If you're considering making Greece your new home, one of the first things to understand is the process of becoming a tax resident. Whether you’re moving for work, retirement, or simply to enjoy the country’s stunning landscapes, knowing the tax requirements is essential for a smooth transition.

In this guide, we’ll walk you through the steps on how to become a tax resident of Greece.

Why Becoming a Tax Resident Matters

Even if you don't plan to live in Greece full-time, understanding your tax residency status is important because it impacts your financial obligations. By not officially declaring your tax residency, you could face penalties or complications with the Greek tax authorities. Plus, becoming a tax resident can help you access local services more easily and provide peace of mind knowing that your legal obligations are taken care of.

“Tax residence” is a key criterion in order to determine the state which has the right to tax an individual for its worldwide income.

What Does Being a Tax Resident Mean?

Becoming a tax resident means that you will be subject to Greek taxation on your worldwide income. Unlike some countries where you're only taxed on the income earned within that country, Greece taxes its residents on income from anywhere in the world. Therefore, it’s important to carefully plan your finances, especially if you have income streams from multiple countries.

Greece provides several attractive tax incentive programs for foreign residents. These include the Non-Dom Tax Regime, which allows qualifying individuals to pay a flat tax rate on their foreign income, and a 50% tax break for those relocating to Greece for employment or business purposes.

Additionally, there’s a special tax regime for foreign pensioners, offering a flat tax rate of 7% on foreign pension income for up to 15 years. To make the most of these opportunities, it's advisable to consult your tax advisor and explore the best options for your situation.

Stay in Greece for More than 183 Days

To qualify as a tax resident of Greece, the primary condition is residency duration. You must live in Greece for more than 183 days within a calendar year. In other words, an individual being in Greece for a period exceeding one hundred eighty-three days, cumulatively, during any twelve-month period, shall be considered a Greek tax resident from the first day of his or her presence in Greece.

These days do not need to be consecutive, but if the total days you spend in the country exceed this threshold, Greek law considers you a tax resident. This rule applies whether you're living in Greece for work, running a business, or simply enjoying life in a holiday home.

However, this does not apply in cases of individuals who are present in Greece only for touristic, medical, curing, or similar private purposes and their presence does not exceed 365 days, including short periods of living abroad.

In addition, an individual is considered a Greek tax resident, if (s)he has his/her permanent or principal residence or his/her habitual abode or the center of his/her vital interests in Greece, i.e. his/her personal and economic relations.

Appoint a Tax Representative

The second key step is to appoint a tax representative in Greece. This is particularly important if you're not familiar with the Greek tax system or if you do not speak Greek fluently. A tax representative can be an accountant, lawyer, or financial advisor authorized to act on your behalf. They help you navigate the process, submit paperwork, and ensure your tax obligations are fulfilled according to Greek law.

Your tax representative will also update your tax residency status with the relevant tax authorities, which is a critical part of formalizing your tax residency. Once you pass the 183-day mark, your tax representative will need to file the necessary forms to declare you as a tax resident of Greece.

Conclusion

In summary, to become a tax resident of Greece, you need to stay in the country for more than 183 days in a year and appoint a tax representative to update your residency status with the Greek tax authorities. Once these steps are completed, you will be officially considered a tax resident and will be subject to Greece’s tax regulations.

Whether you're moving to Greece for a new chapter of life or to enjoy the Mediterranean lifestyle, understanding the tax system is a vital part of settling in. Make sure to consult with a professional who can guide you through the process, ensuring your transition to life in Greece is as seamless as possible!

For more tips on moving to and living in Greece, feel free to book an in-depth 30-minute consultation call with us, or a free 15-minute discovery call to learn more about our services.