Non Dom Regime – Alternative way for physical person to transfer their tax residency in Greece

Being enforced on the12th of December in 2019, the capability for the alternative way of taxation of physical persons that transfer their tax residency in Greece, regarding income they acquire abroad, was introduced in the Greek Income Tax Code (N. 4172/2013, article 5A).

This new provision is based on standards of other European countries, like Italy, and aims to attract tax residents of high economic value with view the increasing of government income, the introduction of capital in Greece, the creation of investment units, the participation in investment structures and purchasing of immovable property.

Motives and Requirements

Physical persons who transfer their tax residency in Greece are being taxed in Greece for the total of their income (Greek and worldwide) and can deduct possible taxes that have been paid abroad, up to the amount of the Greek tax that corresponds to this income.

Pursuant to the new provisions, physical persons can choose to join the alternative way of taxation, which provides the payment of a fix tax amount for the income that derives from abroad, irrespectively of the amount. Regarding their income which derives from sources in Greece, this is being taxed as it is already known.

Specifically, regarding income which derives from abroad, irrespectively of the amount, the physical person pays a flat-rate tax of 100,000 euro, with the requirement that he was not a Greek tax resident for the past seven (7) of eight (8) years prior the transfer of his tax residency in Greece and that himself or a relative person or through a company, invests in titles, immovable property and businesses in Greece, the minimum amount of 500,000 euro within a time period of three (3) years.

The physical person can request for the expansion of the implementation of this provision for any relative person, by paying the amount of 20,000 euro per relative person for each taxation year.


The request for the transfer of tax residency should be made until the 31st of March of each year and the Tax Authority publishes their decision within 60 days. Provided that the request is accepted, then the tax of 100,000 euro is paid in one (1) instalment within 30 days from the approval of the request for the first year and it does not offset with other taxation obligations or possible credit balances. Through the payment of the flat-rate tax, every taxation obligation of the physical person for income that derives from abroad is exhausted and is exempted from taxation of inheritance or donation of wealth which is located abroad.

In case the physical person does not pay the total amount of the flat-rate tax in any taxation year, he ceases to be subject to the alternative way of taxation for this specific year and afterwards, and is taxed for his worldwide income pursuant to the general provisions.

The implementation of this regime cannot be extended for more than fifteen (15) taxation years, while the physical person can withdraw from this regime whenever he decides.

Finally, in case the physical person has already acquired and maintains residence permit for investment activity in Greece, the condition of the investment of 500,000 euro is not required.

The above-mentioned notes are provided only for information purposes and do not substitute professional advice.

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