Taxes in Greece are administered and collected by the Independent Authority for Public Revenue (AADE), the national body responsible for taxation, audits, and enforcement. Greece follows a progressive tax system for personal income, a flat corporate tax, and a standardized Value Added Tax (VAT) structure applied to goods and services nationwide. Tax obligations in Greece are determined based on residency status, income source (Greek-sourced or foreign-sourced), type of income, and applicable international tax treaties, as defined under Greek Income Tax Code Law 4172/2013.
When compared globally, the Greek tax system ranks 23rd among Organisation for Economic Co-operation and Development (OECD) countries, according to the 2025 International Tax Competitiveness Index. Personal income tax rates in Greece are comparable to those in many EU nations but higher than U.S. federal rates for middle-income brackets, while Greece’s corporate tax rate is lower than the EU average. Personal income tax ranges from 9% to 44%, depending on income level, and corporate tax is set at 22%, placing Greece below the Western European average. Value Added Tax (VAT), one of the country’s primary revenue sources, is levied at a standard rate of 24%, with reduced rates of 13% and 6% applying to specific goods and services such as food, medicine, and tourism-related services.
The Greek tax year runs from 1 January to 31 December, mirroring most EU countries. Tax returns are filed online through the AADE portal, with submissions typically due between 15 March and 15 July. Any taxes owed can be paid in eight monthly installments starting at the end of July, or in one lump sum by 31 July, which qualifies for a small early-payment discount. Staying updated on evolving tax regulations and international agreements, especially Double Taxation Treaties, is crucial for expats, investors, and entrepreneurs operating in Greece.
Who Pays Taxes in Greece?
In Greece, tax liability is determined primarily by tax residency status and the source of income, ensuring that both residents and non-residents contribute according to their economic activity in the country. Individuals who qualify as Greek tax residents, typically by residing in Greece for more than 183 days in a calendar year, are taxed on their worldwide income, regardless of where it is earned. In contrast, non-residents are taxed only on income generated within Greece, such as employment income, rental income from Greek properties, business profits, or capital gains arising from Greek assets.
Greece also offers preferential tax regimes that can significantly reduce tax obligations for certain groups, including retirees, high-net-worth individuals, digital nomads, and returning Greek expatriates. These include flat tax incentives, reduced tax rates, and exemptions on foreign-sourced income. Understanding residency rules, income sourcing, and available tax incentives is essential for expats, investors, and entrepreneurs to remain fully compliant while optimizing their tax position in Greece.
Taxes in Greece for Foreigners
Foreigners in Greece are taxed based on their tax residency status and the source of their income. Non-residents are required to pay tax only on income earned within Greece, such as rental income from Greek property, employment income from Greek employers, business profits generated locally, or capital gains from assets located in Greece. In contrast, foreigners who become Greek tax residents typically by staying in the country for more than 183 days within a tax year are taxed on their worldwide income, similar to Greek citizens.
What Types of Taxes Are There in Greece?
Greece’s tax system includes several categories that apply to individuals, businesses, property owners, and investors. The main types of taxes are:
- Personal Income Tax (PIT)
- Corporate Income Tax (CIT)
- Property Taxes (ENFIA and transfer taxes)
- Inheritance & Gift Tax
- Stamp Duty Tax
- Value Added Tax (VAT)
Personal Income Taxes
Personal Income Tax (PIT) in Greece is a tax applied to the earnings of individuals, and it includes a wide range of income categories defined by Greek tax law. In Greece, “personal income” refers to any income earned by an individual, whether from employment, self-employment, pensions, business activity, real estate, capital gains, investments, or other sources. The Greek Income Tax Code classifies income into specific categories: employment income, business and professional income, rental income, dividends, interest, royalties, and capital gains. Each type of income is taxed according to the rules applicable to its respective category.
Personal income tax liability in Greece is determined primarily by tax residency. Greek tax residents are taxed on their worldwide income, meaning all income earned inside and outside Greece must be declared. Non-residents, however, are taxed only on income sourced within Greece, such as rental income from a Greek property, local employment salary, or profits from business activities located in Greece. Income is taxed on a progressive scale, and taxpayers may also be subject to additional contributions, deductions, or allowances depending on income type and individual circumstances.
This structure ensures that both residents and non-residents are taxed fairly based on the location of their economic activity and their ties to Greece.
Salary & Pension Income Tax
Salary and pension income in Greece is taxed using a progressive tax scale, meaning the percentage of tax increases as income rises. The tax applies to both employment income and pension income, and it is calculated by applying the corresponding rate to each portion of income within the specific brackets. In addition to the standard income tax, Greece also imposes a solidarity contribution that mainly applies to public-sector salaries and certain pensions, while largely abolished for private-sector income.
