The can expect: Greece attracts German pensioners with Mini-control

anyone Who figures moved as a pensioner, his primary residence to Greece, on his retirement, only seven per cent income tax, such as the "Handelsblatt" report

The can expect: Greece attracts German pensioners with Mini-control

anyone Who figures moved as a pensioner, his primary residence to Greece, on his retirement, only seven per cent income tax, such as the "Handelsblatt" reported.

The particular Coup in the offer: The Mini-tax rate applies regardless of the amount of remuneration. It is, therefore, a fixed set of experts as a "Flat Tax" or a Flat-Rate for taxes.

This is a lucrative offer is at least in a draft law by the Greek government recently has approved. In July the Parliament in Athens to pass the bill, the report says. Saving is always smart!

And with coupons even better!

> the Postbank vouchers The Greek government has even more ideas to retirees attract. The law goes through, then the package seven per cent tax not only for pensions, but for "all income from abroad, be it pensions or other types of income", cited in the report, Alex Patelis, who works as a chief economic adviser of Prime Minister Mitsotakis.

This means: those Who collect as a retiree in addition to such rent or capital income is enough once, you need only give seven percent to the state.

In Germany, although a basic tax-free allowance of currently 9408 Euro per year tax-free. Up to this amount) pensioners in Germany pay (any taxes. Who collected 9408 Euro or less per year, would pay in Greece, so it because he is burdened with, each of income, with seven per cent tax.

content check: The gross-to-net calculator 2020 remains So much net them by the gross

But those drawing high Pensions with additional income would save with the offer of the Greek state money. Of which there are in Germany more and more: The proportion of pensioners, which must in this country, pay taxes, reaching almost 4.4 million. In this case, the income, the higher the tax rate is set, the following applies: The higher.

the context data of the Greek Plan

The Greek Mini-tax rate to apply to the ten years . Who uses the quote, do not need to worry because of possible legal consequences. The regulation of achievements in Accordance with the double taxation agreement between Greece and the respective country of origin, explained the Greek government employees in the report. If that is the case, then consent to the pensioners threaten to move no claims by the German tax authorities. And also the European Commission in Brussels would have to suspend the tax deal probably nothing.

interested parties need to some defaults accept

  • relocation willing-to-be pensioners have to spend their seat to Greece to lay and a minimum of 183 days in the year. The period includes a year of six months plus a day.
  • The pensioner must have been in the past six years, a maximum of five years subject to tax in Greece. This means that Even many foreign senior living currently in Greece, can take advantage of the offer.

For the tax year in 2020, Greece applications accepted until 30. September . In subsequent years the application deadline in each case to 31. March, run, says the report.

Everything you need to know about your pension

Our PDF guide explains on 100 pages the answers to all the important questions around the topic of retirement. Plus 58 Pages Of Forms.

PDF guide

Greece gives interested parties some assurances

The authorities want to decide within 60 days on applications. They do not expect opposition to your EU-Partner: Portugal, Italy, Malta and Cyprus were already earlier similar models, the report says.

it is also Known that Portugal, wealthy attracts to the end with low tax rates. The American pop musician Madonna chose for two years in Lisbon as a residence, because they saved probably millions in taxes.

In the optimal case: a Win-Win Situation for both the Greek state and pensioners

in Spite of the low tax rate, the Greek Minister of Finance, believes that the Deal will benefit. He switched on affluent retirees to spend their pension in his country.

How much money you get at the age click Here for pensions calculator

This can come together, substantial amounts: rent, cost of living, buying a car, and travel within Greece, the economy of the country would be good. Probably, therefore, of Athens, sets the tax rate so low – the Benefit for the country would Substantially over the consumer spending of the new residents. And the more seniors to follow the siren call of the Greek government, the stronger would be the income for the economically struggling Greece.

The Greek model with the fixed seven percent tax rate would be worth it, especially for high earners seniors.

calculation examples for single seniors
1)

pensioners A. 9408 Euro pension in the year, no other income

tax: 0 €

tax in Greece (7 %) gets: the 658,56 €

retirees A. retirement benefits is exactly equal to the basic allowance would have to, in Greece, nearly 659 Euro to pay taxes, while he arrives in Germany without the duties of it.

2)

retired B. 12,000 euros pension per year and a further 6000 euros, rent and capital gains, get the total income: 18,000 Euro .

tax in Germany (lt. Progression table): 1829 Euro plus solos in the amount of 100,60 Euro, for a total of 1929,60 Euro .

tax Greece (7 %): 1260 €

Here is the German new residents in Greece per year would save around 670 Euro taxes.

3)

The wealthy Pensioner C. € 30,000 pension gets a year, he wins 10,000 euros rent and 10,000 euros in capital income. He recorded so proud 50.000 Euro per year in income.

tax in Germany (lt. Progression table): 12.141 € income tax plus 5.5 % Soli (667,76 €) = total: 12.808,76 € taxes

tax Greece (7 %): 3500 €

The high earners retired C. would save so in case of a relocation to Greece per year 9300 Euro taxes.

note: In the above invoices is a simplified representation. The possibility of certain expenditure in Germany tax-deductible, remains unconsidered.

Also, any Church tax is not included in all three sample invoices with. It varies in Germany depending on the state, between eight and nine percent. For Church members, the bill would be larger than German Tax payers so even worse.

lower costs in Greece, to make life cheaper

a further factor Greece points: daily life is much cheaper than here.

According to a study by the OECD, purchasing power parities, a "German" Euro in Greece is well-1,26 Euro value (may 2020). This means that If, in Germany, certain Goods and services, together 100 Euro cost, get a Consumer for these 100 Euro in Greece, in purely mathematical terms, Goods and services worth a total of more than 126 Euro. Retirement at 63: How does it work? Our PDF guide shows you how you can retire early can go and still have the full amount received.To the PDF guide

The significantly cheaper cost of living so to speak also for the offer of the Greek government, a closer look at.

However, any interested party should be clear: Lower taxes and cheaper prices are not the only criteria according to which the place of residence in the retirement should be selected.

For Germany, talking about the expensive, but efficient health-care system. In addition, the language barrier falls away here. And: Even if the Greek Parliament casting the government's plans into law, the Flat Tax only once for ten years.

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Updated Date: 18 July 2020, 18:27

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