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Relocating to Greece from the UK: How to Save on Taxes!
Dreaming of a life in Greece while optimising your tax liability? Moving from the UK to Greece can offer significant tax advantages. Learn about the opportunities and requirements for a tax-optimised relocation of your residency now. For personalised advice, contact us.
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Dreaming of a life in Greece while optimising your tax liability? Moving from the UK to Greece can offer significant tax advantages. Learn about the opportunities and requirements for a tax-optimised relocation of your residency now. For personalised advice, contact us.
Dreaming of a life in Greece while optimising your tax liability? Moving from the UK to Greece can offer significant tax advantages. Learn about the opportunities and requirements for a tax-optimised relocation of your residency now. For personalised advice, contact us.
Dreaming of a life in Greece while optimising your tax liability? Moving from the UK to Greece can offer significant tax advantages. Learn about the opportunities and requirements for a tax-optimised relocation of your residency now. For personalised advice, contact us.
Planning your move from the UK to Greece and want to save on taxes? Learn all about tax benefits, special regulations, and important aspects of tax residency. Get informed now!
Planning a move to Greece from the UK and looking to minimise your tax burden? This guide offers you a comprehensive overview of the tax benefits that Greece has in store for newcomers. We highlight various aspects, from special tax regulations to the conditions for tax residency. Our goal is to equip you with the necessary information to effectively plan your move and take advantage of attractive tax incentives. At GoMovin, we support you in making your international move smooth and efficient. Discover how you can maximise your tax benefits with the right planning and our full service.
In recent years, Greece has become an attractive destination for expatriates, especially those coming from the United Kingdom. This is not only due to the high quality of life and pleasant climate but also because of the favourable tax regulations the country offers. These incentives are aimed at various groups, including retirees, professionals, and wealthy individuals. However, it is important to thoroughly research in advance and assess your individual circumstances to make the most of the tax advantages available.
This article explains the tax advantages Greece offers, the requirements you need to fulfill, and the considerations you should bear in mind when relocating your residence. We cover the flat-rate taxation for wealthy individuals, the special regulation for retirees, and the tax exemption for professionals. Additionally, we explain the fundamental principles of the Greek tax system and the importance of double taxation agreements. With this knowledge, you will be well-prepared to structure your move to Greece from the UK for optimal tax outcomes. Further information on the tax aspects of moving abroad can be found at wohnitzausland.com.
Tax Benefits: Up to 50% tax exemption for newcomers
Greece offers a range of special tax arrangements that make the country attractive to various groups of immigrants. These incentives aim to attract highly skilled professionals, wealthy individuals, and retirees who can benefit from the favourable tax conditions. It is important to understand which arrangements are relevant to your individual situation in order to optimise the tax benefits. In recent years, the Greek government has taken various measures to position the country as an attractive location for international immigrants. These efforts include not only tax incentives but also the simplification of administrative processes and the promotion of investments.
Flat Taxation for Wealthy Individuals
Wealthy individuals can benefit from a €100,000 annual flat tax on foreign income. This arrangement is particularly attractive for people who have significant foreign income and wish to optimise their taxes in Greece. The requirement for this flat taxation is an investment of at least €500,000 in Greek assets within three years or the obtaining of a residence permit through investment. This investment can be made in real estate, businesses, or other assets that contribute to the Greek economy. It is advisable to seek advice from a tax advisor to develop the optimal investment strategy and meet the requirements for flat taxation. More information can be found at stmatthew.de.
Flat Taxation for Retirees
For retirees, Greece offers a particularly attractive arrangement: a 7% flat tax on foreign pension income for 15 years. This arrangement is ideal for retirees who wish to spend their retirement years in Greece and benefit from the low tax rates. The requirements for this are that you have not had a Greek tax residence in five out of six years prior to moving and are moving from a country with a tax treaty with Greece. It is important to note that this arrangement only applies to pension income from abroad. Income generated in Greece is subject to regular tax rates. To ensure you meet all the requirements, we recommend seeking advice from a tax advisor. Further information on emigrating to Europe can be found on our page Emigrating to Europe.
Tax Exemption for Professionals
Greece also offers interesting incentives for professionals: a 50% tax exemption on income and solidarity contribution for up to seven consecutive years. This arrangement is intended to attract highly skilled professionals who wish to work and live in Greece. The requirements for this are that you have not had a Greek tax residence in five out of six years prior to moving, are employed by a Greek company, and intend to stay in Greece for at least two years. This tax exemption can bring significant financial benefits and make Greece an attractive destination for professionals. However, it is important to check the specific conditions and requirements to ensure you can take advantage of the tax exemption. Information on similar arrangements in the UK can be found on our page Emigrating to the UK.
