GREECE Law and Practice Contributed by: Fotodotis Malamas, Bernitsas
Pensioners The third initiative pertains to pensioners who wish to relocate permanently to Greece. Pursuant to the new provisions, non-Greek pensioners who decide to transfer their tax residence to Greece will be subject to a 7% flat tax for income not generated in Greece. Those eligible for this tax incentive regime are pen - sioners who: • were not Greek tax residents for the previous five out of six years; and • have their tax residence in a jurisdiction with which Greece has signed an administrative co-operation agreement. The tax incentive regime for pensioners does not exclude the application of the favourable provisions of double tax treaties (DTTs). In accordance with the provisions of a recent tax bill submitted to the Greek parliament, high net worth individuals may file the relevant application until 31 December. Taxes on Web Platforms In an attempt to combat tax evasion from residential rentals, the State applies strict tax provisions for rent - als through web platforms such as Airbnb and Trip - ping. The term “short-term” leasing includes leases lasting a maximum of 60 days. The 60 days’ period applies to each lease and there are no restrictions on the number of leases permitted throughout the tax year. Moreo - ver, new criteria are introduced for the classification of income derived from short-term leases. Income derived from short-term leases by legal enti - ties and persons and of three or more properties for individuals is classified as income arising from busi - ness activities. Income earned by individuals from short-term leases of up to two properties is classified as income from immovable property.
• non-Greek-sourced income is tax-exempt and not reported; • an annual flat tax liability of EUR100,000 is intro - duced for non-Greek-sourced income – this benefit is extended to close relatives of high net worth individuals with the payment of an additional annual tax of EUR20,000 per person; • assets outside Greece are not subject to gift or inheritance tax; and • no justification is required for funds remitted to Greece. High net worth individuals must pay the annual tax until the end of the year of approval. Employees and freelancers The second tax regime targets employees and free - lancers. Individuals wishing to transfer their tax resi - dence to Greece may benefit from reduced income tax if the following criteria are met cumulatively: • they have not been Greek tax residents for the last five out of six years; • they are tax residents in an EU/EEA jurisdiction or a jurisdiction with which Greece has signed an administrative co-operation agreement; • they will be employed by a Greek legal entity or the Greek permanent establishment of a non-Greek legal entity (unless they are self-employed); and • they make a declaration that they will reside in Greece for at least two years. The new tax regime applies to employees, execu - tives (with an employment relationship), freelancers or entrepreneurs who will carry out individual business activities in Greece. Eligible individuals may benefit from the new tax regime for a period of up to seven years and will receive a 50% tax break on their Greek-sourced income. To register, applicants must include the jurisdiction of their tax residence in the application, and the Greek tax authorities will report the transfer of their tax resi - dence to this jurisdiction.
235 CHAMBERS.COM
Powered by FlippingBook