Non-Dom Regime: Eligibility Requirements and Tax Advantages
In today’s globalized economic environment, choosing one’s tax residence has become a critical decision for the optimal management and protection of wealth. Recognizing the need for a stable and favorable framework, Greece introduced through the Income Tax Code (Law 4172/2013) a set of provisions that now make the country one of the most attractive destinations for benefiting from “Non-Dom” tax schemes.
Favorable Taxation for Investors Transferring Their Tax Residence to Greece
The legislation, however, is also aimed at individuals seeking to establish an active professional presence in the Greek market. This provision grants an impressive income tax exemption on 50% of earnings derived from salaried employment or individual business activity in Greece for a period of 7 years.
The eligibility criteria are clear and targeted: the applicant must not have been a Greek tax resident for 7 out of the previous 8 years and must proceed with an investment of at least €500,000 within Greece. It is worth noting that this investment may concern real estate, businesses, or financial securities, while for Golden Visa holders the process is even more streamlined. Beyond income taxation, the regime provides another significant benefit: full exemption from inheritance and gift tax on movable assets located abroad.
Favorable Taxation for Employees and Professionals Transferring Their Tax Residence to Greece
The legislation, however, is also aimed at individuals seeking to establish an active professional presence in the Greek market. This provision grants an impressive income tax exemption on 50% of earnings derived from salaried employment or individual business activity in Greece for a period of 7 years.
This framework substantially reduces the overall tax burden for executives and professionals relocating to Greece, while also fully exempting them from annual deemed-income taxation (“tekmiria”) related to residences and vehicles. The requirements include not having been a Greek tax resident for 5 out of the previous 6 years and committing to remain in Greece for at least two years.
Conclusion
At Nexus Law Firm, we closely monitor developments in the regulatory framework, ensuring that our clients fully capitalize on these unique tax planning opportunities.
