Greta S. Says:
Can you explain Greece’s Financially Independent Persons program and how it affects people from the US?
Global Diversification Expert Ted Baumann Says:
Hi Greta,
I wrote about the Greek Financially Independent Persons (FIP) program in my most recent Global Citizen service report. Here’s a recap.
The FIP is designed for—you guessed it—people who can afford to live in Greece without earning any income there. You need to have a minimum income of €2,000 a month, which is increased by 20% for a spouse and 15% for any dependent children. In addition to proof of sufficient income, you need to provide proof of full medical and hospital insurance from a private insurer during your time in Greece. You may not work or run a business in Greece.
The income doesn’t have to be from passive sources like a pension; it can also be from remote work, i.e. digital nomadism. But the Greek government is more inclined to give the permits to pensioners and others with passive income. Refusal rates for people working remotely are quite high.
If you apply for the FIP based on savings rather than pension, you must deposit the full amount for the two-year period in a Greek bank, which pays little to no interest.
You must apply for the FIP at a Greek embassy or consulate in your home country. Applications inside the country are not permitted.
There is some disagreement about the time-in-country requirements of the permit. Officially, you must remain in Greece for a minimum of six months per year. But other sources say that’s not always enforced.
Now, by design, six months is precisely the number of days that makes you a Greek tax resident. Greek tax rates top out well above US rates for the same income brackets, so you’ll definitely want to avoid triggering that.
Helpfully, Greece offers a “non-dom” regime for those with regular passive income, as long as the applicant comes from a country with a tax treaty with Greece. Although you are a resident in Greece, you are not considered domiciled there for tax purposes. Under that regime you qualify for a 7% flat tax on all passive income, including pensions, dividends, interest, and capital gains, as long as they are from a foreign source. That concession lasts for a maximum of 15 years.
In addition, if you have already paid tax on that foreign passive income to another country, as would be the case if you are a US taxpayer, then you can apply for a tax credit to offset that 7% tax.
According to the Greek government, the permit lasts for two years and can be renewed continuously as long as you continue to meet the criteria.
Read more about visas and residency in Greece here.
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