Below is the current progressive tax structure for employment, business, and pension income:
| Taxable Income (EUR) | Income Tax Rate | Solidarity Contribution |
| Up to €10,000 | 9% | 0% |
| €10,001– €20,000 | 22% | 2.2% |
| €20,001 – €30,000 | 28% | 5% |
| €30,001 – €40,000 | 36% | 6.5% |
| €40,001 and above | 44% | 7.5% – 10% |
The highest personal income tax rate in Greece is 44%, applied to incomes exceeding €40,000 annually.
Greece offers certain deductions and allowances for salary earners and pensioners, including limited tax credits for dependent family members, disability status, or specific social contributions. However, deductions are more modest compared to some Western countries, and most taxpayers rely on the standard progressive system without extensive itemized deductions.
Self-Employment & Business Income Tax
Self-employment and business income in Greece is taxed under a separate framework from regular salary income, reflecting the higher administrative responsibilities and the need for social security contributions by independent professionals. Individuals earning income through freelance work, sole proprietorships, or small businesses are taxed progressively, similar to salaried employees, but with additional obligations such as mandatory social insurance payments to EFKA and an annual business levy.
Self-employed income is subject to the same progressive tax brackets as employment income (9% to 44%), but self-employed individuals must also pay:
- EFKA social security contributions are paid as fixed monthly insurance classes (approx. €230–€620/month).
- A business activity tax of €325–€650 per year, depending on location and business type.
- An advance tax payment for the following tax year, typically 55%–100% of the current year’s tax, depending on business structure.
Unlike salaried employees, self-employed individuals have access to a wider range of deductible business expenses. These may include office rent, equipment, utilities, vehicle costs, professional fees, accounting services, and other costs necessary for generating income. After deducting these allowable expenses, the remaining profit is taxed under the progressive system.
Overall, while Greece’s tax rates for self-employed individuals follow the same structure as salary income, the additional levies, social contributions, and prepayment obligations often make self-employment more heavily taxed in practice than regular employment.
Rental Income Tax
Rental income in Greece is taxed separately from salary or business income and follows a distinct progressive tax scale applied solely to the net rental amount (after allowable deductions).
Under Greek tax law, rental income is taxed at the following rates:
- 15% on annual rental income up to €12,000
- 35% on the portion between €12,001 and €35,000
- 45% on the portion exceeding €35,000
In addition to income tax, landlords must also pay:
- ENFIA property tax, assessed separately based on property location, size, and objective value
- A 3.6% stamp duty, if the property is commercial (not residential)
Allowable deductions for rental income include:
- Maintenance and repair expenses
- Property management fees
- Insurance premiums
- Depreciation for certain types of properties
Short-term rental income (e.g., Airbnb) is taxed differently and may require registration as a business if thresholds or multiple property ownership criteria are met.
For expats and foreign investors, Greece’s rental income tax applies regardless of residency status. Residents pay tax on worldwide rental income, while non-residents pay tax only on Greek-sourced rental income.
Capital Gains Tax
Capital gains tax in Greece is relatively straightforward. The 15% capital gains tax applies only when ownership exceeds 0.5% of the company. This tax is completely separate from regular income tax, which makes it easier to calculate and plan for.
If you sell shares that are listed on the Athens Stock Exchange, an additional 0.2% transfer duty is charged on the transaction. However, small shareholders may not always have to pay capital gains tax if they own less than 0.5% of a company; gains may be exempt, depending on specific rules. This can be helpful for casual investors or those with diversified portfolios who hold smaller stakes.
For companies, the rules work a bit differently. Any capital gains they make are treated as standard business income and taxed at the 22% corporate income tax rate. However, Greece has a “participation exemption” rule: if a Greek company sells shares in an EU or qualifying foreign subsidiary, and it owns at least 10% of that subsidiary for two years, the gain can be completely tax-free. This is particularly useful for international businesses or holding structures.
Foreigners must also consider whether they have a permanent establishment (PE) in Greece. If they do not, many capital gains may fall outside Greek taxation. But if the gain is linked to a Greek branch or permanent base, then Greece will tax it normally. For companies, selling listed shares also triggers a small 0.1% stock-exchange duty, separate from the main tax.
Capital gains tax on real estate for individuals is currently suspended (0%) until at least 2026, with no additional social security or similar charges applied. Greece also allows older capital losses (recorded up to 31 December 2023) to offset gains until the end of 2026. This means that if someone sold an asset at a loss in recent years, they can use that loss to reduce the tax owed on future profits, which can be beneficial for investors trying to optimize their tax position.
Investment Income
Investment income in Greece is subject to withholding tax, meaning the tax is deducted automatically before you receive the income. Interest from bank deposits is taxed at a flat 15% rate, regardless of whether the depositor is a resident or non-resident. This simplifies tax compliance, as individuals do not need to calculate or file separate tax returns for this type of income unless it forms part of broader financial reporting obligations.
