The Greek Ministry of Finance issued detailed guidelines for foreigners that want to move their tax residence in Greece.
The “non-dom” program is one of the measures the Greek government uses to lure capital from abroad.
It targets high-net-worth individuals-investors and gives them the opportunity to secure favorable tax treatment by becoming tax residents of Greece.
More specifically, their foreign source income will be taxed with an annual flat tax of 100,000 euros plus 20,000 euros per spouse, child or parent. Individuals will also be exempted from the payment of any inheritance/gift tax on assets located outside Greece.
According to the a ministerial decision signed by the Deputy Minister of Finance and the Deputy Minister of Development in late December, the investment should amount to at least 500,000 euros, be completed in maximum 3 years after application for the Greek tax number and could be one of the following types:
- real estate acquisition, at a price at least 10% higher of the “objective value” of the property. In Greece, the state declares the “objective value” of all properties, in an effort to fight tax avoidance.
- acquisition or development of fixed assets to run a sole proprietorship/individual entrepreneurship
- stock acquisition of Greek companies not listed in a regulated market
- purchase of Greek government bonds with at least 3 years to maturity (at the time of the purchase). The purchase must be completed through a credit institution based in Greece
- capital contribution in an Alternative Investment Fund
- purchase of securities traded in regulated markets.
Investors can enjoy the favorable tax treatment for up to 15 years but must keep their investment throughout the period they are tax residents of Greece.
Applications for the “non dom” regime should be submitted to the Tax Office for Residents Abroad (DOY Katoikon Eksoterikou, Metsovou 4 Athens).