Author:
George Giannopoulos
Partner
E: [email protected]
Edited by:
Integra International Grant Gilmour, CPA (Canada, BC) CPA (USA, Arizona)
Integra Tax World Newsletter Editor
E: [email protected]
Lower Tax Using Alternative Taxation for New Residents in Greece
In recent years, Greece has seen a growing international community, which includes retirees, professionals, students, and digital nomads. Foreign nationals living in Greece represent an expanding group of people who choose the country for various reasons.
- Climate: Mediterranean weather with mild winters and warm summers, ideal for outdoor activities.
- Relatively Low Cost of Living: Although living costs have risen recently, life in Greece is often less expensive than in other Western European countries and elsewhere.
- Natural Beauty: Islands like Santorini, Crete, and Rhodes, as well as mountainous regions and coastal towns, are major attractions.
- Hospitality: Greeks are known for their hospitality and generosity.
The Ministry of Finance has introduced incentives to attract high-net-worth tax residents, aiming to increase public revenues, bring capital into Greece, create investment projects or participate in investment schemes and companies, and create jobs by including them in alternative taxation for income generated abroad.
Under Articles 5A, 5B, and 5C of the Income Tax Code, provisions have been established for foreign investors, retirees, and individuals with income from salaried employment or business activities within Greece to transfer their tax residency to Greece and benefit from alternative taxation for their foreign-sourced income.
Alternative taxation schemes are tailored to all foreign people, who wish to save money from tax authorities in other countries and enjoy the life in Greece. The past years, Greece offer many work opportunities both in Greek, but also in many international organizations based in Greece.
These tax schemes also offer a great opportunity for Greeks, who have been working abroad the past years, to return to Greece and become eligible for 50% discount on the taxes which is a unique advantage while moving back to your “home”.
Eligibility for Article 5A
Foreigners – individuals earning income abroad can transfer their tax residency to Greece and qualify for alternative taxation on foreign-sourced income if:
- They were not a tax resident of Greece for 7 out of the 8 years preceding the transfer of their tax residency to Greece.
- They can prove they invest either personally, through a relative, or via a legal entity they control, in real estate, businesses, securities, shares, or stakes in companies based in Greece.
- The investment must be at least €500,000.
- The investment must be completed within three years of applying for inclusion in the scheme.
Taxation Method
- The individual pays an annual flat tax of €100,000 on all foreign-sourced income, covering all tax liabilities for such income without the need for declaration.
- This can be extended to family members for an additional flat tax of €20,000 per year per member.
- Exemption from inheritance or donation tax for foreign assets is also included.
Eligibility for Article 5B (Retirees)
Foreign retirees can transfer their tax residency to Greece to benefit from alternative taxation if:
- They receive pension income from abroad.
- They were not a tax resident of Greece for 5 of the 6 years preceding their residency transfer.
- They move their tax residency from a country with an effective administrative tax cooperation agreement with Greece.
Taxation Method for Retirees
- The individual pays a 7% flat tax on their total foreign-sourced income annually.
- This scheme begins in the fiscal year following their application and lasts for up to 15 tax years.
Eligibility for Article 5C (Employees and Entrepreneurs)
Individuals with income from salaried work or entrepreneurial activity in Greece can transfer their tax residency to Greece and qualify for alternative taxation if they meet the following cumulative conditions:
- They were not tax residents of Greece for 5 of the last 6 years.
- They transfer their tax residency from an EU/EEA member state or a country with an effective administrative tax cooperation agreement with Greece.
- They provide services in Greece under an employment relationship with a local or foreign entity based in Greece, exclusively creating new jobs, or engage in independent business activities.
- They declare they will stay in Greece for at least 2 years.
Taxation Method for Employees and Entrepreneurs
- Exemption from 50% of income tax on salary or business income earned in Greece for 7 years.
- Exemption from annual imputed expenses for residential property and privately owned vehicles, regardless of the number of vehicles.
Economic Impact
These provisions form a comprehensive legislative framework of tax incentives aimed at attracting tax residents, thereby strengthening Greece’s revenue and economy.
A fact that should be considered as well while moving to Greece and getting advantage the alternation taxation schemes, is the tax treaties and the double taxation conventions between foreign countries and Greece. In many cases, when becoming tax resident in Greece, people can get full or part tax exemption from their home countries. Before taking any decision for such an important life movement, it highly recommended to contact the appropriate tax advisors who would analyze each case and provide special details.
© 2025 Integra International. All rights reserved. This Article is not intended to provide legal or other advice, and you should not take, or refrain from taking, action based on its content. Prior results do not guarantee a similar outcome.
About the Author:
George Giannopoulos
Partner
George is a partner at Prooptiki SA with professional accounting and tax experience in Greece and in the UK. He has accounting experience working for global media agencies in London and for several Greek and international clients of Prooptiki SA. George is also a member of the Economic Chamber of Greece.
Graduate of Piraeus University of Applied Sciences, Department of Accounting.
He furthered his academic background by attending a master’s degree program in International Accounting and Finance of the University of Kent, UK and participated in tax seminars organized by Athens University of Economics and Business.
George holds professional experience in International Accounting in Greece and abroad, being one of the leading members of our team in Accounting and Tax issues.
He is the contact person of the company and responsible for reaching our new and old clients in order to discuss the needs of their businesses and to jointly define the context of cooperation with our company.
Integra International Bio:
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