Greek Tax Incentive program

Greek Tax Incentive program

In an era of global tax competition, many countries aim to attract not just businesses but also high-net-worth individuals and skilled professionals by offering favorable tax incentives. These incentives benefit host nations by increasing tax revenue while encouraging spending, investment, and economic activity within their borders. Countries such as the UK, Portugal, Italy, and Cyprus have implemented similar measures, with Greece joining the ranks through Law 4646/2019, establishing itself as a competitive destination for individuals seeking tax advantages.

Greek Tax Incentive program under Greek Law

Greece’s tax regime is structured into three key programs under the Income Tax Code—5A, 5B, and 5C—to cater to different groups, including high-net-worth individuals, foreign retirees, and professionals relocating to Greece.1. 5A: Tax Benefits for High-Net-Worth Individuals (HNWIs)

This scheme is tailored for individuals who have not been tax residents in Greece for at least seven years. It offers a flat annual tax of €100,000 on global income, regardless of its amount. However, to qualify, applicants must invest at least €500,000 in Greece, which could include real estate, government bonds, or equity in Greek companies. The program allows beneficiaries to enjoy the tax advantages for up to 15 years. It is important to note that any income generated within Greece remains subject to standard tax rates.
2. 5B: Tax Relief for Foreign Retirees
Specifically targeting pensioners who have lived abroad for a minimum of five years, this program provides a tax rate of just 7% on foreign-sourced income for up to 15 years. Retirees transferring their tax residency to Greece can benefit from this attractive regime while experiencing the country’s exceptional lifestyle. Similar to other schemes, income from Greek sources is taxed at regular rates.
3. 5C: Tax Reductions for Professionals and Employees
Designed to encourage employment and entrepreneurship, this scheme offers a 50% tax exemption on income from salaried or self-employed work in Greece for a maximum of seven years. Eligibility requires applicants to have been non-residents of Greece for the previous five years, with an additional condition that the job they secure in Greece must be a “new” position.

Target Audience and Common Profiles

Greek tax Incentive program primarily attract three groups:• Greeks Abroad: Many Greeks living overseas, especially those with strong ties to their homeland, take advantage of these programs to return to Greece, particularly under the 5A and 5C schemes. • Foreign Investors and Retirees: Citizens from countries such as the U.S., Canada, France, and Switzerland are drawn to Greece for its tax benefits, Mediterranean lifestyle, and investment opportunities. • Professionals in Innovation and Technology: Executives and workers in sectors like tech startups and family offices, including expatriate Greeks returning for “brain gain” initiatives, represent a growing segment benefiting from the 5C scheme.

Application Procedure and Challenges

Applying for these tax benefits involves a systematic process:1. Documentation Submission: Applicants must prove their foreign residency status, profession, or pensioner eligibility through supporting documents. 2. Administrative Review: Authorities assess the application and issue a decision to either approve or reject the request based on compliance with the scheme’s conditions.

While the application process is straightforward, challenges exist. The 5C scheme requires more complex documentation, while 5A often faces delays due to investment completion requirements.

Why Choose Economou & Economou law office for Tax Incentive Applications?

Navigating Greece’s tax incentive programs can be a complex process, requiring expertise in tax law and administrative procedures. At Economou & Economou law office, we pride ourselves on being the best law office for tax law in Greece according to Lawzana, renowned for delivering fast, reliable, and effective legal services. Our team has extensive experience assisting international clients and Greek expatriates with tax optimization and relocation strategies.

Whether you are a high-net-worth individual, a retiree, or a professional seeking to benefit from Greece’s tax schemes, our Athens-based law office will guide you through every step of the process, ensuring a smooth and successful application. Contact us today via email at econlaw@live.com by phone at (+30) 2103603824 or you can fill out our contact form to discuss immediately your needs.

With Economou & Economou law office, relocating to Greece has never been easier. Let us help you unlock the benefits of these world-class tax incentives!