Greek Non-Dom Tax Regime
The new article 5A of the Greek Income Tax Code (Law 4172/2014), as amended, introduces a flat tax rate of €100,000 annually on worldwide income for a period of 15 years for individuals who transfer their tax residence in Greece. The legal entities are exempted from the scope of this legislation.
Under specific conditions, this alternative tax regime provides the Non-Dom tax resident with the right to pay a total amount of 100.000 € per year for any income arising outside the country, irrespective of its sum, and be discharged of any tax liability for this year.
This status is also applicable to relatives of a non-dom Greek tax resident, on the premises that the latter pays an extra tax of 20.000€ per individual.
The “non-dom” regime can last for a maximum of 15 years and can be terminated any time during these years, in case the non-dom tax residents fail to fulfil their obligations or apply for revocation.
REQUIREMENTS in order to obtain the Non-Dom Regime in Greece:
- Applicant should not be a Greek tax resident for the past 7 out of 8 years, prior to the transfer of tax residence in Greece and
- Applicant has to invest in Greece an amount of 500.000 € minimum. The investment could take different forms (e.g. investment in real estate or business etc., as an individual or through a legal entity, established in Greece) and it should be completed within 3 years, starting from the application date.
It is highlighted that an individual, who obtains a permit for investment activity, pursuant to Law 4251/2014 (Golden Visa Program), is not obliged to prove that the above-mentioned investment took place.
Also Applicants who have transferred their Tax Residence in Greece a year before the entry in force of the above law provision, are eligible to apply for the Non-Dom Resident Status.
PROCEDURE in order to obtain the Non-Dom Regime in Greece:
- Greek tax authorities are competent to examine the applications of the individuals, who are interested in becoming non-dom Greek tax residents.
- The applications should be filed until 31st March of each year and tax authorities have to accept or to decline them within 60 days.
- If the application is accepted, the applicant is considered as a non-dom Greek tax resident by the year he/she first filed the application and has to pay the tax (100.000 €) within 30 days from the acceptance of the application.
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