New tax benefits for retirees: why it's worth moving to Greece?

Changes in the tax legislation of Greece

In recent months, Greece has experienced significant changes in tax legislation concerning foreign citizens considering relocating to the country. One of the most discussed innovations has been the temporary exemption from value-added tax (VAT) on the purchase of new real estate. This measure could help potential buyers save around20%from the total cost of the transaction, making the purchase of housing more affordable.

New conditions for pensioners and affluent citizens

The Greek parliament has also introduced a number of new rules regarding alternative taxation for foreign retirees and wealthy individuals who have decided to change their tax residency. As a result, a special tax status has been created that significantly simplifies the financial obligations for these groups of people.

Tax rate for foreigners

According to the new law, foreign pensioners intending to move to Greece can become tax residents of the country with a single tax rate of7%This rate applies not only to pensions but also to other sources of income, including:

• dividends,
• royalty,
• rental income.

Requirements for obtaining benefits

To take advantage of these tax benefits, certain conditions must be met:

• It is necessary not to be a tax resident of Greece for the lastsix years, specifically infiveNone of them can be a resident of this country.
• It is necessary to transfer your tax obligations from a state with which Greece has signed a cooperation agreement in the field of taxation.

The process of paying taxes

The tax is paid annually.July 1and all relevant applications must be submitted byMarch 31The tax service reviews the submitted applications within60 daysand makes a decision: either approves it or rejects it. If the applicant decides to change their tax residency in the future, they can do so without any additional restrictions. The program is in effect15 years.

Attractiveness for retirees

These tax changes make Greece very attractive for retirees who want to take advantage of the offered benefits. With a fixed rate of7%They will be able to significantly reduce their tax expenses, regardless of the size of their pensions. This offer is especially attractive for foreigners with high incomes.

Economic consequences for Greece

From the perspective of Greece's economic policy, the new tax system is aimed at attracting foreign retirees by offering them more favorable conditions compared to other European countries such as Portugal, Italy, Cyprus, and Malta, where such benefits are absent. This could have a positive impact on the country's economy, making Greece an increasingly attractive place to live for those who want to enjoy life on the Mediterranean coast with minimal tax obligations.

Program for living in Greece

Those who decide to participate in the program are given the opportunity to live in Greece for at least 183 days a year, and there is also the option to purchase or rent housing, which will significantly contribute to the country's economic development. Let's take a closer look at the housing options available in Greece.

Villa in Chania

A luxurious villa is for sale in Chania, priced at850,000 euroswith a total area330 square metersThis modern building includes:

• four bedrooms,
• two fully equipped kitchens,
• five bathrooms,
• two cozy living rooms.

The villa is located between the picturesque coastal villages of Kalives and Almyrida on the island of Crete. The property offers a stunning view of Souda Bay and the Akrotiri Peninsula. The spacious areas on the first level create a cozy living environment.

Duplex in Peania

A maisonette is available on the NF Group platform in Peania, priced at250,000 eurosThe area of this townhouse is160 square metersIt is located on two levels. On the first floor, there are:

• two bedrooms,
• living room with a kitchen area,
• one bathroom and shower.

On the second floor, there are two more bedrooms and one bathroom. The windows overlook picturesque mountains and the cityscape. This house also includesfireplace,air conditioning systemand other amenities for comfortable living.

Duplex in Vule

Grekodom Development offers a duplex in Vula for540,000 eurosThe area of this housing is100 square metersand it is also located on two floors. On the third level, there is:

• living room with kitchen,
• separate bathroom.

On the fourth floor, there are two bedrooms and a bathroom. The windows of these rooms offer a stunning view of the sea and the cityscape. Installedsolar panelsfor heating water, as well as there arefireplaceandair conditioning systemthat provides comfort throughout the year.

Villa in Loutraki

Another offer from Grekodom Development is a villa in Loutraki priced at380,000 euroswith a total area750 square metersThis private house consists of two levels and is located on a plot of land in9000 square metersThe photo shows that the house needs some improvements. An important advantage is the possibility of dividing it into eight independent apartments, each of which will have a garden area of1000 square meters.

This property offers a magnificent view of the sea and mountain ranges.

