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Between the gorgeous weather, affordable cost of living, fascinating history and culture, and numerous visa options, it’s no surprise that Greece is becoming an increasingly popular US expat destination. Before moving there, of course, you’ll need to consider practical issues — like taxes in Greece.
We know that it’s not always easy to find reliable, up-to-date, and digestible information on a foreign country’s tax system. As a US expat tax firm, though, we’ve helped clients living in many different countries — including Greece. So we’ve put together a high-level guide to taxes for Americans living in Greece.
Below, you’ll find everything you need to know about taxes in Greece for expats. Read on to learn how Greece’s tax system works, what US tax and reporting obligations Americans abroad have, how to reduce your tax bill, and more.
Snapshot of taxes in Greece
- Primary tax forms: E1 form
- Tax deadline: June 30th
- Reporting website: Independent Authority for Public Revenue (IAPR) website
- Administrative language(s): Greek
- US Tax treaty? Yes
- Totalization agreement? Yes
Determining Greek tax residency & liability
There are a few ways to meet Greece’s tax residency definition:
- Residence: Maintaining a permanent, principal, or habitual abode in Greece
- Physical presence: Spending more than half of the year (183 days) in Greece
- There are exceptions for those in Greece for touristic, medical, therapeutic, or similar purposes, provided that their stay does not exceed 365 days
- Center of vital interests: Having your “vital interests” located in Greece, demonstrated by factors like:
- Greece-based assets
- Greek citizenship
- Greek social security registration
- Having children attend school in Greece
- Living in Greece with your family
Tax residents of Greece pay Greek taxes on their worldwide income, while non-tax residents pay taxes only on their Greek-sourced income.
Understanding the Greek tax system and deadlines
Greece’s governing tax body is the Independent Authority for Public Revenue, or IAPR. Due to its Greek name (Ανεξάρτητη Αρχή Δημοσίων Εσόδων), it is sometimes called the ΑΑΔΕ or AADE. The IAPR is responsible for:
- Designing and implementing tax and customs legislation, as well as a national budget
- Educating the public about their tax obligations, and helping them navigate them
- Overseeing the collection of taxes
- Enforcing tax laws
IAPR rules require all tax residents to file a tax return. Non-tax residents with Greek-source income must file as well. This might include income from:
- A rental property in Greece
- A business located in Greece
- Business or self-employment activities conducted in Greece
- Sales of Greek-based assets (e.g. Greek stocks and bonds, properties based in Greece)
Some of the most common Greek tax forms include:
- E1: Main tax return form for reporting personal income (i.e. employment, investment, pension income)
- E2: For reporting rental and real estate income
- E3: For reporting business and self-employment income
Generally, those subject to Greek taxation must file their return and make a tax payment by June 30th of the following calendar year. However, the government sometimes issues extensions. For example, the IAPR extended the individual tax deadline for tax year 2023 to August 2nd.
B!T note: Businesses, self-employed individuals, and sometimes those with Greek rental income must generally file and pay estimated taxes quarterly.
Those who must file Greek tax returns will do so using the IAPR website. To access it, you must first register for a Greek tax number (AFM).
Taxation of income in Greece
Like many other countries, Greece has a progressive tax system in which the more you earn, the higher your personal tax rate. Taxes are marginal, meaning that different tax rates apply to different bands of income.
Taxes on personal income in Greece generally range from 9% to 44%:
Greece personal income tax rates, 2024
| Income (EUR) | Income (USD) | Tax rate |
| Up to €10,000 | Up to ~$10,835 | 9% |
| €10,001 to €20,000 | ~$10,836 to ~$21,670 | 22% |
| €20,001 to €30,000 | ~$21,671 to ~$32,505 | 28% |
| €30,001 to €40,000 | ~$32,506 to ~$43,340 | 36% |
| €40,001+ | ~$43,341+ | 44% |
Certain types of income, however, carry different tax rates. For example, most dividends are generally subject to a 5% withholdings tax. Interest income, on the other hand, typically incurs a 15% tax.
