If you're considering becoming a tax resident abroad, there are several advantages you can enjoy. However, you need to be aware of some key information to do it correctly.

Why Become a Tax Resident Abroad?

• Pay Less TaxesIf you live permanently abroad, you'll only pay taxes on income earned in Greece. This means you can save on high tax burdens, especially if you have income from abroad.
• No Special Solidarity ContributionIn Greece, individuals with high incomes pay an additional tax, the special solidarity contribution. As a tax resident abroad, you're exempt from this.
• Lower Taxation on Rental and Investment IncomeIf you own property or investments in Greece, you'll pay taxes only on these assets, not on any other income you earn abroad.
• Easier Management of Your AssetsIn some countries, being a tax resident abroad can offer tax benefits when transferring or inheriting property.

What You Need to Do to Become a Tax Resident Abroad

1. Declare to the Greek Tax Authorities You must inform the Greek tax office that you live abroad. You’ll need:
   
   • Documents showing that you work or have a home in the new country.
   • Proof that you spend more than 183 days a year abroad.
   • Tax documents from the foreign country.
2. Bilateral Tax Agreements Some countries have agreements with Greece to avoid double taxation on the same income. Check if this applies in the country where you reside.
3. Impact on Pension and Social Security If you work in an EU country, your social security contributions may be combined with those made in Greece. However, if you’re outside the EU, check how this may affect your pension.
4. Taxation of Deposits and Investments
   
If you have deposits or investments in Greek banks, the interest earned is taxed in Greece. In some countries, the tax on these may be lower.

Conclusion

If you live permanently abroad, changing your tax residency can help reduce taxes and avoid unnecessary burdens. However, it’s important to understand the processes to do it correctly.

For more information or to start the process, please contact us at +49 30 314 88 468 or use the contact form on our website.

Agisilaos Kapatselos