Athens provides lucrative tax benefits to draw pensioners’ attention and improve its economy.
Many countries want to cater to youngsters and business people with innovations, students who are searching for lessons, and employees willing to take up employment opportunities. However, by playing for the European retirees, Greece has taken a different strategy.
Athina Kalyva, a member of the Greece finance ministry, stated that they want Greece to be the ideal destination for retirees.
The plan has been laid down in a bill that is yet to be passed through the parliament. It suggests that foreign pensioners who move to Greece their fiscal residency should receive a flat income tax rate of 7%. This lucrative opportunity would apply for a decade.
The major objective expands the tax base of Greece and attracts investments in the form of rents or purchasing a house.
Among the other members of the European Union, Athens isn’t the first country to think of such a policy. Due to their struggling economies, countries like Lisbon and Portugal are also attracting retirees in Europe with the tax-free pension policy.
The new policy undoubtedly attracted many people in different areas of Europe. However, it was dealt with some backlash. The locals were furious when Lisbon declared that in the following year a 10 percent overseas source pension income tax will be imposed for non-ordinary residents.
Greece says it should not have to undermine its allies. Though Athens has hit the event late, it is using the flat rate not just for pensions but also for other revenue streams to outdo the competitors.
Athens has also decided to adjust views of the general competence of the government after the effective treatment of the coronavirus pandemic. It is to note that the country’s outbreak rate and death toll stay amongst the lowest in Europe.
Naturally, there would be limitations. Officials claim that people who come from “shady nations” do not have to register.
In addition to proving their eligibility as pensioners, applicants must come from a dual taxation arrangement with Athens to remain in Greece every year for over six months.