Tax Thursday – Greece update: Family Offices Scheme

Background

Beginning in 2019 the Greek government has begun to implement various tax schemes in an attempt to woo High Net Worth Individuals to relocate to Greece.

To this effect, in 2019 Greece introduced a new Non – Dom regime providing for a series of tax incentives with regard to individuals who opt to invest in Greece. This was followed by a special tax regime for pensioners transferring their tax residence to Greece and non – Greek resident employees / freelancers (digital nomads) undertaking activities in Greece.

Tying in with the above Greece introduces the Family Office Special Vehicle having as an exclusive purpose to support in the administration and management of assets’ and investments’ of individuals (including family members) who have Greek tax resident status.

With these new provisions Greece aims to establish a regulatory framework for family offices operating in Greece in tandem with various incentives and schemes regarding the relocation of residence to Greece.

To qualify, a family office must employ at least five employees within twelve months beginning from the establishment of the office onwards and report annual operating expenditures over one million euros.

Profits are determined at a cost plus 7% margin and are taxable at a 24% flat rate. Furthermore, transactions •between the SPV and its shareholders are regarded as internal transactions and thus fall outside the scope of VAT.

The new regime is intended to create spill-over effects to the benefit of the overall state economy.

Questions

If you have any questions, please contact Mr. Ioannis Giannopoulos, General Manager Advisory & Head of Tax Advisory Services [email protected] or Mr. Stelios Psaroulis, Manager Tax Advisory Services [email protected]