My family and I have settled in Greece, but I still travel to my native country for business. It is where I earn the majority of income. Will the Greek government tax me on that money? Is there an option around this?
Answers
As a Golden Visa holder, you are not obliged to live permanently in Greece, therefore you will only be taxed in Greece for any income that you will produce in the country and not for your worldwide income. Only if you choose to reside permanently in the country (that is for more than 183 days a year), then you will become a tax resident of Greece and you will be taxed for your worldwide income in Greece.
According to article 4 of Law 4172/2013, an individual person is a tax resident of Greece, provided that: Greece is the permanent or principal residence, or habitual abode or center of vital interests, i.e., personal or economic or social ties; is a consular, diplomatic or public official or similar arrangements, similar public servant status or civil servant who is a Greek citizen and serves abroad. Second, there is having a physical presence in Greece for a period exceeding 183 days within any 12-month period, continuously or intermittently, is a tax resident in Greece for tax year during which the 12-month period is completed. Who also maintains the duty of proof of tax residence? From 2011 (L.3943 / 2011), the responsibility of proof of tax residence of the individual one has the person himself. So the person who has his tax domicile abroad will have to come to the foreign office of the foreigners and prove that he has his habitual residence and his vital interests abroad. If he does not come to the tax department or does not prove the above, he will be required to declare and be taxed in Greece for his worldwide income, even if he is a permanent resident abroad. According to the above, habitual residence, as we said above, is determined by the length of time an individual is in a country, i.e., at least 183 consecutive or intermittent days per year. So, in order to be considered as a tax resident of Greece or abroad, you must have previously lived there for at least 183 days. Residency is presumed to be routine unless the taxpayer provides evidence of his residence in another state.
According to the Greek income tax provisions in force, the foreign tax residents are taxed in Greece only for the income generated in Greece and not for the worldwide income. Furthermore, an individual is considered as a Greek tax resident if the below prerequisites are fulfilled:
a) has his permanent or principal place of residence or habitual residence or center of his vital interests, more specifically his personal or economic interests in Greece,
b) has a physical presence in Greece for a period of more than 183 days in any twelve-month period, uninterruptedly or with breaks If the above conditions are fulfilled in your case, you will be considered as a Greek tax resident, then you will be subject to taxation for your worldwide income in Greece.
No, they don't tax you for the global income. You will be taxed only for the property you have in Greece, which is not
much (around 300 euro per year).
You won't pay tax in Greece for your worldwide income, as Greece is not your tax residence country. In Greece, you will pay only the property tax every year and if you receive rents from the property in Greece - then you ll pay also rental tax.
Well, if you declare your income to the tax authorities of your native country, you will not have a problem. Both countries have signed a bilateral agreement of non allowing double taxation.
Please be aware that Greece will tax you mainly for your income in Greece i.e. for your business here, or if you rent a property you own to a third party. Only if you stay in Greece more that 183 days per year, you are considered tax resident in Greece and you will be taxed here for your global income.
Foreign tax residents are taxed in Greece only for the income derived from a source located in Greece and not for the worldwide income. According to the Greek income tax code, an individual is considered a tax resident of Greece and not a foreign tax resident, provided that they:
a) have their permanent or principal place of residence or habitual residence or center of their vital interests, namely their personal or economic or social ties in Greece,
b) have a physical presence in Greece for a period of more than 183 days in any twelve-month period, uninterruptedly or with breaks
In cases where an individual is considered a tax resident of Greece, then they are taxed for their worldwide income.
Provided that you fulfill the above requirements of the above provision of the Greek income tax code, your worldwide income will be taxed in Greece.
If you are declared as a non-Greek Tax resident, you will be taxed in Greece only your income from the property, if there is any. This means that you should be registered at the Tax Authority of Foreigners. If you are declared as a Greek tax resident, then your global income should be taxed in Greece according to the double tax treaties among both countries.
Tax on income only if it is produced within Greece.
Your taxation will be based just on any Greek property. Worldwide income, right now, is irrelevant.
No. For the time being, Greek tax law doesn't impose tax on one's global income when you aren't a Greek fiscal resident. The fact of having the Golden Visa doesn't give you fiscal residency (for now, at least). Only property tax and (if applicable) income tax from rentals of the property. Nevertheless, in Greece, tax laws change a lot. So it's better to check this once in a while with your accountant also.