Navigating the Greek Non-Dom Tax Regime: A Comprehensive Guide

Greece welcomes a transformative tax landscape with the introduction of Article 5A in the Greek Income Tax Code (Law 4172/2014). This legislative amendment sets the stage for a novel Non-Dom Tax Regime, enticing individuals to make Greece their tax residence. Here's a breakdown of key aspects surrounding this groundbreaking fiscal frame work:

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Flat Tax Rate and Duration

Individuals opting for the Non-Dom Tax Regime in Greece are met with a flat annual tax rate of €100,000 on their worldwide income. This preferential rate applies for a generous span of 15 years, offering a stable and predictable tax environment.

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Scope and Exemptions

Under this alternative tax regime, Non-Dom tax residents gain a unique advantage – the ability to pay a fixed annual amount of €100,000 for any income earned outside Greece, irrespective of its magnitude. This exempts them from any additional tax liability for that specific year. Notably, legal entities are excluded from the purview of this legislation.

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Extended Benefits for Family Members

Family ties are not overlooked, as relatives of a Non-Dom Greek tax resident can also benefit from this regime. However, an additional tax of €20,000 per individual is required to avail of this extension, providing a favorable option for family financial planning.

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Duration and Termination

The Non-Dom status is granted for a maximum of 15 years. However, individuals retain the flexibility to terminate this regime at any point within these years, subject to compliance with obligations or application for revocation.

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Eligibility Criteria and Investment Requirements

To qualify for the Non-Dom Regime, applicants must meet certain criteria:

• Not be a Greek tax resident for the past 7 out of 8 years before transferring tax residence to Greece.
• Invest a minimum of €500,000 in Greece within 3 years from the application date. This investment can take various forms, including real estate or business investments, either individually or through a Greek legal entity.

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Golden Visa Program Exemption

Applicants who obtain a permit for investment activity under Law 4251/2014 (Golden Visa Program) are exempt from proving the aforementioned investment requirement, streamlining the process for certain individuals.

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Application Procedure and Timeline

The Greek tax authorities oversee the application process. Interested individuals must submit their applications by March 31st each year, with a 60-day window for the authorities to accept or decline. If approved, the applicant is deemed a Non-Dom Greek tax resident from the year of application, necessitating the payment of the annual €100,000 tax within 30 days of acceptance.

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In conclusion, the Greek Non-Dom Tax Regime presents a strategic opportunity for high-net-worth individuals seeking fiscal advantages and a stable tax environment. With clear eligibility criteria, extended benefits for family members, and a transparent application procedure, Greece emerges as an appealing destination for those considering a tax residence shift.