Interest earned on Greek State Treasury Bonds is also subject to a 15% withholding tax, making bond income predictable and easy to manage for both local and foreign investors. Greece issues various fixed-income instruments, and the withholding tax is automatically applied by the financial institution or intermediary holding the securities on your behalf.
For foreigners, especially those benefiting from a Double Taxation Treaty (DTT) with Greece, the effective tax rate may be reduced depending on their home country’s agreement. This can lower or even eliminate withholding taxes on interest income. Investors should review their treaty benefits or consult a tax advisor to ensure they are not overpaying.
Overall, Greece’s taxation of investment income is straightforward and favors clarity. Automatic withholding and fixed rates help expats, retirees, and global investors plan their financial strategies with confidence.
Tax Incentives for Personal Income in Greece
Greece offers several personal income tax incentives designed to attract foreign retirees, skilled professionals, high-net-worth individuals, and long-term investors. These incentives are part of the country’s broader economic strategy to boost foreign inflows, stimulate the real estate market, counter population decline, and modernize the workforce. By reducing the long-term tax burden on newcomers, Greece aims to position itself as a competitive destination within the EU, especially compared to Portugal, Italy, Spain, and Cyprus, which offer similar incentive programs.
These incentives include the 7% flat tax for foreign pensioners, the Non-Dom lump-sum regime for wealthy individuals, the 50% tax reduction regime for skilled workers relocating to Greece, and the Golden Visa residency-by-investment benefits. Each program targets a different group of people and offers tailored advantages ranging from reduced taxation on foreign income to partial exemptions on Greek-sourced employment income.
Greece Tax Incentives for Foreign Pensioners
Greece offers one of Europe’s most attractive tax incentives for foreign retirees through its 7% flat tax regime, introduced in 2020. Under this program, qualifying pensioners who transfer their tax residency to Greece pay a flat 7% tax on all foreign-sourced income for up to 15 years, regardless of the amount. This includes pensions, rental income, dividends, business profits, and investment income earned abroad. The regime aims to attract long-term retirees by providing predictability, simplicity, and a significantly lower tax burden compared to traditional progressive tax rates.
This incentive is especially appealing for retirees from countries such as the US, UK, Canada, Australia, Germany, and France, all of which have Double Taxation Treaties (DTTs) with Greece. By combining treaty protections with Greece’s 7% retirement tax scheme, retirees can avoid double taxation while benefiting from a very low rate on their overseas income. The program also supports Greece’s goal of increasing foreign investment, long-term residency, and economic contribution from retirees.
Requirements to Qualify for the 7% Foreign Pensioner Tax Regime:
- Must be a tax resident of a country that has a Double Taxation Treaty (DTT) with Greece.
- Must not have been a Greek tax resident in the previous five (5) years.
- Must transfer your tax residency to Greece by submitting the required application to the Greek tax authority (AADE).
- Must receive foreign-sourced pension income, including state pensions, Social Security, private pensions, or employer pensions.
- Must provide proof of pension income during the application process.
- Must apply before March 31st of the year for which the regime should take effect (late applications apply to the following tax year).
Greece Tax Incentives for Expats and HNWIs
Greece offers several highly competitive tax incentives designed to attract expatriates, investors, entrepreneurs, and high-net-worth individuals (HNWIs) who relocate to the country. The primary benefit across these regimes is the ability to significantly reduce tax liability, enjoy long-term financial predictability, and benefit from Greece’s growing economic stability and EU advantages.
For expats moving to Greece, the country offers favorable programs such as the 50% tax exemption on employment income for seven years. HNWIs benefit from the globally competitive Non-Dom Regime, which allows individuals with substantial wealth to pay a fixed annual tax of €100,000, regardless of the amount of foreign income earned. These incentives are part of Greece’s broader strategy to attract global talent and international capital while revitalizing its economy.
Key Incentives for Expats & HNWIs:
- 50% Income Tax Exemption for Expats (Employment Relocation Regime): Expats moving to Greece for work can benefit from a 50% reduction on employment or business income taxes for seven years, provided they relocate their tax residency and meet eligibility criteria.
- HNWIs Non-Dom Tax Regime (€100,000 Flat Tax): High-net-worth individuals who transfer their tax residency to Greece can elect to pay a fixed €100,000 annual tax on all foreign-sourced income, regardless of amount.
- Additional family members may join the regime for €20,000 per person.
- Foreign income must still be declared, although it is not taxed in Greece.
- Can be renewed for up to 15 years.
- Tax Incentives for Investors Under Golden Visa: While the Golden Visa itself does not provide tax incentives, investors who relocate and become tax residents may combine residency with other tax schemes, such as the Non-Dom Regime or the 50% reduction regime (if employed).
