GREECE Trends and Developments Contributed by: Theodore Rakintzis, Panagiotis Pothos, Angeliki Miliakou and Petros Roumpis, Kyriakides Georgopoulos Law Firm
statutory exemption applies. In 2023, the Independent Authority for Public Revenue issued a long-awaited decision confirming the eligibility of Greek real estate property settled into a foreign trust for exemption from the 15% SRET, subject to specific documentation requirements. The decision addresses cases where shares in a Greek real estate-owning company are held (in most cases indirectly) by a foreign foundation or a trust, and sets out the type of documentation that must be retained and provided, including documents evidencing the ultimate beneficial owners and certain jurisdictional transparency requirements. Therefore, trusts are now expressly recognised among the qualifying legal entities, alongside foundations, provided that both the trust and the trustee are estab- lished in a jurisdiction that is not classified as non-co- operative for tax purposes and both their full details and the details of the settlor and the beneficiaries are disclosed. This marks a breakthrough novelty in succession alternatives in Greece, and is one of the most impor- tant regarding the majority of Greek residents’ assets being included in a trust arrangement. Joint accounts/joint portfolio accounts and joint investor accounts Until 2022, an exemption from Greek inheritance tax (IHT) was granted only to cash deposits and mutual funds held in joint bank accounts, while according to the standard practice of the Greek tax adminis- tration, the exemption applied only to accounts held with Greek bank institutions. Joint accounts have long been used in Greece as a practical, client-friendly way to ensure that liquidity and continuity are available to surviving family members without a lengthy adminis- tration process. As of 2022, the IHT exemption for deposits main- tained in joint bank accounts has been extended to joint bank accounts including cash deposits and all kinds of securities (portfolio accounts, joint inves- tors account) that are held either in Greece or abroad (excluding jurisdictions that are deemed to be non-co- operative for tax purposes), provided that:
• either the foreign law governing the account pro- vides that, upon the death of any account holder, the funds in the joint account are transferred auto- matically to the surviving account holders, meaning that no further (including legal) action is required for the acquisition of such funds; or • the bank account documentation provides for a “succession clause” stating the above. The above ΙΗΤ exemption extends to shares of non- listed companies held in a joint investment account (KEM) or its foreign equivalent, subject to certain con- ditions. The application of these provisions to KEMs holding non-listed securities is particularly significant in the context of inheritance, allowing family-owned companies to be transferred to the next generation without incurring any tax liability. Joint structures can be very effective for speed and certainty, but they should be aligned with the overall succession plan to avoid an unintended concentra- tion of assets in the surviving co-holder in a way that conflicts with the intended distribution among heirs. Family offices and family business succession Family offices regime A Greek family office is typically established as a spe- cial purpose company whose sole purpose is to man- age the wealth and affairs of a specific family. Key characteristics of the regime include the following. • Local substance requirements: establishment in Greece with a genuine operational presence and a minimum number of employees (commonly at least five). • Minimum operating expenditure: recent amend- ments reduced the annual required expenditure in Greece from EUR1 million to EUR500,000, making the structure accessible to a wider range of fami- lies. • Permitted activities: management of investments and assets, financial planning and reporting, administrative and concierge services for family members, payment of expenses and co-ordination of service providers and advisory or administrative services in relation to trusts or foundations involv- ing family members
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