Non-Dom Regime for Pensioners and Investors

What you need to know!

The Non-Domicile (Non-Dom) Regime for Pensioners and Investors in Greece is a program introduced to attract foreign pensioners and investors to the country. These regimes offer favourable tax treatment to individuals who choose to establish their tax residency in Greece.

Implemented in 2020, the initiative was specifically aimed at retirees who receive their pensions from abroad and reside outside Greece. The measure aimed to cater to the needs of pensioners and investors by providing them with favourable tax conditions in addition to the well-known attributes of the country, such as safety, culture, and elevated living standards.

Non-Dom for Pensioners with 7% Tax Rate

How to qualify

To transfer your tax residence to Greece as a pensioner, you must:

• Be a non-Greek tax resident for 5 out of the last 6 years
• Be a tax resident of a country which has an agreement in force with Greece on administrative cooperation in the field of taxation
• Earn non-domestic income deriving from a pension, payable as a lump-sum amount or periodically

If you are applying for non-dom residency and you are not an EU citizen, you also need to apply for a residency such as a Golden Visa.

You need to spend more than 183 days a year in Greece to hold on to your Greek tax residence status. Otherwise, you could risk being considered a tax resident of another country.

How long does the regime last?

The special non-dom regime for pensioners lasts for a maximum of 15 years

It may be terminated at any time if:
• You fail to fulfil your obligations under the non-dom tax regime
• You request to have the non-dom tax regime revoked.

When to Apply for the Non-Dom Regime

You must apply by 31 March of any calendar year, to transfer your tax residence to Greece.
The application must be filed with the Tax Office of Foreign Tax Residents of Athens.
From the time you file your application, even in the case the supporting documents were not submitted with the initial application, you have 60 days to provide all the relevant supporting documents to the Greek tax authorities.
Once you apply, the Greek tax authorities will notify the corresponding authorities in your country of origin.

Non-dom regime for investors

The Greek Income Tax Code (Law 4172/2013) has been amended to include article 5A, which introduces a flat tax rate of €100,000 per year on worldwide income for 15 years for individuals who transfer their tax residence to Greece. However, this legislation does not apply to legal entities.
To be eligible for the Non-Dom Resident Status in Greece, the applicant must not have been a tax resident of Greece for the previous seven (7) out of eight (8) years before the transfer of their tax residence to Greece

As part of the eligibility criteria, the applicant must invest a minimum of €500,000 in Greece. This investment can take various forms, such as investing in real estate, business established in Greece, etc. The investment can be made either by the applicant, a relative (spouse or ascendants/descendants in a straight line), or through a legal entity (in which the applicant has the majority of shares). The investment must be completed within 3 years from the date of application

It’s worth noting that individuals who obtain a permit for investment activity, in accordance with Art. 16 of Law 4251/2014 (Golden Visa Program), are not required to prove that they have made the aforementioned investment. Additionally, those who transferred their tax residence to Greece a year before the entry into force of this law provision are also eligible to apply for the Non-Dom Resident Status

We have been providing valuable advice on tax planning to domestic and foreign investors and pensioners for decades.

Understanding the complexity of international tax matters and recognizing that each pensioner is different, we carefully examine all aspects of your case to design a non-domicile solution that is specifically tailored to your needs.

Backed by our successful track record and the strong partnerships we have forged all over the world, we are your ideal partners for all your non-dom needs.

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