Citizens who live more than 183 days a year in a foreign country, without maintaining in Greece:
- Family (e.g., spouse/children) — Criterion for 2015 and prior years; the 1201/2017 criterion has been abolished; or
- financial, professional, or
- social ties,
They may declare the transfer of their tax residence abroad and may be transferred to a Tax Office for Foreigners. In any case, the individual’s strong connection (center of vital interests) to the other country must be demonstrated.
Why do I need to register with the Tax Office for Foreigners?
- You do not have to report your worldwide income in Greece,
- You have no control over your bank transfers to Greece,
- You can bring capital (through a bank) from abroad without having to explain where it came from.
How can I change my tax residency?
To change your tax residency, it is recommended that you obtain a Tax Residency Certificate from the competent authorities if there is a Double Taxation Avoidance Agreement between Greece and your country of residence, or any other required supporting documentation (in the absence of such an agreement).
Keep in mind that the agency, in addition to the general criteria mentioned above, will assess the actual facts to determine whether you qualify as a foreign resident.
The above procedure requires the expertise and guidance of an experienced and specialized tax firm, which will then help you accurately report your income from Greece on your tax returns in both Greece and the contracting country.
GOOD TO KNOW
- Each taxpayer’s worldwide income must be reported and taxed in the country where he is a tax resident,
- Citizens who receive income from more than one country should pay close attention to how they report their worldwide income to the tax authorities in those countries,
- Double Taxation Avoidance Conventions provide information on the place of taxation of income received in Contracting States,
- Law 3943/2011 addresses the concept of tax residence in greater detail, as it examines where the taxpayer’s family, economic, or social ties are centered. The answer to this question also determines the final decision of the competent authority regarding the transfer of the person in question to the Tax Office for Foreigners.
- In 2017, the automatic exchange of information between the 27 countries of the European Union and the United States (FATCA) began.
Author
Maria Dianellou – Tax Advisor – Taxblock Team