The Greek government is formally inviting foreign pensioners to shift their tax residence to Greece with the introduction of a single tax rate of 7% for their entire income obtained abroad. The aim is to attract pension making the obtention of Greek residence even more appealing.
The 7% flat rate will apply to whatever income a person might have, be that rents or dividends as well as pensions. As soon as an international pensioner’s application is approved, the sum of their income obtained abroad will be taxed at a flat rate of just 7% for the next 10 years.
As Athina Kalyya, head of tax policy at the Greek finance ministry, has told “the logic is very simple: we want the pensioners to relocate here”. This way, the pensioners benefiting from this rate will spend more time in Greece and that is traduced in investing, renting or buying a home.
The flat tax rate, conditions and requirements
According to a clause included in the draft law that the Finance Ministry submitted to Parliament last week, for pensioners to qualify for this beneficial rate, they should not have been tax residents of Greece over at least five out of the six financial years before their tax relocation from a country with which Greece has a valid agreement concerning administrative cooperation on tax issues.
These are the other conditions to obtain the 7% flat tax rate:
- The pension and other income are derived from a source outside Greece.
- The annual amount due is paid in a lump sum every year.
- International pensioners who choose this route will also be exempted from the standard special solidary contributions
- Pensions derived from government positions may be subject to other conditions, which a professional tax consultant can examine and assess.
It is also important to note that the final tax rate will be calculated in accordance with the double taxation conventions between Greece and the country from where the pension is derived. Usually, taxation is based on the individual’s tax residence, so transferring that to Greece is the most favorable option.
Besides this, Greece is successfully appealing to pensioners who appreciate the good Mediterranean climate, an excellent European lifestyle and those who wish to make the most of their retirement years and benefits.
On the other hand, the Greek government continues to promote the Golden Visa programme for international investors, one of the most attractive and affordable programmes in Europe.
The Greek Golden Visa programme, the most secure option
So, if you are thinking of investing in Greece, we have the best option for you. With an investment of 250,000 euros, you can get Greek residence for you and your family.
These are some of the advantages of obtaining the Golden Visa Greece:
- Get the approval in only 60 days
- Right to reside in Greece
- Visa-free travel through the Schengen zone
- No requirement to live in Greece
- Permission for you and your entire family
- High standard of schooling
- Good quality life
To sum up, Greece is one of the most attractive European countries and easily one of the easiest to invest.