In an effort to attract high net worth individuals, alternative taxation on foreign source income earned by individuals and/or their relatives who transfer their tax residence to Greece is introduced. Foreign investors need to meet the following requirements: the foreign investors have not been a Greek tax resident for the 7 out of 8 years preceding the transfer of their tax residence to Greece; foreign investors can prove that they or their relatives or a legal entity in which they hold the majority of the shares, invests in real estate or movable assets or shares of legal entities based in Greece. The amount of investment should be at least 500,000 and must be completed within a period of 3 years. Individuals who will utilize the alternative taxation method should pay a lump sum tax of 100,000 euros on an annual basis, regardless of the level of their foreign-sourced income. In cases where a relative utilizes the respective provisions, they should pay a lump sum tax of 20,000 euros on an annual basis. Utilization of these provisions cannot exceed a period of 15 tax years. If you could meet the requirements, you are likely to be eligible for the above privileges. However, it is not clear whether or not investors who made their investment before the new tax rules took effect are eligible for the above-mentioned benefits. We have to wait for the related ministerial circulars.
