Alternative tax regime for individuals with foreign pension income, who transfer their tax residence in Greece

On 29.7.2020, the Greek Parliament voted law Nr. 4714/2020, which includes significant amendments to tax provisions. Pursuant to article 1 of the new law, a new article (5B) was added to the Greek Income Tax Code, which supplemented the framework of alternative taxation of the foreign-source income obtained by natural persons, who transfer their tax residence in Greece.

In specific, the new provisions enable natural persons that obtain a pension abroad to transfer their tax residence in Greece and request from the Greek tax authorities to be subject to an alternative taxation for all their income earned abroad, at a flat rate of 7%. With the payment of this tax, every tax liability of the natural person in Greece for this income derived abroad is exhausted, including the special solidarity contribution of article 43A of the Greek Income Tax Code. However, for the taxable income derived in Greece, the natural person is subject to income tax in Greece, according to the general provisions of the Greek Income Tax Code.

The application for the transfer of the tax residence and the implementation of the alternative taxation of the income derived abroad is submitted by the natural person to the tax authorities until March 31 of the respective tax year. Especially for this year’s applications, the deadline is set at 30.9.2020. Τhe decision Nr.1217/2020 specified the details of implementation of the above new provision.

Greece – The Dynamic Development of Renewable Energy Sources: New Law No. 4685/2020

The new environmental law, Nr 4685/2020 brings simplification and significant acceleration of the environmental licensing procedure of Renewable Energy Sources projects.

With particular regard to the Phase A of the licensing process of projects (wind power plants, photovoltaic power stations, hydroelectric power plants etc), the new law abolishes the Generation License and replaces it by the Generation Certificate, with a 25-year validity duration and the possibility of renewal. The Generation Certificate will be issued by an Electronic Register of Electric Energy Generation from RES, kept by the Licensing Body (the Regulatory Authority for Energy).

Interested parties will have to apply electronically for Generation Certificate, during specific application periods (February, June, October), and, within short deadlines, applications will be published in the Electronic Register, any objections raised will be considered and, if the application meets the requirements, the Generation Certificate will be granted within (20) days.

Pending applications for Generation Licenses, submitted after the application period of September 2018 and beyond, will be considered in accordance with the new procedure introduced by Law 4685/2020.

A new Renewable Energy Sources’ Generation Certificates Regulation is to be issued within (3) months after the entry into force of the new environmental law.

Our Law firm will keep monitoring the dynamic development of the Renewable Energy Sources in Greece closely and will keep you up to date regarding the developments and your obligations concerning the evolution of your projects.

Automatic Exchange of Tax Information

A key aspect of the international cooperation between tax administrations is exchange of tax information. While up until recently, the main legal basis for the exchange of information between tax administrations was the relevant provision of the bilateral tax conventions on Income and Capital, today, the landscape of information exchange has fundamentally changed and the legal framework has become more complex due to the conclusion of international treaties providing for the automatic exchange of tax information.

The book titled “International Treaties on Automatic Exchange of Tax Information – Presentation and Interpretation of the regulations of the International Tax Law”, authored by the Associate Lawyer of MStR Law, Nafsika Tzanavari, and published by Nomiki Vivliothiki, focuses on the examination of these recent developments in the field of international tax law and the related tax issues that arise in the international double taxation and the global economy, consisting an important contribution to the legal doctrine and a very useful legal companion for anyone studying or practicing in the field of tax law.

You can access an abstract of the book here.

New Tax Audit after the annulment of a previous one and statute-barred claims – Administrative Court of Appeal No 784/2018

Tax law is one of the areas in which our law firm has been actively involved for many years, providing advice to businesses on their tax compliance and day-to-day operation working closely with tax advisers, as well as at litigation level representing companies and individuals before the Independent Authority for Public Revenue and the administrative courts.

In the link below, you can find the recent publication of the website taxheaven on a recent tax audit case that was successfully handled before the Court by our firm.

Third Summer Symposium of ΜStR Law (with photo)

On 12.07.2018 took successfully place the Third Summer Symposium of MStR Law Firm in the hospitable area of ​​the restaurant “Vasilainas” in the centre of Athens.

Subjects of the productive discussion between the partners and our associates were the new prospects of our law firm in the field of foreign investments, real estate -under the scope of the new cadastral system-, acquisitions, taxes, contracts,  the Greek Golden Visa programme, innovation and extroversion of Greek businesses, as well as the changes in the daylife of lawyers after the introduction of the GDPR.

We thank all our associates and our guests for their vivid participation, who help us to become better, more efficient and creative, building solid relationships of trust with our customers.

Approval of the competitive auction scheme for RES projects by the European Commission

According to the Press Release, dated 4-1-2018, the European Commission has found that the Greek auction scheme for the production of electricity from Renewable Sources and high efficiency cogeneration is in line with EU State Aid rules and mainly with the 2014 Guidelines on State Aid for Environmental Protection and Energy. The scheme will further EU energy and climate goals whilst preserving competition.

Furthermore, as mentioned in the Press Release “in 2018, Greece will organise separate auctions for wind and solar installations in order to determine their market potential. As of 2019, joint auctions for both wind and solar installations will be held to increase competition and reduce the cost for consumers of renewable energy in Greece. State support for other renewable energy technologies will be subject to auctions as soon as they become more mature in the Greek electricity market».

Based on Law 4414/2016, only a “pilot” auction for solar installations has been launched until today, in which our firm has been actively engaged supporting its clientele.  Following the above positive development, new auctions are expected to be launched in the near future.

You can read the Press Release here.

Οι Έλληνες αποχαιρετούν τις δωρεάν πλαστικές σακούλες

 

Από την 1η Ιανουαρίου 2018 η ελληνική κυβέρνηση εφάρμοσε την ευρωπαϊκή οδηγία του 2015 (2015/720/ΕΕ) και οι καταναλωτές οφείλουν να πληρώνουν 0,04€ για κάθε πλαστική σακούλα. Μέχρι το 2019 η χρέωση θα φτάσει τα 0,09€ ανά σακούλα ενώ, υπολογίζεται ότι το 2015 κάθε Ευρωπαίος πολίτης θα χρησιμοποιεί κατά μέσο όρο 40 πλαστικές σακούλες ανά έτος.

Energy Saving and RES in the Sector of Tourism

MStR Law will participate in the Business Mission to Germany organized by the Hellenic-German Chamber of Commerce and Industry on “Energy Saving and RES in the Sector of Tourism”, which will be held from 20.11.2017 until 23.11.2017 in Berlin. Participants will visit hotel units as well as model facilities in the field of sustainable energy, with the aim of exchanging know-how, presenting the optimal practices and achieving future Greek-German collaborations in this sector. MStR Law provides constantly its legal services having years of experience in the field of RES, energy efficiency and energy saving, following all the developments in this field and participating actively in relevant initiatives.

For more information, please visit this link of German-German Chamber of Commerce and Industry (in greek).