Charalampos Pelekis recently gave an insightful interview to banks.com.gr, where he delved into the critical role of investments as a driving force for economic development. Emphasizing the complexity of today’s economic landscape, he highlighted the importance of significant incentives, particularly in the form of tax benefits, to foster growth.
During the interview, Mr. Pelekis discussed a series of legislative measures introduced since 2019 that offer tax incentives for individuals to transfer their tax residence to Greece. A focal point of the conversation was Article 71H of Law 4172/2013, which establishes incentives for the creation of Special Purpose Vehicles for Family Asset Management—commonly known as Family Offices.
He explained how these incentives aim to create a well-defined framework to meet the asset management needs of individuals with tax residence in Greece, aligning with international best practices in taxation. The goal is to attract high-net-worth foreign tax residents by providing a favorable tax environment, as outlined in Articles 5A, 5B, and 5C of the Income Tax Code.
Mr. Pelekis also shed light on the recent Ministerial Decision No. 1043 (Government Gazette B’ 1638/05.04.2022), which specifies the services that Special Purpose Family Asset Management Companies can offer. He discussed the requirements these companies must meet, such as employing at least five people in Greece within 12 months of establishment and incurring annual operating expenses of at least €1,000,000.
The interview provides valuable insights into how these legislative developments impact investment strategies and asset management for high-net-worth individuals considering Greece as a favorable tax jurisdiction.