- Tax Incentives for Returning Greeks / Digital Professionals: Highly skilled digital workers, entrepreneurs, and returning Greek expats may also qualify for reduced taxation when choosing Greece as their new residence and employment base.
These tax frameworks make Greece one of the most financially strategic countries in Europe for relocating professionals, entrepreneurs, and affluent individuals seeking a combination of lifestyle advantages, EU mobility, and long-term tax efficiency.
Greece Tax Incentives for Remote Workers
Greece offers attractive tax incentives for remote workers who relocate to the country, aiming to draw digital professionals, freelancers, and globally mobile talent. The key benefit is the 50% tax reduction on employment or freelance income for seven years, available to individuals who transfer their tax residency to Greece and work remotely for a foreign employer or foreign clients. This incentive makes Greece highly appealing for digital nomads and long-term remote workers seeking a lower tax burden while enjoying the Mediterranean lifestyle.
Under this regime, eligible remote workers pay tax on only half of their Greek-sourced employment or self-employment income, significantly reducing their overall tax liability. In addition, Greece offers a separate Digital Nomad Visa, allowing non-EU remote workers to reside legally in the country while working for employers or clients located outside Greece. While the Digital Nomad Visa does not itself include tax reductions, visa holders who become tax residents may apply for the 50% tax incentive if they meet the criteria.
Requirements to Qualify:
To benefit from the Greek tax incentive for remote workers, applicants must generally meet the following conditions:
- Transfer tax residency to Greece and not have been a Greek tax resident in the previous five years.
- Work for an employer or clients located outside Greece (remote income only).
- Commit to staying in Greece for at least two years.
- Provide proof of sufficient income (typically €3,500+ per month for the Digital Nomad Visa).
- Hold a valid work contract or freelance agreements demonstrating remote activity.
- Submit the incentive application within the required timeframe after becoming a Greek tax resident.
This incentive, combined with Greece’s affordability, strong internet infrastructure in major cities, and high quality of life, positions the country as a rising hub for remote workers seeking a tax-efficient and lifestyle-rich relocation destination.
General Personal Income Tax Credits
Greece provides several general personal income tax credits designed to reduce the overall tax burden on individuals, support lower-income taxpayers, and encourage socially important spending such as medical care and charitable donations. These credits are deducted directly from the total tax due (not from taxable income), making them especially beneficial for employees, pensioners, and households with moderate earnings. The purpose of these credits is to ensure fairness within the tax system, relieve financial pressure on vulnerable groups, and promote responsible economic participation.
Below are the main general tax credits available to individuals in Greece:
- Basic Tax Credit for Employees & Pensioners
A standard tax credit (up to €777) applies to individuals with employment or pension income, gradually decreasing as income rises. - Medical Expense Credit
A percentage of qualifying medical costs may reduce the tax due, provided receipts and documentation are maintained. - Charitable Donations Credit
Donations to approved charities, public institutions, and recognized organizations receive tax credits, incentivizing social contribution. - Child & Family-Related Credits
Additional tax reductions apply to parents, based on the number of dependent children.
Factors That Can Increase Your Personal Tax Liability in Greece
Some factors can raise an individual’s personal tax liability in Greece, especially for expats, retirees, and high-income earners. One of the primary contributors to higher tax liability is worldwide income taxation for Greek tax residents, meaning that foreign pensions, investment returns, rental income, and business profits may all be subject to Greek tax unless covered by a Double Taxation Treaty.
Another key factor is progressive income tax brackets, where higher earnings automatically move individuals into higher tax bands, reaching up to 44% for substantial income levels. Property owners may face additional costs, as ENFIA property tax increases with the value and number of real estate assets owned. Similarly, investment activity such as capital gains, dividends, and interest can trigger withholding taxes unless exemptions apply.
Lastly, failure to submit accurate tax filings, delayed payments, or incomplete declarations of foreign income can result in penalties, interest charges, and audits, further increasing overall liabilities. High-net-worth individuals, retirees with foreign pension income, and newcomers unfamiliar with Greek tax requirements should consider professional tax planning to avoid these pitfalls and ensure compliance.
Corporate Income Tax in Greece
Corporate income tax in Greece applies to legal entities that generate income within Greek territory, whether they are resident or non-resident companies. Resident corporations, those with their registered seat or effective management in Greece, are taxed on their worldwide income, while non-resident entities are taxed only on income sourced in Greece. The Greek tax system covers a wide range of corporate structures, including S.A. (A.E.), Limited Liability Companies (EPE), Private Companies (IKE), partnerships, branches of foreign companies, and other legal entities conducting business activities.
