Prime Minister announced the government of the sunny Mediterranean country has plans to offer an income tax cut of 50% to professionals who move to Greece in 2021. Pandemic that has brought travel to a near halt for almost a year, travel lovers were resting themselves with throwback memories. In the meantime, popular vacation destination Greece has an interesting workaround move there.
The EU member state hopes to capitalise on the rise in remote working brought about by the pandemic. The project ties together the appeal that has made Greece a tourism hotspot to the country’s ambitions to diversify its economy into the digital sphere. “Technology allows us to choose where we live and work,” Alex Patelis, economic adviser to Prime Minister Kyriakos Mitsotaksi, told reporters at an unveiling of the plan in November. “Besides the sun, the country can now offer tax incentives too.” The current tax rate in Greece is 44% for annual earnings over 40,000 euros ($47,000). Under the proposed scheme, the rate would drop to 22% for seven years. The proposal will go to the Greek parliament for approval before the end of the year.
“The new incentives are being introduced at the right time, not only because they coincide with the imminent Brexit, but also as they come at a time when the focus of new foreign direct investment in Greece is shifting toward R&D, whether this is in the form of clinical trials for the pharma industry or software development and data processing & analysis,” Angelos Benos, tax partner at accounting firm PwC Greece told reporters of news agency. This move will attract digital migrants people who relocate to Greece in 2021 while continuing to work remotely for a company or clients in other countries. They must not have been a Greek tax resident in the past seven years.
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