British billionaire hedge fund manager Chris Rokos’ relocation to Greece could cause a domino effect with other fund groups following suit, according to Marc Acheson, global wealth specialist at Utmost.

Rokos, founder and CIO at Rokos Capital Management (RCM), was ranked third in The Sunday Times list of Britain's top taxpayers, having paid £330m last year, while RCM has over $20bn in assets. Earlier this month, Bloomberg reported that Rokos plans to open an office in Athens to take advantage of Greece’s generous tax rules for HNW foreigners earning overseas income.

Under a new regime introduced in June this year, investment professionals who relocate to Greece can pay just 5% tax on carried interest – a share of investment profits paid to fund managers based on performance.

While investment professionals must establish an employment relationship with a Greek servicing entity that maintains local annual operating expenses of at least €3m to qualify, the underlying fund can remain domiciled and does not need to be brought within the Greek tax net.

In addition, Greece has a flat tax regime of €100,000 on foreign income and no inheritance tax on non-Greek assets. Acheson points out this package makes Greece highly appealing, noting that hedge fund Millennium Management is also said to be planning to open an office in Athens, according to reports.

“Competition to attract the internationally mobile wealthy is fierce, with many jurisdictions recognising the enormous benefits these individuals bring to their countries, both through their outsized contributions to the tax base and through creating jobs, investment and growth,” Acheson said.

“This is a particularly astute move from Greece, because a flat tax alone isn’t enough to set a jurisdiction apart – it is about the wider package. By introducing these targeted measures, Greece is positioning itself as a serious contender alongside the more established jurisdictions for wealth such as Italy, Switzerland and the UAE.

He added: “Crucially, it is creating the conditions to attract not just wealthy individuals, but the businesses and industries around them. Chris Rokos’ relocation and plans to open a branch of his firm in Athens, alongside Millennium Management’s plans to establish an office in the city, are clear examples of these measures already having a significant impact. If Greece can attract several more significant names, it could become recognised as a hub for hedge fund and private equity activity.”