How Greece Wants to Rejuvenate its Economy

The state of Greece’s economy was far from being ideal even before the coronavirus pandemic. The tourism industry plays an important role in the country. However, the pandemic created a lot of problems for the  economy. Greece is struggling to cope with challenges associated with the ongoing situation.

Greece introduced new tax incentives in an effort to attract those working from home as the country wants to rebuild its economy. People should take into account that, people moving to the country in 2021 will not have to pay income tax on half of their salary for the next seven years. Interestingly, it does not whether the person receives a salary or this person is self-employed.

However, tax incentives won’t apply to people who have been a tax resident in Greece for seven out of the past eight years. People should be aware of this fact.

It worth noting that, Greek authorities are targeting companies that want to open offices in Greece due to Brexit. Moreover, Greeks abroad who want to return to Greece, as well as digital migrants or tech companies. Another category is a person or a company that wants to open an office in the country.

Greece economy and its potential

Importantly, the parliament is expected to vote on the new legislation in the next three months and will come into force on January 1.

As stated earlier, the Greek economy struggled to cope with problems even before the pandemic. The country experienced one of the most acute “brain drains” in Europe. Workers moved abroad in search of better opportunities. It is hard to blame them, as the bouts of social unrest, three bailout programs created numerous issues for the country. People should take into account that, the country now has the highest government-debt pile in the euro area.

The Greek economy was recovering over the last two years, but the coronavirus pandemic delivered a fresh blow. It is worth mentioning that, gross domestic product is set to contract by 9% this year, according to forecasts by the European Commission.

Moreover, the European Commission expects the unemployment rate to reach 18% in 2020, the highest among the 19-member euro zone. Interestingly, the latest tax measures are part of wider efforts to make the Greek economy more attractive to foreign investors. The Greek government is working hard to revive the economy. Tax incentives may help to achieve this goal.