Imagine living in one of the most beautiful places in Europe, while benefiting from a fantastic range of tax benefits. The Greece flat tax regime has quickly put the country on the map for one of the top countries for foreign investors, retirees, and high net worth individuals.
Whether you’re a retiree with a pension looking to live in Greece of a high earning individual looking for the ideal tax setup, Greece has got you covered.
In this guide you will learn about:
What is the flat tax in Greece for foreigners?
The flat tax regime in Greece is a program to attract foreign investors into the country. The aim of the program is to simplify tax obligations, making it highly sought after.
The flat tax allows one to pay a maximum amount of €100,000 rather than being taxed on worldwide income using the traditional tax system, which in Greece can be as much as 45%.
The program is highly sought after for retirees and high earning individuals from across the globe that can benefit significantly from not paying the traditional income tax.
Flat Tax in Greece: Options for Foreigners
7% Greece Flat Tax for Retirees
The 7% tax rate in Greece applies only to foreign pension income earned by retirees who move their tax residency to Greece. For most goods and services in the country, the standard Value Added Tax (VAT) rate is 24%.
The tax must be paid as a lump sum for each tax year by the last business day of July. It cannot be offset against any other tax liabilities or credit balances of the individual.
Once this lump sum tax is settled, it fully covers the individual’s tax obligations on the specified income, with no additional liability required.
What are the requirements for the Greece 7% tax rate for foreign pensioners?
In order to benefit from the Greece flat tax for pensioners, you must:
- Be a tax resident of a country that has double taxation treaties with Greece.
- Have been a non-tax resident of Greece for at least five of the last six years.
- Provide proof of pension income received from abroad, issued by your foreign social security institution, a professional fund, an insurance company, or a public authority confirming the payment of a state or private pension.
- Be prepared to spend at least 183 days per year in Greece to be identified as a tax residence to Greece.
Document requirements for the 7% flat tax for retirees
- Tax registration number: Proof of receipt and an application for inclusion in the regime.
- Passport: A copy of your valid passport.
- Notarized Power of Attorney (PoA): The PoA must be apostilled. It must include a statement from you about your current tax residency country. It should authorize representation for signing and filing the application and obtaining your Greek tax registration number.
- Pension certificate: Should be issued by the legal entity paying your pension. The certificate must be apostilled. If the pension is paid by a non-state entity, it also needs to be notarized. The certificate should confirm that you are the beneficiary of the pension.
- Foreign tax residence certificates: If you have lived in Greece during any period in the past five years, foreign tax residence certificates are required.
High Net Worth Individual (HNWI) Tax Regime Greece
For high-net-worth individuals, there is a flat tax regime, making Greece highly sought after for investors. The program is ideally for those who wish to transfer their tax residency to Greece.
The flat tax for high-net-worth individuals requires a flat annual tax of €100,000 on all foreign-sourced income, regardless of the actual amount earned. There is also an option to include family members, requiring a further €20,000 per person per year.
One of the main benefits of the Greece non-dom tax regime is that you are not required to live in Greece for more than 183 days per year in the country, offering flexibility for global citizens.
Requirements for the Greece non-dom tax regime
The alternative tax residency regime for high-net-worth individuals in Greece requires the following:
- The applicants must not have been a Greek tax resident for seven of the last eight years.
- The program requires an investment of at least €500,000 in Greece within three years of applying. This could include real estate, bonds, or shares in Greek companies.
The special tax regime is available for a total of 15 years, allowing applicants to plan ahead, ensuring long-term tax predictability. However, it’s important to note that the special tax does not exempt applicants from Greek gift tax or Greek inheritance tax.
Document requirements for High Net Worth Individual (HNWI) Tax Regime Greece
The following documents are required for the Greece special tax regime for high-net-worth individuals:
- Tax registration number: Proof of receipt and application for inclusion in the regime.
- Passport: A copy of your valid passport.
- Power of Attorney (PoA): This must be notarized and apostilled. If applying in Greece, an authorization signed at a relevant municipal office is required. The PoA should confirm that you meet the tax law requirements and commit to investing €500,000 in Greek assets within three years or provide proof that the investment has already been made in the application year.
- Foreign tax residence certificates: If you lived in Greece during any of the last seven years, these are required.
- Family inclusion (optional): If you plan to include your spouse, parents, or adult children (for an additional €20,000 annual tax per person on their foreign income), they must sign a notarized declaration stating their consent. You’ll also need an apostilled kinship certificate (family relationship document).
When to Apply for Greek Flat Tax Status
You can apply for the Greek flat tax status before the 31st of March of the given tax year. You can apply to the Greek tax authorities to ensure you meet the necessary requirements to move your tax residency.
From the time you file your application, you have 60 days to provide all the necessary documentation.
How to Qualify for the Flat Tax Regime in Greece
One of the easiest ways to qualify for Greek residency is the Greece Golden Visa. This residency visa acts as the gateway, providing a residence permit in exchange for a qualifying investment. Plus, one of the main benefits is that if you are from one of the qualifying tax treaty countries, you can benefit from the Greek flat tax regime.
There are various investment options available, including real estate, Greek government bonds, capital transfer, and capital contribution, offering a variety of ways to obtain Greece residency. Understanding the Greece Golden Visa tax can be useful when making your decision.
Read our Greece Golden Visa Guide
Benefits of Greece Flat Tax
- Long term tax stability: Both the retirement and high net worth tax options offer benefits for up to fifteen years, allowing applicants to plan in advance.
- Include family: For an additional €20,000 per person annually, you can include your spouse and children in the regime, making it ideal for families relocating together.
- Investment friendly environment: Greece offers one of the most investment friendly environments in the EU. There are a range of options, including starting a business and owning a property. That’s what makes the Greece Golden Visa so popular, the variety of investment opportunities. It’s important to know the Greece Golden Visa changes to ensure you are up to date on the requirements.
- EU residency benefit: As part of the EU, residing in Greece offers a range of benefits, including freedom of movement within the Schengen Area, access to quality healthcare, and a high standard of living.
- Flexible residency: To benefit from the flat tax in Greece you are not required to stay in the country for more than 183 days per year, making it an ideal option for global citizens and those looking to travel.
How Can Global Citizen Solutions Help You?
Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
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