Greece Non-Dom Special Tax Resident

Greek Non-Dom Tax Regime

The new Article 5A of the Greek Income Tax Law (Law No. 4172/2014), as amended in 2020, provides for an alternative taxation system for natural persons transferring their tax residency in Greece,Within 15 years, the annual unified tax on global income is 100,000 euros, and does not matter the total annual income.

Reference article:Are you right to transfer assets overseas? How to plan? Legally and securely avoid the automatic exchange of global bank account information? How to solve the CRS problem with passport + identity planning?
Reference article:What is the tax number? Tax resident

legal

Source and background

The conceptual model of residence is changing. The primary residence may be in one country, while the holiday residence or second residence may be in another country. Even the family's living pattern is changing. In the traditional model, couples and children have a residence in the same country, but now more and more cases are where spouses work and live permanently in another country, while they live with their children or other family members. In Greece, a family may live in different cities in the summer and winter; it may even live in two different countries in Europe in a year; including employees who work through technology and remote work, they may not necessarily work and live in the same city Country/Region, and thus Non-dom (Non Domicile concept)

Special treatment for entrepreneurs

Very large entrepreneurs usually have investments in many countries in the world and are active between countries and/or countries, so they often move from one country to another and cannot live in one place permanently. So in the context of tax planning, it is different fromGolden visaThe Greek government needs to increase its attractiveness, provide funds for entrepreneurs’ operations, create or strengthen economic development conditions, give good working conditions, maintain economic and social cohesion, and should pursue the goals of enterprises/entrepreneurs to achieve sustainability For development, it is obliged to attract international investment through preferential tax treatment and promote higher employment levels and more efficient economic activities.

Non-Dom creates a win-win situation for Greece and entrepreneurs

As much as the rest of the EU, Greece passed a new bill as early as last year’s election,Open more channels for obtaining Golden VisaIn order to attract more powerful entrepreneurs, the new government team promotes incentives for tax residents, expresses Greece’s ambitions in the international and EU countries, and vigorously grants tax incentives to attract residents with high tax rates, hoping to increase public income And get various incidental benefits. Therefore, the non-dom of special tax residents was born.

Non-Dom tax resident tax rate

Revenue in Greece

The domestic tax rate of Non-dom special tax residents is the same as the tax rate of Greek tax residents, and the income calculated based on the various types of receipts and sources obtained in Greece

Revenue outside Greece

The biggest difference between Non-dom special tax residents and other Greek tax residents is thatFor foreign income, only one-time payment of 100,000 euros per year is required, No need to declare foreign amounts in Greece.

Conditions for entering Non-dom

The revised Greek Income Tax Law (Law No. 4172/2014). There are three conditions that must be met to become a non-domestic tax resident in Greece:

Natural person
It should not be a tax resident of Greece within the first seven (7) years of the eight (8) years before its tax residence is transferred to Greece;
The amount of investment must not be less than 500,000 euros. The investment must be completed within three years from the date of submission of the application to transfer tax residence to other taxation methods.

Process flow

The submitted application is until March 31 of the tax year.
The application was approved or rejected by the Greek tax office within 60 days
After submitting the application, Greece will announce to the country with tax status and notify the tax authorities.
Within 30 days after approval, an annual income tax of 100,000 euros is paid.

Non-Dom tax resident advantages

Solve CRS

inCRS protocol implementationUnder the regulations, countries will automatically exchange account information, and how much money in the financial account of the same identity will be automatically exchanged, and most members of the United Nations are currently inList of signatory countries of CRSInternally, when the bank account is opened, the account holder is required to provide a tax number and prove his tax status. Non-dom's tax resident status legally solves the problem of opening an account. Reference article:What is the tax number? Tax residents?

Don't worry about automatic exchange of financial accounts

Automatic Exchmage of Information Automatic Exchange (AEI) is aCRSThe following tax standards are used to regulate how the tax authorities of the country exchange with the taxpayer's account or depositmonetary assetsAnd information about the income derived from it, determined according to the domestic tax laws of each jurisdiction (State Administration of Taxation), the bank must ensure that the account holder (or controller) discloses all tax residences, That is to sayState Administration of TaxationI already have a copy of the identity and information of all account holders registered in overseas banks when opening an account. Using NON-DOM tax resident status can avoid the occurrence of AEI.

You can open an account with an island passport

Island passports, or countries that provide CBI (Citizenship by Investment), including Dominica, Saint Kitts, Antigua, Grenada, Turkey, Saint Lucia, European countries: Cyprus, Malta, Montenegro , Moldova, Vanuatu are all hereOECD Economic Cooperation and Development Organization reminder listIt has not been easy to open accounts in Hong Kong, Singapore, and Dubai. One of the main reasons is that these countries are tax-exempt countries, and bank managers need to pay more for due diligence. No bank wanted to commit money laundering.

Open an account with a big country passport

High-asset individuals have acquired Maltese or Cyprus status in the past five years and joined the ranks of EU citizens, but inOECD (Economic Cooperation and Development Organization)AnnouncedCBI (Citizenship By Investment) reminder listAfter that, all the high-asset ethnic groups that may use the passport of the second country to evade taxes were exposed to global financial institutions. Now, Non-dom can legalize these offshore bank accounts

Overseas income

Non-dom tax residents are not required to pay tax on overseas income

Non-zero tax

Greece’s Non-dom is not a traditional tax heaven, but a way to replace zero tax with fixed tax, and there are strict entry rules. Overseas financial institutions, such as banks, prefer tax resident status.

Dual nationality is safer, no need to account for overseas income, and bring family members

Non-dom, a special tax resident, will undoubtedly bring more space and freedom to Greece and high-asset ethnic groups. The Greek taxation authority only pays a fixed tax of 100,000 euros per year. High-asset families do not have to struggle to submit overseas account information and are more confidential. safer.

in conclusion

Compared with the upgraded Dominica passport

useCBI projectPlusGreek FIP,Greece Golden Visa, OrNON-DOMAll of them belong to high-end practices. For high-asset people, not paying no taxes at all, but paying a reasonable amount of taxes,Advanced Citizenship by InvestmentuseDominica Gold IdentityPlusFIPSolved the nationality problem of account opening status, but there is no NON-DOM advantage in the offshore taxation worldwide. Households with higher funds can consider Dominica +NON-DOM.

Compared with Golden Visa

Golden visaProvide foreigners with one-step access to permanent residence status, but this status does not have tax advantages. As a permanent resident of Greece, you can obtain a local tax number, but if you are configuring offshore assets, according to the CRS agreement, use the original Nationality passports are still classified as tax residents of the original country and become the object of automatic exchange of financial accounts. Reference article:Transfer money to an overseas bank account? What is safe?

Comparison with other tax resident status

Greece Non-dom is the latest and most direct in the EU mainstream marketTax residentIdentity, excellent national reputation is more accepted by the OECD than the previous Tax Heaven. For the rich, they can openly hide overseas assets, avoid disclosure, and achieve practical control. Wealth inheritance can be furtherLearn about our services.

Applicable person

If the family income is more than 2 million US dollars, or the annual tax payment exceeds 350,000 US dollars, you can consider applying for Greece's Non-dom; if the annual tax payment exceeds 600,000 US dollars, the family directly applies for a Dominica passport plus Non-dom The identity is the best configuration; people with high cash assets can also apply. Families in need can contact us. We have extensive experience in local tax planning and asset planning in Greece. We also provide local legal and residency services.