The standard corporate income tax rate is 22%, applied uniformly to most forms of corporate profit, including commercial activities, professional services, and investment operations. Corporate capital gains, such as profits from selling assets or shares, are generally included in the taxable base and taxed at the same 22% rate unless a specific exemption applies. For example, Greece’s participation exemption regime allows companies to avoid tax on capital gains from selling shares of EU or qualifying foreign subsidiaries if they hold at least 10% of the shares for 24 months. Corporate investment income, such as dividends, interest, and royalties, is typically subject to withholding taxes, though rates may be reduced under Double Taxation Treaties or eliminated entirely under EU directives.
Corporate taxes follow the standard Greek tax year (1 January to 31 December). Companies must file their tax returns electronically, usually by June or July each year, with payment made in eight equal monthly installments, starting from the end of July. Failure to file on time may trigger penalties, including late-filing fines, interest on unpaid tax, and potential audit scrutiny, especially for discrepancies in declared revenue or cross-border transactions.
Greece also allows several deductions and incentives that can reduce corporate tax liability. Common deductible expenses include employee salaries, social security contributions, rent, utilities, and business-related costs, provided they are documented and incurred for company purposes.
Greece Tax Incentives for Corporations
Greece offers a range of tax incentives aimed at attracting investment, stimulating economic growth, and supporting innovation across key sectors. These incentives are designed to reduce the effective tax burden for companies that meet specific criteria, making Greece increasingly competitive for both domestic and international businesses. Corporate incentives primarily target activities such as research and development (R&D), digital transformation, green energy projects, strategic investments, and job creation. By leveraging these incentives, companies can significantly lower operational costs, enhance profitability, and improve long-term financial planning.
One of the most notable incentives is the R&D super-deduction, which allows companies to deduct 200% of eligible research and development expenses from their taxable income, one of the most generous schemes in Europe. Greece also provides important benefits for strategic investments, such as large-scale industrial or tourism developments, offering reduced tax rates, accelerated depreciation, and subsidies. Companies investing in renewable energy projects or sustainability-driven initiatives can benefit from additional tax credits and fast-track licensing.
Digital transformation is another priority area, with Greece offering incentives for companies adopting cloud services, cybersecurity systems, digital tools, and innovative technologies. Newly established businesses may also qualify for reduced tax obligations under special startup frameworks, particularly within Greece’s fast-growing tech ecosystem. Overall, these incentives reflect Greece’s commitment to advancing its business environment and supporting corporations that contribute to national economic development.
Factors That Can Increase Corporate Tax Liability in Greece
Some factors can increase a company’s overall tax liability in Greece, and understanding them is essential for accurate planning and compliance. One of the primary contributors is earning a higher volume of taxable profits, as corporations are taxed at a flat rate of 22% on net income. Businesses that generate additional revenue through capital gains, investment income, or property disposals may also face increased tax exposure, especially when such income does not qualify for exemptions under the participation exemption rules.
Another factor is non-deductible expenses, which can inflate taxable income. Costs such as fines, penalties, undocumented expenses, excessive provisioning, and non-business-related expenditures cannot be deducted and therefore increase the corporate tax base. Companies may also face additional liability if they fail to comply with transfer pricing regulations, as inappropriate intra-group pricing can lead to upward adjustments by the tax authorities and associated penalties.
Late payment of taxes or non-compliance with filing deadlines can also result in increased liability. Greece imposes surcharges, interest, and penalties for delays, inaccurate filings, or failure to maintain proper accounting records. Businesses operating in multiple jurisdictions may face increased liability due to withholding taxes on cross-border payments such as dividends, interest, or royalties, particularly if no double taxation treaty (DTT) applies.
Lastly, corporate tax liability may rise when companies do not take advantage of available tax incentives, credits, or deductions, such as R&D super-deductions or investment incentives. Failing to structure operations efficiently or overlooking incentive programs may lead to higher-than-necessary tax burdens.
Property Tax in Greece
Property tax in Greece is primarily collected through a system called ENFIA (Unified Property Tax), which applies to all property owners, whether the owner is a resident, non-resident, individual, or company. ENFIA is made up of two parts: a main tax, calculated based on the size, age, location, and zone value of the property, and an additional tax that applies to high-value properties over a certain threshold. These calculations are based on the government’s “objective value” system, which assigns standardized values to properties to ensure consistency across the country.
In addition to ENFIA, property owners may also pay municipal taxes included in their electricity bills, covering services like street lighting and waste collection. When buying property, buyers also pay a 3% property transfer tax, plus notary and land registry fees. Annual property tax bills are typically issued mid-year and can be paid in monthly installments, making it easier for owners to manage costs.
