Greece, with newly enacted tax legislation, invites foreign pensioners to relocate and benefit from reduced taxation rates.
Persons who receive retirement income from abroad and decide to become tax residents in Greece, can now enjoy a special, flat tax rate of 7% on the sum of their retirement income.
The tax is payable annually as a lump sum by the last working day of July.
In order to qualify for this beneficial rate, pensioners should:
- have relocated from a country which has a valid double tax treaty with Greece and
- should have not been tax residents of Greece for at least five out of the six financial years before their tax relocation.
The application for tax residence relocation subject to this special tax rate, should be submitted to the Tax Office by 31 March of each financial year. Pensioners who have already relocated their tax residence to Greece during the previous financial year, can also apply for the special tax rate by the same date.
For the applications of tax residence relocation for the financial year 2020, the submission deadline is 30 September 2020.
The Tax Office will review applications and issue a decision for their approval, within 60 days from submission date.
Upon approval, the special tax rate is applicable from the following financial year and is valid for 15 years.
Fidescorp’s team in Greece is at your disposal to discuss in further detail, based on your personal circumstances.