Greek Tax System: Tax Residency and the Global Income Principle
To make the most of the tax benefits in Greece, it is important to understand the basic information about the Greek tax system. This includes defining tax residency, the taxation of worldwide income, as well as the applicable VAT and social security contributions. Having a solid understanding of these aspects helps you accurately assess your tax situation and take the necessary steps for successfully relocating your residency. The Greek tax system is complex and subject to frequent changes, so it is advisable to stay informed and seek professional advice.
Tax Residency
Individuals are considered tax residents in Greece if they have their primary residence or main centre of interests in Greece or spend more than 183 days within a 12-month period there. This regulation is crucial for determining your tax obligations in Greece. If you are deemed a tax resident, you are subject to Greek income tax on your worldwide income. Therefore, it is important to carefully review your duration of stay and your personal and economic ties to Greece to accurately determine your tax residency. The 183-day rule is an important factor in determining tax residency.
Taxation of Worldwide Income
As a tax resident in Greece, you are liable to pay income tax on your worldwide income. This means that all your income, regardless of where it is earned, is taxable in Greece. However, it is possible to claim a tax credit for taxes already paid outside Greece on non-Greek income. This foreign tax credit can help avoid double taxation. It is important to document all your income sources and the taxes paid on them carefully to claim the tax credit. Further information about foreign income can be found at Lohnsteuer-Kompakt.
VAT and Social Security Contributions
The standard VAT rate in Greece is 24%. This rate applies to most goods and services. The social security contributions are around 12%, with fixed amounts for self-employed individuals, depending on income and profession. It is important to consider these costs when planning your move and your financial situation. The social security contributions cover various benefits, such as health insurance, pension, and unemployment insurance. Self-employed individuals should inquire about the specific regulations and contributions for their profession. Information on registering your residence can be found at europa.eu.
Double Taxation Agreement: Tax Credit and Progression Clause
An important aspect of moving to Greece from the UK is the significance of double taxation agreements (DTA) between the two countries. These agreements determine which country has the right to tax certain income and how double taxation can be avoided. It is crucial to understand the provisions of the DTA between the UK and Greece to properly assess your tax situation and take the necessary steps to avoid double taxation. A DTA can offer significant financial benefits and optimise your move to Greece from a tax perspective.
Avoiding Double Taxation
DTAs govern which country has the primary right to tax and how double taxation is avoided, for instance through tax credit or exemption. If you receive income from the UK that is also taxable in Greece, the DTA between the two countries may stipulate that taxes paid in the UK be credited against your Greek tax liability. This can significantly reduce your tax burden in Greece. It is important to carefully document all your income sources and the taxes paid on them to be able to claim the tax credit. The European Union promotes the exchange of tax information to combat tax fraud, as described on europa.eu.
Progression Clause
Even if foreign income is tax-free in Greece due to a DTA, it can still affect the tax rate on other Greek income. This is known as the progression clause. This means that your tax-free foreign income is considered when calculating your tax rate in Greece, potentially resulting in a higher tax rate on your other income. It is important to consider this aspect when planning your finances and seek advice from a tax consultant to minimise the impact of the progression clause on your tax burden. You can find information about the tax aspects of moving abroad on our page Moving to England.
Documentation and Evidence
Careful documentation of all income sources (both UK and Greek) and taxes paid in the UK is important to claim tax credits or exemptions in Greece. Keep all relevant documents such as payslips, tax assessments, and bank statements. These documents serve as proof of your income and the taxes paid on it, and they are essential for accurately completing your tax return and making your tax claims. It is advisable to seek assistance from a tax consultant in compiling the necessary documents. GoMovin offers comprehensive support with all aspects of your move. Learn more about our relocation assistance.
Change of residence: Ensure genuine relocation and deregistration in Great Britain
When relocating your residence from the United Kingdom to Greece, there are some practical steps and considerations you should keep in mind. These include ensuring a genuine move, adhering to customs regulations, and complying with registration and residency requirements. Careful planning and preparation are crucial to making your move smooth and avoiding potential issues. At GoMovin, we are happy to assist you with the planning and execution of your move. Our experts provide comprehensive advice on all relevant aspects to help you make your relocation stress-free.
Genuine Move
It is important to ensure a genuine move by completely relocating your main residence to Greece and providing sufficient presence to avoid the trap of a sham move. This means not only officially moving your residence to Greece but also actually living and working there. It is advisable to reduce your social and economic ties to the UK and strengthen your ties to Greece. This can be achieved, for example, by taking up employment in Greece, purchasing property, or participating in social life. Relocating your centre of life to Greece is crucial to benefit from tax advantages. Further information on planning your move can be found on our planning page.