Inheritance & Gifts Tax
Inheritance and gifts tax in Greece applies to property, money, and other assets transferred either after death or as a living gift. The amount of tax owed depends mainly on the relationship between the giver and the recipient, as Greek law groups beneficiaries into categories that determine tax-free allowances and applicable tax rates. Close family members such as spouses, children, and grandchildren benefit from high tax-free thresholds and low rates, making intergenerational wealth transfers relatively favorable. More distant relatives and unrelated individuals face lower exemptions and higher tax brackets, which can make gifting large assets significantly more expensive.
The taxable value of the gifted or inherited asset is based on Greece’s objective property value system, ensuring standardized assessments nationwide. Payments are made in installments, and recipients must file the appropriate documentation with the tax office before ownership is legally transferred. Non-residents inheriting or receiving property in Greece are also subject to these rules, although double taxation treaties may reduce their overall burden. Overall, Greece’s inheritance and gift tax system is predictable and structured, with clear advantages for immediate family members and long-term estate planning.
Stamp Duty Tax
Stamp duty tax in Greece applies to specific legal documents, transactions, and agreements that are not subject to VAT. It is essentially a small government levy charged on certain contracts such as commercial leases, loans between individuals, service agreements, and various administrative documents. The rate typically ranges from 1.2% to 3.6%, depending on the nature of the transaction, and is calculated on the total value of the contract or payment involved.
For many everyday purchases and services, stamp duty does not apply because VAT already covers them. However, when dealing with private rental agreements, informal loans, or professional service contracts, stamp duty is likely to be charged and must be paid to validate the agreement legally. Both residents and non-residents are subject to this tax if the transaction is carried out in Greece.
Value Added Tax (VAT)
Value Added Tax (VAT) in Greece is a consumption tax applied to most goods and services sold within the country. It is included in the price consumers pay and is one of the government’s major sources of tax revenue. Greece follows the standard EU VAT framework, meaning VAT is charged at each stage of the supply chain from production to final sale while businesses can reclaim VAT paid on their inputs.
The standard VAT rate in Greece is 24%, applied to most everyday goods and services, including retail purchases, dining, transportation services, electronics, and professional services. Reduced VAT rates of 13% and 6% apply to essential categories. The 13% rate covers items like basic food products, energy, and certain tourism services, while the 6% rate applies to medicines, books, and cultural events. Some remote Greek islands previously enjoyed reduced VAT, but many exemptions have been phased out in recent years.
Foreigners and expats pay VAT in Greece just like locals whenever they buy goods or services. Businesses operating in Greece are responsible for charging, collecting, and remitting VAT regularly to the tax authority (AADE). VAT returns are typically filed monthly or quarterly, depending on company size, and late filing can result in penalties. Overall, VAT is a predictable and transparent part of the Greek tax system, ensuring uniform taxation across most sectors of the economy.
Greece Double Taxation Agreements (DTAs)
Double Taxation Agreements (DTAs), also called Double Tax Treaties, are bilateral agreements between two countries that ensure individuals and companies are not taxed twice on the same income. These treaties clarify which country has taxing rights over income such as salaries, pensions, business profits, dividends, interest, and royalties. They also reduce or eliminate withholding taxes and help prevent tax evasion, offering legal certainty for expats, investors, and international businesses.
Greece currently has Double Taxation Agreements (DTAs) with more than 60 countries, covering most major economies. These include the United States, the United Kingdom, Canada, Australia, Germany, France, Italy, Spain, Switzerland, the Netherlands, Sweden, Norway, China, India, the UAE, Qatar, Egypt, South Africa, and many others. DTAs differ slightly from country to country, but generally follow OECD guidelines. For example:
- The Greece/US DTA prevents US retirees or investors from being taxed twice on pensions, dividends, and business income.
- The Greece/UK DTA remains in force after Brexit, ensuring tax relief for British retirees and entrepreneurs.
- The Greece/UAE DTA grants favorable treatment on investment income, making Greece attractive for Middle Eastern investors.
- The Greece/Canada DTA helps Canadian retirees avoid double taxation on pension withdrawals and investment income.
These agreements are especially important for retirees, investors purchasing Greek property, multinational employees, and entrepreneurs relocating to Greece. They ensure that income taxed in the home country is either exempt, credited, or taxed at a reduced rate in Greece, depending on the treaty rules.
To see the full updated list of countries with a DTA with Greece, you can check the official registry published by the Independent Authority for Public Revenue (AADE):
https://www.aade.gr/epiheiriseis/themata-diethnoys-dioikitikis-synergasias/symvaseis-apofigis-diplis-forologias
How to File Your Taxes in Greece Step by Step
Filing taxes in Greece is done primarily online through the myAADE / TAXISnet system and follows a clear annual cycle, even if the forms and details can feel complex at first. Below is a structured, practical overview of the steps most individuals (residents and non-residents with Greek-source income) will follow.
