The Greece non-dom regime is an alluring alternative for retirees as it makes paying taxes relatively easier, among other advantages.
We’ll discuss what this tax rule covers, as well as qualifications, advantages and disadvantages.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).
This includes if you are looking for alternatives or a second opinion.
Some of the facts might change from the time of writing, and nothing written here is formal tax advice.
For updated guidance, please contact me.
What is Greek non dom for pensioners?
By transferring their tax domicile to Greece, retirees can benefit from considerable savings on taxes as part of this program.
Pensioners benefit from a preferential tax structure that allows them to pay a flat 7% rate on all of their income sourced from abroad.
This includes pensions, regardless of how much was earned overseas.
All worldwide income is charged this flat tax, so retirees won’t pay extra levies in Greece on this revenue.
Every year, the tax must be paid in full by the final working day of July.
Greece Flat Tax Rate Eligibility
Before changing their residency, applicants must have been a non-Greek tax resident for five of the previous six years.
They also must change their tax residence from a nation with whom Greece has a tax cooperation agreement.
Greek and foreign income must be declared by pensioners.
Existing double taxation treaties are unaffected by this regime, which would let foreign taxes paid to be deducted from Greek taxes due.
Pros and cons of Greece Non-Dom Tax Regime for Retirees
Non Dom Tax Benefits
- The flat tax on pension income from overseas sources benefits retirees because it is substantially less than progressive tax rates, which makes significant tax breaks possible.
- It is simpler to pass wealth to heirs because non-domiciled residents are excluded from inheritance and gift taxes on overseas assets.
- By enabling retirees to pay a flat annual tax instead of navigating intricate computations based on total income, the system streamlines tax duties.
- The unique tax framework offers retirees who decide to move to Greece long-term tax advantages.
- Retirees who move with their families can benefit from it.
- The regime offers extra tax relief by permitting taxes paid outside to be deducted from Greek tax bills.
Cons of the Greek Non-Dom Regime for Retirees
- The qualifications are quite strict.
- The application needs to be turned in by March-end every year, and retirees have sixty days to submit additional paperwork.
- The system only gives benefits for up to 15 years, so it’s not permanent and might be rather short for some individuals.
- Retirees who do not pay the entire lump-sum tax in a given year run the risk of compromising their non-dom status and will thereafter be subject to general laws that tax their earnings worldwide.
- Those who want to travel or spend time abroad may find it impossible to meet the requirement of spending certain number of days a year in Greece in order to keep Greek tax residency.
- Double-tax contracts may be helpful, but they may also make things more difficult if certain clauses limit the anticipated advantages under the non-dom framework.
Pained by financial indecision? Want to invest with Adam?
Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.
