GREECE Trends and Developments Contributed by: Petros Machas, Ioannis Charalampopoulos and Vasileios Tsintzos, Machas & Partners
Eligibility of Transparent Trust Structures With Equity Participation in Real Estate Companies Decision No A.1089/2023 of the Independent Author - ity for Public Revenue has resolved the controversies concerning the special real estate tax provisions of Law 3091/2002. This decision settles the exemption eligibility of transparent trust structures with equity participation in real estate companies, allowing them to be exempted from the special real estate tax (of 15% on the property’s tax value) by determining the requisite documentation for the applicability of the exemption. More specifically, trusts are now included in the qualifying legal entities, along with founda - tions, provided that the trust has been construed in accordance with, and is governed by, the laws of a jurisdiction that is not considered a non-cooperative tax jurisdiction (where the establishment of the trustee shall be located as well). This decision constitutes a remarkable development, allowing estate and succes - sion planning for sophisticated private clients main - taining investments in Greek real estate.
Other Tax Benefits Law 4712/2020 offers a 50% deduction from taxable income for capital contributions to start-ups that are listed in the National Start-Up Registry, up to a maxi - mum of EUR300,000 per tax year. Capital contribu - tions can involve up to three different start-ups, up to a maximum of EUR100,000 per company. This provision is directed towards angel investors: individuals who invest in dynamic innovative companies, often provid - ing not only capital but business consulting as well. In addition, pursuant to Article 38 of Law 5162/2024 (Government Gazette Α’ 198), the income from any gain arising from the transfer of units in venture capital mutual funds (VCMF – Α.Κ.Ε.Σ.) is exempted from any tax, duty and contribution. Conclusion The business opportunities, investor-friendly policies, and combination of investment migration programmes with a simplified non-dom tax regime – along with the gradual recognition of the international estate and succession planning structures from a tax planning perspective – position Greece as an advantageous destination for investors and HNWIs. Greece provides investors with a legal framework to establish them - selves in the country, as well as with access to the country’s thriving markets and tax benefits.
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