Greece Golden Visa Tax Gives Significant Tax Breaks to Foreigners

The Greece Golden Visa Program grants residency to non-EU/EEA who invest significantly in the country. This visa allows holders and their families to live in Greece and travel within the Schengen Area. It’s renewable every five years and can lead to permanent residency and EU citizenship.

Another benefit of the program is the new Greece Golden Visa Tax policy, which gives significant tax breaks to wealthy foreigners who invest in and live in the country for at least half a year.

In this article, we’ll explore the Golden Visa Tax policy covering how it benefits investors and its implications.

Greece Golden Visa and Taxes

Greek Golden Visa is popular among foreign investors because there is no requirement to move your tax residency to Greece and no minimum stay is mandated. This means you will not be subject to Greek taxes unless you reside in the country for more than 183 days in a year.

You will be subject to Greek taxes only if you spend more than 183 days a year in Greece. Precisely because of this, you can maintain your tax residency in another country.

However, if you become a tax resident, you can benefit from a favorable tax regime for foreign income, including a flat 7% tax rate for foreign retirees, and special tax incentives for high-net-worth individuals and investors.

What is the New Greek Tax Break?

Commonly referred to as the “non-domicile” scheme, the Greek 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 (~€109,943) 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 gains as long as their revenue is not brought into Greece. It’s important to note that non-tax residents will be taxed on Greek-sourced income.

Investors who want to take advantage of this the Greece Golden Visa tax benefits must invest a current minimum of €250,000 in property, or €400,000 in stocks, or bonds. This investment may be completed over the first three years after obtaining residence status.

The minimum investment of €250,000 in real estate increased to €500,000 in July 2023. This change only applied to property investments in Athens, Thessaloniki, and Santorini. Read about the latest 2024 changes here.

Expectations from the Flat Annual Tax Rate in Greece

A flat annual tax rate in Greece means you have to make a payment of seven percent for any non-domestic income. It’s important to note that this applies to all incomes, no matter the source. The deadline for this is the last business day in July. You can pay this in a lump sum.

If you opt for paying a flat annual tax rate in a lump sum, you need to pay tax on your worldwide income. On top of that, you will be asked to adhere to the general provisions of that tax year.

Double Taxation in Greece’s Non-Dom Regime

According to the Greek tax laws, you can’t be affected by any treaties to avoid double taxation through the non-dom regime for retirees. Basically, this means that the tax you pay abroad is deducted from the lump-sum payment.

Greece has double taxation with a number of countries, including Canada, Ireland, and the UK. However, the UK’s non-dom regime will soon cease to exist, so keep that in mind. The special non-dom regime for pensioners has a maximum duration of 15 years before it expires. You can terminate Greece’s non-dom tax regime if you don’t fulfill your obligations or if you want the status to be revoked.

You can apply for Greek non-dom tax status until March 31 every year. The required documents need to be submitted to the Tax Office of Foreign Tax Residents of Athens. In case you need to provide additional documentation, you’ll be asked to do so within 60 days.

 

Alternative Taxation Regime for Relocated Employees

Greece has a unique taxing system that allows an alternative way of taxing income which comes from other countries for individuals who are transferring their tax resident status to Greece as a non-dom. It’s important to note that spending more than 183 days in Greece qualifies you to become a tax resident. To qualify for non-dom tax regime status, you must meet the following criteria:

• You must not have been a Greek tax resident for at least seven of the eight years preceding the year they apply for tax residency in Greece.
• You are required to invest a minimum of EUR 500,000 in Greece

Under this tax regime, you have to pay a lump-sum tax of €100,000 every year, no matter your income overseas income. This rule may apply for up to 15 fiscal years. Moreover, you can extend this regime to your family if you pay an additional €20,000 per person. Inheritance and gift taxes don’t apply in this scenario. The alternative tax program does not allow foreign tax credits for taxes paid abroad on income covered by the alternative tax regime in Greece.

If you opt for Greece’s non-dom tax regime, but you have income coming from Greece, it will be taxed in accordance with general provisions of the Greek Income Tax Code (ITC). Failing to pay the full lump-sum tax may result in you losing access to the tax regime, and you will be subject to standard worldwide income tax rules for that and future tax years.

Is the New Greek 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.

Greece vs Portugal Golden Visa: Which one to choose?

Greece and Portugal’s Golden Visa programs are ideal for EU residency seekers. However, the Portugal and Greece visas have different advantages.

