between Greece and the individual’s home country is also required.
By September 30, 2020, foreign pensioners in Greece as applicants who want to apply for the plan for the 2020 tax year must do so. The legal provisions for the regime were published in Article 1 of Law 4714/2020, which was published in Greece’s Official Gazette on July 31, 2020.
With regard to the special taxation of employment services and commercial activity income emerging in Greece, obtained by people who transfer their tax residence to Greece, the new law L. 4758/2020 introduces revisions to the current tax code.
income from employment
• Effective for fiscal years beginning on 1.1.2021, a new provision is made available to people who transfer their tax residence to Greece and choose to be subject to a favorable tax regime with respect to their employment income for services rendered in Greece.
• To be eligible as foreign pensioner in Greece, an individual must meet the following requirements: i) Prior to the transfer of their tax residence in Greece, they were not Greek tax residents for the preceding five of the last six years before the transfer of their tax residence in Greece ii) they move from a nation with which Greece encompasses a substantial understanding concerning regulatory participation on charge issues, iii) they are giving work administrations in Greece through an business relationship as characterized by Greek law to a Greek legitimate individual on legitimate substance or to a Greek department of a outside company and iv) they announce that their remain in Greece will be for at least two years.
• Be that as it may it isn’t clarified whether the extraordinary assess administration will be appropriate in cases of alter of boss amid the seven year length of the over administration or where the work contract is ended by the manager or where the representative resigns.
• The ideal charge administration applies as it were to modern business positions.
• Regulatory rules are anticipated in arrange to clarify the basis beneath which the business position will be shown as “new” for application of this administration.
• The due date to apply for this administration is 31 July of the year amid which one commences business. The choice of the charge specialists that acknowledges or rejects the application is issued inside 60 days as of the application date.
• Given that the application for the exchange of the assess home per the above prepare is effective the person will be excluded from paying salary assess and solidarity assess on 50% of their Greek work salary.
• For all other Greek source wage, as well as for non-Greek source pay, (in spite of the fact that law 4758 does not indicate this) it is accepted that the person will need to report them in his yearly Greek individual salary assess return and will be subject to wage charge (and conceivably solidarity charge, where pertinent) agreeing to the common arrangements & rates pertinent for all neighborhood assess residents.
• Assess return recording due date is 30th June of year taking after the one amid which the application is made.
• A most extreme term of 7 a long time applies for the uncommon tax assessment administration. In the event that any of the individual conditions ceases to exist at any time, at that point the person will not be subject to the extraordinary charge administration and will be burdened for the full sum of his Greek work pay onwards.
Person consultant income
• The uncommon tax collection administration applies moreover to people who exchange their assess home in Greece with an deliberate to embrace trade action in Greece.
• The due date to apply for this regime is 31 July of the year amid which one takes up the commerce activity.
• Given that the application for the exchange of their charge home per the over prepare is fruitful the person will be excluded from paying wage charge and solidarity assess on 50% of their Greek source business activity income.
• A 7 year term is given for this extraordinary tax assessment regime.
• People who will be subject to the over positive administration will be excluded from the yearly ascribed pay emerging from keeping up a home or a private car in Greece.
• It isn’t clear however whether the over people will be moreover absolved from the considered salary inferring from consumption for acquiring a property (home) or private car etc. in Greece.
• The points of interest of the above handle will be controlled with a Common Choice of Serve of Fund and of the Representative of Autonomous Income Open Authority.
• It isn’t clear based on the wording of the modern arrangement whether the over unused charge administration may be appropriate nearby the substitute charge administration of Article 5A of the Wage Assess Code (appropriate to people who transfer their assess home to Greece and make ventures at the sum of €500,000), given that the conditions of both arrangements apply.
• In addition, it must be clarified by the Greek tax administration whether in arrange to preserve the over assess status the person is anticipated to demonstrate his deliberate to remain in Greece for the (7-year) term of the assess administration or for a shorter period of time (2-year or other).
For more data about Imigration law and foreign tax breaks in Greece follow the link below
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