Tax residence. Where is yours?

Many are those who in recent years have moved from Greece to abroad, mainly for work purposes. However, while they have completed the transfer of their real residence, they have neglected the transfer of their tax residence and as a result they face problems with the Greek tax authority.

The general rule tells us that in order for a natural person to be a tax resident of Greece, he/she must live in the country for more than 183 days, cumulatively, within a twelve-month period. If this number of days is not reached within the year, then he/she should take the necessary steps to transfer his/her tax residence to his/her country of residence abroad. The 183-day check can be done from various supporting documents that may be requested by the tax authority such as rental contracts, proof of work, residence certificates from the municipality, etc.

The transfer (change) of tax residence abroad is made with a relevant request to the Tax Office to which the taxpayer belongs, requesting his transfer to the Tax Office of residents abroad, as a permanent resident abroad. The request shall be submitted by the last working day of the first ten days of March of the year following the year of transfer of tax residence.

A prerequisite for transferring your tax residence abroad is the appointment of a tax representative in Greece through a power of attorney or solemn declaration. The tax representative must be a permanent resident of Greece.

Residents abroad have no tax obligations in Greece, as long as they do not obtain real income from a Greek source. However, in case of negligence to transfer your tax residence abroad, Greece reserves the right to tax your worldwide income, thus risking large tax burdens. Cross-checks of your incomes are now often done between different states and Tax clearances are made automatically by the Greek state.
Finally, it should be noted that there is no possibility of retroactive change of tax residence of a natural person, but if someone has neglected the procedure, there is the possibility of submitting specific documents for the past years, in order to avoid taxation of his foreign income in Greece.