Tax migration for foreign retirees in Greece: Terms and procedure

Independent, annual tax of 7% will be paid by those pensioners who transfer their tax headquarters to Greece. 

In particular, for retirees abroad who want to transfer their tax headquarters to Greece, it is provided:

Incentives for foreign retirees : At a rate of 7%, the income earned by foreigners who will choose to transfer their tax residence to Greece will be taxed independently every year and for 10 years. With the payment of this tax, any tax liability of the natural person for this income is exhausted. In order for a foreign pensioner to be subject to an alternative form of taxation, the following conditions must apply cumulatively for the income that arises abroad:

a) not to have been a tax resident of Greece for the previous five of the six years prior to the transfer of his tax residence to Greece, and

b) to transfer his tax residence from a state with which an administrative cooperation agreement is in force in the field of taxation with Greece.

The 7% tax is paid every tax year in one installment until the last working day of July and is not offset by other tax liabilities or any credit balances of the person who has been subject to the alternative method of taxation. The application for the transfer of the tax residence subject to the alternative way of taxation of income that arises abroad in the present article is submitted to the Tax Administration by the natural person retired until March 31 of each tax year. Within sixty days from the submission of the application, the Tax Administration examines the application and issues a decision approving or rejecting it.

Especially for the applications for transfer of tax residence that will be submitted within the year 2020, the deadline for the submission of the relevant application is set on 30/09/2020. The provisions also apply to natural persons who meet the conditions and have already transferred their tax residence to Greece within the previous tax year. In this case, the tax is paid within thirty days from the approval of the taxpayer’s application in accordance with this.

The application of the measure starts from the next tax year for which the application of the natural person for its subordination to the provisions of the present is submitted and expires after the end of ten tax years. Subject to the provisions of this Article may not be extended beyond 10 years.

The bill provides, inter alia:
-Exemption from the performance fee for farmers and after the lapse of 5 years from the date of inclusion in the VAT regime.
– The registration fee for cars with the first registration date until August 31, 2018 is increased.
– Incorporation of music books into the overflowing VAT rate of 6%.
– An out-of-court dispute resolution committee is set up. The main task of the committee is the out-of-court settlement of pending cases before the CoC and the regular administrative courts of tax disputes. Only cases that have not been discussed by October 30, 2020 can appeal to the committee.
The consultation of the bill will last until July 14.

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