Greece Attracts Europe Pensioners

Insight | by Trudi Hayes
Greece panorama

Greece wants to boost its struggling economy by enticing retirees in Europe to move there by offering a 7% income tax rate as an incentive.

Athina Kalyva, head of tax policy at the Greek finance ministry, says “The logic is very simple: we want pensioners to relocate here,”. She has helped to design a scheme to encourage people to relocate to Greece. “We have a beautiful country, a very good climate, so why not?” The scheme is expected to rival those of fellow southern European Union countries like Portugal and Italy.

The initiative proposes a flat income tax rate of 7% for foreign retirees who transfer their tax residence to Greece and would be applicable for ten years.

They hope that pensioners who choose to benefit from this rate will spend most of their time in Greece, which would mean investing or renting or buying a home.

Greece plans to apply the flat rate not only to pensions but to other sources of revenue too (such as dividends or rents) in order to boost the economy and change Greek growth models.

The plan is also designed to appeal to the 5-million-strong Greek community that lives across the globe; people with strong ties to home.

Candidates will need to be able to prove their pension status and will have to come from a nation that has a double taxation treaty with Athens and must agree to live in Greece for more than six months every year.

Forth Capital specialises in expat retirement planning, pensions and investments. Click here to speak to one of our advisers.

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