Omar’s Investment and Non-Dom Status
Captivated by Greece’s climate, cuisine, and scenic beauty, Omar Hassan invested €1 million in a luxurious villa on the island of Mykonos. This investment qualified Omar for Greece’s Non-Dom program, allowing him to benefit from a flat tax rate of €100,000 per year on his global income without declaring its sources. This tax regime is applicable for up to 15 years, providing long-term financial predictability and stability.
Omar’s children, Yusuf and Amina, also benefit from the Non-Dom status for an additional flat tax of €20,000 each, covering their global income. This strategic move ensures significant tax savings while residing in one of the most beautiful places in the world.
Grandparents’ Retirement
Ahmed and Amina Hassan were drawn to Greece for their retirement. By moving here, they leveraged the country’s favorable tax regime for pensioners. As they had not been fiscal residents of Greece for at least five of the last six years and transferred their fiscal residence from a country with an administrative cooperation agreement with Greece, they benefited from a reduced tax rate of 7% on all foreign-sourced income. This regime, valid for up to 15 years, ensures financial peace of mind during their retirement.
Zainab’s Freelance Jewelry Business
Omar’s wife, Zainab, is an aspiring entrepreneur passionate about jewelry design. Greece’s tax incentives for freelancers made it an ideal place for her to start her business. Individuals who have not been fiscal residents of Greece for at least five of the last six years receive a 50% reduction in income tax. This significant reduction allows Zainab to reinvest her earnings into her business, making her jewelry more competitive in the market.
Yusuf and Amina’s Golden Visa
Omar’s investment in Greek property also enabled the family to apply for and receive Golden Visas. This residence permit allows them to live in Greece and grants them the freedom to travel within the Schengen Zone, opening unparalleled educational and cultural experiences across Europe for Yusuf and Amina.
Legal Frameworks Facilitating the Move
Non-Dom Program (Article 5A)
The Greek Non-Dom program offers a flat tax rate for high-net-worth individuals who invest in the country. Individuals pay a flat tax of €100,000 on their global income for up to 15 years without declaring the sources of their income. This framework attracts foreign investors by providing significant tax benefits and financial predictability.
Pensioners’ Tax Regime (Article 5B)
Article 5B of the Greek Income Tax Code provides a favorable tax regime for foreign pensioners or Greek pensioners who were living abroad and wish to relocate. Pensioners who transfer their fiscal residence to Greece can benefit from a 7% flat tax rate on their foreign-sourced income for up to 15 years. Conditions include not being a fiscal resident of Greece for five of the last six years and transferring fiscal residence from a country with an administrative cooperation agreement with Greece.
Freelancers’ & Professionals Tax Incentives (Article 5C)
Article 5C of the Greek Income Tax Code offers significant tax reductions for individuals who move to Greece and engage in business activities or become employees of Greek-based entities. These individuals enjoy a 50% reduction in income tax on earnings from employment or business activities conducted in Greece for up to 7 years. This incentive aims to attract entrepreneurs and skilled professionals to the country.
Updated Golden Visa Program
The Greek Golden Visa program has been revised to increase investment thresholds effective January 1, 2025. The new thresholds require investments ranging from €400,000 to €800,000, depending on the location and type of property. This program grants residency permits to individuals and their families who invest in real estate, government bonds, shares, or other assets in Greece. The updated requirements maintain the program’s attractiveness while ensuring sustainable growth in the real estate market. This visa allows for free travel within the Schengen Zone, making it an attractive option for families seeking access to European opportunities.
Conclusion
The Hassan family’s successful relocation to Greece highlights the numerous benefits of the country’s tax regimes and Golden Visa program. By investing in property and leveraging the Non-Dom status in all its aspects, the family secured significant tax advantages and an improved quality of life.
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This case was provided by our expert.
Alexandra Theologou