How many rich people have moved their tax headquarters to Greece
The results from the implementation of the legislative framework of tax incentives for the attraction of new tax residents and investments in Greece will be presented today at 10.30 am, the Minister of Finance, Christos Staikouras, the Deputy Minister Apostolos Vesyropoulos and the Secretary General of Tax Policy and Public Property, Athena Kalyva.
Our country has adopted a legal framework that provides tax incentives for those who relocate to our country.
Specifically,
1st step: With Law 4646/2019, from the tax year 2020, the taxpayer, a natural person, who transfers his tax residence to Greece, can be subject for 15 years to alternative taxation of income arising abroad, provided that they are met – special – specific conditions, including the investment in Greece of a minimum of 500,000 euros.
With the deposit, annually, of a flat tax of 100,000 euros, all tax liabilities of the natural person for the income that arise abroad are exhausted. Alternative taxation may, at the request of the taxpayer, be extended to relatives.
According to the data announced a few months ago by the Ministry of Finance, in 2020, the first year of the provisions, despite the extremely adverse conditions of the first pandemic rule, 20 reasons were submitted, out of the applications approved by 18 investors and 7 of their relatives. persons.
The applications concerned investors from 9 countries, mainly outside the EU, while the total of the confirmed and paid tax amounted to 1.9 million euros in 2020.
By 2021, the number of applications had risen to 58. The provisions were accepted for 57 investors and 17 relatives from more than 20 countries, mainly outside the EU. The total tax certified is € 7.9 million. for 2021, of which an amount of EUR 2.9 million has already been paid.
2nd step: The next step for the granting of tax incentives was made with law 4714/2020. According to its provisions, from the tax year 2020, the taxpayer, a natural person, the right to enter from a pension arising abroad, who transfers his tax residence in Greece, is subject, for 15 tax years, to an alternative way of taxation for the income that arises abroad, provided that, cumulatively, specific conditions apply.
The natural person pays, every tax year, a tax independently at a rate of 7% for the total income earned abroad, while the income resulting in the country is taxed according to the general provisions.
In 2020, the first year of application of the provisions, 8 applications were submitted, from taxation from 5 countries, mainly outside the EU, out of which 7 were approved.
Step 3: The framework of tax incentives was supplemented by Law 4758/2020, aiming at attracting foreign workers, the self-employed and Greeks who fled the country during the economic crisis.
According to the provisions of the law, from the tax year 2021, the taxpayer, a natural person, who transfers his tax residence to Greece, is subject for 7 tax years to a special way of taxation of income from paid work and professional activity arising in the country, if applicable . cumulatively specific conditions.
In particular, the taxpayer is exempt from income tax and the special solidarity contribution of 50% of income from paid work and activity acquired in Greece, while it does not apply to the objective cost of residence and private car.
According to the available data presented by the Ministry of Finance at the end of the spring, 167 applications were submitted, of which 113 were employees and the remaining 39 were self-employed and 15 sole proprietorships.
4th step: Finally, the framework for attracting individuals to Greece with tax residence abroad was supplemented by Law 4778/2021. It establishes clear and transparent rules for the establishment and operation of special purpose property management companies.
Specifically, incentives are provided for the way in which the tax income of these companies is determined, based on the expenses they incur, so that the management of cash flows and the family property of high-income individuals, with tax residence in Greece, is implemented by these companies, provided that certain conditions apply.