Call for foreign pensioners with “tax incentives” from the Ministry of Economy of Greece
The government invites pensioners from abroad to transfer their tax residence to Greece under the new tax bill.
The bill provides that a coefficient with a low rate of 7% will be taxed on the income of pensioners from abroad who want to transfer their tax residence to Greece.
Accepting the Italian model, financial managers are trying to attract wealthy foreign pensioners to Greece by offering a low tax rate of 7%.
What is envisaged
Thus, for pensioners from abroad who want to transfer their tax residence to Greece, it is provided that:
– Any individual with a pension income received from abroad who will transfer their tax residence to Greece will be able to apply an alternative Non-Dom taxation method if the interested party was not a tax resident of Greece for the previous 5-6 years before transferring your tax residence to Greece. He will also have to transfer his tax residence from a state with which there is an agreement on administrative cooperation in the field of taxation with Greece.
– A pensioner will be able to apply for the transfer of his tax residence to Greece. If the application is accepted, the pensioner will pay an independent tax at a rate of 7% per year on all his income received abroad. With the payment of this tax, all of his tax liabilities for this income will be exhausted. Any tax paid abroad on income covered by an alternative taxation method will not be deducted from tax introduced in Greece. The tax will be paid each tax year in one installment until the last business day of the month of July and will not be offset by other tax liabilities or any credit balances of a person who has undergone an alternative taxation method.
– An application for transfer of a tax residence will be submitted to the tax administration by a pensioner until March 31 of each tax year. Within 60 days from the date of filing the application, the tax administration will consider the application and make a decision on its approval or rejection. The pensioner, for his part, indicates in his application the state in which he had the last tax residence before submitting his application. Then, the tax administration will inform the tax authorities of this state of the transfer of tax residence of this taxpayer. Especially for applications for transfer of tax residency, which will be submitted during 2020, the deadline for filing the relevant application is set for September 30, 2020.