We undertake to inform you and guide you in the collection and filing of the documents to obtain the favourable tax treatment
For international residents
Inclusion in 5A /
For International Residents
Alternative taxation of foreign income for high net worth individuals
Article 5A establishes incentives for high net worth individuals, who are tax residents abroad, in order to:
- attracting capital to Greece,
- strengthening public revenues,
- the creation of investment units or participation in investment schemes/companies, and
- the creation of new jobs.
Beneficiaries may be subject to alternative taxation on income earned abroad, provided they meet the conditions set out in Art.
A natural person who transfers his/her tax residence to Greece may be subject to the alternative taxation method of Article 5A, for income earned abroad, if cumulatively:
- was not a tax resident of Greece for the previous seven (7) of the eight (8) years prior to the transfer of his/her tax residence to Greece, and
- proves that he or she or a related person, or through a legal person or legal entity in which he or she holds the majority of shares or units, respectively, invests in real estate or businesses or securities or shares or units in legal persons or legal entities domiciled in Greece. The amount of such investment may not be less than EUR 500,000. The investment must be completed within three (3) years from the date of submission of the application for inclusion.
* Tip: The second condition does not need to be met if the person is a natural person who has obtained and maintains a residence permit for investment activity in Greece, according to the provisions of article 16 of Law No. The second condition is provided by the provisions of Article 16 of Law 4251/2014 (A’ 80) on the granting and renewal of residence permit for investment activity (paragraph 1 of Article 5A of the Tax Code).
The application for the transfer of tax residence with inclusion in the alternative method of income taxation arising abroad in accordance with Article 5A of the Tax Code, on behalf of the natural person, to the competent department of the Hellenic Tax Administration (Attica or Thessaloniki from the date of its opening), is submitted by 31 March of the tax year in question.
The application for inclusion and extension of the application of the provisions to a relative of the applicant shall be submitted either at the time of inclusion (up to the above date) or at a later time than the initial inclusion, for as many years as are remaining until the completion of the fifteen (15) tax years.
The application for inclusion in the alternative method of income taxation of article 5A of the Tax Code may be submitted either at the beginning of the investments or up to three (3) years after their completion at the latest.
- A natural person subject to the alternative method of income taxation under Article 5A of the Tax Code, shall pay each tax year for income earned abroad, regardless of the amount, a flat tax amount of one hundred thousand (100,000) euros for fifteen (15) tax years, starting from the year of submission of the application.
- In the case of extension to relatives of the applicant, a tax amount equal to twenty thousand (20,000) euros per relative shall be paid.
- The payment of the lump sum of tax shall exhaust any tax liability of a natural person who has been subject to the provisions of the present law for income earned abroad.
IMPORTANT NOTE
- A natural person subject to the alternative method of income taxation under Article 5A of the Tax Code, shall pay each tax year for income earned abroad, regardless of the amount, a flat tax amount of one hundred thousand (100,000) euros for fifteen (15) tax years, starting from the year of submission of the application.
- In the case of extension to relatives of the applicant, a tax amount equal to twenty thousand (20,000) euros per relative shall be paid.
- The payment of the lump sum of tax shall exhaust any tax liability of a natural person who has been subject to the provisions of the present law for income earned abroad.