Non dom in Greece

Non dom in Greece and tax transfer benefits in the framework of the recovery of the Greek economy and the competitiveness among countries in a globalized environment, the Greek State has introduced a new tool in its tax arsenal aimed at attracting foreign capital to Greece by creating a favorable tax environment for those who wish to invest in Greece and establish it as the center of their economic activities.

This measure targets high-net-worth individuals and aims to increase public revenue, bring capital into Greece through the creation of investment units or participation in investment schemes or companies, create new jobs, stimulate the real estate market, and, more broadly, invigorate the domestic market.

What is Greece’s proposal for high-net-worth individuals?

The measure involves an alternative taxation method on foreign income for individuals who transfer their tax residence to Greece. This approach is similar to the Non-Dom (Non-Domiciled Resident) system implemented by other countries.

The provisions allow these individuals to be taxed in Greece on their foreign income by paying an annual flat tax of 100,000 euros.

Who can qualify for Non dom in Greece favorable regime and under what conditions?

An individual may be eligible for the new regime if:

a) They were not a tax resident of Greece for seven of the previous eight years prior to transferring their tax residence to Greece, and

b) They demonstrate that they invest, directly or indirectly, in real estate, businesses, securities, stocks, or shares in entities based in Greece. The minimum investment amount is 500,000 euros, which must be completed within three years from the date of application for the transfer of tax residence to Greece.

The investment requirement does not apply to individuals who have obtained and retain a residence permit for investment activity in Greece (Golden Visa).

Additionally, it is provided that the individual may request to extend the application of the measure, paying an additional 20,000 euros in tax annually for each family member who will join them in Greece.

Another significant incentive is that those who qualify under the new regime are exempt from taxation on gifts, inheritances, and parental donations.

The measure allows for a maximum duration of 15 years, with no option for extension.

What is the application process?

1.  Submission of the individual’s application by March 31 of the relevant tax year, stating the country of the individual’s last tax residence up to the time of application.
2.  The application is approved or rejected within an exclusive 60-day period by the Greek tax authorities.
3.  Notification of the tax authorities of the country where the individual declared their tax residence, as per the provisions on international administrative cooperation.
4.  Payment of the annual income tax on foreign income within 30 days of the application’s approval.

What are the benefits of the new Non dom in Greece regime?

The measure targets high-net-worth individuals who have assets and business activities worldwide. Since there is no requirement for physical presence in Greece, individuals may reside anywhere (taking into account any restrictions from other countries regarding permanent residency) as long as they choose Greece as their tax domicile. Greece opts to tax global income in an alternative way, intending to derive only the benefits from the individual’s residence in the country.

To enjoy these tax benefits, an individual must pay an annual tax of 100,000 euros to the Greek tax authorities. Given that there is no progressive tax scale and the tax amount is fixed, the greater the wealth and the income derived from it, the greater the benefit.

Additionally, the requirement that applicants should not have been taxed in Greece in recent years (in Greece, in the last seven years) indicates that the measure is aimed at individuals with income from international activities who choose the country offering this regime for their residence, achieving maximum tax benefit.

The payment of this tax fulfills all tax obligations for foreign income for individuals subject to this regime, but they are still subject to tax on their Greek-sourced income according to general income tax code provisions.

Countries that already implement similar Non-Dom programs (e.g., the UK, Cyprus, Malta, Ireland, Italy, Portugal) have attracted thousands of investors with a corresponding increase in their tax revenue.

By attracting both foreign and expatriate investors through this investment plan, Greece could also see a significant boost in business competitiveness, attracting high-level professionals who may relocate from abroad to Greece to staff new investments. This was a challenge in the recent past. Thus, the plan could create incentives to combat brain drain and strengthen the economy in general.

Why should someone transfer their tax residence and invest in as a Non dom in Greece?

Greece offers a suitable environment for high-net-worth individuals. The comparative advantages for the investor and their family members are particularly significant, as they are exempt from gift, inheritance, and parental donation taxes, while the regime also does not impose a minimum stay requirement in the country. Thus, a protective framework is ensured not only for the investor but also for their family.

Unlike other countries with similar regimes, Greece, having established its credibility on an international level after a decade of economic contraction, provides an ideal setting for investment activities. Beyond this legislative framework, Greece has also introduced attractive tax reforms for investors (e.g., dividend tax reduction to 5%).

What does this mean for you?

International tax law is complex. However, the questions are clear:

•   What will be the potential annual tax benefit for an individual qualifying for the new regime?
•   What impact will the individual’s decision to join the new regime have on existing structures?
•   How effective will the new regime be in protecting global income and assets?

How can we assist Non dom in Greece?

As the best high network individual lawyers in Greece according to Lawzana https://lawzana.com/lawyer/economou-economou-law-office we are aware that High-net-worth individuals face significant challenges in protecting their assets due to their worldwide distribution, which results in complex tax issues.

Contact the best non dom lawyers of Economou & Economou at (+30) 2103603824 , send us an email econlaw@live.com or fill out our contact form https://www.econlaw.gr/contact/ and as the best investment visa immigration and expats lawyers in Greece specialized for international clients and high-net-worth individuals who wish to invest in Greece as non doms, in collaboration with the best tax advisors network, will help and advise you on a rational and effective plan to join the new alternative taxation regime, maximizing your benefit and adequately protecting your assets.