Greece is widening tax breaks for citizens who left during the financial crisis in a push to reverse brain drain and lure back younger, highly skilled workers, even as officials acknowledge that weak pay levels remain a major obstacle.
The finance ministry, through the Independent Authority for Public Revenue, has issued new guidance to grant exemptions on duties, registration taxes and VAT for personal belongings, including vehicles owned for at least six months before the move.
The measure applies to Greeks who lived abroad for at least 24 months before returning permanently.
The move adds to a broader package of incentives already in place, including a seven-year income tax exemption covering both private-sector jobs and, more recently, public-sector employment. It also comes alongside a lower 9% tax rate for professionals in their 30s earning up to 20,000 euros.
The government says the aim is to speed up the return of talent in sectors facing shortages, including artificial intelligence, data science and shipping operations.
Officials say salaries in those fields can range from 40,000 euros to more than 100,000 euros a year, but they are still competing with higher earnings abroad.
Labor ministry figures cited in the report show that of 730,000 Greeks who left the country between 2010 and 2024, more than 470,000 have since returned.
Even so, the state wants to accelerate the trend.
A Bank of Greece analysis cited in the report warned that the pay gap remains a stubborn barrier.
It said recent wage growth has favored lower-paid workers more than high-income professionals, making it harder to keep or attract top talent.
Officials are also looking to collective bargaining and broader wage gains to help close the gap, but analysts say Greece will need stronger productivity growth and more competitive salaries to fully turn the tide.