In Greece, an individual who has moved abroad must file an application to the local authorities in order to demonstrate a new address should they wish to change their status from resident to non-tax resident. Such an application is typically filed by March 10th of the year following the year during which the individual changed the residence and it is accompanied by (or, later on, supplemented with) a valid proof of tax residence in the new country. In this article we will try to demystify what the Greek authorities consider an acceptable proof of tax residence in another country.
In cases when moving to a country with which a valid Agreement on Double Tax Avoidance (ADTA) exists, a template application for the implementation of the ADTA can be used in place of a separate tax residence certificate.
However, in absence of a valid ADTA, a copy of the relevant annual tax return statement may be submitted. Failing the other country's ability to also provide such a statement, then a certificate from any other public, municipal, or officially recognized authority is required, so that it can evidence the move of the "center of vital interest" of the individual.
Additional documents that are required include:
- Documents confirming the date of departure and relocation (proof for the stay exceeding 183 days)
- Additional supporting documents such as documents related to the commencement of any kind of professional activity, employment contract inclusion in a local social security institution in the other country, registration in municipal lists or school enrollment proof for the children, home lease etc.
- For individuals relocating to the USA, the application form 6166 issued by the IRS is essential.
It is worth noting that if the individual is majority partner in a local individual-owned company (general partnership), they cannot become a foreign tax resident. If participating in other types of companies (such as S.A., or Ltd.) the residential status of the individual will not be affected.
Following the filing of the application and supporting documents, the Greek tax authorities must issue a decision on the change in tax residence within two months.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.