Tax

Understanding Tax Residency in Greece

For foreign nationals investing in Greece, determining tax residency is the primary step in fulfilling fiscal obligations. According to the Greek Income Tax Code (Law 4172/2013), an individual is considered a tax resident of Greece if they maintain their "permanent or main residence, or habitual abode" in the country, or if they are physically present in Greece for a period exceeding 183 days within any twelve-month period.

Tax residents are liable for Greek income tax on their worldwide income. Conversely, non-residents are only taxed on income sourced within Greece (such as rental income from Greek property or dividends from Greek companies). All investors must obtain a Greek Tax Identification Number, known as an AFM (Arithmos Forologikou Mitrou), which involves no administrative fee (0 EUR / $0 USD, Jan 2026), through the Independent Authority for Public Revenue (AADE).

• The 183-Day Rule: Physical presence is calculated cumulatively within a calendar year.
• Center of Vital Interests: Even if present for fewer than 183 days, an individual may be deemed a resident if their economic or social ties (e.g., family, business headquarters) are centered in Greece.
• Double Taxation Agreements: Greece has signed treaties with over 57 countries to prevent the same income from being taxed twice.

Special Tax Regimes for Investors and Expats

Greece has introduced several incentive programs to attract foreign capital and high-net-worth individuals. These regimes offer alternative taxation methods for those transferring their tax residence to the country.

The "Non-Dom" Regime (Article 5A)

This program targets significant investors. To qualify, an individual must invest a minimum of 500,000 EUR ($540,000 USD, Jan 2026) in Greek real estate, stocks, or bonds. Under this regime, the investor pays a fixed lump-sum tax of 100,000 EUR ($108,000 USD, Jan 2026) per tax year on all foreign-sourced income, regardless of the amount earned. This status can be maintained for a maximum of 15 years.

Foreign Retirees and High-Skilled Workers

Other specific articles cater to different demographics:

• Article 5B (Retirees): Foreign pensioners moving to Greece may benefit from a 7% flat tax rate on all foreign-sourced income for 15 years.
• Article 5C (Employees and Professionals): New residents taking up employment or starting a business in Greece can receive a 50% exemption on their Greek-sourced income tax for a period of 7 years.

Note: Application deadlines for these regimes typically fall on March 31st of the year following the transfer of tax residency.

Taxation of Investment Income and Real Estate

For investors not participating in the special "Non-Dom" regimes, standard tax rates apply to Greek-sourced income. These rates are subject to annual legislative updates and are categorized by the nature of the investment.

Rental Income and Property Taxes

Income derived from leasing Greek property is taxed according to a progressive scale:

• 0 - 12,000 EUR ($12,960 USD, Jan 2026): 15%
• 12,001 - 35,000 EUR ($37,800 USD, Jan 2026): 35%
• Over 35,000 EUR ($37,800 USD, Jan 2026): 45%

Additionally, property owners are subject to the ENFIA (Uniform Real Estate Property Tax). This is an annual tax calculated based on the size, location, and characteristics of the property. For a standard apartment valued at 250,000 EUR ($270,000 USD, Jan 2026), the ENFIA can vary significantly based on the "zone price" determined by the Ministry of Finance.

Dividends, Interest, and Capital Gains

Investment products are taxed at the following flat rates for 2025/2026:

• Dividends: 5% (withheld at source for Greek companies).
• Interest: 15% (withheld at source on Greek bank deposits).
• Capital Gains from Securities: 15% on the profit from the sale of shares or bonds.
• Capital Gains from Real Estate: Generally 15%, though implementation has historically faced suspensions. For Jan 2026, check with a local notary as exemptions may apply to specific primary residences.

Administrative Steps and Compliance

Maintaining tax compliance in Greece requires adherence to a strict digital filing system. Most interactions with the tax authorities are conducted through the myAADE portal.

Annual income tax returns (Form E1) are typically filed between May and July for the previous calendar year's income. Failure to file or late filing results in administrative penalties starting from 100 EUR ($108 USD, Jan 2026) for individuals. It is mandatory for foreign residents with Greek-sourced income to appoint a Tax Representative—a person or entity residing in Greece who acts as a point of contact for the tax authorities.

• Step 1: Secure an AFM and TaxisNet credentials.
• Step 2: Declare foreign-sourced income if classified as a Greek tax resident.
• Step 3: Pay ENFIA installments (usually spread over 10 to 12 months).
• Step 4: Update the "Registry of Foreign Residents" if your residency status changes.