A key issue is raised; do remote workers in Greece who are digital nomads have to pay tax in Greece?
Let’s look at the tax laws that digital nomads should know about before choosing Greece as their next place to work and visit.
Do Digital Nomads Pay Tax in Greece?
Freedom of movement is made possible by this flexible lifestyle, but it also comes with legal and tax requirements that vary by country.
It is necessary for digital nomads to ascertain whether they are subject to the tax regulations in Greece.
Greece Digital Nomad Visa – CLICK HERE
Greek Tax Residency Rules – Are Digital Nomads Considered Residents?
- The duration of your stay and the location of your “center of life” define your residency tax in Greece.
- You could be regarded as a tax resident if you spend more than 183 days in Greece in a year.
- This implies that Greek tax regulations may apply to your worldwide revenue.
- You might not be considered a Greek tax resident, yet, if you are in country for fewer than 183 days and your main social and financial connections are still outside of Greece.
- Knowing the 183-day rule is essential for digital nomads to determine whether they must pay taxes on their worldwide revenue.
Income Tax for Non-Residents
- The issue is a little different if you are not a tax resident of Greece. In general, non-residents only pay taxes on money received from Greek sources.
- This means that you might not be required to pay Greek income tax on your income if your clients or sources of income are located outside of Greece.
- Taxes on your earnings, however, can still be due if you provide services or make money in Greece.
Double Taxation Treaties – Avoiding Being Taxed Twice
- The possibility of double taxation; being taxed in both Greece and their home country is one worry shared by many digital nomads.
- Luckily, the United States, the United Kingdom, and several EU countries have double taxation arrangements with Greece.
- Understanding the details of the contract between Greece and your home country is essential to preventing difficulties, but these treaties helps ensure that digital nomads are not taxed twice on the same income.
Read: How much does it cost to live in Vietnam as a digital nomad?
Tax Exemptions and Special Provisions for Digital Nomads
- Digital nomads and other internationally residents can benefit from several tax deductions and advantages provided by Greece.
- In fact, under certain schemes meant to bring in international talent, some workers may be eligible for tax incentives if they relocate to Greece.
- Additionally, for individuals who stay within the allotted time, the digital nomad visa can provide lower obligations tax in Greece.
- It is critical to look at all of your possibilities because these provisions change based on your income and length of stay.
Navigating Social Security Contributions for Digital Nomads
- Digital nomads have to account for social security contributions in addition to income taxes.
- You could have to make contributions to Greece’s social security system, depending on your residency status.
- Many digital nomads who continue to be enrolled in their countries social security system, however, may be exempt.
- The details are determined by the social security agreements between Greece and your native country.
Seeking Professional Tax Advice for Digital Nomads in Greece
- Navigating tax regulations can be challenging, and there can be serious penalties for noncompliance.
- Understanding your responsibilities and avoiding any legal problems can be helped by a tax expert versed in both Greek and international tax law.
Bottom Line
Greece is a desirable location for digital nomads, but having a stress-free remote working experience requires knowing the tax in Greece implications.
