Retire in Greece: Flat 7% Tax Rate on Foreign Pensions

Discover the Pensioners Tax Regime — Your Gateway to Peaceful Living and Financial Efficiency in Greece

Greece isn’t just a dream destination—it’s a smart retirement strategy. Since 2020, the Greek government has introduced tax incentives specifically designed to attract retirees receiving foreign pensions, offering a flat tax rate of just 7% on worldwide income.

What Is the Greek Pensioners Tax Regime?

The Pensioners Regime is an alternative tax framework for foreign retirees who move their tax residence to Greece. It allows qualified individuals to pay a flat 7% tax on all foreign-sourced income, including pensions, for up to 15 years.

Who Is Eligible?

You may qualify for this regime if:

• You have not been a Greek tax resident for 5 out of the 6 years prior to your relocation
• You are relocating from a country that has a valid administrative cooperation agreement with Greece
• You receive a pension from:
  • A foreign national or statutory social security scheme
  • An occupational pension institution
  • A collective retirement plan

You must provide official documentation confirming your pension income, issued from official entities such as public authorities, social security institutions, or pension funds.

What Are the Benefits?

• Flat 7% income tax on all foreign-sourced income, unless such income is exempt from the imposition of Greek tax based on the Double Tax Treaty between Greece and the country where the income originated.
• 15-year duration of favourable tax treatment.
• Additionally, the foreign pensioners can also benefit from the application of the relevant Double Tax Treaty since they are entitled to deduct from their Greek tax liability any taxes paid abroad on the same income.

Greek-sourced income remains subject to standard national tax rates.

How Long Can You Benefit?

The Pensioners tax regime is valid for up to 15 years. However, it can end earlier if:

• You fail to meet your annual tax obligations.
• You choose to withdraw from the regime by submitting an application by 31 October of the relevant tax year.

How to Apply for the Greek Pensioners Tax Regime

Application Process:

• Application Deadline: If transfer of the tax residence to Greece is completed by 2 July, the individual may apply for the same or the following tax year for their inclusion in the regime. An individual who transfers tax residence after 2 July may apply for the following year only. The application must be submitted by 31 October of the relevant year.
• Submit all required pension verification documents within 30 days of application.
• The Greek tax authority will notify the tax authorities in your previous country of residence.