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The government estimates that the interest from banks who wish to open offices with Acropolis view instead of Thames view will be followed by other businesses, always in the context of Brexit. The same motives will apply to them.
Athens may not have appeared amongst the candidates for London City’s successor after Brexit, but the latest movements show that Athens could potentially benefit from the expected rearrangements in the British financial center.
According to information, severely large investment banks have approached the government, expressing interest to open offices in Athens or to expand the already existing after 1st/1/2021, regardless of the Brexit agreement conclusion.
It is obviously a welcomed advancement for the economy and the government is planning, as mentioned by governmental sources, to support, by establishing tax motives for banks who decide to step from City to Athens.
More specifically, motives will predict that any bank which opens offices or expands their existing in Greece during 2021 will have advantageous tax treatment for approximately a decade. Details have not been defined, but it is certain that the creation of new jobs will be set as a condition. This provision is currently being processed and is expected to be submitted the following month, in order to be voted and set in motion next year.
As explained by governmental offices who came in contact with the interested banks, it seems that Brexit will not automatically lead to the transfer of the financial center of London to the one and only city of the Eurozone, for ex. in Frankfurt or Paris, as it was initially expected.
On the contrary, banks will want to expand their presence in more than one big city outside of London and within the Eurozone. Athens is expected to be one of them.
They also add that the creation of the Eurozone, in which the United Kingdom did not participate, led to the transfer of the City outside of London.
In any case, it is obviously positive for Greece to have large investment names operate in its territory, which are lead-names in City, such as Goldman Sachs, Morgan Stanley, Deutsche Bank, Nomura, Citigroup, HSBC.
The government underlines that other countries, amongst which is Italy, Portugal, and Spain, for which there is a correspondent interest from London Banks, have already established motives to attract them. Greece plans to follow them very soon. In addition, the government estimates that the interest of banks who wish to open offices with Acropolis view instead of Thames will potentially be followed by other businesses, always in the context of Brexit. The same motives will apply to them.
This governmental initiative for Brexit “immigrants” is the next step and is related to two more previous steps: the attraction of non dom and pensioners.
As it is known, a regulation has been voted for pensioners who will relocate to Greece, which predicts their taxation with a 7% ratio.
In addition, motives are granted to foreign tax residents with high incomes, in order to transfer their tax residence in Greece, by acquiring a non dom regime. These specific individuals are taxed with 100.000 euros per year plus 20.000 per year for each family member.
In the meantime, the legislation for “family offices” is almost ready, which regards foreigners with very wealthy financial status. According to information, it is soon expected to be voted.
Therefore, the government is gradually setting up an advantageous scheme for the boost of entrepreneurship through the attraction of foreign investors, businessmen, as well as the appointment of Greece as desired residence place, not only due to climate conditions.
The Brexit deal, however, is hot and cold, with significant disputes regarding the most complex issues. Still, if no commercial deal is concluded, the government estimates that the interest of foreign banks towards their expansion in Athens will remain vivid.