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Tax Law

The place of effective management (“POEM”) rule

According to the provisions of article 4 par. 3 of the Greek Income Tax Code-L. 4172/2103 (hereinafter referred to as “ITC”), “a legal person or a legal entity is a tax resident of Greece for any tax year, provided that: a) it was established or founded in accordance with Greek law, b) has its registered seat in Greece, or c) the place of exercise of the effective management is in Greece at any time during the tax year.”....

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Procedure, requirements and supporting documents for inclusion in the favourable tax scheme for digital nomads

Competent body : 1. The tax office responsible for taking receipt of, examining, approving and rejecting applications for inclusion within the provisions of Article 5C of the Income Tax Code, for taking receipt of and examining the relevant supporting documents accompanying the applications and supporting documents to prove that the requirements in this Article are met, and for entering the data in the relevant electronic application is the Tax Office for Residents Abroad and Alternative Taxation for Greek Tax Residents, of the Independent Authority for Public Revenue (IAPR). ...

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New tax regime for the establishment and operation of family offices in Greece

Among the latest structural reforms that have been implemented with the aim to attract foreign investments and relocate skillful human resources in Greece, the Greek Government has recently introduced a “Family Office” regime for serving the management of the family wealth and assets of high-net-worth individuals who are tax residents in Greece. In this respect, new Law 4778/2021 sets a transparent and straightforward legal framework that provides incentives for the establishment and operation of family offices in Greece, as follows: ...

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Tax incentives for “angel investors”

In the context of recent initiatives to render Greece a more investment-friendly jurisdiction for businesses, and particularly for the startup and high-tech digital economy ecosystem, new article 70A of the Greek Income Tax Code (L. 4172/2013), which was enacted by virtue of article 49 of L. 4712/2020 (GG A’ 146), introduces the concept of “angel investors” in Greece and grants them with tax incentives in the form of an income tax deduction equal to an amount of 50% of the capital contributed to startups that are registered with the “Elevate Greece” Startup Platform of the General Secretariat for Research and...

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Incentive for individuals (employees & sole traders) to transfer their tax residence to Greece

[vc_row triangle_shape="no"][vc_column][vc_column_text]New article 5C of the Income Tax Code By virtue of Article 40(1) of Law 4758/2020, a new article 5C is added to the Income Tax Code, which provides a special method for taxing income from salaried work and business activity, acquired in Greece by natural persons who transfer their tax residence to Greece. The new provision provides for the following: 1. Any taxpayer, being a natural person, who transfers his/her tax residence to Greece shall be subject to taxation, as specified in paragraph 2 regarding income from salaried work acquired in Greece within the meaning of Article 5(1)(a), where all the...

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Required documents for the Greek tax registration number (A.F.M.) issuance

The required documents to apply an individual for a Greek tax registration number (A.F.M.) in Greece are the following: 1. Form M1 "Application for tax number/ Change of Personal Data", including the following information: • personal information, ie surname, father name, date of birth, place of birth; • identity information, ie number of passport, date and authority of issuance; • nationality, profession and marital status; 2. Current residence address in Greece; it is not required any document proving your address in Greece (ie lease contract etc). The residence determines the local competence of tax office. 3. A transcript of your passport or your identity card. The above...

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Alternative taxation of income generated abroad for individuals who transfer their tax residence to Greece [Article 5A of Law 4172/2013]

A taxpayer (who is a natural person) who transfers his or her tax residence to Greece can be taxed in an alternative manner for income generated abroad, in other words all income not generated in Greece, provided all the following conditions are met: a) he or she was not tax resident in Greece during 7 of the previous 8 years prior to transfer of his or her tax residency to Greece, which is examined based on the records held by the tax administration and b) he or she proves that he/she or his/her relative (spouse and persons in the ascending or descending...

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Alternative taxation of income of natural persons who are beneficiaries of pension income from abroad

Alternative taxation of income of individuals who are beneficiaries of pension income from abroad and who transfer their tax residence to Greece - Procedure and conditions for inclusion [Article 5B of Law 4172/2013]. An individual recipient of pension income who transfers his or her tax residence to Greece can be taxed in an alternative manner for income that is generated abroad. Under the alternative method of taxation, each tax year the individual pays a tax at a rate of 7% for all income acquired abroad, unless that income is exempt from tax in the country of residence under the provisions of...

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