Sun, Sea, and Savings: Greece's Updated Tax Schemes for Expats

‍“[...] we want pensioners to relocate here, we have a beautiful country, a very good climate, so why not?”

... says Athina Kalyva, head of tax policy at the Greek Finance Ministry who assisted in drafting legislation to introduce a flat income tax rate of 7% for foreign retirees who choose to transfer their tax residence to Greece.

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Introduction

From its picturesque landscapes to its warm and welcoming culture, Greece provides a unique blend of lifestyle benefits, so it’s hardly surprising that expats are choosing to relocate to this beautiful country. But Greece offers more than just a beautiful backdrop—it promises a significantly lower cost of living, roughly 30% less than many other European countries. This affordability, combined with recent tax reforms, makes Greece an attractive option for those looking to relocate, especially as the country continues its steady economic recovery.

It’s true that historically Greece was known for its steep 'progressive' tax rates, which could climb as high as 45%. However, in a bid to rejuvenate its economy and draw in new residents, the country has introduced several enticing tax incentives specifically designed for foreign pensioners and high-net-worth individuals. This strategic move to attract expats, particularly pensioners, with these specialised tax provisions highlights its commitment to becoming a prime expat destination. Whether you are a retiree looking to enjoy a peaceful, affordable retirement, or a high-net-worth individual seeking favourable tax conditions, Greece offers compelling reasons to consider making it your new home.

Over the past ten years, Greece has experienced one of Europe's most notable "brain drains." It's no surprise - high taxes, limited job opportunities, and economic challenges after 2008 have driven many talented professionals to seek better prospects abroad, creating a vicious cycle that further weakens the country's economy. In response to this, Greece has rolled out a set of enticing new tax incentives designed to attract expats and stimulate the economy.

The Greece Golden  Visa

Greece’s Golden Visa program is a popular option for those seeking European residency through investment. As of 2024, the program has raised its minimum real estate investment threshold from €250,000 to €400,000. This change will fully come into effect from 31st March 2024, but the Greek government has introduced a ‘transitional period’ for investors who act promptly. Those who make a 10% deposit on property by 31st August 2024 and finalise their purchase by the end of the year can still qualify for the visa at the previous €250,000 requirement. This program offers significant flexibility, allowing you to buy property anywhere in Greece. However, while this visa grants residency, it doesn't automatically make you a tax resident, giving you the freedom to manage your tax status according to your circumstances. In 2023, Greece’s Golden Visa was the most popular Residency by Investment program globally, which highlights the program's appeal and the strategic advantages it offers to those looking to gain a foothold in Europe.

Foreign Pensioners Regime

In 2020, Greece launched its Foreign Pensioners Regime, aiming to draw retirees from countries like the US, Canada, and the UK. The key attraction of this program is its remarkably low tax rate—just 7% on foreign pension income for up to 15 years. Thanks to Greece’s double taxation treaties with these nations, you also benefit from avoiding double taxation on your income. To qualify, you need to have not been a Greek tax resident for five of the past six years, be officially retired, and commit to spending more than six months annually in Greece. Even when measured against Portugal’s formerly popular NHR program, which provided a flat 10% tax rate for up to 10 years before it was discontinued at the beginning of 2024, Greece’s Foreign Pensioners Regime still stands out with a longer tax holiday and a lower tax rate. This scheme is a win-win if you’re looking to maximise your pension income while enjoying the Mediterranean lifestyle.

Non-Dom Regime

Greece's Non-Dom Regime for high-net-worth individuals offers a unique tax opportunity for those considering residency in Greece. To be eligible, you must have not been a Greek tax resident for at least seven of the past eight years, and then you can opt for a flat annual tax of €100,000 on your non-Greek income for up to 15 years. Alongside this, you must invest €500,000 in Greek assets like real estate, businesses, or securities within the first three years of obtaining residency. This regime is appealing for several reasons: it simplifies tax obligations by exempting foreign income from declaration in Greece and waives inheritance or donation taxes on non-Greek assets. Beyond tax benefits, it encourages investment in Greece's economy, particularly in real estate and business sectors. For high-net-worth individuals seeking residency in Europe with favourable tax terms, Greece's Non-Dom Regime presents a strategic opportunity to integrate into the local culture while managing global financial interests effectively.

Thinking of making Greece your home away from home?

If Greece's appealing expat programs have piqued your interest, now is the perfect moment to take advantage. Combining a favourable tax regime with the charm of coastal living, Greece stands out as an ideal destination for those seeking a new chapter in life. Whether you envision yourself exploring the ancient streets of Athens or embracing island life on Paxos, the choice is yours — Greece truly has it all. However, like many attractive residency programs, these benefits might not last forever. If this lifestyle interests you and you think you meet the criteria, now is the moment to seize the opportunity and make use of these current offerings. Get in touch with us at Tytle so we can link you with our advisor in Greece and help you make the most of the advantages offered by this new tax landscape.

All in all:

- Greece Golden Visa: Secure residency by investing €400,000 or more in Greek real estate.‍

- Foreign Pensioners Regime: Retirees benefit from a 7% tax on foreign pensions for 15 years, with over six months of annual residency in Greece required.

- Non-Dom Regime: High-net-worth individuals can pay a flat €100,000 annual tax on non-Greek income for 15 years, with a €500,000 investment in Greek assets required in the first three years of residency.