Greece Golden Visa as a Way for Tax Optimization
The Greece Golden Visa is a Residency by Investment program that allows non-EU/EEA nationals to obtain 5 years of residency by investing in the country. That, on its own, is already a very interesting return. However, you can also benefit from Greece’s efforts to become increasingly favorable for investors seeking better tax options.
One of the most appealing selling points of the Greek Golden Visa is that residents don’t have to actually move to the country. With that, you can become a Greek resident without being a tax resident, as long as you don’t spend more than 183 days in Greece. In this case, you won’t be subjected to paying local taxes. However, moving your tax residency to Greece may actually be a good idea, since you can apply for a beneficial tax incentive designed to attract foreign investment.
At the end of the day, it’s all about putting together the right strategy for you and, in order to do so, you’ll need to understand how Greece’s taxes work for Golden Visa holders and this is what we are about to explore.
What is the Greek Tax Break for Golden Visa Holders?
If you invest €500,000 in this Mediterranean country, you can choose to have your domicile transferred from a state that has a bilateral agreement with Greece so you can take part in the “non-domicile” regime for expats.That way, you can pay a flat annual tax of €100,000 on your foreign income and wealth, in a lump sum, for a 15-year period, regardless of the size of your capital. This can be especially attractive if you are a high-net-worth individual, and it is a smart way for Greece Golden Visa holders to best control how much they spend in taxes.
Here is how you become eligible to benefit from Greece’s tax incentives for foreigners, through the non-dom regime:
- You need to make a €500,000 minimal investment in Greece. That amount can be the sum of up to 3 investments
- Be a non-Greek tax resident for 5 out of the 6 years preceding applying to the non-dom system
- Apply by 31 March of the calendar year
Direct relatives can also enjoy this benefit by paying an extra tax rate of €20.000 per adult, per year. Note that any income made in Greece will be subject to the country’s standard tax regime.
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Other Tax Rates and Benefits for Foreigners with Greek Residency
If you are thinking about retiring in Greece or have a passive source of income coming from outside the country, such as capital gains, dividends, or rental income, you can also benefit.
With the Non-Domicile (Non-Dom) Regime for Pensioners, you can pay a flat annual tax rate of only 7% on foreign-sourced income coming from a state that has a double taxation treaty with Greece. The best part is that if you pay taxes on that revenue in a country, you can apply for tax deductions or credits against the 7% you’ll pay in Greece if there’s a double taxation agreement in place.
This incentive is also valid for 15 consecutive years, but it is not extendable to anyone else in your family, and each person has to qualify for this benefit individually.
Since the Greece Golden Visa doesn’t allow its holders to work in the country, this 7% tax regime on foreign income comes quite in handy if you have plans to relocate to the country for over than 183 days per year.
The Greece Golden Visa Tax Policy is Increasingly Popular Among Investors
With these tax incentives aimed at foreign investors, the Greek Government wishes to attract not only high-net-worth individuals interested in residency but also in transferring their tax residency to the country.
In the first year of its implementation, from 2020 to 2021, over 1300 people adhered to the initiative, showing that the measure paid off quite instantly. Now, with the end of the UK’s non-don regime, investors are turning to Greece as a way of optimizing their taxes right in the middle of Europe and the Eurozone. This includes UK citizens who, in August 2024, became the 5th nationality in the top 10 of residency permits issued via the Greece Golden Visa.
Also, official numbers from Greece’s Ministry of Immigration and Asylum show that, of all the 19.454 Golden Visa requests made from 2018 to 2023, over 68% were made after 2020, when the tax benefits were created.
Almost 5 years after its initial implementation, and since there has been no opposition from the International Monetary Bank or the European Central Bank, Greece’s tax incentives on foreign-generated income are a sound way of avoiding getting overtaxed and a popular mechanism among international investors.
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How To Benefit from the Greece Golden Visa Tax Benefits
Since the €500,000 required investment to become eligible for Greece’s non-dom regime can be cumulative from up to 3 different investments, the 250k Greece Golden Visa emerges as the best option for your tax optimization strategy in Europe.
With that, you can invest in tangible assets that will have solid long-term appreciation, while still taking part in a favorable tax regime that will help you protect your wealth.
The offers are plenty, and they can be found even in the most sought-after areas, such as Athens and its surroundings.
<< Check out the Best Golden Visa Eligible Properties Here >>
If you wish to get a curated list of properties as well as guidance on the best tax tactics for your goals, you can always count on Investment Visa for end-to-end support. Simply reach out to us and tell us what you need.
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