Greece's "non-dom" tax regime

Greece's "non-dom" tax regime, officially introduced in 2019, is a special tax status designed to attract high-net-worth individuals (HNWIs) from abroad. The regime is part of Greece's broader efforts to boost its economy by enticing wealthy foreigners to become tax residents in the country.

Key Features of the Greek "Non-Dom" Tax Regime:

1. Flat Tax on Foreign Income:

- Qualifying individuals can opt to pay a flat tax of €100,000 per year on their global income, regardless of the actual amount. This tax is in lieu of the standard Greek tax rates on foreign income, which can be much higher.

- The flat tax applies for up to 15 years.

2. Inheritance and Gift Tax Exemptions:

- Under the non-dom regime, inheritance and gifts of foreign assets are exempt from Greek taxation. This provides significant benefits to wealthy individuals with substantial assets abroad.

3. No Requirement to Remit Income:

- There is no requirement for non-doms to remit their foreign income to Greece, allowing them to benefit from favorable tax treatment without necessarily bringing their assets into the country.

4. Investment Incentive:

- To qualify, individuals must invest at least €500,000 in real estate, businesses, or securities in Greece within three years of applying for the regime.

5. Family Members:

- The non-dom status can be extended to family members (spouse and children) for an additional annual flat tax of €20,000 per person.

Eligibility Criteria:

- Applicants must not have been tax residents of Greece for at least seven of the previous eight years.

- They must demonstrate that they have the means to support themselves and make the required investment in Greece.

Benefits and Goals:

- The Greek government aims to attract wealthy individuals, including retirees, entrepreneurs, and digital nomads, by offering a competitive tax regime compared to other European countries.

- The regime is also seen as part of broader efforts to rejuvenate the Greek real estate market and increase foreign direct investment.

Comparison with Other Countries:

- Similar "non-dom" regimes exist in countries like Italy, Portugal, and the UK, which also offer tax incentives to attract wealthy foreigners. Greece's regime is considered competitive, especially with its relatively low investment threshold.

This regime is particularly appealing for those seeking a Mediterranean lifestyle while enjoying favorable tax treatment on their global income.