1. Confirm Whether You Are Tax Resident in Greece
Before filing, you must determine if you are considered a Greek tax resident or non-resident, as this defines what income you must declare.
- Greek tax residents are taxed on their worldwide income.
- Non-residents are taxed only on Greek-source income (e.g., Greek property rental, Greek salary, Greek business income).
If you are relocating to Greece or changing status, you may need to submit a tax residency change request to the tax office (usually via AADE and with supporting documentation).
2. Obtain a Greek Tax Number (AFM)
To file taxes, open a bank account, or own property, you must have an AFM (Arithmos Forologikou Mitroou) – the Greek Tax Identification Number.
- You obtain it at the local tax office (DOY) or via a representative.
- You will need your passport/ID and sometimes proof of address or a simple application form.
Once issued, your AFM will be used on all tax returns, contracts, and official documents.
3. Register for myAADE / TAXISnet Online Services
Greek tax returns are normally filed electronically via the myAADE portal (which replaced the older standalone TAXISnet interface).
- You create online credentials using your AFM and personal details.
- If you work with an accountant, you can authorize them as your tax representative so they can file on your behalf.
Through myAADE, you can see previous returns, ENFIA (property tax) assessments, and payment plans.
4. Gather All Required Tax Documents and Evidence
Before completing your return, collect the documents and data that support each type of income and deduction, for example:
- Employment income: Greek employer income statement (usually pre-loaded in the system).
- Pensions: Greek pensions are often pre-filled; foreign pensions may need statements and exchange-rate conversions.
- Business/self-employment income: invoices, bookkeeping records, expense proofs.
- Rental income: lease declarations (submitted electronically), rent received, and related expenses where allowed.
- Investment income: interest, dividends, capital gains statements.
- Deductions/credits: social security contributions, donations, certain medical or education expenses (where applicable), proof of health insurance, etc.
Having everything ready reduces the risk of errors or later tax audits.
5. Complete the Online Income Tax Return (Form E1 + Annexes)
The main personal income tax return is Form E1, with additional forms where needed (e.g., E2 for rental property, E3 for business income).
Key steps inside the portal:
- Confirm your personal data and marital status.
- Review any pre-filled income (employment, pensions, bank interest, etc.).
- Manually enter foreign-source income (if you are tax resident) and Greek-source income not pre-loaded.
- Add rental income and property information via the relevant annex.
- Declare deductible expenses and applicable tax credits.
- For couples, returns can be joint (default) or separate under specific rules.
6. Check for Double Taxation Relief (If You Have Foreign Income)
If you are a Greek tax resident with income from abroad, you may be protected by a Double Taxation Treaty (DTT) between Greece and your home country.
- You typically report the gross foreign income and any foreign tax paid.
- Relief is applied either via tax credit or exemption, depending on the treaty.
This is particularly important for expats with pensions, investment income, or business income abroad and should ideally be reviewed with a tax advisor.
7. Submit Your Return Within the Official Deadlines
The Greek tax year runs from 1 January to 31 December.
- Online filing usually opens around mid-March.
- The deadline for filing is typically 15 March – 15 July (exact dates confirmed annually by AADE).
Submitting late can trigger penalties and surcharges, so it is important to respect the official deadline or arrange professional help early.
8. Review the Tax Assessment and Payment Options
Once you submit your return, the system immediately calculates your tax assessment (liability or refund):
- If you owe tax, it is typically payable in up to 8 monthly installments, starting from the end of July.
- You may receive a small discount if you pay the full amount in a single installment by the first due date.
- Payments can be made via Greek bank, online banking, or using the unique payment code from myAADE.
If the result is a refund, it will be credited to your Greek bank account, provided your banking details are up to date in the system.
9. File Additional Returns: ENFIA and Other Obligations
If you own property in Greece, you are also subject to ENFIA (annual property tax), which is assessed and issued automatically via myAADE based on your property declarations.
- ENFIA is usually payable in multiple installments across the year.
- Businesses and self-employed individuals may also have VAT returns, withholding obligations, and social security contributions to file and pay separately.
Make sure you (or your accountant) monitor all obligations, not only the annual income tax return.
10. Keep Records and Monitor Future Changes
Greek tax law and incentives (especially for expats, retirees, and HNWIs) can change regularly.
- Keep copies (digital or printed) of returns, payment receipts, and key supporting documents for several years.
- If you benefit from special regimes (7% flat tax for foreign pensioners, Non-Dom, 50% tax exemption for inbound workers, etc.), ensure you continue to meet the conditions every year.
- Re-check AADE or consult a tax advisor annually to stay compliant with any new rules or rate changes.
When Should You Pay Your Taxes in Greece?
Greece follows a standardized annual tax calendar, but the exact payment timelines differ depending on whether you are paying personal income tax, corporate income tax, VAT, ENFIA (property tax), or other tax obligations.
