Single Tax Rate Offer For Pensioners

Published October 12, 2020

Single Tax Rate Offer For Pensioners

The 4714/2020 law voted in July 2020 offers tax incentives to pensioners who choose to profit from an alternate, lower- tax regime for their income earned outside Greece.

For pensioners who transfer their tax residence to Greece, this new legislation introduces a flat tax rate of 7% annually on all income earned outside Greece. 

 

The duration of the programme covers a period of 15 years, with an option to extend for 15 additional years. This low tax-rate of 7% flat incorporates the full income of the applicant. Business activities and other investment profits, such as rents and dividends earned outside Greece, are also included.

 

The two main requirements for the applicants are:

  1. The applicant has not been a tax resident of Greece for the last 5 years from a total of 6 years prior to transferring his/her tax residency to Greece.
  2. Candidates will have to come from a nation that shares a valid agreement with Greece concerning administrative cooperation on tax issues.

General terms:

  1. The tax residence submission deadline for the current year is March 31st. The application will be processed within 60 days. 
  2. If approved, the Greek tax authorities will inform the country of origin for the change of tax residency status and the applicant enters the scheme the fiscal year following the year of application.
  3. A reciprocal taxation pact between Greece and the applicant’s country of origin will not affect the tax residency application.

Payment terms of annual tax:

The tax is payable in a lump sum every financial year and the deadline is the last working day of July.

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