Deregistration in the UK
Please note that with a move to Greece you may continue to be tax liable in the UK if you have strong personal and economic ties there. It is important to carefully assess your tax situation in the UK and consult a tax advisor if necessary. Even if you have officially relocated your residence to Greece, certain incomes, such as rental income from UK properties, may still be taxable in the UK. Therefore, it is advisable to thoroughly inform yourself and take the necessary steps to minimise your tax liability in the UK. Information on the tax aspects of moving to Portugal can be found here.
Customs Regulations
According to EU customs law, there is a exemption from import duties for household goods under certain conditions. To benefit from this exemption, you must meet certain requirements, such as proving that you are actually relocating your residence to Greece and that the imported goods are for your personal use. It is advisable to gather information on the exact customs regulations in advance and assemble the necessary documents to ensure the smooth importation of your household goods. Further information on customs regulations can be found on the German Customs page.
Residence rights: Registration with local authorities required after three months
Certain formalities apply to EU citizens, including British nationals post-Brexit, moving to Greece. It is important to be aware of and comply with these formalities to secure your legal stay in Greece. This includes registering with local authorities and adhering to residency requirements. Timely and correct completion of these formalities will help you avoid potential issues and make your move as smooth as possible. We at GoMovin are happy to assist you with all the necessary procedures. Our experts offer comprehensive advice on all relevant aspects, helping ensure your move is stress-free.
Duration of Stay and Registration
In the first 3 months of your stay, no residence permit is required. After 3 months, registration with local authorities is generally required. This registration serves to officially announce your stay in Greece and assign you certain rights and obligations. It is important to register on time to avoid possible sanctions. Registration is usually done at the local police station or town hall. Information on registering your residence can be found on europa.eu.
Required Documents
To register, you typically need a valid ID card or passport, proof of employment, self-employment, pension, or studies, along with health insurance coverage and proof of sufficient financial means. The exact requirements may vary depending on your individual situation. It is therefore advisable to check with local authorities in advance about what documents you specifically need. Presenting all required documents is crucial to successfully completing the registration. GoMovin offers comprehensive support in gathering all necessary documents. Learn more about our services in the customs area.
Tax Planning: Cryptocurrencies and Advice from Tax Experts
In addition to the aspects already mentioned, there are other important points and recommendations for successful tax planning when moving to Greece from the UK. These include the taxation of cryptocurrencies, the importance of consulting tax experts, and the consideration of territorial taxation. Comprehensive tax planning helps you optimize your tax burden and minimize potential risks. At GoMovin, we recommend that you address these aspects early and seek professional advice.
Cryptocurrencies
Cryptocurrency gains are subject to a flat 29% tax in Greece. If you make gains from cryptocurrencies, you must declare these on your tax return and pay the corresponding tax. It is important to document all your cryptocurrency transactions carefully to complete your tax return accurately. The taxation of cryptocurrencies is a complex topic, so it is advisable to consult a tax advisor. For more information on the tax aspects of relocating abroad, visit wohnitzausland.com.
Consultation with Tax Experts
Consulting tax advisors is crucial to determine the best approach and to ensure compliance within international tax law. A tax advisor can help you analyze your specific tax situation, identify relevant tax regulations, and develop an optimal tax strategy. Consultation with a tax advisor is particularly important if you have complex income circumstances or wish to benefit from special tax regulations. A tax advisor can also assist you with preparing your tax return and communicating with tax authorities. Consulting with experts is essential for successful tax planning.
Territorial Taxation
Greece is not purely a territorial taxation country, but there are ways to optimize the tax treatment of foreign income. Under territorial taxation, only income earned domestically is taxed. Foreign income is generally tax-free. Greece does not fully apply this principle, but there are certain regulations allowing for tax optimisation of foreign income. This can be achieved, for instance, by establishing a Greek company that operates abroad and earns its income there. It is advisable to consult a tax advisor to explore the possibilities of tax-optimized treatment of foreign income.
Overcoming the language barrier: Facilitating integration into Greek society
A move to a new country brings not only tax challenges but also practical difficulties that must be addressed. These include language barriers, bureaucracy, and cultural differences. Good preparation and a willingness to adapt are essential to successfully overcome these challenges. At GoMovin, we are happy to support you in tackling all the practical challenges of your move. Our experts provide comprehensive advice on all relevant aspects and help you make your move stress-free.