Income derived from real estate and property (e.g. rental income) is subject to different marginal tax rates:
Greece real estate property income tax rates, 2024
| Income (EUR) | Income (USD) | Tax rate |
| Up to €12,000 | Up to ~$13,002 | 15% |
| €12,001 to €35,000 | ~$13,002 to ~$37,923 | 35% |
| €35,001+ | ~$37,924+ | 45% |
Note:
Building upgrades can reduce your tax liability by up to 40%.
The above rates are the same for tax residents and non-tax residents alike. Again, though, non-tax residents will only pay taxes on their Greek-sourced income.
Non-Dom Tax Regime
Greece offers several beneficial tax regimes for new taxpayers, generally referred to as the non-domiciled tax regime, or non-dom tax regime. The regime comprises three different categories:
High Net Worth Individual (HNWI) Regime
This program is for individuals who transfer their tax residence to Greece after making an investment of at least €500,000 (~$543,823) over three years. To be eligible, you must not have been a Greek tax resident for seven of the last eight years and prove that you, your relatives, or a legal entity of yours has made a qualifying investment.
In exchange, Greek tax authorities will charge you €100,000 in taxes (~$108,791) per year for up to 15 years — regardless of how much you earn in foreign-source income. For each relative of yours that takes advantage of this program, you will pay an extra €20,000 (~$21,754) in taxes.
Foreign Pensioners Regime
As its name suggests, this program is for retirees/pensioners moving to Greece. To be eligible, you must not have been a Greek tax resident for five of the last six years. In exchange, you will pay a flat tax rate of just 7% on all foreign-source income for up to 15 years.
Professional Activity Regime
The professional activity regime aims to attract highly skilled professionals to Greece. To be eligible, you must:
- Not have been a Greek tax resident for five of the last six years, AND
- Provide professional services in Greece for a Greek-based employer or a foreign legal entity with a permanent establishment in Greece, AND
- Stay in Greece for at least two years
In exchange, only 50% of your income from employment or business conducted in Greece will be subject to Greek taxes, up to seven years.
Deductions & allowances
Greece offers taxpayers several different types of tax relief, including:
- A standard deduction of up to €777 (~$847) per €12,000 (~$13,076) of income; deductions decrease by €20 (~$22) for every €1,000 (~$1,090) of income above €12,000 (~$13,076)
- Those with dependents can receive additional credits
- A deduction for mandatory social security contributions
- Deductions of up to 20% of the value of certain charitable donations and grants up to €100,000 (~$108,981), or 5% of taxable income — whichever is lower
- A deduction of 50% in contributions toward eligible startups up to €300,000 (~$326,994) per tax year
Other taxes in Greece
Capital gains taxes
The standard capital gains tax rate in Greece is 15% — however, there are some exceptions. Those who sell a property after owning it for five years, for example, are exempt from capital gains taxation.
Beneficiaries of stock option plans at startups, meanwhile, may only be subject to a 5% tax on gains, provided they meet certain conditions (e.g. holding the options for at least 36 months before selling).
Property taxes
There are several types of property taxes in Greece, including:
- The Uniform Tax on the Ownership of Real Estate Property (ENFIA): €2 (~$2.18) to €16.20 (~$17.66) per square meter on buildings; €.0037 (~$.0040) to €9.25 (~$10.08) per square meter of land
- Property exceeding €500,000 (~$545,030) in value is subject to an additional 5% to 20% tax. Properties worth €150,000 (~$163,509) or less can receive a 25% to 30% reduction, depending on the overall value
- Transfer tax (FMA): 3.09%
- Municipal taxes (TAP): .025% to .035%
Social security taxes
Greece’s primary social security fund (EFKA) incurs a tax of 13.87% for employees and 22.29% for employers. Monthly contributions are capped at €7,373.53 (~$8,042.83).
B!T tip: Greece and the US have a totalization agreement that prevents US nationals living in Greece from having to pay social security taxes to both countries.
VAT
The standard rate for Greece’s value-added tax (VAT) — aka the sales tax — is 24%. However, there are reduced rates available:
- 13% VAT: Staple foods, non-alcoholic beverages, temporary accommodation, baby and care supplies, transportation, fitness services, etc.
