The purpose of this article is, first and foremost, to inform all those who reside outside Greece and are unfamiliar with the process, as well as to help them determine whether they meet the criteria for transferring their tax residence abroad.<\/p>\n\n
We would like to point out that each case of a change in tax residency is unique and may require more attention than typical cases.<\/p>\n\n
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Tax Resident of Greece – When Does This Need to Be Changed?<\/strong><\/p>\n\n In order to understand our analysis, we must first define the criteria that must be met for an individual to be considered a tax resident of Greece.<\/p>\n\n More specifically, an individual is considered a tax resident of Greece when the following criteria are met:<\/strong><\/p>\n\n He or she is then considered a tax resident of Greece for that tax year.<\/p>\n\n If the above information does not apply,<\/strong> the individual may transfer his tax residence.<\/p>\n\n The taxpayer’s country of tax residence is the permanent center of vital interests\u2014that is, his or her social, family, and professional interests, as well as his or her personal property or income. In other words, tax residence is where the individual’s physical and financial interests are centered. <\/p>\n\n It is not possible for an individual to have two tax residences.<\/strong> For example, if a person is a national of one country and resides in another country, that person may have only one principal tax residence, which is the location of his or her principal and permanent establishment.<\/p>\n\n <\/p>\n\n Therefore, a person who is considered a tax resident of Greece abroad cannot <\/strong>have a permanent tax residence in Greece, but only secondary residences.<\/p>\n\n From a tax perspective, this second residence in Greece will be listed in Table 5 of Form E1 of the income tax return, on the line indicated in the secondary residence declaration, in accordance with the instructions provided in the instruction booklet for each year.<\/p>\n\n <\/p>\n\n In conclusion, residence is therefore presumed to be habitual,<\/strong> unless the taxpayer provides proof of residence in another country.<\/p>\n\n An example of this is the submission of a Certificate of Residence issued by another country in which the individual resides and pays taxes, provided that a Double Taxation Agreement (DTA) has been signed between Greece and that country.<\/p>\n\n In addition, permanent residence in a country is determined by the length of time a person spends in that country,<\/strong> that is, at least 183 consecutive or intermittent days per year. To be considered a tax resident of Greece, you must have resided in Greece for at least 183+ calendar days. These days include not only the days of proven residence in Greece but also the person\u2019s arrival and departure dates from Greece, as well as holidays. <\/p>\n\n <\/p>\n\n At this point, it is important to note the exceptions under which the rule regarding ordinary residence in a foreign country does not apply<\/strong>, and Greece is considered the tax residence even if the individual resides abroad for more than 183 days a year.<\/p>\n\n These cases are:<\/strong><\/p>\n\n The process of proving tax residence abroad<\/strong> must be carried out by the person who wishes to transfer his tax residence by providing the necessary supporting documents certifying that his habitual residence and his vital interests are abroad.<\/p>\n\n If these documents are not submitted,<\/strong> the person is considered a tax resident of Greece and is required to file a tax return in Greece reporting his worldwide income and paying tax on it, even if he is a resident of another country.<\/p>\n\n This procedure was adopted because there were instances<\/strong> of individuals residing abroad who were able to transfer their tax residence without taking into account where their financial interests lay. As a result, they were exempt from filing tax returns in Greece, and thus part of the income that should have been taxed in Greece was not reported and was either taxed abroad at lower rates or not taxed at all (e.g., dividends and interest on deposits). <\/p>\n\n <\/p>\n\n Benefits for Residents Abroad<\/strong><\/p>\n\n Some of the most important benefits that a foreign tax resident receives are:<\/p>\n\n <\/p>\n\n Author<\/p>\n\n Maria Dianellou \u2013 Tax Advisor \u2013 Taxblock Team<\/p>\n","protected":false},"excerpt":{"rendered":" The purpose of this article is, first and foremost, to inform all those who reside outside Greece and are unfamiliar with the process, as well as to help them determine whether they meet the criteria for transferring their tax residence abroad. We would like to point out that each case of a change in tax […]<\/p>\n","protected":false},"featured_media":10307,"template":"","meta":{"_acf_changed":false,"inline_featured_image":false},"categories":[],"tags":[],"class_list":["post-10062","useful_info","type-useful_info","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\n\n
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