Language Barrier
Knowledge of Greek is helpful for communication with authorities and in everyday life. It is advisable to start learning Greek before your move. There are numerous language courses and online resources available to help you with this. Even if you do not speak Greek fluently, basic knowledge can make everyday life easier and help you integrate into Greek society. The willingness to learn the local language is highly appreciated by the locals and can help you to form friendships and settle in more quickly. Find information on the tax aspects of moving to Europe here.
Bureaucracy
Patience and support from local experts can help you overcome bureaucratic hurdles. Greek bureaucracy can sometimes be a bit slow and complicated. Therefore, it is advisable to inform yourself in advance about the necessary formalities and, if necessary, get support from a local expert. A tax advisor or lawyer can help you gather the necessary documents and fill out the applications correctly. Even if it sometimes takes a little longer to complete all the formalities, you should not give up or let yourself be discouraged by bureaucratic hurdles. GoMovin offers you comprehensive support in completing all bureaucratic formalities. Learn more about our planning services.
Cultural Differences
Openness and willingness to adapt make it easier to integrate into Greek society. Greek culture differs in some respects from British culture. It is important to adjust to these differences and be open to new experiences. The Greeks are generally very hospitable and helpful. If you make an effort to integrate into Greek society, you will quickly find friends and feel comfortable in your new home. The willingness to embrace Greek culture is crucial for a successful move. Find more information on planning your move on our planning page.
Take advantage of tax benefits: Careful planning for a successful move
A move to Greece from the UK can be an excellent way to reduce your tax burden while enjoying a high quality of life with the right preparations and information. Greece offers a range of attractive tax incentives for various groups to take advantage of. However, careful planning and professional advice are essential to meet all the requirements and make the most of the tax benefits. At GoMovin, we are happy to assist you with our expertise and comprehensive service to make your move to Greece as smooth and stress-free as possible.
Taking advantage of tax benefits
Greece offers attractive tax incentives for certain groups of people, such as retirees, professionals, and wealthy individuals. These incentives can provide significant financial benefits and make Greece an attractive destination for expatriates. It is important to be thoroughly informed in advance and to check individual requirements in order to make the best use of the tax benefits. In recent years, the Greek government has taken various measures to position the country as an attractive location for international immigrants. These efforts include not only tax incentives but also the simplification of administrative procedures and the promotion of investments. You can find information about the tax aspects of moving to Europe here.
Careful planning
Thorough planning and professional advice are essential for a successful move and optimised tax planning. Start planning your move early and fully inform yourself about all relevant aspects, such as tax regulations, customs requirements, and residency rules. Seek professional advice to analyse your individual tax situation and develop an optimal tax strategy. With the right planning and preparation, you can successfully manage your move to Greece and benefit from the attractive tax advantages. We at GoMovin are happy to support you in the planning and execution of your move. Our experts provide comprehensive advice on all relevant aspects and help you make your move stress-free.
Are you ready to plan your move to Greece and benefit from the tax advantages? Contact us today for personal advice. We support you at every step – from planning to implementation. Contact us now!
Further useful links
On europa.eu, you can find information on registering your residence in Greece.
The deutsche Zoll provides information on customs regulations for importing household goods.
On europa.eu, you can find information on income taxes abroad and preventing double taxation.
FAQ
What tax benefits does Greece offer to immigrants from the UK?
Greece provides specific tax arrangements for pensioners (7% flat tax on foreign pension income), professionals (50% tax exemption on income), and wealthy individuals (€100,000 flat tax on foreign income).
How long do I need to live in Greece to be considered a tax resident?
You are considered tax resident if you have your primary residence in Greece or stay there for more than 183 days within 12 months.
What does the worldwide income principle mean in Greece?
As a tax resident in Greece, you are subject to income tax on your worldwide income. However, there are options for tax credits for taxes paid abroad.
How do I avoid double taxation when moving from the UK to Greece?
The double taxation agreement (DTA) between the UK and Greece determines which country has the right to tax certain income and how double taxation is avoided.
What is the progression clause and how does it affect my tax burden in Greece?
Even if foreign income is tax-free in Greece due to a DTA, it can affect the tax rate for other Greek income. This is known as the progression clause.
What documents do I need to register my residence in Greece?
You need a valid ID card or passport, proof of employment, self-employment, pension, or study, as well as health insurance coverage and proof of sufficient financial resources.
How are cryptocurrency gains taxed in Greece?
Cryptocurrency gains are taxed in Greece at a flat rate of 29%.
Do I need to register in Greece as a British citizen after Brexit?
Yes, after 3 months of residence, registration with local authorities is typically required. This also applies to British citizens after Brexit.
