Tax Laws — Greece

Greece's Tax System for Immigrants: A Comprehensive Guide

*Note: Tax laws change frequently. All figures below should be verified with a Greek tax advisor (logistis) or the Independent Authority for Public Revenue (AADE) before making decisions.*

Tax Residency Rules

How Residency Is Determined

Greece uses several tests to establish tax residency:

• 183-day rule: If you spend more than 183 days in Greece within a calendar year (cumulative, not necessarily consecutive), you're generally considered a tax resident
• Center of vital interests: Even under 183 days, you may be deemed resident if Greece is where your economic, social, or family interests are centered
• Habitual abode: Where you customarily live
• Civil servants exception: Greek government employees abroad remain Greek tax residents regardless of location

Worldwide vs. Local Income Taxation

• Tax residents: Taxed on worldwide income — all income regardless of source country
• Non-tax residents: Taxed only on Greek-source income

This is a critical distinction — becoming a Greek tax resident triggers reporting obligations on foreign income, foreign bank accounts, and foreign assets.

Income Tax Rates and Brackets (2024)

Greece uses a progressive tax system for employment and pension income:

| Income Bracket (EUR) | Tax Rate |

|---|---|

| €0 – €10,000 | 9% |

| €10,001 – €20,000 | 22% |

| €20,001 – €30,000 | 28% |

| €30,001 – €40,000 | 36% |

| €40,001+ | 44% |

Additional Considerations

• Solidarity tax: Previously added surcharges up to 10%, but this was suspended for most income from 2023 onward — verify current status
• Tax credits: A tax-free threshold effectively exists through tax credits (approximately €777–€1,900 depending on family status and number of children), reducing effective tax on lower incomes
• Self-employed/business income: Taxed under the same progressive brackets but with different deduction rules; minimum presumptive tax (τεκμαρτό εισόδημα) may apply based on business premises, vehicles, etc.
• Rental income: Separate progressive scale — 15% up to €12,000, 35% from €12,001–€35,000, 45% above €35,000
• Capital gains: Generally 15% on securities/real estate gains (with exemptions for primary residence in some cases)
• Dividends: 5% flat rate
• Interest income: 15% flat rate

VAT (Value Added Tax)

• Standard rate: 24%
• Reduced rate: 13% (food, beverages, hotels, certain transport)
• Super-reduced rate: 6% (books, newspapers, pharmaceuticals, theater tickets)
• Island reductions: Certain Aegean islands historically had reduced VAT rates, though these have been phased out for most islands in recent years — verify current island-specific rates

Social Security Contributions (EFKA)

Greece consolidated its social security system under EFKA (Unified Social Security Fund).

For Employees

• Employee contribution: ~13.87% of gross salary
• Employer contribution: ~22.29% of gross salary
• Combined roughly 36% of salary goes to social security
• Covers pension, healthcare, unemployment insurance

For Self-Employed

• Contributions based on income brackets, generally 20-27% depending on declared income category
• Minimum monthly contributions apply regardless of actual income (a significant burden for low-income freelancers)

For Immigrants Specifically

• EU/EEA citizens: Contributions typically transferable via EU coordination rules (A1 forms for temporary postings)
• Non-EU immigrants: Must generally enroll in EFKA once legally employed; contributions do NOT automatically transfer from home country systems unless a bilateral social security agreement exists
• Greece has bilateral social security agreements with several countries (US, Canada, Australia, and others) that may prevent double social security contributions

Annual Tax Filing Requirements

Who Must File

• All tax residents with income above minimal thresholds
• Non-residents with Greek-source income (rental property, Greek employment, etc.)
• Anyone with Greek bank accounts or property, even with no income, in many cases

Filing Process

• Method: Electronic filing through TAXISnet system
• Form: E1 (main declaration), plus E2 (rental income), E3 (business income) as applicable
• Filing deadline: Typically June 30 for the previous tax year, though deadlines are frequently extended and can shift (sometimes into July)
• Payment: Tax due can typically be paid in installments (usually up to 8 monthly installments) if paid via direct debit

Required Documentation

• AFM (Greek Tax Identification Number) — mandatory for any economic activity
• Proof of foreign income if applicable
• Property ownership declarations (via E9 form, filed separately when property status changes)

Special Tax Incentives for Foreign Residents

Greece has actively courted foreign residents with several attractive regimes:

1. Non-Dom Regime (Article 5A) — High Net Worth Individuals

• Eligibility: Individuals who transfer tax residency to Greece and invest at least €500,000 in Greek real estate, businesses, or securities within 3 years
• Benefit: Flat annual tax of €100,000 on foreign-source income, regardless of amount, for up to 15 years
• Family members can be included for an additional €20,000 per person
• Investment can be made personally or through a legal entity

2. Foreign Pensioners Regime (Article 5B)

• Eligibility: Foreign pensioners relocating tax residency to Greece
• Benefit: Flat 7% tax rate on all foreign-source pension income for 15 years
• Popular with retirees from UK, Germany, and other high-tax pension countries
• Must not have been a Greek tax resident in the prior 5 of 6 years

3. Digital Nomad / Employee Relocation Incentive (Article 5C)

• Eligibility: Employees or self-employed individuals who move their tax residency to Greece to work (including remotely for foreign employers)
• Benefit: 50% exemption on employment/business income for 7 years
• Must not have been Greek tax resident in prior 5 of 6 years
• Must commit to staying at least 2 years

4. Golden Visa Program

• Not a tax incentive per se, but grants residency permits (not citizenship) for real estate investment
• Minimum investment thresholds vary by region: €250,000 to €800,000 depending on location (increased significantly in 2023-2024 for Athens, Thessaloniki, and popular islands)
• Does not automatically confer tax residency or benefits — separate from the above tax regimes

Tax Treaties (Double Taxation Agreements)

Greece has double taxation treaties with approximately 57+ countries, including:

• United States: Treaty in effect (older treaty, 1953, still largely applicable — unusual in not being fully modernized)
• United Kingdom
• Germany
• France
• Canada
• Australia
• China
• Most EU member states
• India

How Treaties Help

• Prevent double taxation via tax credit or exemption methods
• Typically include provisions on permanent establishment, dividends, interest, royalties, and pensions
• Important: The US-Greece treaty is notably outdated compared to modern US treaties — Americans should get specialized advice, especially regarding FATCA reporting and potential PFIC issues with Greek investment funds

Practical Considerations for Immigrants

• AFM number: Obtain this immediately upon arrival — required for renting property, opening bank accounts, employment, and virtually all transactions
• Property tax (ENFIA): Annual tax on real estate ownership, separate from income tax, based on property value/location
• Wealth reporting: Greek residents must declare foreign bank accounts and assets
• US citizens: Must continue filing US taxes regardless of Greek residency (citizenship-based taxation) — FATCA/FBAR obligations apply on top of Greek filings

Key Recommendations

• Consult a Greek tax advisor (λογιστής) before establishing residency, especially regarding the special regimes above
• Time your move carefully — the 183-day threshold and "5 of 6 years" non-residency requirements for special regimes are strictly enforced
• Verify current rates — solidarity tax suspension, VAT rates, and bracket thresholds are subject to legislative change, particularly during Greece's ongoing fiscal reforms
• Check bilateral social security agreements if you're not from the EU/EEA to avoid double social security contributions

More about immigrating to Greece