Non- Dom Regime Services Greece

What Privel Offers

The Non-domicile (Non-Dom) tax regime in Greece has become increasingly attractive, particularly for high-net-worth individuals (HNWIs), retirees, and entrepreneurs seeking favorable tax conditions in Europe. Introduced in 2020, it is part of Greece’s broader strategy to boost investment and attract affluent foreigners.

Taxpayers who wish to apply under the favorable provisions of Non-Dom tax status will benefit from many tax provisions either abroad or in Greece.

Non-Dom Regime for Investors 5A

Under certain requirements and meeting specific eligibility criteria an investor can pay a lump-sum tax of €100,000 per tax year for all foreign income and by adding an extra flat tax of €20,000 per person, investors may also opt to include family members.

Moreover, in case the individuals who have opted for the non-dom regime, earn taxable income that arises in Greece, this will be taxed in accordance with the general provisions of the Income Tax Code. In addition, inheritance or gift tax does not apply for assets outside Greece – with the flexibility to maintain this tax advantage for up to 15 years. A key element is, that it is not required by investors to declare any income earned abroad.

A minimum investment of €500,000 is required, either in real estate, bonds, securities or shares in Greek legal entities and this investment should have been completed within three years from the application. It is noted also that the applicant must not have been a tax resident of Greece for the previous seven (7) out of eight (8) years before the transfer of their tax residence to Greece.

Key Features of Greece’s Non-Dom Regime

• Flat Tax on Foreign Income:Non-doms in Greece can pay a flat annual tax of €100,000 on worldwide income. This tax covers all foreign income, regardless of its amount or source.

• Duration:The regime is available for up to 15 years after the application.

• Inheritance and Gift Tax Benefits:Non-doms are exempt from inheritance and gift taxes on foreign assets.

• Family Benefits:An additional €20,000 flat tax applies per dependent family member who joins the regime.

Strategic Advantages

• Cost of Living:Compared to Western European countries, Greece offers a lower cost of living and high quality of life.

• EU Member State:Non-Doms can enjoy the benefits of residing in an EU country with access to European markets, healthcare, and infrastructure.

In a nutshell, the specialNon-Dom tax regime dictates that the investor will pay afixed tax per tax year, regardless of the total foreign-sourced income.

Non-dom Regime for Pensioners 5B

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 Non-dom Regime for Pensioners 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.

Non Dom Regime for Individuals 5C

The provisions of Article 5C of the Income Tax Code complete the framework for attracting non-resident individuals to transfer their tax residence to Greece, through the establishment of a special taxation method for their income from employment and business activity arising in the country.

In order to qualify for this special regime specific criteria should be met:

1. The applicant should not have been a Greek tax resident for the past 5 out of 6 years before theNon-Dom Tax regimeapplication in Greece.
2. The applicant should provide services in Greece in the context of employment of par.2 of art 12 which is exercised either in a domestic legal entity or in a permanent establishment of a foreign company in Greece.
3. The applicant shall remain in Greece for at least two (2) years.

The respective application needs to be submitted at the beginning of the applicant’s new employment relationship in Greece and no later than the 31st of July of each tax year before the Tax Authority of non-Greek tax residents.

The duration of the respective tax regime expiresin seven (7) years upon the approval of the respective applications and no further extension will be granted.

The applicant shall be exempted from the income tax for the fifty percent (50%) of his/her income from paid work that he/she obtains in Greece within the tax year.

In case of applicants who wish to transfer their tax residence in Greece and wish to establish a sole proprietorship, they will be also exempted from the fifty percent (50%) of the total income of their business activity for the first seven (7) tax years.

Greece’s Non-Dom regime is highly attractive for individuals seeking a tax-friendly environment combined with a desirable lifestyle in Europe. The flat €100,000 tax on global income, coupled with exemptions on inheritance taxes and the ability to live in a culturally rich Mediterranean country, makes it competitive among European regimes. However, it is best suited for those with substantial foreign income or investments.

Non-Dom Regime for pensioners is regarded as highly appreciated scheme among the persons who would like to retire in a Mediterranean country following Greek lifestyle and enjoying slow mornings during their retirement.

Seeking professional advice to navigate eligibility and compliance requirements is essential. Please feel free to contact us at tax@privelpartners.gr