Greek Tax Incentives 2025: How Expats Can Save Big on Taxes

Unlocking Greece’s Tax Incentives for Expats: Articles 5A, 5B, and 5C of the ITC

Thinking about making Greece your new home? Whether you’re an entrepreneur, a remote worker, or a retiree, the Greek tax incentives could make your move even more attractive. The Greek Income Tax Code (ITC) includes special provisions under Articles 5A, 5B, and 5C, offering significant tax breaks in Greece for new residents, digital nomads, entrepreneurs and foreign investors.

Let’s break them down and see how they could work for you.

Article 5A – Non-Dom Tax Incentive for Foreign Investors in Greece

Under article 5A of the ITC, one of the most appealing Greek tax benefits is the tax reduction for investors relocating to Greece, also known as the non-dom tax regime.

However, there are specific conditions to qualify:

• You must invest at least €500,000 in Greece.
  • Eligible investments include real estate, companies, securities, or shares in legal entities established in Greece.
• Investments must have been made from 12.12.2019 onwards.
• The investment can be made personally, by a relative, or through a legal entity in which you hold the majority of shares.
• The investment must be completed within three years from the application date.
• You must not have been a Greek tax resident for the previous seven out of eight years before the transfer of their tax residency to Greece.

Procedure and Deadlines

The application must be accompanied by proof of the transfer of the minimum investment amount of €500,000 to a bank account or financial institution established in Greece. The application can be submitted either at the start of the investments or, at the latest, up to 3 years after their completion.

Tax Obligations

Under the article 5A for alternative taxation, the application must:

• Pay an annual lump-sum tax of €100,000 for foreign-sourced income, regardless of the amount of that income, for 15 tax years, starting from the year of submission of the application.
• In case of extension to relatives of the applicant, a lump-sum tax of €20,000 is payable by each relative, while the provisions on taxation of donations, inheritance and parental gifts do not apply.
  • Please note: the term “relative” refers to the spouse and lineal ascendants or descendants. Individuals who have entered into a civil partnership are treated as "married". Also note that there is no obligation for the individual to declare foreign-sourced income.

Article 5B – 7% Tax Incentive and Beneficiaries of Foreign-Sourced Pensions

If you are retired, or earn a pension from your employment (or the military), this one is for you.

Individuals who receive foreign pensions and transfer their tax residence to Greece can opt for a 7% tax break on their total foreign-sourced income, provided that they meet the following conditions:

• They were not tax residents of Greece for the previous five out of six years before transferring their tax residency.
• They move their tax residence from a country that currently has a tax cooperation agreement with Greece.

Application and Withdrawal

• Individuals who already transferred their tax residence to Greece in the previous tax year may also apply within the same deadline.
• A taxpayer can withdraw from this special taxation system at any time by submitting a request.

Tax Obligations & Benefits

• Eligible pensioners will pay a flat tax rate of 7% on their total foreign-sourced income.
• This special taxation regime applies for 15 tax years from the year following the application.
• If the individual fails to pay the full tax amount, they will no longer be eligible for this program and will be taxed under the general tax requirements.
• This taxation scheme does not override Greece’s international tax treaties, ensuring the avoidance of double taxation.

How Greece’s 7% Flat Tax Aligns with International Tax Treaties

To avoid double taxation, Greece's 7% flat tax scheme for foreign retirees does not conflict with the country's international tax treaties (also known as Double Taxation Agreements, or DTAs). These treaties exist to prevent individuals from being taxed on the same income in both Greece and their home country. In practical terms, if a retiree benefits from Greece's 7% tax rate on foreign income, they will not be taxed again on that same income in their country of origin, as long as a tax treaty between Greece and that country applies.

Article 5C – Special Taxation Regime for Foreign Professionals and Entrepreneurs

Freelancers and foreign professionals, this one is for you! If you qualify under Article 5C, you can benefit from a 50% tax exemption in Greece for up to 7 years.

Eligibility

Individuals transferring their tax residence to Greece may opt for special taxation under Article 5C of the ITC if they meet the following conditions:

• Were not tax residents of Greece for five out of the previous six years before the transfer of tax residence.
• Transfer tax residence from an EU/EEA member state or a country with a taxation cooperation agreement with Greece.
• Provide services in Greece either through employment in a Greek legal entity or a foreign company’s Greek branch, filling a new job position, or operate a sole proprietorship.
• Declare a minimum stay in Greece of at least two years.

Failure to meet the employment/business activity or residency requirement results in losing the tax benefits from the relevant tax year onward.

Procedure and Deadlines

• If employment or business activity begins by July 2nd of a given year, the application must be submitted within that year or the following year.
• If employment/business starts after July 2nd, the application is submitted for the following year.

Tax Obligations & Benefits

Individuals qualifying under Article 5C benefit from:

• A 50% exemption on income tax for employment or business activity earned in Greece for seven tax years.
• Exemption from annual objective expenditure calculations for residence and private vehicles, regardless of the number of cars, for seven tax years.

If an individual ceases employment or business activity in Greece for more than 12 months, they lose eligibility and are taxed under standard tax rules from that year onward.

How to Apply for Greek Tax Incentives?

If you’re considering taking advantage of Greece’s tax benefits under articles 5A, 5B and 5C, you’ll need to:

1. Register as a Greek tax resident.
2. Submit an application to the Greek tax authorities before the end of the first year of residence.
3. Provide proof of income, employment, or investment as required.

Procedure and Deadlines

To benefit from these following tax incentives, all individuals must submit an application for the transfer of tax residence to the competent Tax Authority of IAPR (Tax Office for Residents Abroad and Alternative Taxation of Domestic Residents) by March 31st of the relevant tax year.

Is Greece the Best Tax Haven for Expats?

With Greece’s picturesque islands, vibrant cities, and excellent cost of living, these Greek tax incentives make it even more tempting to finally make the big move and embrace the Mediterranean lifestyle. Whether you’re drawn to the sunshine, the culture, or the economic benefits, these tax breaks could make your transition smoother and more financially rewarding.

Consulting a Greek tax professional is highly recommended to ensure you meet all criteria and deadlines. For more information on the Greek tax incentives, and to see if you're eligible, feel free to reach out to us by booking a 15-minute discovery call.

Why Choose My Greek Expat Journey?

At My Greek Expat Journey, we assist expats from around the world in obtaining their residency permits and with handling paperwork. With a trusted network of top-rated accountants and lawyers, we ensure a smooth process free from scams. Our transparent communication, up-front fees, and quick responses make relocating to Greece stress-free.