"Only Pay Half Income Tax for 7 Years"... The Country Luring Back Highly Educated Workers Who Left for Higher Wages

Greece Suffered Severe Talent Outflow in 2009
Low Wages Still Deter Returnees
"Greece Is Not the Greece of the Past," Government Urges Citizens to Come Back
Seven-Year 50% Income Tax Reduction for Returnees

The Greek government and businesses are taking active steps to bring back talented citizens who left the country in search of jobs abroad during the past economic crisis.

According to the Financial Times (FT) on the 21st (local time), Niki Kerameus, Greece's Minister of Labor, has been traveling across Europe to encourage the return of highly skilled workers who left their homeland. Minister Kerameus, together with a delegation of Greek employers, has visited several cities including London in the United Kingdom and Amsterdam in the Netherlands, spreading the message to citizens that "Greece is not the Greece of the past, so come back," and urging them to return home.

Greece. Pixabay

Since the national debt crisis at the end of 2009, Greece has experienced a severe outflow of talent. In particular, from 2010 to 2021, about 600,000 workers emigrated abroad, most of whom were young and highly educated. As a result, Greece has faced difficulties in economic recovery due to a shrinking workforce and other related issues.

The Greek government is implementing various incentives to encourage these individuals to return. Notably, the country operates a policy that grants a 50% reduction in income tax for seven years to citizens who have worked abroad for more than five years and choose to return. Since 2020, approximately 6,000 people have taken advantage of this benefit. In addition, statistics released in 2023 show that, for the first time since 2009, the number of returnees has exceeded the number of emigrants, indicating a positive change.

However, there are still significant practical challenges to overcome. Greece remains one of the countries with the lowest wage levels among European Union (EU) member states, making it difficult to attract high-income and highly skilled professionals to return. According to a survey conducted by BrainRegain, a non-governmental organization in Greece, the main reasons Greeks are reluctant to return are low wages, limited career prospects, and a lack of meritocracy.

The average wage in Greece has risen by 28% since 2016, but the incomes of professionals earning more than 1,600 euros (about 2.6 million won) per month have not kept pace with inflation. However, more than half of the survey respondents said they would consider returning for personal or family ties, and about 32% said they missed the warm weather.

Panagiotis Kantiotos, an engineer who returned to Greece after working in France for 11 years, said that most of his colleagues remain abroad. He commented, "If Greece wants to bring back more talent, it needs more than just sentiment. A systematic approach is necessary."