Greece to Offer Considerable Tax Breaks for Foreign Investors in 2020
As the host of one of the most successful Golden Visa programs around, Greece now starts a new policy which offers considerable tax advantages to rich foreigners who invest in Greece and resides in the country for at least half of each year.
What is Greece Golden Visa?
Greece Golden Visa Program’s inception dates back to 2013 when the country is fresh out of the global economic crisis. The program is launched by Enterprise Greece to heal the wounds of the Mediterranean country’s financial situation. Greece Golden Visa Program is simply a scheme which enables investors to get five year residence permit in Greece. The most popular among the necessary investment options in order to be able to obtain the residence permit is real estate investment. If the property bought for the initial investment stays as the possession of the investor, the permit can be renewed every 5 years. Moreover, the program does not have any requirement of residence in the country. So, the investors do not have to reside in Greece after they receive their permit.
Minimum investment requirement of Greek residency by real estate investment is €250.000. There are different types of residence permits and investment options, however, real estate investment is by far the most popular option and the fact that it promises –potentially- good returns, it is the most attractive.
What is the New Tax Break Exactly?
The new policy is called briefly the “non-dom” program, because it is provided for the people who keep their domicile elsewhere, but are also Greek residents. This new program will set a flat tax of 100,000 euros for 15 years for ship-owners, entrepreneurs and the retired foreign investors. Because the investors of this program claim their domicile in another country, they will not be liable for tax on offshore income and capital gains provided that the income is not brought into Greece.
The investors who want to benefit from this program have to invest 500,000 euros in stocks, bonds or real estate. This investment may be completed within three years of taking up residence.
Is the New Tax Policy Attached to Greece Golden Visa Safe Enough?
Similar to the predictions of each program’s inception in the area, this policy also is expected to attract interest gradually. Greek authorities are cautious in their predictions and they claim that the first few years might be quiet. However, neither the country’s main creditors, the Troika of the European Union – European Central Bank – European Stability Mechanism (EU-ECB-ESM) nor the International Monetary Fund (IMF) objected to the policy. So, the economical basis of the new tax program seems to be solid. Also, these approvals from major economical authorities prove the scheme’s compliance with the international tax avoidance laws.