In recent years, Greece has not only been an attractive place of residence. It has also emerged as a strategic tax destination for those wishing to relocate their professional activities to the country. Within this framework, the special tax regime of Article 5C of the Income Tax Code, widely known as the “Brain Gain” program, was introduced. Its objective is to attract highly qualified executives, professionals, and entrepreneurs who choose to live and work in Greece.
The program is addressed to senior executives and specialized professionals, as well as to entrepreneurs who establish or expand business activities in Greece or undertake salaried employment with a Greek company. Their tax residence is transferred to Greece, provided that they were not tax residents of Greece for five out of the six preceding years. The principal tax benefit and incentive for participation in this scheme is that eligible professionals or entrepreneurs are taxed on only 50% of the income they earn in Greece. The remaining 50% is exempt from income tax. This provision may apply for up to seven (7) tax years, offering a significant and measurable reduction in the overall tax burden.
The Brain Gain regime operates independently from other tax instruments, such as the non-dom regime. However, within the context of a properly structured tax plan, it may form part of a broader relocation and investment strategy. The appropriate regime depends on the individual’s profile, the structure of their income, and the nature of their activities. For those seriously considering relocation, the Brain Gain program constitutes a modern, clear, and particularly attractive tax instrument.
Contact Georgaki and Partners Law Firm for further information and guidance. Our dedicated team can provide excellent quality legal advice, making the process as smooth as it can be.
