Following the introduction of the non-dom regime for high net-worth individuals (HNWIs) in Greece, the Greek Parliament voted further the Law 4714/31.7.2020 regulating the non-dom regime specifically for foreign pensioners.
In brief it stipulates that individuals, being beneficiaries of pension income arising from abroad and wishing to transfer their tax residency to Greece, are subject to an alternative method of taxation for the income that arises abroad, if cumulatively:
a) they were not tax residents of Greece in the previous five (5) out of the six (6) years prior the transfer of their tax residency to Greece, and
b) they transfer their tax residency from a state, which has in force an agreement on administrative cooperation in the field of taxation with Greece.
If the taxpayer is accepted to be included in the alternative way of taxation for income arising abroad, then the individual shall pay, once-off, a tax at a rate of seven percent (7%) on the total of his income obtained abroad, each year.
With the payment of this tax in Greece, every tax liability of the individual for this income arising abroad is considered to be paid in full.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.