- 6% VAT: Certain types of medicines as well as electricity, gas, certain kinds of entertainment, books, etc.
- 4% VAT: Renovations to accommodate disability
The price of goods you see in stores typically already includes VAT. On invoices for services, it may appear as a separate line item charge. Business owners and self-employed individuals must generally charge VAT to clients and customers based in the EU. They must then report and remit VAT generated to the government each quarter.
Inheritance & estate taxes
Greece does levy an inheritance tax, but only on property located in Greece (regardless of nationality). Beneficiaries of immovable assets abroad are not subject to the inheritance tax.
Those who are subject to Greece’s inheritance tax pay a different amount of taxes depending on their relationship to the deceased and the value of the estate:
- Spouses, children, grandchildren, & parents: 1% to 10% (depending on total value) on property worth over €150,000 (~$163,481)
- Great grandchildren, grandparents, great grandparents, siblings: 5% to 20% (depending on total value) on property worth over €30,000 (~$32,696)
- All other relatives: 20% to 40% (depending on total value) on property worth over €6,000 (~$6,539)
How to avoid double taxation as an expat in Greece
The United States employs a citizenship-based taxation system, which means that every American citizen/permanent resident is subject to US taxes — even if they live abroad. As a result, all Americans whose income exceeds a minimum threshold must file (and possibly pay) federal income taxes. Typically, the main US tax form you must file is Form 1040.
Americans abroad receive an automatic two-month extension to file their taxes, making their tax deadline June 15th. You can extend this further to October 15th upon request. Regardless of when you submit your individual income tax return, though, you must still make an estimated payment by April 15th.
If you’re also subject to taxation in Greece, you risk paying taxes on the same income to two different countries. While Greece has an income tax treaty with the US that prevents this double taxation in theory, a tricky clause negates most of its benefits. As a result, most Americans in Greece are better off claiming an expat-specific tax break like the:
Foreign Tax Credit (FTC)
The FTC gives Americans dollar-for-dollar US tax credits on any foreign income taxes they’ve paid or accrued. To qualify, taxes must be legal, paid, made out to you specifically, and based on income. In high-tax countries like Greece, claiming the FTC can often not only erase your US tax liability but give you surplus credits to use on future bills (up to ten years).
To claim the FTC, you’ll file Form 1116.
Foreign Earned Income Exclusion (FEIE)
Under the FEIE, eligible Americans abroad can exclude a portion of their foreign-earned income from taxation. For their 2024 taxes, qualifying Americans can exclude up to $126,500; for tax year 2025, that number increases to $130,000 to account for inflation.
To qualify, expats must meet either the Physical Presence Test or Bona Fide Residence Test. Doing so also allows you to claim the Foreign Housing Exclusion, which helps you exclude a portion of costs related to qualifying housing expenses (e.g. rent, parking utilities, etc.). To claim the FEIE, you must file Form 2555.
Reporting responsibilities
While living abroad may afford you a couple of dedicated expat tax breaks, it could also add to or change your reporting obligations. Two of the most common reports US expats have to file include the:
- Foreign Bank Account Report (FBAR): Mandatory for Americans with over $10,000 across foreign financial accounts
- Statement of Specified Assets (Form 8938): Mandatory for Americans abroad with over $200,000 in foreign assets on the last day of the tax year, or over $300,000 at any point over the last tax year
- Note: Thresholds vary for married couples filing jointly and Americans living within the US
File US taxes abroad with confidence
Americans who spend over six months in Greece, maintain significant ties there, or earn Greek-sourced income likely need to file Greek taxes. While Greek income taxes are fairly high, programs like Greece’s non-dom tax regime and US expat tax breaks like the FTC and FEIE can help you reduce — or even eliminate — the risk of double taxation.
While it’s helpful to have a high-level understanding of US expat taxes in Greece, there’s no substitute for professional advice. If you need help reaching full tax compliance, reducing your tax liability, or with anything else related to US expat taxes, don’t hesitate to reach out to Bright!Tax.
We’ve already helped thousands of clients in hundreds of different countries around the world — including Greece — file accurately and optimally with minimal effort. Schedule your free 20-minute consultation today!
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