The Greek Ministry of Finance plans to submit a new tax bill to the Parliament which will give a very strong tax incentive to foreign retirees to settle permanently in Greece and furthermore transfer here their tax residence.
According to the recent information, the provision that is expected to be submitted to the Parliament for voting in the near future provides the following:
-Any foreign tax resident transferring his physical and tax residence in Greece will be taxed with a special favourable regime
-The pension received by the foreign pensioner from his country of origin will only be subject to a flat tax rate of 10%.
This specific provision aims mainly, but not exclusively, at retirees from northern European countries where tax rates are particularly high. The incentive for these retirees will be particularly effective as the double taxation agreements that Greece has signed with the rest of the European countries essentially allow the transfer of the income of the foreign pensioner to Greece and his taxation at the very low rate that will be established.
Nevertheless, any double taxation agreement signed with Greece may have special provisions which must be taken into account before any decision to transfer the tax residence.
If the incentive proves to be effective, an additional bonus will be given to the Greek economy as foreign retirees will transfer their income to Greece, while the Greek real estate market will be stimulated with purchases and rentals of houses from those pensioners seeking a new home in Greece.