Portugal and Greece offer Golden Visa programs with similarities in application time, passport ranking, investment requirements, and family eligibility.

Greece’s Golden Visa has its benefits as well. Such as not having a requirement to visit Greece for a certain number of days per year in order to maintain a visa. It also gives access to Greece’s healthcare and education systems. 

However, Greece imposes more economic restrictions on its foreign investors and residents than Portugal. 

Portugal’s Golden Visa program allows holders to work without restrictions, while Greece only permits residency without employment rights unless the visa holders start their businesses. 

The two Golden Visas offer attractive investment routes, with Portugal offering slightly more diverse options. Portugal Golden Visa holders can also enjoy a faster path to citizenship, requiring five years of residency compared to Greece’s seven years. There are no requirements to spend a certain number of days per year in Greece to maintain your visa active.

Portugal’s Golden Visa program is recommended for those aiming for EU citizenship, while Greece’s offers faster processing time for permanent residency. Portugal stands out for its quality of life and stability, making it the top choice for Golden Visa programs in Europe.

Investment options

In the comparison between Greece and Portugal Golden Visa programs, it depends on what you are looking for. If your objective is to obtain an EU passport as quickly as possible, then the Portuguese Golden Visa may be the one. It also offers a more diverse range of investment routes and offers great tax benefits to foreign residents. However, the Greek program’s benefits are that there’s no minimum stay requirement and cheaper investment options.

Golden Visa Greece September 2024 update

In September 2024, Greek Prime Minister Kyriakos Mitsotakis announced plans to introduce a new investment option for the Golden Visa program. By investing a minimum of €250,000 in Greek startups, foreign investors can get a five-year residence permit. Additional details, such as an implementation date or whether the investment will be limited to certain businesses or locations, have not yet been announced.

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. 

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 property in Greece. Companies get their capital gain added to normal income and taxed at the same rate as regular income.

Does Greece tax foreign income?

Yes, Greece taxes foreign income. However, the taxation will depend on your residency status and the type of income.

Do Golden Visa investors pay taxes in Greece?

If you get a Greek Golden Visa, you do not have to move your tax residency to Greece because there is no minimum-stay requirement for the program.

In that case, you do not have to pay Greek taxes, unless you physically live in the country for more than 183 days a year.

What is the 7% tax in Greece?

To maintain your Greek tax residence status, it’s required that you spend over 183 days per year in Greece.

Failing to meet this requirement may result in being classified as a tax resident of another country. Additionally, there’s a flat annual tax rate of 7% applied to any income earned outside of Greece from any source.

Do foreigners pay tax in Greece?

Generally, individuals earning income in Greece are subject to income tax, regardless of their citizenship or permanent residency status, with any relevant tax treaty provisions taken into account. Permanent residents are taxed on their income worldwide within Greece.

How do I avoid double taxation in Greece?

To avoid double taxation in Greece, you can utilize tax treaties that Greece has established with other countries.

These treaties typically provide mechanisms for avoiding or minimizing double taxation by allowing for tax credits, exemptions, or deductions on income that is taxed in both Greece and another country.

Additionally, you can seek advice from tax professionals who can help you navigate the specifics of your situation and ensure compliance with applicable tax laws and treaties.

What are the minimum investment requirements for the Golden Visas in Greece and Portugal?

To obtain a Portugal Golden Visa, a capital transfer into Portuguese investment funds or venture capital funds to the amount of or more significant than €500,000 is needed to procure legal residency in Portugal.

There are several avenues available to acquire a Greek Golden Visa.

• Investment in Greek real estate for a minimum of €250,000*
• A €400,000 capital contribution to Greek government bonds

* The minimum investment of €250,000 in real estate increased to €500,000 on 31 July 2023. This change only applies to real estate investments in northern and central provinces, the South Athens Attica region, and the municipalities of Thessaloniki, Mykonos, and Santorini.

How is income taxed under the Greece Golden Visa program?

Income under the Greece Golden Visa program is typically taxed based on tax residency. Greece Golden Visa holders who spend fewer than 183 days in Greece are considered non-dom. However, if you spend more than 183 days in Greece, you become a tax resident and have to pay progressive tax rates.

Why is the Greece Golden Visa popular?

The Greece Golden Visa is popular due to its relatively low investment threshold, access to healthcare and education in Greece, and flexible stay requirements. Additionally, non-tax residents are taxed only on Greek-sourced income, while tax residents may benefit from an alternate lump sum tax of €100,000 per year for 15 years.