50% tax reduction for foreign businessmen who transfer their residence in Greece
The Greek Government is planning tax motives in order to attract freelancers, self-employed and salaried individuals in order to transfer the registered seat of their businesses from anywhere in the world in Greece.
The government is looking for active individuals who will operate in Greece in order to boost the country’s economy, especially now with the British Brexit, which will push a lot of professionals to leave Britain.
According to Bloomberg, a significant reduction of 50% on the income tax for seven years is being planned for any individual who transfers their registered seat in Greece, regardless of their nationality or their professional occupation; however, this will probably regard only new job positions created in Greece during 2021.
As a consequence of this reduction, the global income for anyone who transfers their residence in Greece will be taxed with the very low ratio of 4,5% to 22% (if we consider that the current ratios are 9% to 40% for incomes over 40.000 euro).
It is obvious that Greece is trying to take advantage of the positive history and course regarding the Coronavirus as a motive to attract business activity and reverse “brain drain”.
“Technology means that we may now select where we live and work” as Alexis Patelis, chief financial advisor of Kyriakos Mitsotakis, commented in Bloomberg, adding that Greece “may now offer tax motives along with the sun”.
It is noted that similar tax motives have already been granted to foreign pensioners who transfer their tax residence in Greece; more specifically, their global income is taxed with a ratio of 7%. For a period of 10 years, any pensioners who move to Greece and have incomes abroad from pensions, or business activities or several investments, or income from property rentals, will deposit a very low tax. According to popular accounting offices, the foreign pensioners mostly from Northern Europe who have expressed interest in coming to Greece are not few.