Greece introduced a new business tool for the management of cash flow and family property assets in February 2021. It is regulated in the “family offices” law.
Family Offices in Greece
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.
Our experienced team can support you in setting up a family office in Greece, as well as in all legal and tax aspects of real estate transactions. Dimitrios Leventakis, Managing Director, ECOVIS HELLAS L.T.D., Athens, Greece
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.