Greece introduces 50% tax break for relocating professionals

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Greece introduces 50% tax break for relocating professionals

Sponsored by

eygreece.png
The introduction of this tax regime aims to lure back some of the Greeks who left during the debt crisis

Manos Tountas of EY in Greece examines the ambitious tax law which intends to create more professional jobs across Greece, and aims to reverse its crisis-era brain drain.

Recent Greek Law 4758/4.12.2020 introduces a special tax regime aimed at attracting foreign tax residents, who wish to transfer their tax residency and relocate to Greece to work as employees in a “new employment position” or as freelancers.



In order for a prospective applicant to be eligible, they must cumulatively:

  1. Not have the status of being a Greek tax resident for the previous five of the last six years before the transfer of their tax residence to Greece;

  2. Relocate from an EU/EEA country, or a country with which Greece has a valid agreement concerning administrative cooperation on tax issues;

  3. Provide employment services locally to a Greek legal entity or to a Greek branch of a foreign company; and

  4. Declare that they intend to stay in Greece for a minimum of two years.


The favourable tax treatment also applies equally to those who apply and transfer their tax residency to Greece, in order to undertake a business activity locally, such as to set up a business as freelancers.




Provided that the application is successful, the individual:

  • Becomes a Greek tax resident under this special tax regime;

  • Becomes exempt from paying income tax and solidarity tax on 50% of their Greek source employment income or freelancer income;

  • Is taxed in Greece for any other Greek source and foreign source income according to the general tax rates (with a right to receive a foreign tax credit for taxes paid abroad on certain conditions etc.); and

  • Becomes exempt from the application of local tax rules on annual imputed income deriving from ownership or possession of a residence or a private use vehicle.


The application of this special tax regime is provided for the fiscal year of the application and for the following seven fiscal years. No further extension can be provided.




The deadline to apply for this regime is July 31 of the year during which the individual is commencing employment or business activity.



As of the guidance presented in December 2020, it was expected that the Greek tax administration would issue further guidelines to clarify a number of points, such as:

  • The meaning of “new employment position” in the above context;

  • Whether there is a requirement for the individual to remain employed by the same employer for all the above specified period (seven years) in order to remain subject to this tax regime; and if so, whether the change of employer or termination of the employment contract by the employer or resignation of the employee during the above period will result in revocation of the tax regime retrospectively or only for the future;

  • Whether the individual is expected to physically stay in Greece for as long as they remain subject to this tax regime;

  • Whether the individuals will be exempt from the application of imputed income deriving from the purchase of a residence or a private use vehicle; and

  • Whether the individual may apply to be subject to this tax regime for a shorter period than the seven year period provided by the law and whether they have the right to apply to have this revoked.


It appears that introduction of this tax regime aims to lure back some of the Greeks who left during the debt crisis to pursue careers abroad. Likewise, it is a method for attracting foreign talent and experienced professionals from abroad to relocate to the country.




The changes may also attract a number of investment banks intending to open or expand their existing offices in Greece, so as to expand their presence in the Eurozone, or other companies wishing to relocate their employees to the country.



Manos Tountas

Tax manager

E: manos.n.tountas@gr.ey.com


more across site & bottom lb ros

More from across our site

US partner Matthew Chen was named as potentially the first overseas PwC staffer implicated in the tax leaks scandal, in a dramatic week for the ‘big four’ firm
PwC alleged it has suffered identifiable loss and damage arising out of a former partner's unauthorised use of confidential information; in other news, Forvis Mazars unveiled its next UK CEO
Luxembourg saw the highest increase in tax-to-GDP ratio out of OECD countries in 2023, according to the organisation’s new Revenue Statistics report
Ryan’s VAT practice leader for Europe tells ITR about promoting kindness, playing the violincello and why tax being boring is a ‘ridiculous’ idea
Technology is on the way to relieve tax advisers tired by onerous pillar two preparations, says Russell Gammon of Tax Systems
A high number of granted APAs demonstrates the Italian tax authorities' commitment to resolving TP issues proactively, experts say
Malta risks ceding tax revenues to jurisdictions that adopt the global minimum tax sooner, the IMF said
The UK and what has been dubbed its ‘second empire’ have been found to be responsible for 26% of all countries’ tax losses by the Tax Justice Network
Ireland offers more than just its competitive corporate tax environment but a reduction in the US rate under a Trump administration could affect the country, experts tell ITR
The ‘big four’ firm was originally prohibited from tendering for government work until December 1 due to its tax leaks scandal, but ongoing investigations into the matter have seen the date extended
Gift this article