Taxation in Greece: what are the advantages for digital nomads?
Greece is one of the countries that has attracted the attention of digital nomads due to its beautiful landscapes, cosy climate and quality of life. However, when it comes to planning an extended stay or moving tax residence to the country, it is essential to understand the local tax regime.
Greece's tax system
Greece implements a progressive tax system based on worldwide income for its tax residents. This means that once you are considered a tax resident in Greece, you will be taxed on all your income, whether it is generated in the country or abroad.
Definition of Tax Residence
To be considered a tax resident in Greece, an individual must spend more than 183 days in the country within a calendar year. In addition, tax residency can be determined on the basis of economic ties, such as investments or property in the country.
Taxation of Foreign Income
Greece offers a special tax regime for digital nomads and expats who qualify as new tax residents. This scheme allows favourable taxation for income earned abroad, with the aim of attracting remote workers and retirees to the country. Under the scheme, Greece offers a flat rate of 7 per cent for pensioners and tax benefits for foreign investments.
For digital nomads who own businesses or work remotely, it's important to note that by transferring their tax residence to Greece, they can benefit from the double taxation conventions that the country has with several countries, ensuring that income is not double taxed.
Income tax in Greece
Income tax rates in Greece range from 9% to 44%, depending on the income bracket. For high-income digital nomads, this can represent a significant tax burden, and proper tax planning is recommended to take advantage of the benefits offered by Greek legislation and avoid excessive taxation.
Progressive Tax Scale:
Up to €10,000: 9%
€10.001 a €20.000: 22%
€20.001 a €30.000: 28%
€30.001 a €40.000: 36%
Above €40,000: 44%
Tax Incentives
In addition to the double taxation treaties, Greece has implemented the ‘Alternative Personal Income Tax’ regime. Under this regime, Greece will only require a flat tax amount of €100,000 per year on non-Greek income for 15 years for high net worth foreign individuals, provided they fulfil the legal requirements.
In addition, the country offers tax deductions for investments in innovation and technology, growing sectors of great interest to digital nomads looking for business opportunities.
Quality of Life and Local Integration
Greece has emerged as an attractive option for digital nomads looking for a balance between remote work and an enriching life experience. With a welcoming culture and a quieter lifestyle, the country offers an environment where nomads can find a sense of belonging while enjoying attractive tax benefits.
However, to ensure that this experience is positive and hassle-free, it is essential that tax planning is a priority, taking into account all the nuances of Greek and international legislation.
Conclusion
Greece, with its combination of tax incentives and quality of life, presents itself as an excellent option for digital nomads wishing to change their tax residence. However, it is essential that this decision is made on the basis of a thorough analysis of tax legislation and applicable international conventions, guaranteeing an experience free of tax complications.
If you are interested in hiring professional legal services related to Tax Planning, we are a law firm specialising in the subject. To do so, please contact us by e-mail: contato@trpuppioadvocacia.com.br, or by WhatsApp.
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