Greece is making an aggressive play for London’s private-equity elite, offering a tax rate of just 5% on certain investment profits at a time when Britain is sharply increasing the burden on fund managers.
The relocation of Nikos Stathopoulos, BC Partners’ chairman of Europe, from London to Athens illustrates the potential appeal of the new regime. While his move may also reflect the investment firm’s broader business strategy, the financial incentives are difficult to ignore.
Under legislation introduced this year, Greece allows qualifying private-equity executives who relocate their tax residence to the country to pay just 5% on carried interest—the share of investment profits awarded to fund managers when deals perform successfully.
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The preferential treatment comes with conditions, including a substantive business presence in Greece and annual corporate expenditures of at least €3 million. The timing could hardly be better for Athens.
Britain, long Europe’s dominant private-equity hub, has progressively tightened its taxation of carried interest. The rate rose from 28% to 32% in April 2025. A broader overhaul introduced in April 2026 now subjects qualifying carried interest to an effective rate of approximately 34.1%, while certain other payments can face taxation of up to 47%.
For top executives, the difference can translate into millions.
A fund manager receiving €10 million in annual carried interest would face a theoretical tax bill of €3.41 million in Britain, compared with €500,000 in Greece—a saving of €2.91 million. At €20 million, the potential annual saving reaches €5.82 million.
The stakes extend well beyond individual executives.
According to Britain’s tax authority, HMRC, approximately 3,890 taxpayers reported £5.4 billion in carried-interest gains during the 2024-25 tax year, generating £1.4 billion in tax liabilities.
The rewards are heavily concentrated. Research by the Centre for the Analysis of Taxation found that the 100 highest-paid fund managers collected £1.8 billion in carried interest in 2023, accounting for 45% of the total. Just 30 executives shared approximately £1 billion.
Greece is betting that such extraordinary compensation, combined with its preferential tax treatment, can persuade investment firms and senior executives to establish a meaningful presence in Athens. For London, the emerging competition highlights an unintended consequence of higher taxes: In a globally mobile industry, capital isn't the only thing that can move across borders.
