The new beneficial tax regime of the “family offices” law, Article 25 of Law L4778/2021, provides for the incorporation of a special purpose vehicle either through family members and/or other legal entities in which family members participate. It will be available only for individuals who have their tax residence in Greece.
For the implementation of a family office in Greece, the following requirements must be met:
- The family office must employ at least 5 people within a period of 12 months from its incorporation.
- The family office must spend at least EUR 1,000,000 in operating expenses annually, while its taxable profits will be determined on a cost-plus basis by applying a specific markup of 7% to its total expenses.
The regime’s tax features provide certainty for the corporate tax base, since any expense which is properly recorded under Greek accounting regulations is treated as tax deductible. At the same time, offices covered by the regime do not have to prepare transfer pricing documentation for their intra group transactions, explain the Ecovis experts.
Furthermore, family offices are not obliged to be registered with the commercial registry and to publish annual financial statements. Any transactions between the family office and the family members will also be out of the scope of VAT.
Digital Building Identification
A new electronic Digital Building Identification came into effect on 1 February 2021. The ID was introduced under Law 4495/2017 and further specified under Laws 4693/2019 and 4759/2020. It is mandatory for all buildings old and new, public and private. The ID will be required when buying or selling a property, issuing any building permit, and gaining an exemption from annual fines for additional constructions that took place before 2011 and have not been included in building permits.
For further information please contact:
Dimitrios Leventakis, Managing Director, ECOVIS HELLAS L.T.D., Athens, Greece
Email: dimitrios.leventakis@ecovis.gr
Anastasia Moschovaki, Tax Lawyer, ECOVIS HELLAS L.T.D., Athens, Greece
Email: moschovaki.anastasia@ecovis.gr
Ecovis is a leading global consulting firm with its origins in Continental Europe. It has almost 8,500 people operating in nearly 80 countries. Its consulting focus and core competencies lie in the areas of tax consultation, accounting, auditing and legal advice.
The particular strength of Ecovis is the combination of personal advice at a local level with the general expertise of an international and interdisciplinary network of professionals. Every Ecovis office can rely on qualified specialists in the back offices as well as on the specific industrial or national know-how of all the Ecovis experts worldwide. This diversified expertise provides clients with effective support, especially in the fields of international transactions and investments – from preparation in the client’s home country to support in the target country.
In its consulting work Ecovis concentrates mainly on mid-sized firms. Both nationally and internationally, its one-stop-shop concept ensures all-round support in legal, fiscal, managerial and administrative issues.
The name Ecovis, a combination of the terms economy and vision, expresses both its international character and its focus on the future and growth.
ECOVIS AG Steuerberatungsgesellschaft
Ernst-Reuter-Platz 10
10587 Berlin
Telefon: +49 89 5898-266
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http://www.ecovis.com
ECOVIS AG Steuerberatungsgesellschaft*
Telefon: +49 (89) 5898-266
E-Mail: gudrun.bergdolt@ecovis.com
