Greece: All You Need to Know About the Lump Sum Regime for New Tax Residents

19.05.2025

In Greece, this regime is officially referred to as the “alternative taxation of foreign-sourced income”. Its aim is to allow foreign individuals to acquire Greek tax residency by investing in the country and paying a fixed annual tax amount. The process of transferring tax residency is significantly simplified for individuals who already hold a Greek residence permit based on investment.

Grounds for Obtaining Greek Tax Residency

An individual may qualify for the regime if the following conditions are cumulatively met:

• The person has not been a Greek tax resident in seven out of the previous eight years prior to the transfer of their tax residency to Greece;
• The person (either directly, via relatives, or through a legal entity in which they or their relatives hold a majority of shares or interests) makes investments in real estate, businesses, securities, shares or participations in entities established in Greece.

The minimum investment amount is EUR 500,000, and the investment must be completed within three years from the date the application is submitted.

However, condition (b) is waived for individuals who have already obtained and maintain a Greek residence permit for investment activity.

Tax Obligations

The individual is subject to a fixed tax of EUR 100,000 per tax year.

This amount must be paid within 30 days from the approval of the application for the special tax regime. Thereafter, tax payments shall be made in accordance with deadlines set by Greek tax law.

Note: The lump sum tax also provides exemption from inheritance and gift tax on foreign real estate and other assets.

If the individual fails to pay the full amount of the fixed tax in any given tax year, they will automatically cease to benefit from the regime and will instead be subject to regular taxation on their worldwide income for that tax year in accordance with the Greek Tax Code.

Term and Termination of the Lump Sum Regime

Upon successful application, an Agreement on Alternative Taxation (hereinafter the Agreement) is concluded for a period of 15 years.

Termination of the Agreement is possible at any time within the 15-year period. In such case, the individual becomes subject to standard tax rules from the year the termination request is submitted and is no longer required to pay the fixed tax for that tax year.

No Requirement for 183+ Days of Stay

There is no requirement to reside in Greece for 183 days or more to maintain the regime.

However, if the individual is deemed a tax resident of another country, the issue of tax residency shall be resolved in accordance with the provisions of double tax treaties between Greece and the relevant jurisdiction (if such treaties exist).

Eligibility of Family Members for the Lump Sum Regime

The regime can be extended to close family members: spouse, children, and parents (direct ascendants and descendants).

For each family member, the fixed tax amount is EUR 20,000 per tax year.

For further assistance, please contact us via Telegram: @revera_pc.

Author: Yaroslavna Zadesenskaya

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