BUSINESS

Tax emigres urged to invest

PROKOPIS HATZINIKOLAOU

TAGS: Taxation, Economy

A joint decision by the ministries of Finance and Development paves the way for wealthy foreigners who have transferred their tax residence to Greece to invest in this country. They have three years after applying for a Greek tax number to invest at least 500,000 euros in real estate, stocks, bonds and fixed installations.

Those who invest and enjoy favorable terms from the tax authorities are obliged to maintain their investments throughout the period of their tax residence in this country, which can last up to 15 years.

The tax office responsible for taxpayers based abroad, “DOY Exoterikou,” is responsible for monitoring these investments. By May 31 every year these foreign taxpayers must submit a report to the tax administration with the necessary documents showing the course of their investments.

Those bringing their tax residence to Greece have to pay a flat rate of 100,000 euros per year, regardless of the income they have obtained abroad on any given year.

The categories these new Greek taxpayers can choose to invest a minimum of half a million euros are the following:

-  A real estate purchase in Greece, including spending on building a property. The amount eligible for calculation toward the law’s requirements is the objective value of the property at the time of the purchase plus 10%, or the market value according to the contract, whichever is the lowest.

- The acquisition or construction of infrastructures in Greece for business activity through a personal enterprise.

- Investments in shares of Greek listed companies or holdings in enterprises based in Greece, either through buying existing stakes or via share capital increases. This only concerns companies with business activity in Greece.

- The purchase of Greek government bonds, with at least three more years to maturity, through a locally based bank.

- Contributing capital for participating in an alternative investments corporation.

- The acquisition of securities trading in regulated markets, such as treasury bills.

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