According to the L.4714/2020, foreign pensioners who wish to transfer their tax residence in Greece can be taxed with 7% in Greece for any income source outside of Greece.
The foreign pensioner may apply to alternative regime till 31 of March of relevant tax year and the regime will be in force for a maximum period of 15 years.
In order to qualify for this special regime specific criteria should be met:
1) Earn non-domestic income deriving from a pension abroad
2) a pensioner should be a non-Greek tax resident for 5 out of the last 6 years
3) a pensioner should be a tax resident of a country which has an agreement in force with Greece on administrative cooperation in the field of taxation
The application for this regime should be submitted by the pensioner until 31 March of the respective tax year. Within sixty (60) days of the submission of the application, the Tax Administration examines the application and issues a decision, approving or rejecting it, depending on whether or not the conditions are met.
Every tax year, individuals will pay tax at a rate of 7% on their foreign-sourced income, with exhaustion of the tax liability for this income. The tax should be paid each tax year by the last working day of July in one instalment. The application of this regime does not affect the validity of the DTTs for taxes that have already been paid at source. The specific incentive is not extendable to family members.
Non -EU/EEA nationals who opt to apply for transferring their tax residency in Greece under that regime, they need also to apply for a residency through the options of Golden Visa program.
For more information you may address your request at tax@privelpartners.gr.
