Greece Non-Dom Tax Regime for Expats – Tech Cyber Internet

Are you interested by saving cash in your taxes in Greece as an Expat? You’re in luck! The Greek Particular Expatriate Regime (“Non-Domiciled Tax Regime”) was launched by the Greek authorities in January 2022. This tax incentive program was designed to draw high-net-worth people and professionals to reside and work in Greece. 

Right now, we are going to discover every part it’s worthwhile to know concerning the Greece Non-Dom Tax Regime. So, let’s soar proper in!

Understanding the Greek Non-Dom Tax Regime for Expats

The Non-Dom Tax Regime in Greece affords favorable tax remedy for people who meet the eligibility standards.

Beneath this regime, expats and foreigners who qualify as “non-domiciled” in Greece can profit from the next tax benefits:

1. Buyers’ particular remedy by making use of a tax flat price.
2. Decreased Tax: as much as 50% on the earnings of staff and sole proprietors who’re altering their tax residency to Greece
3. Tax flat price on pension: Pensioners from overseas international locations obtain a flat tax price by altering their tax residency

These benefits are particularly engaging to high-income expats and foreigners in addition to their households. The particular flat price of tax is favorable when in comparison with the standard tiered tax system that leads to high-income people paying upwards of 40% on tax in lots of international locations, with no restrict.

Eligibility Standards for Greece Non-Dom Tax Regime

So now that you realize about the advantages of this tax reduction scheme, you need to know if this scheme is for, and extra importantly should you’re eligible for non-dom tax advantages in Greece. Let’s check out the standards for eligibility.

Excessive Internet-Price People and Worldwide Businesspeople

Expats conducting worldwide enterprise actions or investments might discover this scheme helpful as a result of it’s going to enable them to attenuate their tax legal responsibility in Greece on overseas earnings by funding.

Professionals and Expatriates

Professionals working in Greece, or overseas nationals who’re contemplating working in Greece can even profit from this scheme as a result of it affords them extra favorable tax remedy on their wage taxation, their earnings, and their belongings.

International Retirees

International retirees who select to retire in Greece and meet the eligibility standards can profit from decreased taxes on worldwide earnings and might also decrease their total tax burdens.

Assume chances are you’ll be eligible? The crew at Lexidy is right here to assist! Simply attain out to our specialists specializing in Greek taxes and immigration to e-book your free session at the moment!

How Can We Assist You?

Schedule a free session under and considered one of our legal professionals might be in contact.

Classes for the Particular Expatriate Regime

The Greece Non-Dom Tax Regime is damaged down into a number of classes, every with completely different tax remedies relying in your particular circumstances. The tiers or classes had been designed to cater to numerous varieties of expats and non-dom people. Here’s a breakdown of the present classes:

Class A: Particular Provisions for Buyers

This class gives tax incentives for investments in sure Greek belongings and financial actions. It was launched to draw traders to Greece.

Who’s eligible?

To be eligible for Class A, people should:

• Not be a tax resident of Greece for the earlier 7 out of 8 years earlier than transferring tax to Greece
• Switch their tax residence from a state with which an settlement on cooperation inside taxation with Greece is in power (eg. Double Taxation Treaty/Bilateral Agreements).

And

• Present proof that he/she invests him/herself or a associated particular person, or by a authorized entity by which he/she has a majority of the shares or pursuits, in:
  • Actual property
  • Enterprise
  • Movable property securities
  • Shares or pursuits
• The funding have to be not less than €500,000 and be accomplished inside 3 years from the date of submission of the applying for the particular expat remedy.

If the investor already holds a residence allow for funding functions, the second situation just isn’t obligatory.

Timeframe for Class A

The appliance have to be submitted from the start of the funding interval and as much as 3 years following the completion of the funding. The investments which might be made for the applying of the Non-Dom Tax Regime should not have been made earlier than the twelfth of December 2019.

Tax to be Imposed

Whatever the traders’ worldwide earnings, they are going to be topic to a €100,000 lump sum taxation every year. That is to be paid to the Greek state for 15 years. 

An extra €20,000 is liable for every relative keen to be thought of as receiving particular tax remedy underneath this scheme.

