Tax Residence Explained

For Greeks living and working abroad with financial interests in Greece, such as rental properties or investments, understanding tax residence is crucial to avoid unexpected tax liabilities and ensure compliance. Incorrectly declaring your tax residence can lead to double taxation or penalties, especially when managing assets like property or dividends in Greece. TaxElements offers expert guidance to navigate these complexities, ensuring you meet your tax obligations in Greece, regardless of where you live currently. In this blog post, we explain how tax residence impacts Greeks abroad, drawing on official guidelines and our expertise to clarify your responsibilities and opportunities.

What is Tax Residence and Why It Matters

Tax residence determines where you’re liable to pay taxes on your worldwide income. In Greece, tax residents are taxed on all income, whether earned domestically or abroad, while non-residents are only taxed on Greek-sourced income, such as rental income, dividends, or interest. Many Greeks abroad mistakenly assume that living outside Greece automatically changes their tax residence, but without formal notification to the Independent Authority for Public Revenue (AADE), you may remain a Greek tax resident, liable for taxes on global income. 

Managing Your Tax Residence

To correctly declare or transfer your tax residence abroad, you need to:

• Appoint a Tax Representative
• Assess Your Current Residential Status 
• Notify AADE
• Submit Supporting Documents

How TaxElements Can Help You