New tax rules applied to foreign citizens


Since 01.01.2014, expenditures for assets acquisition (“pothen eshes”) regarding citizens residing abroad are applied only to those that maintain a source of income in Greece. Furthermore, expenditures for assets acquisition are not admeasured in Greece, if it is proven that the said income was paid abroad.

The objective subsistence costs (inferences - tekmiria) of natural persons that have their tax residence abroad are not applied as of 01.01.2014.

From the financial year 2014 onwards citizens residing abroad gaining real income in Greece are not obligated to produce documents to the Tax Authority (certificate of tax residence etc), where they submit their income tax returns under their capacity as citizens residing abroad, in order to prove that they indeed reside abroad.

Tax citizens residing abroad (even in case they have an income in Greece) are exempted from the taxation of capital gain resulting from selling enterprises, shares and any kind of stock issued in Greece, if they have the nationality of a country which has concluded a Double Taxation Avoidance Treaty with Greece and under the condition that they have in their possession the documents demonstrating their tax residence. Moreover, these persons are not obligated to request a Greek tax number (AFM) or submit a zero tax return from this cause.

The Double Taxation Avoidance Treaty between Greece and United Arab Emirates concluded in 2014 and ratified by law states that: “as a resident of UAE is considered a natural person who has his residence within UAE and also the UAE nationality”. This results in the taxation of the international income of Greeks permanently residing in UAE, including the income they receive from the UAE, in Greece if they do not meet the condition of having the UAE citizenship.



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