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New incentives for the attraction of foreign tax residents

The new bill for the attraction of foreign and expatriate workers and businessmen is expected within February and aims to strengthen the human capital of the Greek economy.

The most important novelties provided for, under the new regime, include:

-The subsumption of employees, professionals or one-man businesses, in preferential taxation of 50% of their income, for 7 consecutive years, if they choose Greece as their tax residence, upon declaration that they will stay in Greece for at least two years and provided that they were tax residents of another country for 7 out of the last 8 years prior to the application. The application for transfer of tax residence is expected to be submitted to the tax authority by July 31, 2021.

-Tax subsidy of 50% range for employees of foreign companies of the Compulsory Law 89/1967, which provide certain specific services and enjoy a special way of taxation.

-Additional incentives for wealthy individuals and foreign pensioners to choose Greece as their tax residence. Specifically, a favorable tax regime is provided for these individuals under the condition that they invest at least 500,000 euros in Greece as well as the possibility of extension of this regime to a relative, by paying an additional tax of 20,000 euros per person. Upon payment of this fixed tax, the taxpayer will have no other tax liability for the income he earns abroad and will be also exempted from inheritance or gift tax regarding real estate located abroad.

This plan will be an excellent opportunity for Greeks who are tax residents abroad, to transfer part or all of their activity back to their home country, benefiting now from these new favorable tax provisions. At the same time, it is expected that there will be a strong demand from the United Kingdom, as, due to Brexit, many British companies, along with their executives and employees, are looking for a new more favorable tax residence outside the United Kingdom.

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