by Luigi Belluzzo.

A new tax bill has been passed by the Greek Parliament introducing changes to the tax treatment of individuals.

The new law is similar to the Italian New Tax Resident rules, confirming a growing competition among jurisdictions such us UK, Portugal, Italy, Spain and of course Monaco MC, Malta, Cyprus and many other countries in Europe and elsewhere.

The new Greek rule introduces a specific tax regime for HNWIs who transfer their tax residence in Greece and invest on Greek assets of significant value.

In order to qualify to this regime, it is necessary to prove:

(i)           A tax residence outside Greece fort 7 out of the last 8 years

(ii)          To invest a minimum value of Euro 500.000 in Greek real estate property, securities and companies. For Non EU citizens, with a residence by investment visa, a specific via is applicable.

Once transferred under the new regime:

(a)          Foreign source income is exhausted with an annual one off tax or Euro 100.000

(b)          Assets located outside Greece are exempted from any inheritance or gift tax

(c)          There is not any obligation to report foreign sourced income.

The regime is extensible to close relatives with a payment of an annual one off tax of Euro 20.000.

This regime duration is a maximum of 15 tax years.

The procedure is ruled by the new law and filing application must be accomplished by March 31st for any relevant tax year.

Our firm wealth and estate department and private client focus team will monitor closely any development in the area. For any further query we are happy to follow up at one of our offices in London, Milan, Lugano or Singapore where a specific team is working on HNWI and relocation issues and opportunities, also with active correspondent firms in Monaco MC, Miami and Portugal.