Greece’s 7% Foreign Income Tax Scheme | A Game-Changer For Retirees

  • by XpatAthens
  • Tuesday, 21 January 2025
Greece’s 7% Foreign Income Tax Scheme | A Game-Changer For Retirees
Greece offers numerous attractive incentives—not just its beautiful islands, stunning landscapes, and world-famous Mediterranean diet. Among these is the 7% flat tax on foreign-sourced income.
 
This scheme is particularly appealing for retirees and pensioners worldwide, placing Greece in a strong global position as a tax-effective and desirable retirement destination.

The relevant legislation, introduced on July 31, 2020, allows retirees to pay a flat annual tax rate of just 7% on all foreign-sourced income. This offers a significant reduction in tax burden, enabling retirees from countries like the UK and the USA to retain more of their income for daily expenses and leisure.

How Do I Know If I’m Eligible for Greece’s 7% Foreign Income Tax Scheme?

To qualify for this tax regime, you must meet specific criteria:

  • Tax Residency Requirement: You must not have been a tax resident in Greece for five out of the last six years prior to transferring your tax residency.

  • Country Agreements: Your current country of tax residency must have a tax cooperation agreement with Greece. To check whether your country qualifies, inquire with Tsaks Consulting with your question.

Other Tax Advantages in Greece

Greece also offers other attractive tax schemes that could complement your retirement plans:

  • 0% Capital Gains Tax: Profits from sales, such as stocks or business shares, are not taxed—a significant advantage for investors.

  • Low Dividend Tax Rate: A flat 5% tax on dividends makes it easier to grow your savings through investments.

Why Retire in Greece?

The reasons to retire in Greece are as varied as its breathtaking landscapes. Some of the most compelling benefits include:

  • A rich history with countless archaeological sites to explore.

  • A lifestyle that caters to high-end retirees.

  • A lower cost of living compared to much of Europe.

  • Access to a high-quality healthcare system.

  • Excellent global connectivity for travel.

  • Incredible cuisine and the charm of the Mediterranean lifestyle.

  • Vibrant cities to serene islands like Crete and Rhodes that are great all year round.

Residency Options for Retirees

EU Citizens:
For EU citizens, the residency process is straightforward. You’ll need to register your residency within the first three months of your arrival and obtain an EU residence card to transfer your tax residency.

Non-EU Citizens:
Non-EU nationals have several residency options, including:

  • FIP Residency (Financially Independent Person Visa): A renewable visa that allows for a three-year stay in Greece.

  • Golden Visa: A residency-by-investment scheme with specific minimum investment requirements, which our team can guide you through.

Are You Considering Retiring in Greece Under the 7% Tax Scheme?

There are many factors to consider when deciding to retire in Greece. Some common motivations include:

  • Tax Benefits: Greece’s 7% foreign tax resident scheme offers significant savings, particularly for those who split their time between Greece and other countries. With agreements in place with many nations worldwide, there’s a strong likelihood your country qualifies. Additionally, the lower cost of living in Greece adds to the financial advantages of retiring here.

  • A Dream Come True: Many simply fall in love with Greece—whether it’s the picturesque islands of Santorini, the cosmopolitan charm of Athens, or the natural beauty of Crete and Rhodes. For these retirees, the tax benefits are a bonus to fulfilling their dream of living in Greece.

If you'd like to explore more about retiring in Greece, check out our guide to retiring in Greece for additional insights. Reach out to us today to learn how we can help make your retirement in Greece seamless and enjoyable!
This content has been created in collaboration with our trusted partner Tsaks Consulting.

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