1.  Persons and conditions of affiliation

A natural person entitled to income from a pension, in accordance with Article 12 of the Income Tax Code, arising abroad, who transfers his tax residence to Greece, is subject to an alternative method of taxation for income arising abroad, provided that cumulatively:

• has not been a tax resident of Greece for the previous five (5) out of six (6) years prior to the transfer of his tax residence to Greece, and
• transfers his tax residence from a State with which an administrative cooperation agreement in the field of taxation with Greece is in force.

2.  Procedure and deadline for inclusion

• Submission of an application for transfer of tax residence under the alternative method of taxation of income arising abroad under Article 5B of the Income Tax Code, on behalf of the natural person, to the competent Authority of AADE (Tax Office for Residents Abroad and Alternative Taxation for Tax Residents), by March 31 of each tax year.

Within the above deadline, they may apply for the alternative method of income taxation that arises abroad and natural persons who meet the requirements of para. 1 of Article 5B of the Income Tax Code and have already transferred their tax residence to Greece within the previous tax year.

Withdrawal of affiliation:

The individual may, in any tax year during the period of application of the provisions of Article 5B of the Income Tax Code, apply for the withdrawal of his affiliation to these provisions.

3.  Tax obligations

• The natural person who is subject to the alternative method of income taxation according to Article 5B of the Income Tax Code, pays each tax year independently at the rate of seven percent (7%) on all his income earned abroad.
  • The application of the provisions of Article 5B of the Income Tax Code begins from the next tax year for which the application of the natural person for inclusion in the provisions hereof is submitted and ends after fifteen (15) tax years. Subject to the provisions of Article 5B of the Income Tax Code is possible for the next fifteen (15) tax years.
  • The natural person who falls under the provisions of Article 5B of the Income Tax Code, provided that in a tax year he does not pay the full amount of tax referred to in paragraph 5B of the Income Tax Code. 2 of the above article for all his income earned abroad, ceases to be subject to the provisions of Article 5B of the Income Tax Code from the relevant tax year and thereafter is taxed on his worldwide income, in accordance with the general provisions of the Income Tax Code.
  • The provisions of Article 5B of the Income Tax Code do not affect the application of the international conventions ratified by Greece for the avoidance of double taxation of income and capital.

          Relevant Regulatory Framework

• A.1217/2020 (B'4215) Joint Decision of the Deputy Minister of Finance and the Governor of AADE.