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Greece lures wealthy foreigners with tax incentives, “non-dom” €100K

Greece plans to offer tax incentives to lure wealthy foreigners to move their tax residence to the country. According to the draft tax bill published for public consultation on Thursday, the “non-dom” program will offer a flat tax rate to “non-dom” for an annual amount of 100,000 euros on global incomes earned outside the country.

The so-called non-dom programme will offer qualified wealthy investors who opt to shift their tax residence to the country a flat tax rate of 100,000 euros plus 20,000 euros for each family member.

“The tax incentive will run for a duration of up to 15-years and will include the benefit of no inheritance tax for assets outside Greece,” a senior government official told reuters.

One of the requirements to qualify will be residing in the country for at least 183 days per year and making an investment of at least 500,000 euros within three years.

“The investment can be in real estate, stocks or bonds. If the investment reaches 1.5 million euros then the flat tax is cut by half,” the official said.

Investments of 3 million euros will reduce the flat tax to just 25,000 euros. There will also be a grandfathering clause protecting investors from policy changes by future governments.

“Once you’re in the programme, you’re in. A future government cannot get you out,” the official said.

The government’s rationale is that the tax incentive can entice deep-pocketed investors, including shipping magnates, to take up the offer and move to Greece, boosting investments.

Greece’s conservative government is keen on attracting investments to boost the recovering economy’s growth prospects.

Tax relief included in the draft legislation will include a cut in the corporate tax rate to 24% from 28% and lowering the tax rate on dividends to 5% from 10%.

“But the country will need to do more to polish its business-friendly credentials,” stresses  bloomberg. The main challenge: attract investments that create jobs, given that fixed capital investments stood at 20.6% of gross domestic product before the country’s debt crisis and the government now projects 13.1% of GDP for 2020.

A separate proposal designed to attract more companies to Greece calls for a 15% one-off tax on exercising options, rather than taxing them as income and upon award.

The option plan is aimed at boosting investment in the technology sector, reducing taxation at senior management level and incentivizing relocation to Greece while stemming the brain drain, a government official told bloomberg.

Th tax bill is expected to pass the Greek Palriament around 15. November, 2019.

Completely integrated in the Greek society, wealthy foreigners hold a protest in downtown Athens for more incentives…

PS In the same sense, the Greek government should also introduce some special tax incentives and 90% tax reliefs for those Greeks who although they could go away, they kept their tax residence in the country all these years of the economic crisis, fed with the money they did not have politicians and banks, paid the interests of the loans.

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  1. Christos P. Tsonis

    I applaud the new Greek government for its plan to give tax incentives to foreign investors to lure them to establish their residence in Greece. This motivation will bring a tremendous amount of capital into the country and generate tax revenue. I also suggest that Greece should go one step further and designate one of its Islands as a traditional tax haven, like Jersey in the Channel Islands. This tax haven would create many jobs for the Greek people.

    • François Deletaille

      Greece is welcoming greed.
      It will be truly rewarded.

    • ah, great, a comfy deal for millionaires while actual citizens continue getting screwed even worse with every successive government. How about getting the state out of private peoples business? no, instead, we have the state forcing everyone into a bankers’ prison of electronic control, but hey, thats only for the little people.

    • It is one of the stupidest (and most disgusting) ideas that right wing governments across Europe have adopted — resulting in money-laundering of billions of dollars, safe tax havens for international criminals, and usually a massive increase in property prices for the capital city such that ordinary people are bled dry just to pay their rent. Far from creating jobs for citizens of a country, it damages their economic position very badly.

      For corrupt billionaires, it is an excellent arrangement.