Greek Expat Tax – What You Need To Know

Greece recently announced a new tax regime for expat pensioners relocating to the Mediterranean country. The new Greek expat tax sets a flat 7% tax rate for qualifying taxpayers, allowing you to sit back, relax and enjoy the country's Aegean coastlines without paying a huge tax bill for the luxury.

Living in Greece

Greece is not only a beautiful and historic country, it also has the following characteristics, to name a few:

  • Greek Expat Tax has been reduced to 7% on all income sources.
  • Cost of living in Greece is, on average, 30% lower than fellow EU countries.
  • Greece sees an average 250 days of sun per year.
  • Greece is made up of 6,000 islands, 227 of which are inhabited.

The government introduced the new tax regime to attract new expats to their wonderful country with the added benefit of not paying Greece’s high rate of 45% on personal income tax. Now, foreign individuals are able to live in Greece under either of the following requirements:

  • A flat tax for relocating to Greece.
  • A substitute tax system or a non-dom for wealthy expats.


Qualifying for Greek Expat Tax

 To reap the benefits of a Greek retirement as an expat, some conditions must first be met:

  1. You must have relocated from a country with a double tax treaty with Greece (a comprehensive list of which can be found here).
  2. You must not have been a Greek tax resident during the last five of the six years prior to the relocation of your tax residency.

Furthermore, there are several other requirements to be met for foreign retired individuals and wealthy ones.


Foreign retired individual requirements

  • Receive pension payments from abroad.
  • Become a tax resident in Greece by remaining at least 183 days in the country.


High net-worth individual requirement

  • Have investments in real estate, personal property or stocks in Greek-based legal entities.
  • The investment amount must be a minimum of €500,000 and fulfilled within the first 3 years of residency. However, if the individual is eligible for the golden visa or has a residence permit through investments, this condition is not required.


Does the Greek Expat Tax only apply to income received through pensions?

 In short, no. The new Greek tax for UK expats and other non-residents applies to all forms of income, from investment dividends to rental income, and of course, includes pensions. The country has formerly been known for its ‘progressive’ tax rates, reaching up to 45%.

The country’s move to attract pensioners has been explained simply as “We want pensioners to relocate here” by the head of tax policy in the Greek Ministry, Athina Kalyva, who also put forward “We have a beautiful country, a very good climate, so why not?”


Property in Greece

 Aside from the beautiful beaches, great weather and attractive new tax incentives, the Hellenic country is inciting policymakers to explore further ways of attracting foreign investment. One of these being a property tax reform. Policymakers are exploring the notion of reducing unified property taxes, by raising the threshold from €250,000 to €350,000. This would mean purchasing your retirement home could soon be even more cost effective, leaving you extra cash for tax efficient investments and maybe that convertible you’ve always dreamed of.


To Summarise…

  • Greek Expat Tax has been reduced to 7% on all income sources.
  • To qualify you must have relocated from a country with a bilateral tax agreement with Greece, and;
  • You must not have been a Greek tax resident for five out of the previous six years before reallocating your tax obligations.
  • Property taxes are set to become more beneficial to the buyer.


What to do next

To begin living your perfect retirement, get in touch today for a no obligation chat about how you can start benefiting from the new Greek expat tax incentives. We specialise in pension transfers and investments, to help finance your Greek retirement adventure.