Tax Implications & Considerations
A transparent overview of the taxation landscape for Greece Golden Visa investors. Understanding your obligations is essential for sound financial planning.
Crucial Distinction: Residency vs. Tax Residency
Holding a Greece Golden Visa (residence permit) does not automatically make you a tax resident in Greece. You generally become a Greek tax resident if you spend more than 183 days in Greece within a 12-month period, or if your "center of vital interests" (personal and economic ties) is located in Greece. If you remain a non-tax resident, you are only taxed in Greece on Greek-source income (e.g., rental income from your property).
Property Taxation
Property Transfer Tax (FMA)
When purchasing a property, a transfer tax of 3.09% (3% tax + 3% municipality surcharge on the tax) is applied to either the objective value or the purchase price, whichever is higher. Newly built properties may be subject to VAT (24%) instead, though a suspension of VAT on new builds is currently in place until the end of 2024 (subject to legislative updates).
Annual Property Tax (ENFIA)
All property owners in Greece must pay an annual property tax known as ENFIA. The amount is calculated based on several factors including the property's size, location, floor, and age. For a typical apartment used for the Golden Visa, this ranges from a few hundred to over a thousand euros annually.
Rental Income Taxation
If you choose to rent out your qualifying property, the rental income is considered Greek-source income and is taxed progressively:
- 0 to €12,000: 15%
- €12,001 to €35,000: 35%
- Above €35,000: 45%
Additionally, a special solidarity contribution may apply depending on total income levels.
High Net Worth (Non-Dom) Regime
Under Article 5A of Law 4172/2013, Greece offers a special tax regime for foreign investors transferring their tax residence to Greece. Known as the "Non-Dom" regime, it allows individuals to pay a flat tax of €100,000 per year on their global income, regardless of the amount earned abroad, for a maximum of 15 years.
To qualify, the individual must not have been a Greek tax resident for the past 7 of 8 years, and must invest at least €500,000 in Greek real estate, business, or securities (the Golden Visa investment may satisfy this requirement).
Seek Professional Advice
Tax laws are complex and subject to change. Double taxation treaties between Greece and your home country may also impact your obligations. We strongly recommend discussing your specific situation with a qualified Greek tax professional.
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