COUNTRY:
Greece - Residency Programs
- Golden Visa Program: The Golden Visa Program is a popular residency program in Greece, similar to the program in Portugal. It offers residency to non-EU/EEA nationals who make a significant investment in Greece. Eligible investments include real estate purchases, business investments, or capital transfer. Successful applicants and their family members are granted a five-year residence permit, which can be renewed as long as the investment is maintained.
- Non-Domiciled Tax Resident Program: Greece has introduced a non-domiciled tax regime to attract high-net-worth individuals. Under this program, individuals who become tax residents of Greece but are not considered domiciled in the country can benefit from a flat tax rate on foreign income and assets. This program offers an attractive tax incentive for eligible individuals.
- Independent Financially Sufficient Persons Program: This program is designed for individuals who have a regular income from sources outside of Greece and wish to reside in the country. To qualify, applicants need to demonstrate a stable income that is sufficient to cover their living expenses in Greece without engaging in employment.
- Single tax rate offer for pensioners: Under this program, eligible foreign retirees who transfer their tax residency to Greece can benefit from a flat tax rate on their foreign pension income. To be eligible for the program, individuals must meet certain requirements, which may include being a non-Greek national, not having been a Greek tax resident in the past five years, and not deriving income from employment or business activities in Greece.
- Greek Digital Nomad Visa: This program was designed to attract remote workers and freelancers who can work from anywhere while still contributing to the local economy. This program has specific requirements and conditions, such as proof of employment, minimum income thresholds, health insurance coverage, and proof of accommodation.
It’s important to note that residency programs may have specific eligibility criteria, application requirements, and renewal conditions. It is recommended to seek professional advice to get the most up-to-date and accurate information regarding the specific residency program you are interested in.
- Personal Income Tax (PIT): Personal income tax, known as E1nikh FPA (Εισοδηματική Φορολογία Προσώπων Φυσικών Προσώπων), is levied on the income of individuals. The tax rates for 2023 range from 40% to 44% and are divided into several income brackets. The rates are applied progressively, meaning that higher income is subject to higher tax rates. There is also a solidarity tax imposed on high-income earners.
- Corporate Income Tax (CIT): Corporate income tax, known as E1nikh FPA Epixeirhsevn (Εισοδηματική Φορολογία Προσώπων Επιχειρήσεων), is levied on the profits of companies operating in Greece. The standard corporate tax rate is 22%. There is also a solidarity tax on corporate profits, which is a percentage of the company's taxable income.
- Value Added Tax (VAT): Value Added Tax, known as FPA (Φόρος Προστιθέμενης Αξίας), is a consumption tax applied to most goods and services. Greece has multiple VAT rates, including 24%, 13%, and 6%, depending on the type of goods or services.
- Capital Gains Tax: Capital gains tax is levied on the profit earned from the sale of assets, such as real estate, stocks, and other investments. The tax rates for capital gains depend on the type of asset and the holding period. For individuals, the rates range from 15% to 45%, while for companies, the rates are generally at the standard corporate income tax rate.
- Property Tax: Property tax, known as ENFIA (Ενιαίο Φόρο Ακίνητης Περιουσίας), is an annual tax levied on real estate properties. The tax is calculated based on factors such as the location, size, and value of the property.
- Social Security Contributions: Both employees and employers are required to make social security contributions in Greece. The contributions fund various social security benefits, including healthcare, pensions, and unemployment benefits. The rates vary depending on the income level and the specific social security programs.
It’s important to note that tax rates and regulations may be subject to change, so it is advisable to consult with a tax professional to ensure compliance with the current tax laws in Greece.
In Greece, tax residency is determined based on an individual’s physical presence and other criteria outlined by Greek tax law. The main factors that determine tax residency in Greece are as follows:
- Physical Presence: An individual is considered a tax resident in Greece if they spend more than 183 days in Greece within a calendar year. These days can be consecutive or non-consecutive.
- Permanent Residence: Even if an individual spends fewer than 183 days in Greece, they can still be considered a tax resident if they have a permanent residence in Greece. A permanent residence is defined as a property that is owned or leased for at least two years, indicating the intention to establish a permanent home in Greece.
- Center of Vital Interests: An individual can also be considered a tax resident if their center of vital interests (i.e., personal and economic ties) is in Greece. This includes factors such as family, business activities, employment, investments, and social connections.
If an individual meets any of the above criteria, they are generally considered a tax resident of Greece and are subject to taxation on their worldwide income. Tax residents are required to file an annual tax return in Greece and report their income from all sources, including income earned both within and outside Greece. Non-residents and residents under the programs have certain tax exemptions and tax deductions.
It’s important to note that tax residency rules can be complex, and individual circumstances may vary. To determine your specific tax residency status and obligations in Greece, it is advisable to consult with a tax professional so that they can provide you with personalized advice based on your situation and ensure compliance with Greek tax laws.
