Greece is a popular spot if you like the Mediterranean lifestyle. Yet, in this article, we’ll focus on the tax side of things, namely tax residency in Greece.
We’ll have a look at the benefits you could get but also at the requirements and the process on becoming a tax resident of Greece.
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Overview of Tax Residency in Greece
- Progressive income tax rates up to 44% for professional income
- Possible tax reduction of 50% for up to 7 years if you meet certain conditions
- Fixed social contributions for freelancers with lower rates for first 5 years
- Corporate tax rate of 22% plus 5% dividend tax
- Get tax residency in Greece based on the days-test or your centre of vital interests
- Various visa options
Benefits of Being a Tax Resident in Greece as a Digital Nomad
Greece offers some special tax regimes (Law 4758/2020) for particular groups of people:
- 50% tax cut for new tax residents for up to 7 years (more information below)
- Flat tax rate 7% on foreign-source income for pensioners for maximum 15 years (non-dom status)
- Lump sum tax of €100.000 per year for investors (non-dom status)
Taxes in Greece
Let’s now have a closer look at the different Greek taxes that can apply to you if you get tax residency in Greece.
Greek Personal Income Tax Rates
If you are a Greek tax resident, Greek personal income tax rates will apply to your income.
Greece will tax your worldwide income: the income earned in Greece but also any income earned abroad.
Greece applies progressive tax rates on income from employment or business.
The rates start at 9% and go up to 44% as from an income of €40.000.
However, you can benefit from a 50% tax reduction if you establish tax residency in Greece and meet certain conditions.
For rental income they also apply progressive rates. These range from 15% to 45% as from €35.000.
If you receive rental income from abroad, this income is exempt from taxes in Greece if the country where the real estate is situated has a double tax treaty with Greece.
Investment income, on the other hand, is taxed at fixed rates. On dividends a rate of 5% applies. For interest the rate is 15% and for royalties 20%.
Additionally, you need to account for a solidarity tax. This tax is levied on income as from €12.000 at a rate of 2,20%. It goes up to 10% on income above €220.000.
Social Contributions
Social security contributions in Greece are different for employees and for self-employed individuals
As an employee, both you and your employer need to pay social contributions. Your employer needs to pay 22,29% in contributions and needs to withhold 13,87% on behalf of the employee.
The maximum income that is taken into account to calculate social contributions is around €7.600 per month.
Social contributions for self-employed individuals are split up in different brackets (amounts 2025; indexed annually):
- 1st bracket: €330
- 2nd bracket: €395
- 3rd bracket: €470
- 4th bracket: €540
- 5th bracket: €625
- 6th bracket: €780
The higher the bracket, the more social benefits you qualify from.
However, you can choose yourself which bracket you want to apply for the coming year. Thus, it doesn’t depend on your income as it is the case in most countries.
Furthermore, if you just start out as a freelancer in Greece, you can pay lower social contributions for the first five years while getting the same benefits as people in the first bracket.
The amount of contributions for starters is €233.
Corporate Tax in Greece
You could also structure your business by incorporating a company in Greece.
The standard corporate tax rate in Greece amounts to 22%.
On top, you pay a 5% tax on dividends. So, this would bring your overall tax burden to around 27% once you take the money out of your company.
How to Get 50% Tax Break if You Are Tax Resident in Greece
What many people don’t know is that Greece will grant you a 50% tax break for professional income if you are a new tax resident of Greece.
This means that you can divide the tax rates mentioned before by two. Accordingly, the actual maximum rate amounts to 22%.
Nevertheless, you don’t just get this tax break like that. You need to meet certain eligibility conditions.
Not a Greek Tax Resident
You can only qualify for the tax incentive if you weren’t a tax resident of Greece for more than one of the previous six years.
Country of Origin
Furthermore, Greece only grants the tax exemption to people who come from a country which has a double tax treaty with Greece.
Greek Employment or Business
You will also need to change your setup from a tax and legal point of view.
You will have to start working for a Greek employer or a Greek permanent establishment of a foreign company. If you have your own business, you need to register your business in Greece.
Commitment for Two Years
Secondly, you need to commit to a minimum stay of two years.
This does not mean you actually need to spend the full two years within the borders of Greece.
However, it does mean that you will have to pay taxes in Greece for at least two years.
So, basically, you commit to being a tax resident of Greece for at least two years.
Limited Timeframe
If you would want to spend the remainder of your days in Greece you should know you can only benefit from the tax benefit for a limited time frame.
If you fulfill all conditions, the maximum period for enjoying the tax break is seven years.
After those seven years, the normal tax rates will apply to your income. Accordingly, from the eight year, you will see your tax rate double.
Requirements for Obtaining Tax Residency
Greece applies two tests to asses if you are a Greek tax resident and have to pay taxes.
The first one depends on the amount of days you spend in the country. This is the so-called 183-day rule.
If you spend more than 183 days in a 12-month period in the country, you will qualify as a tax resident.
Furthermore, Greece will consider you as a tax resident if you have your permanent home in Greece or if your centre of vital interest lies in the country.
There are different elements that could lead to a person having its centre of vital interests in Greece. There is ownership of assets in Greece, the place where your family resides and where your children go to school, etc.
My Tax Perspective on Being a Digital Nomad with Tax Residency in Greece
Greece wouldn’t be my number one pick to set up a tax residency as a digital nomad. The reason is simply that there are other (European) countries out there that offer lower tax rates.
Nevertheless, if you like to spend more time in Greece or want to have it as a base, tax residency in Greece could still be a good option for.
However, this would only be the case as long as you qualify for the 50% tax reduction. If you don’t qualify for the reduction, you total tax burden will easily reach more than 50% if we combine income taxes and social contributions.
How to Establish Residency in Greece
If you want to establish your residency in Greece you have a few options.
EER Citizens
If you are a citizen of a country from the European Economic Area you can move to Greece without having to apply for a visa because of the free movement of people between the participating countries.
Digital Nomad Visa
If you do need a visa, the best option for most remote workers is the Greek digital nomad visa.
Golden Visa
If you have some spare money you can also think about applying for the Greek Golden Visa.
However, in this case you need to invest at least €250.000 in real estate. For popular destinations (e.g. Athens & Santorini) the amount is even higher.
Financial Independent Person (FIP) Visa
If you have a passive income (e.g. pensions & investment income) of at least €24.000 per year you can also apply for the financial independent person visa.
How is Greece for Digital Nomads?
Greece is a popular destination for digital nomads in Europe for many reasons:
- Digital nomad visa: Greece is one of the countries offering a digital nomad visa.
- Lifestyle: whether you want to spend time in a metropolitan city like Athens or Thessaloniki or you prefer the calmer island vibe, you can find all of it in Greece.
- Warm climate: Greece and its uncountable amount of island lie in the Mediterranean Sea which offers a warm climate.
- Cost of living: you can get all of this at a lower cost of living than in more Western (European) countries.
- Nomad community: for all these reasons, you can find a growing digital nomad communities in places like Athens, Thessaloniki and Crete.
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