Class B: Pensioners

Class B is catered in direction of retirees receiving pensions from overseas. This class affords sure tax advantages for overseas pension earnings.

Who’s eligible?

To be eligible for Class B, people should:

• Not be tax residents of Greece for five of the earlier 6 years previous to the switch of their tax residence to Greece.
• Switch their tax residence from a state with which an settlement on cooperation inside taxation with Greece is in power (eg. Double Taxation Treaty/Bilateral Agreements).

Time Body for Class B

The appliance have to be submitted as much as the thirty first of March of every tax 12 months.

Tax to be Imposed

For pensions arising overseas, the pensioner must pay a flat tax price in Greece every year. This price quantities to 7% of the overall earnings that’s generated from overseas. These tax provisions are legitimate for 15 tax years.

Class C: Skilled Exercise

Lastly, Class C applies to staff who’re protecting a brand new place in an organization established in Greece and/or to sole proprietorships.

Who’s eligible?

To be eligible for Class C, people should:

• Not be tax residents of Greece for five of the earlier 6 years earlier than the switch of their tax residence to Greece.
• Switch their tax residence from a state with which an settlement on cooperation inside taxation with Greece is in power (eg. Double Taxation Treaty/Bilateral Agreements).
• Be incomes earnings by one of many following occupations:
  • Personal Workers
  • Legal professionals underneath mounted remuneration contracts
  • Paid members of the BoD
  • Directors
  • Sole proprietors
• As staff, they have to be protecting a brand new place or emptiness in an organization
• Be keen to remain in Greece for not less than 2 years.

Time Body for Class C

This tax regime lasts for as much as 7 years, granted the applicant maintains the employment contract of the exercise agreed within the utility. The interval that the applicant has to use is as follows:

• In case you began your employment earlier than the 2nd of July: You will need to submit the applying earlier than the tip of the identical 12 months for the tax scheme to be relevant on the identical 12 months;
• In case you began after the 2nd of July: You have got till the tip of the following 12 months and the tax scheme might be relevant for the following monetary 12 months.

Tax to be Imposed

You obtain a discount of tax in your earnings (wage or internet earnings from skilled exercise) for as much as 50%, relevant for 7 years.

Additionally, you will be exempt for 7 tax years from the annual goal tax expenditure, which relies on residence and passenger vehicles for personal use.

These are the standard implications and necessities for the assorted classes, nonetheless as time goes on, there could also be adjustments to particular points of the tax scheme, so you’ll want to work hand-in-hand with well-informed legal professionals and accountants to keep away from undesirable mishaps!

Learn how to Apply for Non-Dom Tax Advantages in Greece

As soon as you might be assured that you’re eligible for the Greek Non-Dom Tax Regime, chances are you’ll be questioning the right way to begin the applying course of. Now we have compiled a complete information under.

1. Perceive your eligibility

Now we have already mentioned the assorted eligibility standards so you should resolve which one is suited to your private state of affairs.

2. Collect required documentation

There are a selection of paperwork required in the course of the utility course of, these embrace:

• Proof of not being a tax resident in Greece for the required interval
• Proof of the funding plan
• Private identification paperwork together with your passport and visa
• Proof of residence
• Proof of earnings out of your earlier nation of residence

3. Apply to your Greek Tax Identification Quantity (AFM)

In case you don’t have already got your AFM, it’s time to use for one. You are able to do this by visiting your native tax workplace or Eforioa and submitting your identification paperwork and proof of residence. You’ll then must fill out the required varieties you obtain.

4. Open a Greek Financial institution Account

To facilitate the funding and different monetary transactions, you should open a checking account in Greece. To do that you’ll need:

• Your AFM
• Identification paperwork
• Proof of tackle

5. Submit your Non-Dom Tax Software

Subsequent, it’s time to submit your utility to the Greek tax authorities, or the AADE. It will embrace:

• Software type for Non-Dom standing
• Proof of the qualifying funding or plan to speculate
• Required private and monetary paperwork

6. Await Approval

After you have accomplished the earlier steps, it’s time to be affected person and permit the tax authorities time to assessment your utility, which can take a number of weeks.

7. Finalize Your Funding

In case you haven’t already accomplished your funding, now it’s time to take action throughout the specified interval (3 years). Be sure you maintain all information and receipts as proof of the funding.

