Relocation Tax Incentives
Greece has become an increasingly attractive destination for individuals considering relocation—not only for its lifestyle and climate, but also for its favourable tax incentives. Whether you’re a foreign pensioner or a Greek citizen returning after years abroad, Greek tax legislation offers targeted regimes that reduce your tax burden and reward long-term commitment. Here’s an overview of the incentive schemes:
1. Special Regime for Foreign Pensioners
For foreign pensioners, Greece offers an even more straightforward route to tax simplification. Under Article 5B of the Greek Income Tax Code, retirees who shift their tax residence to Greece can benefit from the same 7% flat tax on all their foreign income.
This regime can be applied for up to 15 years, with tax paid annually in a single instalment by the last working day of July. Any foreign tax paid may be credited against the Greek tax liability.
Eligibility Criteria:
- Not a tax resident of Greece for 5 out of the 6 years prior to the move.
- Relocate from a country with a tax cooperation agreement.
- Receive pension income from abroad.
Application Process:
- Applications must be submitted to the Greek tax authority by 31 March of the relevant tax year.
- The authority must issue a decision within 60 days.
- Once approved, the scheme takes effect from the following tax year.
2. Tax Incentives for Repatriating Greeks
For Greeks who emigrated during the financial crisis and now consider returning, the government has implemented a suite of repatriation incentives under Article 5C of Law 4172/2013. These measures aim to reverse brain drain and encourage economic regeneration.
Key Features:
- 50% income tax exemption on earnings from employment or individual business activity in Greece.
- Applies for up to 7 years.
Eligibility Criteria:
- Must not have been a Greek tax resident for 5 of the last 6 years.
- Must relocate from an EU/EEA country or one with an administrative tax cooperation agreement.
- Must provide services in Greece via employment with a Greek entity, a Greek branch of a foreign company, or as a self-employed individual.
- Commitment to stay in Greece for at least 2 years.
Application Process:
- Application submitted to the Greek tax authority.
- Decision issued within 60 days.
- The 50% exemption applies only to Greek-sourced employment or business income.
- Other income (rent, dividends, foreign earnings) taxed under general rules.
This regime offers flexibility for those wishing to return and rebuild their lives and careers in Greece, especially those seeking to start businesses or enter new employment.
How We Can Help
Greece’s relocation tax incentives are not one-size-fits-all—they’re carefully designed to accommodate foreign retirees and returning Greek nationals. Each programme offers significant financial advantages, but eligibility requires careful planning and adherence to application deadlines.
At TaxElements, we specialise in assisting clients through every step of the process—from assessing eligibility to filing applications and managing ongoing compliance. If you’re thinking about relocating to Greece, now is the time to explore how the right tax regime can support your new beginning.
Get in touch to discuss your personal circumstances and take