Alternative taxation of income of natural entities, beneficiaries of income arising from pensioners arising abroad, who transfer their tax residence in Greece
1. Natural entity, pensioner, arising abroad, who transfers its tax residence in Greece, may be subject to an alternative form of taxation, provided, cumulatively, that:
a) was not a tax resident of Greece for the previous five (5) of the six (6) years prior to the transfer of its tax residence to Greece, and
b) transfers its tax residence from a state with which an agreement on administrative cooperation in the field of taxation with Greece is in force.
2. If it is accepted, according to the procedure defined in the respective law, the taxpayer’s submission to an alternative way of taxation for the income that arises abroad, the natural entity pays each tax year independently tax with a rate of seven percent (7% ) for his total income earned abroad. With the payment of this tax, every tax liability of the natural person for this income is exhausted. Any tax paid by the taxpayer abroad for income covered by the alternative method of taxation, is not deductible from the tax hereof.
The tax with a rate of seven percent (7%) is paid up every tax year in one (1) installment until the last working day of the month of July and is not set off with other tax obligation or potential credit sums left of the entity that has submitted to the alternative way of taxation.
3. The application for the transfer of the tax residence subject to the alternative way of income taxation that arises abroad according to this article is submitted to the Tax Administration by the retired natural person until March 31 of the respective tax year.

Within sixty (60) days from the filing of the application, the Tax Administration examines the application and issues a decision, by which approves or rejects the application.
The natural entity declares in its application the state in which it had its last tax residence until the filing of its application. The Tax Administration updated the tax authorities of the state declared by the entity regarding the transfer of the tax residence of the tax payer in question, according to the regulations of the international administrative cooperation.

4. The application of the present starts from the next tax year for which the natural person submits the application for his subjection to the provisions of the present and ends after the end of ten (10) tax years. Subjection to the provisions of this article may not be extended beyond ten (10) tax years.

5. The natural person may in any tax year during the period as per the related law regulation, submit an application for the revocation of his subordination to these provisions.

SUMMARIZING
Those who have had their tax residence in Greece for at least the last five to six years of their employment are not allowed to apply. In addition, a valid agreement of the country of origin with Greece is required. Such an agreement is in force with the countries which avoid double taxation Azerbaijan, Egypt, Albania, Armenia, Austria, Belgium, Bulgaria, France, Germany, Georgia, Denmark, Democracy of San Marino, Switzerland, Estonia, United Arab Emirates, United Kingdom, United States, India, Ireland, Iceland, Spain, Israel, Italy, Canada, Qatar, Pais Bas, China, Korea, Kuwait, Croatia, Cyprus, Latvia, Lithuania, Luxemburg, Malta, Morocco, Mexico, Moldavia, South Africa, Norway, Hungary, Uzbekistan, Ukraine, Poland, Portugal, Romania, Russia (partial amendment), Saudi Arabia, Serbia, Slovakia, Slovenia, Sweden, Turkey, Czech Republic, Tunisia, Finland.
Once the application of a foreign pensioner is approved, his total income in the country of origin is taxed for the next 10 years uniform with only 7%. Then the tax each tax year must be paid in full.
This move is made in order for retirees to come and settle in Greece. If the incentive proves to be effective, an additional bonus will be given to the Greek economy as foreign retirees will transfer their income to Greece, while the Greek real estate market will be stimulated with purchases and rentals of houses.

“If it operates, we will probably extend the low tax regulation for another five years – that is, for a total of 15 years. We want to make this country competitive not only for investment, but also for people.” The Secretary General of Tax Policy Athena Kalyva stated in BILD.