Corona: greece promotes home office in the sun

Those who move their Home office
relocated to Greece to work from there, will get half of his Income tax
enacted. That's according to a bill that Finance Minister Christos Staikouras submitted to parliament for consideration on Monday.

Among the lasting changes that the Corona virus
leaves behind, the trend toward home offices is likely to include. Of this would like Greece
benefit. "We have learned in the Covid pandemic that thanks to technological advances we can choose where we live and work ", says Alex Patelis, chief economic adviser to Prime Minister Kyriakos Mitsotakis.

Greece: tax breaks for home office migrants

Who gave up his Tax residence
to Greece gets a 50 percent discount on income tax. Greek treasury charges income of over 40.000 euros a year regularly at the top tax rate of 44 percent. Under the planned model, it's a maximum of 22 percent, correspondingly less for lower incomes.

The Benefit
valid for seven years. Economic advisor Patelis thus sees his country well positioned in the competition for the new "digital migrants": "We not only have the sun to offer, but also tax incentives."

Self-employed persons and Brexit refugees as a target group

An important target group of the program are self-employed people of the IT and financial sector
, for whom it doesn't really matter where in the world they sit in front of their laptops. Patelis also hopes for "Brexit Bonus"
The Greek government is using the tax breaks to attract foreigners who will be leaving the country next year as a result of the UK's exit from the EU.

Foreigners who want to move their tax residence to Greece and take advantage of the income tax rebate will have to pay more than six months
a year. However, only those who have not been subject to tax in Greece for at least seven years in the past eight years receive the tax benefits.

Greek brain drain to be ended by tax incentives

With the tax benefits, the government is also hoping Greek emigrants
, who were taxed during the debt crisis
left their homeland to return. Between 2010 and 2018, around 800,000 Greeks turned their backs on their homeland and sought their fortune abroad. Greece lost many of its best talents at the time. Now the finance minister wants to reverse this brain drain.

It's not just "digital migrants," Brexit refugees and expatriate Greeks that the Greek government is now trying to lure into the country. Already in July of this year, the Greek parliament decided to grant tax benefits for foreign pensioners
, who move their residence to Greece. They only pay a flat rate of seven percent on their pension. The Mini tax rate
also applies to ancillary income.

For German pensioners, however, it depends on the individual case whether the Tax exile
really takes. Retirees living abroad with income from rental or business activities have limited tax liability in Germany. This means that many things that could reduce the tax burden, such as the basic tax-free allowance, special expenses and even spousal splitting, will be lost.