All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Greece introduces 50% tax break for relocating professionals

Sponsored by

The introduction of this tax regime aims to lure back some of the Greeks who left during the debt crisis

Manos Tountas of EY in Greece examines the ambitious tax law which intends to create more professional jobs across Greece, and aims to reverse its crisis-era brain drain.

Recent Greek Law 4758/4.12.2020 introduces a special tax regime aimed at attracting foreign tax residents, who wish to transfer their tax residency and relocate to Greece to work as employees in a “new employment position” or as freelancers.

In order for a prospective applicant to be eligible, they must cumulatively:

  1. Not have the status of being a Greek tax resident for the previous five of the last six years before the transfer of their tax residence to Greece;

  2. Relocate from an EU/EEA country, or a country with which Greece has a valid agreement concerning administrative cooperation on tax issues;

  3. Provide employment services locally to a Greek legal entity or to a Greek branch of a foreign company; and

  4. Declare that they intend to stay in Greece for a minimum of two years.

The favourable tax treatment also applies equally to those who apply and transfer their tax residency to Greece, in order to undertake a business activity locally, such as to set up a business as freelancers.

Provided that the application is successful, the individual:

  • Becomes a Greek tax resident under this special tax regime;

  • Becomes exempt from paying income tax and solidarity tax on 50% of their Greek source employment income or freelancer income;

  • Is taxed in Greece for any other Greek source and foreign source income according to the general tax rates (with a right to receive a foreign tax credit for taxes paid abroad on certain conditions etc.); and

  • Becomes exempt from the application of local tax rules on annual imputed income deriving from ownership or possession of a residence or a private use vehicle.

The application of this special tax regime is provided for the fiscal year of the application and for the following seven fiscal years. No further extension can be provided.

The deadline to apply for this regime is July 31 of the year during which the individual is commencing employment or business activity.

As of the guidance presented in December 2020, it was expected that the Greek tax administration would issue further guidelines to clarify a number of points, such as:

  • The meaning of “new employment position” in the above context;

  • Whether there is a requirement for the individual to remain employed by the same employer for all the above specified period (seven years) in order to remain subject to this tax regime; and if so, whether the change of employer or termination of the employment contract by the employer or resignation of the employee during the above period will result in revocation of the tax regime retrospectively or only for the future;

  • Whether the individual is expected to physically stay in Greece for as long as they remain subject to this tax regime;

  • Whether the individuals will be exempt from the application of imputed income deriving from the purchase of a residence or a private use vehicle; and

  • Whether the individual may apply to be subject to this tax regime for a shorter period than the seven year period provided by the law and whether they have the right to apply to have this revoked.

It appears that introduction of this tax regime aims to lure back some of the Greeks who left during the debt crisis to pursue careers abroad. Likewise, it is a method for attracting foreign talent and experienced professionals from abroad to relocate to the country.

The changes may also attract a number of investment banks intending to open or expand their existing offices in Greece, so as to expand their presence in the Eurozone, or other companies wishing to relocate their employees to the country.

Manos Tountas

Tax manager


more across site & bottom lb ros

More from across our site

The Biden administration is about to give $80 billion to the Internal Revenue Service to enhance the tax authority’s enforcement processes and IT systems.
Audi, Porsche, and Kia say their US clients will face higher prices under the Inflation Reduction Act after the legislation axes an important tax credit for electric vehicle production.
This week Brazil’s former President Luiz Inacio Lula da Silva came out in support of uniting Brazil’s consumption taxes into one VAT regime, while the US Senate approved a corporate minimum tax rate.
The Dutch TP decree marks a turn in the Netherlands as the country aligns its tax policies with OECD standards over claims it is a tax haven.
Gorka Echevarria talks to reporter Siqalane Taho about how inflation, e-invoicing and technology are affecting the laser printing firm in a post-COVID world.
Tax directors have called on companies to better secure their data as they generate ever-increasing amounts of information due to greater government scrutiny.
Incoming amendments to the treaty could increase costs on non-resident Indian service providers.
Experts say the proposed minimum tax does not align with the OECD’s pillar two regime and risks other countries pulling out.
The Malawian government has targeted US gemstone miner Columbia Gem House, while Amgen has successfully consolidated two separate tax disputes with the Internal Revenue Service.
ITR's latest quarterly PDF is now live, leading on the rise of tax technology.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree