Taxation for Digital Nomads in Greece

If you plan to stay in Greece as a Digital Nomad for less than 6 months, you don’t need to worry about being a tax resident.

Taxation applies to individuals who will remain in the country for more than a year. However, thanks to your Digital Nomad Visa, you will be eligible for a 50% tax discount according to Greece’s tax regulations. You only pay half of your actual tax rates, and this applies for as long as you stay in Greece.

The provision in Article 40 of Law 4758/2020 enhances the framework for attracting foreign individuals to move their tax residence to Greece (Articles 5A and 5B of the Income Tax Code).

The current regimes outlined in Articles 5A and 5B of the Income Tax Code do not adequately address the needs of individuals who are tax residents abroad and wish to relocate to Greece while transferring their tax residence there.

The new Article 5G of the Income Tax Code is anticipated to operate in tandem with the conclusion of the transitional period following the United Kingdom’s exit from the European Union on January 1, 2021. This aims to attract foreign tax residents, providing significant benefits for our country.

Furthermore, a new provision (i’) has been introduced in Article 33 of the Income Tax Code to ensure that individuals falling under Article 5G of Law 4172/2013 are not subject to annual assessments for housing and private vehicle expenses.

This provision is aimed at individuals who are tax residents in another country, specifically from an EU or EEA member state or a country that has a valid administrative cooperation agreement with Greece in taxation. It applies to those who work in Greece either as employees or as self-employed individuals (sole proprietorships).

Under Article 40 of Law 4758/2020, a new Article 5G has been introduced in Law 4172/2013 (Income Tax Code), which establishes a unique taxation approach for income earned from employment and business activities in Greece for those who transfer their tax residence to the country.

Specifically, the relevant conditions are established, outlining the tax advantages (exemption from income tax and the special solidarity contribution on fifty percent (50%) of income, subject to specific legal criteria), the procedure for transferring tax residence, and the regulation’s duration, which applies to tax years starting from January 1, 2021, onwards (paragraph 3 of this article).

The provision also grants authority for a joint decision by the Minister of Finance and the head of the Independent Authority for Public Revenue (IAPR) to address any necessary aspects for the application of these regulations.

Under the announced provisions, a taxpayer, an individual transferring their tax residence to Greece, is subject to special taxation for income from employment earned in Greece, provided they meet the following cumulative criteria:

a) They have not been a tax resident of Greece for five (5) of the six (6) years preceding the transfer of their tax residence to Greece.

b) They are transferring their tax residence from a member state of the EU or EEA, or from a country that has an active administrative cooperation agreement with Greece regarding taxation.

c) They provide services in Greece within the context of an employment relationship, as defined in paragraph 2 of Article 12 of the Income Tax Code (K.F.E.), either with a domestic legal entity or at a permanent establishment of a foreign company in Greece.

While the Digital Nomad Visa is ideal for extended stays, if you find the requirements for a one- or two-year residency in Greece daunting, there’s an alternative: the Golden Visa.

The Golden Visa is aimed at investors and their families who wish to reside in Greece for a longer duration. To qualify, you need to make a minimum investment of €700,000.

If you’re looking to purchase property in popular areas like Attica, Thessaloniki, Mykonos, Santorini, or islands with populations over 3,100, the investment requirement increases to €800,000. For all other regions of Greece, the required investment is €400,000. Additionally, the property must be at least 120 square meters.