What is the New Tax Break?
Commonly referred to as the “non-domicile” scheme, the Greece Golden Visa Tax policy is available to those who maintain their domicile elsewhere but are still Greek residents. It imposes a flat tax of €100,000 on shipowners, businesses, and retired foreign investors for a period of 15 years. Since investors in the nom-dom scheme designate another nation as their domicile, they will not be subject to tax on offshore income and capital gains as long as their revenue is not brought into Greece.
Investors who want to take advantage of this scheme must invest a current minimum of €250,000 in real estate, or €400,000 in stocks, or bonds. This investment may be completed over the first three years after obtaining residence status. It is important to note that the current minimum investment of €250,000 in real estate will increase to €500,000 on 31 July 2023. This change will only apply to real estate investments in Athens, Thessaloniki, and Santorini.
Is the New Tax Policy Associated with Greece’s Golden Visa Secure Enough?
Unlike the Greek Golden Visa Program that reels in foreign investors by providing them with a five-year residency permit in Greece in exchange for placing and maintaining a substantial investment in the Greek economy, this new policy for Greek property taxes is solely aimed at attracting new tax residents and investments in Greece.
Greek officials were initially cautious in their forecasts, claiming that the first few years may be quiet. However, the measures have begun to pay off, according to figures given by the Ministry of Finance. These lenient tax breaks have attracted 75 investors, 214 retirees, and 1,000 workers in Greece in 2021. The approach was neither opposed by the International Monetary Fund (IMF) nor the country’s principal creditors, the Troika of the European Union – European Central Bank – European Stability Mechanism (EU-ECB-ESM).
Based on those results, the non-dom tax policy appears to have a sound economic foundation. Moreover, the licenses from key economic agencies demonstrate the scheme’s conformity with international tax avoidance regulations.
Frequently Asked Questions
Is Greece a tax haven?
To make Greece more attractive for foreign investors to place direct investments in the nation’s economy, the country is making attempts to offer lucrative incentives for taxes in Greece. The first provision in force is particularly incorporated in article 5a L.4172/2013. You can search the official Greek tax authority website to find more information.
Is there a wealth tax in Greece?
Individuals will be taxed at a fixed rate of 15% on capital gains from sold real estate property tax in Greece. Companies get their capital gain added to regular income and taxed at the same rate as regular income.