GREECE: BENEFITS FOR FOREIGN PENSIONERS
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Greece benefits for foreign pensioners. Greece is gearing up to join the ranks of those particularly attractive countries to move to and live when it’s time to enjoy retirement. Its peaceful lifestyle, the Mediterranean climate, the beauty of the landscape, the millenary culture and a flat tax of 7% for 10 years contribute to making it a heavenly place for a well-deserved retirement.
Article by Bertaggia Law Firm
Greece benefits for foreign pensioners
Italians are always looking for a country where they can spend their retirement peacefully without spending too much money and paying less taxes.
Greece recently joined to the group of these countries since it proposed the 7% rate for the entire taxable income from abroad to foreigners who transfer their tax residence there.
The Greek Ministry of Finance has formulated this proposal, within a clause of the bill presented in July 2020 to Parliament. This is finally taking shape and the government laced eligibility requirements and conditions to become a resident in 2021.
This new subsidized tax regime was approved to compete with similar laws already in force in other southern European countries.
Greece benefits for foreign pensioners
What are the requirements for moving to Greece as a retiree?
There are three basic requirements:
You must not have been fiscally resident in Greece for at least 5 of the 6 tax years prior to change of residence;
You must move their tax domicile from a country with which Greece has an administrative cooperation agreement in tax matters;
You must also prove that you are a foreign pensioner through relevant documentation.
All pensioners who meet the required requirements and who have already transferred their tax residence to Greece in 2019, must have submitted the tax return for the financial year 2019 by 31 October 2020.
When the application for tax residency is accepted in Greece, the foreign retiree there will be able to enjoy the 7% flat tax on income from pensions, investments, commercial activities for the next 10 years.
Taxes can also be paid annually in a single solution.
The deadline for submitting the application for transfer of tax residence to Greece of 30 September 2020 appears to have been extended to December 2020.
In addition to preferential taxation, the main reasons that lead retirees to move to tax are the weather conditions of the country, lifestyle, culture, health care, cost of living and governance.
The main EU members that have so far introduced particular tax incentives for foreign pensioners are Portugal, Malta, Cyprus, Italy and to a lesser extent Romania and France.
The Southern regions of Italy also provide a reduced tax rate of 7% for foreign pensioners.
For Italian pensioners, who want to remain within the EU, favorable conditions are proposed for the transfer to Portugal, Bulgaria, Spain and Malta.
If, on the other hand, the choice is to go overseas, there are advantageous conditions in hugely attractive countries such as Panama, Costa Rica and Mexico, where the economic lifestyle and the favorable climate definitely determine a clear attractive.
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