Tax Incentives for Expatriates and Digital Nomads in Greece
Greece recognizes the growing trend of remote work and the influx of expatriates and digital nomads. To attract and retain skilled professionals and entrepreneurs, the country has introduced several tax incentives specifically tailored to these individuals.
Eligibility Criteria
To qualify for expat tax breaks, individuals must meet the following criteria:
- Expatriates: Non-Greek citizens who have resided in Greece for at least 183 days in a calendar year.
- Digital Nomads: Individuals who work remotely for non-Greek companies while residing in Greece.
Types of Tax Breaks
Expatriates and digital nomads in Greece can benefit from the following tax breaks:
- 50% Income Tax Exemption: Expatriates who relocate to Greece for employment purposes can enjoy a 50% exemption on their employment income for a period of seven years.
- Reduced Tax Rate on Foreign-Sourced Income: Digital nomads can benefit from a reduced tax rate of 7% on foreign-sourced income, such as dividends, interest, and royalties.
- Tax Deductions for Relocation Expenses: Expatriates can deduct expenses incurred during their relocation to Greece, including moving costs, temporary accommodation, and language courses.
Application Process
To claim these tax breaks, expatriates and digital nomads must follow the following steps:
- Expatriates: Submit an application to the Greek tax authorities within six months of arriving in Greece.
- Digital Nomads: Register as a freelancer or self-employed individual with the Greek tax authorities.
Legal References
The tax incentives for expatriates and digital nomads are outlined in the following legal documents:
- Law 4172/2013: Provides the 50% income tax exemption for expatriates.
- Law 4387/2016: Introduces the reduced tax rate on foreign-sourced income for digital nomads.
- Ministerial Decision 1038/2017: Specifies the eligibility criteria and application process for the tax breaks.
Rationale and Objectives
These tax policies aim to:
- Attract skilled professionals and entrepreneurs to Greece.
- Support the growth of the digital economy.
- Promote Greece as a desirable destination for remote workers.
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