Tax Incentives for Returning Greeks

For Greek nationals who left during the financial crisis and are considering returning, Greece offers an attractive set of tax incentives to facilitate their repatriation. Since 2021, as outlined in Article 5C of Law 4172/2013, the Greek government has implemented measures to encourage individuals to transfer their tax residence back to Greece. These incentives create a favorable environment for repatriating Greeks who take up new employment or start a business in Greece.

TaxElements provides expert support to ensure repatriating Greeks can effectively navigate and secure these tax incentives, streamlining the application process for maximum benefit. Under this regime, eligible individuals benefit from a 50% income tax exemption on earnings from employment or individual business activities in Greece, making the decision to return financially appealing. To qualify, individuals must not have been Greek tax residents for 5 out of the 6 years prior to transferring their tax residence.

They must relocate from an EU or EEA member state or a country with which Greece has an administrative cooperation agreement in taxation. Additionally, they must provide services in Greece through an employment relationship with a Greek legal entity or a Greek branch of a foreign company, or start a business as a self-employed individual. Applicants are required to commit to staying in Greece for at least 2 years, and the employment must involve a new position, ensuring the role contributes to job creation.

Application Process and Benefits

Applying for this tax regime is straightforward. Repatriating Greeks must submit their application to the Greek tax authority, which reviews it and issues a decision within 60 days, approving or rejecting based on eligibility. Once approved, the 50% tax exemption on Greek-sourced employment or business income begins, offering significant savings.

Income from other Greek sources, such as property or dividends, and all foreign-sourced income are taxed under general provisions without the 50% reduction. This ensures clarity in Greek tax obligations while maximizing the benefits of the incentive scheme. For those starting a business, the same 50% tax exemption applies to income from individual business activities, providing flexibility for returnees to pursue their professional goals.