Wealth management in Greece: mandates, protection and non-dom regime

Private banking built on the large groups

Wealth management in Greece refers to the private banking services of the large Athens-based groups and licensed investment firms, covering securities custody and discretionary or advisory mandates. It is often linked to relocation under the non-dom tax regime or the golden visa. The market is narrower than Geneva or Luxembourg and largely serves Greek shipowning and entrepreneurial families.

In Greece, wealth management is mainly provided by the private banking divisions of the four systemic groups and by licensed investment firms. The market is narrower than Geneva or Luxembourg and largely serves Greek shipowning and entrepreneurial families.

Hellenic Capital Market Commission and MiFID II

Investment services follow the EU MiFID II rules, overseen by the Hellenic Capital Market Commission for investment firms and by banking supervision for banks. A risk profile and suitability test precede any mandate.

Discretionary management or advisory mandate

Under a discretionary mandate the manager makes the investment decisions within an agreed strategy; under an advisory mandate the client approves each trade. Greek banks offer both, so private banking in Greece can suit very different client styles, with entry thresholds and management fees specific to each institution.

Entry thresholds vary by institution

There is no legal minimum, but Greek private banking units set their own thresholds of investable assets. At National Bank of Greece, the expected asset level and the fees of the private banking service are discussed case by case during a preliminary meeting.

Flat-rate tax regime for new residents

A person moving their tax residence to Greece may, subject to conditions, pay an annual flat tax of 100,000 euros on foreign income, provided they invest at least 500,000 euros in Greece. The bank must then document that investment.

Golden visa with higher property thresholds

The residence-by-investment permit now requires 800,000 euros in Attica, Thessaloniki, Mykonos, Santorini and the larger islands, and 400,000 euros elsewhere, for a single property. Funds must pass through a Greek bank and be documented.

Greek government bonds and the Athens exchange

Part of local portfolios remains invested in Greek sovereign bonds, back at investment grade, and in shares listed in Athens. Major managers also offer European funds and international equities in multi-currency securities accounts.

TEKE investor cover limited to 30,000 euros

The 100,000-euro deposit guarantee does not cover securities. For investment services, the investment arm of TEKE compensates up to 30,000 euros per client and per institution in case of failure, hence the importance of segregating custody assets.

Fee transparency and annual reporting

MiFID II requires management, transaction and custody costs to be disclosed both ex ante and ex post. A wealthy client should receive an aggregated annual cost statement and performance reporting, available in English on request from the major houses of Greek private banking.

Tax residence, CRS and client obligations

A client who remains French tax resident declares Greek accounts and policies on Form 3916 and reports investment income. The Greek bank automatically transmits balances and financial income under CRS, and under FATCA for US persons.

Choosing a bank for wealth management in Greece

Choosing an institution for wealth management in Greece starts with a simple question: what do you want to entrust, and for what purpose? Custody of securities, discretionary management, simple advice, or financing linked to a move to Greece: each need calls for a different contact. The private banking divisions of the four systemic groups and the licensed investment firms offer services that do not always resemble one another.

Next compare four points: the entry threshold in investable assets, the structure of management, transaction and custody fees, the language of reporting and the quality of the dedicated contact. There is no legal minimum, which is why conditions vary from one bank to another; ask for them in writing at the preliminary meeting so you can compare two or three proposals on the same basis.

Also check how assets are protected. Cash deposits and securities do not benefit from the same cover: 100,000 euros for deposits, 30,000 euros for the investment arm of TEKE. Ask how securities are held and kept separate from the bank's own assets. This segregation matters more than any compensation ceiling, since it limits the risk if the institution fails. That is the real safeguard for a client.

Documents and questions for a private bank account in Greece

A private bank is more demanding than a retail bank about the origin of wealth. Prepare your passport, proof of address, tax number, proof of income and above all evidence of where the funds come from: sale of a company, inheritance, employee savings or disposal of a property. The better documented and coherent the story, the faster the compliance review and the fewer questions the bank must ask.

Before any mandate, expect the MiFID II questionnaire: investment horizon, risk tolerance, market experience and objectives. Answer honestly, since the suitability test also protects the client. If your profile is cautious, a very aggressive mandate will not be offered, or will have to be justified. Do not hesitate to have each term explained before you sign anything. Honest answers lead to a more suitable mandate for wealth management in Greece.

Finally, ask precise questions: who will be my contact, what are the terms of my discretionary or advisory mandate, how are fees calculated, how often will I receive reporting, and what happens if I want to close the relationship? Also ask to check with the bank and the regulator that the institution is licensed for the service concerned. Check this point carefully before sending funds.

Common mistakes in Greek wealth management services

The first mistake is to confuse the deposit guarantee, set at 100,000 euros, with the securities cover, limited to 30,000 euros. A client holding mostly securities does not enjoy the protection they imagine. They should therefore look at the segregation of custody assets, the choice of custodian bank and, if amounts are large, the split between several institutions. Those two limits are quite different in practice.

The second mistake is to choose a mandate solely on past performance or on an isolated fee percentage. Compare the total cost, which includes management, transaction and custody, as well as the clarity of statements. A discretionary mandate suits someone who wants to delegate, an advisory mandate someone who wants to approve each trade; the reverse breeds frustration and misunderstandings with the manager.

The third mistake is to link a management decision to a tax or residence advantage without checking the conditions. The 100,000-euro flat-rate regime assumes an investment of at least 500,000 euros in Greece, and the residence-by-investment permit has precise property thresholds. These schemes evolve, so have a local adviser confirm current rules before transferring funds. Local advice is worth the cost here.

Tax and follow-up of Greek private banking

A Greek portfolio is not outside the tax scope of your country of residence. Depending on your situation, accounts and policies must be declared, as must investment income. For a French tax resident, Form 3916 covers foreign accounts. The Greek bank, for its part, transmits balances and financial income through CRS, and through FATCA for US persons. Keep copies of every statement you receive.

If you move your residence to Greece, the framework is different and depends on the conditions of the regime chosen. In all cases keep the annual statements, the cost report and proof of the investments made, to meet the conditions of the regime or permit. If in doubt, an independent tax adviser will help you avoid mistakes in classifying income. Ask the adviser about private banking in Greece in your own situation.

Plan a follow-up meeting at least once a year with your manager: performance, fees actually paid, fit with your objectives, changes in your personal or family situation. Tell the bank about any important change of residence, wealth or risk profile. A regular dialogue is the best protection against badly suited decisions and gives you a clear record to rely on. Keep notes of each meeting.