The tax year in Greece follows the calendar year, running from 1 January to 31 December for both individuals and companies. As a rule, businesses are not permitted to adopt a different fiscal year, with exceptions granted only in rare cases. As a result, any income earned during this period, whether by an individual or a corporate entity, must be reported for that same tax year. Below is a clear breakdown of when each type of tax must be paid
1. Personal Income Tax
- Personal income tax returns are filed online via myAADE between 15 March and 15 July (exact opening date varies slightly each year).
- Once the return is filed, any tax owed is paid in 8 equal monthly installments, starting:
- End of July for the first installment,
- With the remaining payments due monthly through February of the following year.
Early Payment Discount
If you choose to pay the full amount by the end of July, you receive a small early-payment discount, typically 3%.
Non-residents
Non-residents follow the same filing and payment deadlines for Greek-source income.
2. Corporate Income Tax
- The corporate tax return is filed annually, also for the tax year 1 January – 31 December.
- Corporate tax filings generally occur by the end of June or July, depending on the annual government announcement.
- Companies pay corporate tax in 8 monthly installments, similar to individuals:
- First installment: end of July
- Remaining installments: monthly until February of the next year
Corporate special cases
- Companies must also pay advance corporate tax (“tax prepayment”) based on their previous year’s profit.
- Newly established companies typically receive a reduced prepayment rate in the first year.
3. VAT (Value Added Tax)
VAT in Greece is filed more frequently:
- Quarterly filings for small businesses.
- Monthly filings for larger businesses or those obligated to report monthly.
Payment is due upon filing, usually:
- End of the month following the VAT reporting period.
4. ENFIA (Property Tax)
If you own property in Greece, ENFIA is assessed automatically.
- ENFIA bills are typically issued in September or October each year.
- Payment is made in up to 10 monthly installments, ending in February or March of the following year.
5. Capital Gains, Withholding Taxes, and Other Levies
Different capital gain taxes follow different timelines as follows:
Capital Gains Tax
- Paid when declaring the gain, typically through your annual income tax filing (for individuals).
- For companies, capital gains are included in corporate taxable profit and follow corporate tax deadlines.
Withholding Taxes
(E.g., tax on dividends, interest, royalties)
- These are usually withheld at source and paid monthly by the paying entity.
Stamp Duty, Real Estate Transfer Tax
- The transaction is formally registered or finalized.
Taxes in Greece Compared to the US
Greece and the United States follow fundamentally different tax systems, resulting in notable differences in how individuals and businesses are taxed. Greece operates a residence-based progressive tax system, where tax residents are taxed on worldwide income and non-residents only on Greek-source income. The U.S., by contrast, taxes its citizens on worldwide income regardless of residency, making it one of the only countries with citizenship-based taxation.
In terms of tax levels, Greece generally has higher income tax rates, with personal taxes ranging from 9% to 44%, compared to the U.S. federal system of 10% to 37% (excluding state taxes). Corporate taxation is also somewhat higher in Greece at 22%, compared to the U.S. federal rate of 21% (though additional state corporate taxes may apply). Overall, Greece tends to impose a higher combined tax burden than the U.S., particularly on employment income, but offers attractive incentives for foreigners, such as the 7% flat tax for retirees and 50% income exemption for new residents, which can sharply reduce effective taxation for eligible expats.
Final Words
Greece offers a uniquely attractive environment for expats, investors, entrepreneurs, and retirees, from its favorable tax incentives and accessible residency pathways to its Mediterranean quality of life and growing economic opportunities. Whether you’re exploring the 7% flat tax for foreign pensioners, planning to benefit from Greece’s corporate incentives, or considering a relocation through the Golden Visa or Retirement Visa, understanding the Greek tax system is essential for making informed decisions and protecting your financial future.
If you are considering relocating to Greece (or weighing it against other destinations as an expat, investor, or entrepreneur), expert guidance can make all the difference. GICG (Global for Citizenship & Residency) offers a complimentary consultation to help you clearly assess the advantages and potential challenges, so you can make a well-informed decision tailored to your personal or business objectives. GICG’s specialists deliver full-scope support for individuals and families, including relocation planning, investment residency, tax structuring, and long-term strategies in Greece, as well as in numerous EU and non-EU countries.
With a lobal presence and deep legal expertise, GICG helps you:
- Choose the right residency pathway (Golden Visa, Retirement Visa, or others)
- Structure your taxes according to Greece’s expat-friendly incentive programs
- Navigate all documentation, translations, and government procedures
- Understand property, corporate, or pension-related tax obligations
- Build a seamless relocation plan tailored to your lifestyle and financial goals
Contact GICG today for a personalized consultation and take the first step toward a smarter, smoother transition to life in Greece.