The new measures are intended to encourage participation in Greece’s Group Insurance Pension Plans by improving access and changing the tax treatment. This should help enhance the appeal of the plans both to employers and employees.
Moreover, it is expected that employees will be encouraged to save for their retirement.
International assignees (Greek assignees abroad or foreign national assignees in Greece) are impacted by the newly-issued regime, given that the limitation of the contribution to the group pension plan directly affects their taxable income (e.g., since contributions to the plan are considered as an income deduction item). Furthermore, in the case of foreign national assignees in Greece who participate in foreign group pension plans (where, based on plan rules, there is no contribution cap), further guidance is expected on how their contributions would be treated as well as the taxation of the pay-out upon distribution.