Greece Special Tax Regimes have become one of the country’s most important initiatives for attracting foreign investors, highly skilled professionals, foreign pensioners and entrepreneurs seeking to transfer their tax residence to Greece.
In recent years, Greece has implemented a comprehensive strategy to attract foreign investment, highly qualified talent and individuals wishing to relocate their tax residence to the country. As part of this initiative, the Greek Government introduced the Special Tax Regimes under Articles 5A, 5B and 5C of the Greek Income Tax Code (Law 4172/2013), offering significant tax incentives to investors, foreign pensioners, employees and entrepreneurs who choose Greece as their new tax residence.
Greece Special Tax Regimes under Articles 5A, 5B & 5C
Greece’s Special Tax Regimes were introduced to:
- Attract foreign investment.
- Encourage highly skilled professionals to relocate to Greece.
- Strengthen the Greek economy.
- Attract individuals wishing to establish their tax residence in Greece.
These tax regimes apply exclusively to individuals who transfer their tax residence to Greece and meet the relevant legal requirements.
Article 5A – Special Non-Dom Tax Regime for Investors
Article 5A is intended for high-net-worth individuals who wish to transfer their tax residence to Greece while making a significant investment in the country.
Eligibility Requirements
To qualify for the regime, applicants must:
- Not have been Greek tax residents for seven out of the previous eight years.
- Make a minimum investment of €500,000 in Greece.
- Complete the investment within three years.
Eligible investments may include:
- Real estate
- Businesses
- Shares
- Securities
- Corporate participations
Benefits of Greece Special Tax Regimes
The principal advantage of this regime is that foreign-source income is not taxed under the ordinary provisions of Greek tax law.
Instead, beneficiaries pay a fixed annual tax of €100,000, regardless of the amount of foreign income they receive.
Additional benefits include:
- Foreign-source income is not required to be reported in Greece.
- Exemption from inheritance and gift tax on movable assets located abroad.
- Family members may also join the regime by paying an additional €20,000 per person.
The regime remains valid for 15 tax years.
Article 5B – Special Tax Regime for Foreign Pensioners
Article 5B applies to individuals receiving pension income from abroad who wish to transfer their tax residence to Greece.
Eligibility Requirements
Applicants must:
- Not have been Greek tax residents for five out of the previous six years.
- Transfer their tax residence from a country that has an administrative cooperation agreement with Greece.
Tax Benefit
All foreign-source income is taxed at a flat tax rate of 7%.
The regime applies for a period of 15 years.
Article 5C – Special Tax Regime for Employees and Entrepreneurs
Article 5C applies to individuals who transfer their tax residence to Greece in order to work as employees or establish a sole proprietorship.
Eligibility Requirements
Applicants must:
- Not have been Greek tax residents for five out of the previous six years.
- Relocate from an EU Member State, an EEA country, or a country that has an administrative cooperation agreement with Greece.
- Accept employment or commence an individual business activity in Greece.
- Commit to remaining in Greece for at least two years.
Main Tax Incentive
For a period of seven years, beneficiaries are exempt from income tax on 50% of the income earned from:
- Employment income.
- Business activity.
During the same period, they are also exempt from deemed income provisions relating to residential property and private vehicle ownership.
Comparison Table
| Regime | Applies To | Main Benefit | Duration |
|---|---|---|---|
| Article 5A | Investors | Fixed annual tax of €100,000 | 15 years |
| Article 5B | Foreign Pensioners | Flat tax rate of 7% | 15 years |
| Article 5C | Employees & Entrepreneurs | 50% income tax exemption | 7 years |
Which Tax Regime Is Right for You?
The answer depends on several factors, including:
- Your tax residency status.
- The nature of your income.
- Your investment objectives.
- Your professional plans.
- Your long-term presence in Greece.
Each case requires an individual assessment to determine which tax regime offers the greatest benefits based on your personal and financial circumstances.
Frequently Asked Questions (FAQ)
Can I apply if I am already a Greek tax resident?
No. All three regimes apply exclusively to individuals transferring their tax residence to Greece from abroad.
Can I apply under Article 5C as a self-employed professional?
Yes. You may qualify, provided you establish an individual business activity in Greece and meet all applicable legal requirements.
Can I lose my eligibility?
Yes. Failure to comply with the applicable conditions or obligations of the selected tax regime may result in the loss of its benefits, after which the ordinary provisions of Greek tax law will apply.
Why Is Choosing the Right Tax Regime Important?
Transferring your tax residence is an important decision with long-term financial and tax implications. Assessing your individual circumstances in conjunction with the applicable legal provisions is essential to maximizing the available tax incentives.
Proper planning, timely submission of your application and ongoing compliance with the relevant legal requirements are fundamental to successfully benefiting from one of Greece’s Special Tax Regimes.
Link Consulting Is Here to Support You
At Link Consulting S.A., we provide comprehensive tax advisory and consulting services for individuals wishing to transfer their tax residence to Greece.
Our experienced team will assess your individual circumstances, identify the most appropriate tax regime, prepare the required documentation and guide you through every stage of the application process, ensuring full compliance while helping you make the most of the tax incentives available.
Contact us today to find out which of the Special Tax Regimes under Articles 5A, 5B or 5C is best suited to your personal and professional goals.
