Brain Gain: Greater lures for young people to return to Greece

Greece is attempting to strengthen this return flow, not by starting from scratch, but by improving existing measures. The 50% income tax discount for seven years, which has been in effect since 2021 (Law 4758/2020), remains the backbone of the repatriation effort, but is now accompanied by new tools and facilities.

With the new regulation promoted by the Ministry of National Economy and Finance and expected to be submitted to Parliament this week, movable property (shares, deposits, etc.) acquired by Greeks who settled abroad, before their permanent return to Greece, is exempt from inheritance tax in Greece, provided that they have resided abroad for five consecutive years, instead of ten as was the case until now.

By reducing this time requirement, in combination with the other tax incentives for repatriation in force, the faster return of Greeks to their homeland is facilitated. The new bill provides for fast-track procedures for employees and professionals, less bureaucracy.

New landscape for foreign investors
Significant changes are also coming for those tax residents abroad who settle permanently in Greece and invest at least 500,000 euros. With the new framework, all movable property of the investor located abroad is exempt from gift and inheritance taxes in Greece.

This exemption is also extended to persons who receive the property, whether through a gift or inheritance, regardless of their citizenship or place of tax residence.

This is a complete tax exemption for foreign property, a measure that makes Greece more competitive compared to countries such as Italy, which already apply similar frameworks.

The bet does not end with the return
Despite the significant incentives, challenges remain. Surveys show that 49% of repatriates returned because of tax incentives, however 57% consider bureaucracy to be a serious obstacle. The need for fast, simple and digital procedures is more relevant than ever. Brain Gain is not just a political choice. It is a national bet. Greece seems ready to reclaim not just its citizens, but its future.