Greece Tax Incentives for Retirees: The 7% Flat Rate Regime

Greece's alternative tax regime for retirees, introduced in 2020, offers a flat 7% income tax on all foreign-sourced income for individuals who transfer their tax residence to Greece. The regime lasts for 15 years — five more than Portugal's old NHR — and the 7% rate is notably lower than most competing regimes.

Eligibility Requirements

• You must not have been a Greek tax resident for 5 of the previous 6 years
• You must be receiving a pension from abroad
• You must transfer your tax residency from a country that has a tax cooperation agreement with Greece
• Applications must be submitted by March 31 of the year following your move

What's Covered

The 7% flat rate applies to ALL foreign-sourced income — not just pensions. This includes dividends, interest, rental income from abroad, and capital gains on foreign assets. Greek-sourced income is taxed at standard progressive rates (9-44%).

Greece vs Competitors for Retirees

Portugal IFICI: No longer offers pension tax exemptions. Standard rates up to 48% apply. Greece clearly wins for retirees.

Italy: Offers a EUR 100,000/year flat tax for new residents (rising to EUR 200,000 from 2025). Better for ultra-high earners but worse for moderate pension income. Also offers a 7% flat rate specifically for pensioners moving to southern Italian municipalities under 20,000 population.

Cyprus: No tax on foreign pensions up to EUR 3,420, then 5% on amounts above. Better for small pensions, worse for large ones.

Cost of Living Advantage

Greece offers some of Europe's best value: Athens is 30-40% cheaper than Lisbon, Crete and the Peloponnese even more so. Healthcare quality is good, the climate is excellent, and the golden visa program (now EUR 800,000 in Athens, lower elsewhere) provides an alternative residency pathway.

Calculate your exact tax comparison on GoWira to compare Greece against other retirement destinations. Plan your international retirement. Explore expat lifestyle guides