Are you retired and want to live in an ideal place to live with minimal taxes?
To attract foreign individuals to Greece, a new special scheme has come into force for pensioners settling in the country. It provides significant tax incentives and competes with similar schemes in other countries.
The measure applies to taxpayers who have a pension abroad and is detailed in article 5b of Law 4172/2013, as well as in the relevant circular A.1217/2020. Well with these, a beneficiary of pension income, according to article 12 of Law 4172/2013, arising abroad, who transfers his tax residence to Greece, is subject to an alternative tax treatment.
The special scheme in 5 questions - answers:
1. What are the conditions for membership?
- Pension from another country
- Tax residence for 5 of the last 6 years in a state with which Greece has an administrative cooperation agreement in force
2. How will I benefit from the special scheme?
- 7% horizontal tax on pension and all other income outside Greece
- Exemption from the special solidarity contribution
- Full implementation of agreements between Greece and other source countries
- Credit for tax paid abroad
- Issue of Tax Residence Certificate
- You can also (if the conditions are met) be included in the preferential tax regime "brain regain" (50% deduction on taxable income from wages and business activity).
3. What is the maximum duration? Can I withdraw earlier?
- 15 years with no possibility of renewal
- Possibility to withdraw at any time
- Automatic termination of the scheme if the tax is not paid for any year.
4. Will I have difficulty with the process? Are there any supporting documents required?
- Simple and short procedure, no administrative costs: application by 31/3 of each year - approval by the tax authority in 60 days - automatic notification of the tax authority of the country of origin
- Supporting documents: passport, proof of previous tax residence (if there is a tax residence in Greece), proof of foreign pension
5. Why should I choose Greece and not another Mediterranean country with a similar regime?
- Because Greece is an attractive and safe country within the Eurozone, with a wonderful climate, the highest sunshine in Europe and beautiful islands for every taste and lifestyle choice
- Because Greece is a top tourist destination in Europe and a global cradle of history and culture
- Because there is no requirement to invest in the country in order to join the scheme
- Because there is no restriction on your citizenship - no minimum residence requirement in the country
- Because you can settle anywhere in the country, from the capital to the most remote island, without any restriction
- Because it offers a very low tax rate (7%) and the longest duration (15 years) compared to the regime offered by other countries
In any case, we recommend that all interested parties cooperate with specialized tax offices for this purpose.
For the purchase, the reconstruction of a house in Greece, by foreigners, or Greeks abroad, some Greek banks offer loans up to 65% of the value of the property with quite attractive terms.
For more information, please contact us.