Ultra-wealthy looking at Greece
The years-long aim to lure the ultra-wealthy to Greece through favorable tax incentives appears to be on the way to becoming a reality.
According to Law 4646/2019, individuals who transfer their tax residence to Greece and come under the so-called Non-Dom tax regime have the opportunity to pay a maximum flat tax amounting to 100,000 euros, regardless of the amount of income earned abroad.
They are required to make an investment in Greece with a minimum value of 500,000 euros.
According to reports, interest has grown especially in the wake of Greece’s effective containment of the coronavirus pandemic.
To date, according to data secured by Kathimerini, a total of 21 applications have been submitted to the competent Department of the Tax Office for Residents by individuals who wish to transfer their tax residence to Greece.
Kathimerini understands that 18 of the 21 applications have already been approved, with the rest being in the final stage of evaluation.
The most interest has been shown by diaspora Greeks and foreigners from the US, Europe and Russia, while according to the relevant services they are receiving a growing number of phone calls and e-mails from attorneys.
That is why the Finance Ministry is reportedly considering the possibility of a new extension to the deadline for inclusion in the Non-Dom regime.
The provisions of the law provide for the submission of an application by the interested party before March 31 of each tax year, a date that has already been extended once this year – until the end of June, due to the extraordinary conditions created by the coronavirus.
What is important to note is that wealthy individuals who transfer their tax residence to Greece must have completed an investment of 500,000 euros in real estate, securities, etc within three years of the submission of their application. So far the data has shown that the first preference of investors is luxury homes worth more than 1 million euros.
Within the first year of inclusion in the Non-Dome regime and for up to 15 years, these individuals will have to pay an annual flat tax of 100,000 euros, which increases by 20,000 euros for each dependent member of their family who is subject to the Non-Dom regime.