The Greek Non-Dom tax regime has attracted significant interest from expatriates and high-net-worth individuals seeking favorable tax treatment. Moreover, retirees and entrepreneurs seeking favorable tax conditions in Europe can benefit from the regime. Introduced in 2020, it is part of Greece’s broader strategy to boost investment and attract affluent foreigners. However, with its popularity come several misconceptions that can lead to confusion or missed opportunities. Let’s debunk the most common myths and clarify the real facts about this unique regime.
Myth 1: The Non-Dom Regime Is Only for the Ultra-Wealthy
Fact:
While the regime is designed to attract high-net-worth individuals, there is no wealth threshold required to qualify. The main requirements are not having been a Greek tax resident for at least seven out of the previous eight years and committing to pay the annual flat tax. Entrepreneurs, retirees, and professionals can all benefit if they meet the criteria or they can apply for another option of the Regime. The minimum investment of €500,000 is not an elusive goal.
Myth 2: Retirees thoughts “All My Income Is Taxed at 7%”
Fact:
The flat 7% tax applies only to foreign-sourced income. Any income generated within Greece such as local employment, business profits, or Greek property income is taxed at standard Greek rates. Proper planning is needed to distinguish and report these income types correctly. Retirees should be non-Greek tax residents for 5 out of the last 6 years.
Myth 3: The Regime Lasts Forever
Fact:
The Non-Dom regime is available for a maximum of 15 consecutive years and is non-renewable. After this period, you will be subject to the standard Greek tax regime on your worldwide income.
Myth 4: I Don’t Need to File a Tax Return
Fact:
Even under the Non-Dom regime, you are required to file an annual Greek tax return declaring your worldwide income and demonstrating payment of the flat tax. Failure to comply can result in penalties or loss of Non-Dom status.
Myth 5: My Family Is Automatically Covered
Fact:
Family members can benefit from the regime, but each must be included in your application and pay an additional annual flat tax (€20,000 per member) applicable only for the Non-Dom Regime for Investors(art.5A). Inclusion is not automatic and must be planned in advance.
Myth 6: The Regime Exempts Me from All Greek Taxes
Fact:
The regime provides significant relief on foreign income and excludes foreign assets from Greek wealth and inheritance taxes. However, Greek-sourced income and certain local taxes still apply.
Myth 7: The Application Process Is Complicated and Uncertain
Fact:
With the right guidance, the application process is straightforward. Most issues arise from incomplete documentation or misunderstanding of the criteria. Working with experienced advisors ensures smooth experience and maximizes your chances of approval.
How Privel Partners Can Help
Privel Partners specializes in advising clients on the Greek Non-Dom regime. We clarify eligibility, guide you through the application, and ensure ongoing compliance so you can enjoy the regime’s benefits without worry.
Conclusion
The Greek Non-Dom regime offers substantial advantages, but understanding the facts is crucial for making informed decisions. Don’t let myths hold you back, consult with experts like Privel Partners to unlock the full potential of this tax incentive. Please feel free to address any query to our consultants at tax@privelpartners.gr.