There you’ve it! Now you realize the steps concerned within the utility course of for Non-Dom Tax Advantages in Greece. As all the time, we’ve got extra details about taxation in Greece on the Lexidy web site.

Key Advantages of the Greek Expat Tax Regime

The Greek Non-Dom tax regime affords a number of important advantages designed to draw high-net-worth people and traders to Greece. So, let’s discover a few of the key advantages under.

Flat Annual Tax on International-Sourced Earnings

As an alternative of paying taxes primarily based on the precise quantity of overseas earnings, non-dom people pay a flat annual tax price of €100,000. This covers all foreign-sourced earnings, whatever the whole quantity. Consequently, high-income people could make important financial savings on their overseas earnings.

Exemption from Inheritance and Present Tax on International Belongings

Non-dom residents are exempt from inheritance and present taxes on belongings situated exterior of Greece. This enables wealth to be transferred to heirs with none burden of further taxes and preserving household wealth all through generations.

Decreased Forms and Simplified Compliance

The non-dom regime simplifies tax compliance necessities for overseas earnings. This leads to decreased admin burdens and a decrease threat of tax disputes, enhancing the attraction for high-net-worth people.

Eligibility for Household Members

Relations can even profit from this regime, with an extra flat tax of €20,000 per member of the family. This ensures that your entire household can take pleasure in these tax benefits, making it simpler for rich people to relocate together with their households.

Greece’s Normal Tax vs Non-Dom Tax Regime

Now, to present you a clearer image of the advantages of the Non-Dom Tax Regime in comparison with the overall tax guidelines in Greece, let’s check out the 2 side-by-side.

Normal Tax	Non-Dom Tax Regime
Earnings Tax
Progressive tax charges starting from 9% to 44% on international earnings Expats are taxed on their worldwide earnings if they’re tax residents Complicated compliance and better administrative burden	Flat annual tax of €100,000 on foreign-sourced earnings International earnings just isn’t topic to progressive taxation charges Simplified compliance with decreased administrative necessities
Inheritance and Present Tax
Tax charges on inheritance and items vary from 1% to 40% Applies to worldwide belongings if the expat is a tax resident of Greece	Exemption from inheritance and present tax on overseas belongings No taxation on the switch of overseas belongings to heirs or recipients
Capital Positive factors Tax
Capital good points on the sale of actual property, shares, and different belongings are taxed at charges between 15% and 45% relying on the kind of asset and holding interval Topic to complicated guidelines and potential excessive tax legal responsibility	International capital good points are lined by the flat annual tax of €100,000 Vital financial savings on tax legal responsibility for capital good points generated exterior of Greece

Continuously Requested Questions About The Greece Non-Dom Tax Regime

What’s the Greek Non-Dom Tax Regime

The Greek non-dom tax regime permits eligible overseas people to pay a flat annual tax of €100,000 on all foreign-sourced earnings, with exemptions on inheritance and present taxes for overseas belongings, for as much as 10 years.How a lot tax do you pay in Greece?

The tax you pay is determined by your earnings and residency standing. Residents are topic to progressive earnings tax charges from 9% to 44% on their worldwide earnings.

Do foreigners pay tax in Greece?

Sure, foreigners who’re tax residents in Greece pay tax on their worldwide earnings. Non-residents pay tax solely on earnings sourced inside Greece. Moreover, non-domiciled people can go for a flat annual tax of €100,000 on foreign-sourced earnings.

Can members of the family additionally profit from non-dom tax standing?

Sure, members of the family can even profit from the Greek non-dom tax standing by paying an extra flat annual tax of €20,000 per member of the family.

Conclusion: How Lexidy Helps Expats Acquire Non-Dom Tax in Greece

The Greek Non-Dom Tax Regime affords an thrilling alternative for expats to take pleasure in important tax advantages, akin to a flat annual tax on overseas earnings, and exemptions on overseas belongings. This regime makes Greece a beautiful vacation spot for high-net-worth people looking for favorable tax circumstances and a top quality of life.

Are you able to make the most of these advantages? Ebook your free session with the authorized eagles at Lexidy at the moment to discover how the Greek Non-Dom Tax Regime can be just right for you and your loved ones!