ALTERNATIVE TAX REGIMES FOR PENSIONERS

PENSIONERS: INCENTIVES TO TRANSFER YOUR TAX RESIDENCE IN GREECE

Pensioners who transfer their tax residence to Greece can benefit by the single tax of 7% for their entire international income.

The basic criteria that must be met for applying to the Alternative Tax Regime for Pensioners, are:

1. The Individual has not been a Greek Tax Resident for the last five years before their tax residence transfer.

2. Tax residents must transfer their tax residence from a country that has a bilateral administrative tax agreement for the avoidance of double taxation with Greece.

3. The pension must be obtained at least by one collective pension scheme.

Example:

You have 3 sources of income:

1. Collective Pension Scheme (1,200 euros per month x 12 months = 14,400) ,  2. Dividends (1,000 euros x 12 months = 12,000) , 3. Second Pension from a private scheme (a total annual amount of 7,000 euros).

TOTAL ANNUAL INTERNATIONAL INCOME = 33,400. For many countries you are considered a third tax scale pensioner, therefore you may be taxed with a 25% – 35% tax depending on the country you are a tax resident in. Therefore, if you are taxed with 25% that means that you will have to approximately pay an annual minimum amount of 8,350 euros for taxes.

When you are included, under the Greek Alternative Tax Regime for Pensioner, you will be taxed with a single tax of 7% and pay 2,338 euros and that is an important difference which pensioners can save, while they enjoy their life in Greece.

Once you become a Greek Tax Resident included in the Alternative Tax Regimes for Pensioners, all overseas income is taxed with the single tax of 7% that includes any monthly, quarterly or annual income from pensions, lump-sum pension payments and any other income.

We consult you and handle the whole process of transferring your tax residence in Greece under the alternative tax regimes in order to benefit from the single tax of 7%.

The deadline for the foreign pensioners to apply is till 31 of March of the relevant tax year and the regime will be in force for a maximum period of 15 years.

https://gavrilaki.gr/Tax-Law.html

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