Apartment in Lagonisi

An apartment in Lagonisi from Grekodom Development is offered for150,000 eurosits area is76 square metersIt is located on the first floor and consists of:

• two bedrooms,
• a spacious living room combined with a kitchen area,
• one bathroom.

The apartment offers a picturesque view of the mountain peaks and city streets. The living space comes furnished and includesalarm systemAlso owned isgardenThis makes the sentence even more appealing.

Villa on the island of Corfu

On the island of Corfu, there is a magnificent villa worth899,000 euros, with an area of403 square metersThis unique property, featuring six bedrooms, is located in picturesque Arillyas and offers panoramic sea views. The villa includes one spacious apartment.160 square meters) on the top floor and two apartments on the first level.

This is the perfect place for both permanent living and vacationing, combining comfort with the beauty of the surrounding nature.

Conclusion

These real estate examples highlight the diversity and high quality of available housing in Greece, making them particularly attractive to foreign investors. Investing in Greek real estate seems like a sensible move, especially for those who plan to spend significant time in the country and want to have secure residency rights.

This property features a spacious basement that serves as a storage area and is equipped with a burner for the central heating system. The apartment, located on the top floor, boasts an impressive living room measuring 80 square meters.

Proposal from the real estateagency Roula Rouva

The real estateagency Roula Rouva offers this property in Thessaloniki for310,000 eurosThe total area of the apartment is130 square metersIt includes 4 rooms, three of which can serve as bedrooms, and one bathroom. A unique feature is the possibility of obtaining...residence permitupon purchase.

This apartment is located on the second floor and offers a layout with:

• three bedrooms,
• a spacious living room combined with a kitchen area,
• shower

Proposal from Mercury Group

A house from Mercury Group is available for sale in the suburbs of Thessaloniki for300,000 eurosThis three-story cottage has a total area of300 square meters.

The basement floor contains:

• living room,
• kitchen.

On the first level, there are:

• one bedroom,
• a spacious living room with a kitchen area,
• bathrooms.

The second floor includes:

• three bedrooms,
• two bathrooms.

Among the additional amenities, it is worth noting:

• solar panels for water heating,
• fireplace,
• a separate area for relaxation.

Another proposal from Mercury Group

Another project from Mercury Group is a cottage in Thessaloniki, which is priced at695,000 eurosLike the previous one, it is also three-level, with a total area of300 square meters.

The first floor contains:

• two bedrooms,
• kitchen,
• the bathroom.

On the second floor are located:

• living room,
• kitchen connected to the bathroom.

The third level includes:

• three bedrooms,
• a separate bathroom,
• storage areas.

Luxurious villa in Athens

As an alternative, a luxurious villa in Athens is offered, located in the Attica region, with a price of1,600,000 eurosThe comfortable four-story house has an area of470 square meters.

In the first level, there are:

• kitchen,
• cozy living room,
• bathroom.

The basement level also includes:

• a bedroom with a mini-kitchen.

On the second level, there is:

• spacious living room,
• kitchen.

On the third floor, there are three bedrooms. Each window offers magnificent views of the surroundings.

Apartment in Thessaloniki

In Thessaloniki, an apartment is also available for390,000 euros, with an area of130 square metersThis apartment is located on one of the floors and includes five rooms. The apartment comes with:

• furniture,
• parking space.

This offer is especially enticing for potential buyers.

House in Loutraki

In addition, the agency Grekodom Development A.E. offers a beautifully located house in Loutraki for350,000 euroswith a total area280 square metersThe corner structure is located just in100 meters from the seaIt consists of three levels, including a basement and a small upper level with a terrace.

On the first floor, you will find:

• a separate kitchen,
• a living room with a fireplace,
• bedroom,
• the bathroom.

The second level is connected to the base with an internal staircase and includes:

• three bedrooms,
• the bathroom.

Townhouse in Athens

Special attention should be given to the townhouse in Athens, which is for sale for3,045,000 eurosand is currently under construction. This facility occupiesfour levelsand has a total area285 square meters, which makes it an outstanding offer in the real estate market.

The variety of real estate in Greece

This sentence includes a variety of real estate properties in Greece, among which you can find both apartments and townhouses.

