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 5B /
For pensioners resident abroad
Article 5B provides for the possibility for individuals who receive a pension from abroad to transfer their tax residence to Greece and be subject to a special tax regime for their income from abroad.
A natural person, beneficiary of pension income, according to article 12 of the CCT, arising abroad, who transfers his/her tax residence to Greece, is subject to an alternative taxation method for the income arising abroad, if cumulatively:
- was not a tax resident of Greece for the previous five (5) of the six (6) years prior to the transfer of his/her tax residence to Greece, and
- transfers his/her tax residence from a country with which an administrative cooperation agreement in the field of taxation with Greece is in force.
A natural person subject to the alternative method of income taxation according to article 5B of the CCT, pays each tax year independently tax at a rate of 7% on all his/her income earned abroad.
- A natural person who is subject to the provisions of article 5B of the CCT, if in any tax year he/she does not pay the full amount of tax referred to in par. 2 of the above article for all of his income earned abroad, ceases to be subject to the provisions of Article 5B of the CCT from the relevant tax year and is henceforth taxed on his worldwide income, based on the general provisions of the CCT.
- The provisions of article 5B of the CCT do not affect the application of international conventions ratified by Greece for the avoidance of double taxation of income and capital.
Tip
It is considered useful to specify during the transitional year as the time of filing is assessed on the basis of the days defined in the relevant provisions on formal residence.
Did you know that...
An individual may, in any tax year during the period of application of the provisions of Article 5B of the CCT, submit an application for the revocation of his/her inclusion in these provisions.