Greece looks good to UK’s rich
Wealthy individuals mull moving their tax residence from Britain in fear of Labour’s tax reform
Greece could emerge as one of the top destinations for the UK-based mega-rich preparing to leave the country in reaction to Labour Prime Minister Keir Starmer’s proposed tax reforms. The new center-left government’s plan to scrap the preferential tax treatment traditionally bestowed on wealthy foreigners could spark a mass exodus of the super-rich, advisers and research bodies warn. The “non dom” tax regime, a rule in place for 200 years, allows foreign nationals who have moved their tax residence to the UK to pay no tax on income and profits earned abroad for up to 15 years.
Following Labour’s win in July, investment firms, wealth managers and private bankers providing financial services to thousands of UK-based individuals are on high alert amid fears of a tax overhaul, with Greece, Switzerland, Malta, Dubai and the Caribbean emerging as top potential relocation destinations. It is estimated that Britain will lose 9,500 millionaires in 2024, more than twice as many as last year’s 4,200.
Year after year, the number of rich people moving to Greece for tax purposes is increasing. Based on data from the Ministry of National Economy and Finance, the investments from the 213 wealthy people who have moved to Greece in recent years correspond to 106.5 million euros (minimum investment). However, information indicates that the investments they have made exceed €1 billion, for now.
Out of the 213, five are billionaires, one of whom is Greek, who invests in real estate and also in shares of Greek companies. In fact, these five have also set up family offices, whose sole purpose is the administration and management of assets and investments, owned either directly or indirectly by the individuals who are tax residents of Greece and their family.
Most of the wealthy who moved their tax residence left other countries that offer similar incentives, as the Greek tax framework is better for them. In Greece they will pay a flat rate tax of €100,000 per annum for 15 years on their incomes abroad, without any further obligation to declare these incomes.
