A. Tax Residents Abroad who are Pensioners
For tax years from January 1st, 2020 onwards, tax residents abroad who are beneficiaries of a foreign pension and wish to transfer their tax residency to Greece (Non-Dom Regime) will be taxed as follows:
- 7% tax rate for foreign income. The tax paid on income to the competent foreign authority will be deducted from the above tax, with the exception of income exempt from tax in the country of residence based on Double Taxation Avoidance Agreements (DTAAs).
- Payment for each tax year in 1 installment by the last working day of July. It will not be offset against other tax liabilities or other credit balances, and if the full amount of tax is not paid by December 31st of each year, the taxpayer ceases to be subject to the provisions of the Non-Dom regime.
Conditions to apply for inclusion in the favorable Non-Dom tax regime:
- They must not have been a tax resident of Greece for 5 out of the 6 years preceding the transfer of their tax residency to Greece. The taxpayer’s tax residency abroad for those years must be proven with a tax residency certificate or a copy of the income tax return assessment in the other country, or any other certificate proving the person’s permanent and stable establishment in that country.
- Their tax residency must originate from a country with which Greece has an administrative cooperation agreement regarding tax matters.
- It must be proven that they are a beneficiary of a foreign pension by submitting any document from an insurance institution, other public authority, professional fund, or insurance company, from which the payment of a pension abroad is evident.
The application process to the Tax Office for Non-Residents must be completed by March 31st of each year. The application of the favorable Non- Dom regime begins from the next tax year for which the application is submitted.
B. Tax Residents Abroad who derive income from salaried employment or individual business activity in Greece.
For tax years from January 1st, 2021 onwards, tax residents abroad who work as salaried employees in Greece or engage in individual business activity in Greece and transfer their tax residency to Greece will be taxed as follows:
- They are exempt from income tax and the special solidarity contribution for 50% of their income from salaried employment and business activity, earned in Greece.
Conditions to apply for inclusion in the favorable tax regime:
- They must not have been a tax resident of Greece for 5 out of the 6 years preceding the transfer of their tax residency to Greece. The taxpayer’s tax residency abroad for those years must be proven with a tax residency certificate or a copy of the income tax return assessment in the other country, or any other certificate proving the person’s permanent and stable establishment in that country.
- Their tax residency must originate from an EU or EEA member state, or from a country with which Greece has an administrative cooperation agreement regarding tax matters.
- They must provide services in Greece within the framework of an employment relationship (salaried employment) to a domestic legal entity or to a foreign enterprise with a permanent establishment in Greece, or engage in individual business activity in Greece.
- They must declare that they will remain in Greece for 2 years.
The application process to the competent Tax Administration for the transfer of tax residency, for the above cases, must be completed within the year of commencing employment (for salaried work) or within the year of commencing business activity in Greece and by July 31st of that year.
