GREECE Law and Practice Contributed by: Fotodotis Malamas, Bernitsas
3.4 Tax Consequences of Fiduciary and Beneficiary Roles There is no applicable information in this jurisdiction.
• employ at least five employees in Greece within 12 months from its establishment and onwards; and • incur operating expenses of at least EUR 500,000 The gross revenues from the services provided by Family Offices are determined by adding a percent - age of profit to all their expenses and depreciations, except for income tax (ie, the cost-plus method), and their profit margin is 7%. Guidelines on the scope and services of Family Offices The exclusive scope of Family Offices is the admin - istration and management of assets and investments owned, directly or indirectly, by Greek tax-resident individuals and members of their family, and includes the management of expenses incurred by them. Only family members can be shareholders, partners or members in Family Offices, either directly or through legal entities in which they are majority shareholders. The services that they can provide include: • services related to the personal and social life of family members, including public relations, teach - • strategic planning services, including business consulting, real estate planning and succession planning; and • other consulting services, including tax consulting and legal, medical, engineering, risk management and cybersecurity services. Special tax regime for Family Offices Family Offices must be registered with the tax authori - ties. In order for the special tax regime for Family Offices to apply, the following conditions must be cumulatively met: ers and security guards; • management services; • financial management services; • at least five employees must be employed in Greece by a Family Office within a period of 12 months from its establishment; and • the operating expenses of a Family Office must exceed the amount of EUR1 million within the
4. Family Business Planning 4.1 Asset Protection
To the extent that there is no framework for trusts or foundations other than charitable foundations, the structures available for asset protection are fairly limit - ed, with the most popular being the foundation. Under this structure, assets such as artworks and antiques are contributed to a foundation with a public benefit scope. Buildings can also be contributed to a foun - dation to be used for exhibitions or other purposes benefiting the public. Family Offices By way of Law 4778/2021, Greece introduced a tax incentive aimed at facilitating the management of fam - ily estates. The management of cash flows, invest - ments and family assets of natural persons with a tax residence in Greece can be carried out by special pur - pose legal entities, the so-called family offices (“Fam - ily Offices”). Internal transactions between a Family Office and the persons participating in it constitute transactions carried out within a single entity and are outside the scope of VAT. The sole objective of Family Offices is to provide sup - port to the natural persons that reside for tax pur - poses in Greece and to their family members, in the administration and management of their assets and investments, held either directly or indirectly through legal persons or entities. Family members can participate in the special pur - pose companies, as can legal persons or entities in which the natural persons with a tax residence in Greece and/or members of their family participate. Family Offices may also provide advisory services to trustees in relation to trusts that have been estab- lished by natural persons and their family members, as settlors, or in which such persons are beneficiaries. The Family Office must:
242 CHAMBERS.COM
Powered by FlippingBook