Description of objects

On the ground floor, there are two comfortable bedrooms, a bathroom, and a gym, which creates excellent conditions for active recreation and workouts.

Introduction

An important point is that the initiative described in Article 5a of Law 4172/2013 is aimed at attracting wealthy investors to Greece. This legislative measure allows foreign citizens to change their tax residency to Greece and, at the same time, replace their income taxes from worldwide sources with a fixed amount of100,000 eurosper year. This tax policy is intended for individuals who meet certain conditions.

Criteria for investors

The first criterion is that the investor must not have been a tax resident of Greece for seven out of the last eight years prior to the change of status. It is also required that they make investments of at least500,000 eurosfor three years prior to the application submission. These funds can be allocated for:

• acquisition of real estate;
• investments in business;
• the purchase of movable property;
• securities of companies operating in Greece.

Alternative conditions

Instead of fulfilling the second condition, the investor has the option to provide a residence permit issued to them in Greece under Article 16 of Law 4251/2014. Equally important is the fact that in order to change their tax residency, the investor will need to stay in the country for no less than183 daysIn a year; these days can be distributed evenly or accumulated.

Procedure for submitting documents

Applications for changing residency and renouncing the previous tax regime must be submitted to the tax service byMarch 31the year from which the new status is planned to begin. A decision on the submitted documents will be made withintwo monthsIn case of approval, a declaration of tax obligations for the first year will be issued for the taxpayer and their immediate relatives.

The full tax must be paid bythe last working day of Julyevery year. One of the nice aspects of this program is the fact that the fixed tax regime is available for15 years.

Investor interest

Investor interest in this proposal lies in the fact that the fixed tax can apply not only to the applicant but also to their family members, with the condition of an additional payment.20,000 eurosFor each of them. The "fixed tax" system implies that the tax amount remains unchanged, regardless of the resident's total income, which creates favorable conditions for individuals with high income levels and allows them to save significantly compared to traditional tax rates.

The impact on the Greek economy

As for Greece itself, the introduction of a fixed tax helps attract foreign investors by offering them significant advantages compared to other tax jurisdictions. Considering the requirements for residency and minimum investments, such investors are likely to spend substantial amounts in Greece, for example, when purchasing or renting property.

Conclusion

Thus, the described program delights both investors and the Greek economy by offering mutually beneficial conditions for both parties. Additionally, it is worth noting other options that may be of interest to foreigners looking to invest their funds abroad.

Conclusion

In conclusion of the article, I would like to summarize some key points regarding the recent changes in Greece's tax legislation, which open new opportunities for foreigners looking to change their tax residency. As a lawyer working at Grekodom Development A.E., I can confidently say that the initiative to temporarily suspend VAT on new builds offers significant advantages, allowing buyers to save up to20%from the cost of real estate. This plays an important role in the context of launching new construction projects and attracting investments.

Alongside this, the new law regarding foreign pensioners significantly simplifies the process of tax residency. This preferential regime allows for a fixed tax payment of only7%It creates attractive conditions for retirees from various countries. Its advantages are particularly noticeable for those with high incomes, as the tax rate does not depend on the size of the pension, highlighting the Greek government's intention to create comfortable tax conditions to attract wealthy foreign citizens.

Key conditions of the new tax regime

• A pensioner should not be a tax resident of Greece for the previous five out of six years.
• It is necessary to transfer tax residency from a country that has a valid tax treaty with Greece.
• The tax payment occurs on July 1st of each year.
• Applications are submitted by March 31 of each year.

Understanding the conditions under which foreign retirees can take advantage of the new tax regime is key to successfully promoting Greece as an attractive country for retirement living. The application deadlines and the possibility of switching back to another tax residency will undoubtedly be appealing to many.

The impact on the Greek economy

This bill not only improves the financial situation of retirees but also creates additional incentives for the Greek economy. Foreign retirees choosing Greece will contribute to the growth of the local real estate market and the revitalization of the economy, which, in turn, can positively impact the improvement of infrastructure and social conditions in the country.

Thus, Greece is becoming one of the most attractive destinations for foreign citizens looking to improve their financial situation and quality of life. I sincerely hope that these changes will have a positive impact on the country's development and allow many people to realize their dreams of living in such a beautiful and historically rich place as Greece.