Ministerial Decision N.46834/2023, as published in Government Gazette 3393/B/19-5-2023, involves crucial regulations governing investment criteria and eligibility parameters pursuant to Article 5A of Law 4172/2013. This decision delineates several investment avenues and their associated criteria for individuals aiming to obtain tax residency in Greece through strategic investments.
Investment Categories:
1. Real Estate Investment: Individuals are required to exhibit a distinctive investment of at least €500,000 in one or more of the following categories:
• Acquisition of real estate property in Greece. Eligible investments do not include acquisition through or by relatives or acquisition through legal entities where the shares belong to relatives of the Investor.
• Construction of a real estate property.
2. Investment via Participation in Legal Entities in Greece: Eligible investments may concern the capital contribution for the establishment of a Greek company or the acquisition of new shares by participating in capital increase or the purchase of existing shares from other shareholders or partners. Legal entities (acquired or established) must employ at least four (4) people, one year after the completion of the investment and for the entire period of the taxpayer’s submission to the special regime under the provisions of the article 5A of Law 4172/2013.
3. Purchase of Greek Government Bonds: Eligible investments involve acquiring Greek government bonds with a remaining duration of at least three years, at the moment of the acquisition, through a credit institution established in Greece. The amount of the investment is equal to the price paid for the purchase of the bonds, as this can be proved through the certificate of the credit institution.
4. Capital Contribution for Participation in Alternative Investment Funds (AIFs): Eligible investments include contributing capital to participate in Alternative Investment Funds established in Greece and supervised by the Hellenic Capital Market Commission. The amount of the investment must not be less than €500,000 during the entire period of holding the investment.
5. Purchase of Securities traded on Regulated Markets: Eligible investments include purchasing of stocks, bonds, or other securities traded on regulated markets in Greece, subject to certain conditions.
General Conditions and Requirements:
- The investment must be completed within three (3) years from the date of submission of the application for the transfer of the tax residence subject to the provisions of Article 5A of Law 4172/2013.
- In cases of real estate acquisitions or investments in existing legal entities, the seller cannot be a relative of the investor.
- The Competent Authority for verifying the completion of the investment is the Directorate of Foreign Direct Investments (DFID), of the Ministry of Development and Investments.
- Annual monitoring of investments in Greece is mandatory, with taxpayers obliged to furnish requisite documentation. The investment is considered to have been completed, as long as the entire physical object has been realized, all its costs have been paid and its registration where the law requires such registration has been completed.
- Discontinuation of investment or its depreciation below the stipulated minimum threshold renders the taxpayer subject to general taxation rules.
These clarifications came into effect on May 19, 2023, and provide guidelines for individuals seeking tax residency in Greece through investment activities. Please see our previous article here.
For more information, please feel free to express your request at tax@privelpartners.gr
