Greece Tax Breaks
Greece New Tax Breaks - Attracting Digital Nomads & Retirees
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In 2021, A New Law came into effect in Greece, introducing the concept of “digital nomads” into the Immigration Code (Law 4251/2014) for the first time. This new law allows remote workers from third countries to relocate to Greece by obtaining a digital nomad visa.
In an effort to boost the country’s economy, the Greek government is offering a promising incentive to specific workers: half of their income will be tax-free. This bold move acknowledges the impact of taxes and highlights the natural beauty of Greece. Although seemingly unrelated, these factors may resonate with digital nomads in search of their next host country.
Alex Patelis, the chief economic adviser to the prime minister, aptly stated, “Technology enables us to choose where we live and work.” Greece, with its alluring sunshine, can now entice remote workers with tax incentives as well.
Under the guidance of the center-right government, Greece is actively revitalizing its economy by attracting skilled individuals and foreign investments. This initiative aims to reverse the country’s economic downturn caused by the decade-long debt crisis, which resulted in a significant decline of about 25% in Greece’s economic output.
Read also our guide on the most tax-friendly European countries for digital nomads.
New Tax Incentive for Digital Nomads
The new tax initiative in Greece holds the promise of taxing only 50% of the income earned by self-employed individuals or those newly employed in positions created in 2021. Presently, Greece imposes a tax rate of 44% on earnings exceeding €40,000.
This new incentive will be applicable for up to seven years, allowing workers of any nationality or job type to relocate their tax base to Greece. Furthermore, Greeks residing abroad will also be eligible for this offer if they choose to return to their homeland.
Reason for this New Incentive
According to the European Commission, Greece is projected to experience a further decline of 9% in its gross domestic product in 2020 as a consequence of the COVID-19 pandemic. Although the unemployment rate is expected to reach approximately 18%, which is notably lower than the peak of 30% during the economic crisis, it still remains one of the highest rates in Europe.
In response to this situation, the Greek government has implemented various incentives and programs to attract foreign investors and retirees. One of these successful initiatives is the Greece Golden Visa program, which offers permanent residency in exchange for real estate investments and has enticed numerous investors to choose Greece as their new home.
Additionally, the government has begun developing an initiative aimed at providing pensioners with flat tax rates, with the goal of enticing retirees to relocate to the country.
At Greece Visa Homes, we specialize in assisting global investors and families acquiring property in Greece. Our expert advisors provide comprehensive guidance on property acquisition and associated tax obligations. Reach out to us with any questions; we’re here to help you navigate the process effortlessly.
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