From April 15th, the provisions for the repatriation of capital in accordance with an amendment submitted to the Parliament, have been put into effect.
It is noted that under the provisions of the tax bill (article 18, paragraph 1):
“Natural or legal persons subject to income tax in Greece, within a timeframe of six (6) months from the date that law came into effect, may transfer funds, for which there was a requirement to declare them, or liable to tax, in accordance with the applicable domestic provisions and are outside Greece, in a deposit account in Greece, for at least one year, are taxed with a 5 percent rate, on the value of the transferred deposits, at the time of transfer. For capitals which will be declared and remained abroad are subject to a tax rate of 8%.
Imported capital must already be deposited abroad by the date that the present bill has come into effect, in order to be subject to the aforementioned provisions.”
Exception from the means test (“pothen esches”)
On the condition that the tax of 5% on capital value of imported deposits is paid, then the natural or legal person will be exempted from means test. These capitals are not subject to investigation, on the source of income and they are taken into account in order to cover or reduce the gap between the total expenditure incurred and the income declared or determined by the Taxation Authority.
If the imported capitals are deposited Greek government securities which are settled for at least two (2) years from the natural or legal person, who imported the capitals or deposit them in mutual funds or allocate these funds within two (2) years from the time of import for the purchase of property, for the creation of any kind of construction site in Greece or any other investment regarding business activities, fifty percent (50% ) interest-free on the tax paid is refundable. If part of the imported capital is invested, part of the reimbursable capital will be refunded, under the preceding tax bill on the value of investment.
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