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HomeBlogTaxation in Greece

Taxation in Greece

Robert Ray
October 10, 2025
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Taxation in Greece combines progressive personal income rates, a modernized e-filing system, and targeted incentives aimed at attracting foreign professionals and investors. For expats from the United States, Canada, and the UK, Taxation in Greece matters not only because of statutory rates but also because of special regimes that can dramatically lower the effective burden for a number of years. This guide distills the essentials—how residency works, what rates apply to individuals and companies, how VAT is structured, and which incentives can turn a relocation into a financially efficient move.

Overview of the Greek tax system

Taxation in Greece for individuals is residency-based. Greek tax residents are taxed on worldwide income; non-residents are taxed only on Greek-source income (employment exercised in Greece, Greek rentals, business profits arising in Greece, etc.). Residency is generally triggered by spending more than 183 days in the country within a calendar year or by having a center of vital interests in Greece.

Greece has implemented substantial digital reforms. Through the myDATA e-books and the Taxisnet platform, filings, e-invoices, and cross-checks have become more automated, which improves compliance and speeds up refunds. Double tax treaties with the U.S., Canada, and most EU states reduce the risk of double taxation by allocating taxing rights and allowing foreign tax credits.

At a high level, Taxation in Greece consists of: IRPE (personal income tax with a progressive scale), corporate income tax on profits, VAT on supplies of goods and services, real estate taxes such as ENFIA, and a set of withholding taxes on passive income categories. Surcharges, solidarity contribution rules (largely phased out for most categories), and sector-specific incentives round out the framework.

Personal income tax in Greece

Taxation in Greece applies a progressive scale to employment and business income. After personal allowances and credits, the following headline brackets typically apply to resident individuals:

Taxable income (EUR) Marginal rate Notes
0 – 10,000 9% Entry band; basic credit may reduce liability
10,001 – 20,000 22% Applies to the slice within the band
20,001 – 30,000 28% Middle band
30,001 – 40,000 36% Upper-middle band
Over 40,000 44% Top marginal rate

Dividends are generally subject to a 5% withholding tax; interest and royalties have their own statutory rates. Rental income is taxed separately at progressive rates (e.g., 15%/35%/45% bands) after allowable expenses. Employees and self-employed persons also contribute to social security; contribution percentages vary by category and can materially affect the effective tax rate.

Several reliefs exist: a basic tax credit for low-to-middle earners, deductions for medical and education costs (subject to caps), and special offsets for families with dependents. For U.S. citizens, the U.S.–Greece treaty and foreign tax credit mechanisms help coordinate filings to avoid double taxation; Canadians and Britons rely on their respective treaties plus domestic credit systems.

Corporate taxation in Greece

Companies that are tax resident in Greece are taxed on worldwide profits; non-residents are taxed on profits attributable to a Greek permanent establishment. The headline corporate income tax rate is typically cited at 22%. Distributed dividends to shareholders may attract withholding (often 5% for resident individuals; treaty outcomes can reduce rates for non-residents). Losses can usually be carried forward for up to five years, subject to anti-avoidance rules.

Tax type Standard rate Comments
Corporate income tax 22% Applies to net taxable profits
Dividend withholding 5% (domestic) Treaties/EU directives may reduce/eliminate
Withholding on interest/royalties Variable (often 15%/20%) See treaty network for reductions

Investment incentives include super-deductions for R&D expenditure, accelerated depreciation for certain assets, and regional aid schemes. Payment schedules involve advance corporate tax based on prior-year liability, with final settlement upon filing. Transfer pricing follows OECD guidelines; documentation is mandatory for related-party transactions above thresholds.

VAT and indirect taxes

Taxation in Greece includes value-added tax with three main tiers. The standard VAT rate is 24%. Reduced rates of 13% and 6% apply to designated categories such as basic foods, select energy products, books, and pharmaceuticals. Certain Aegean islands may benefit from rate reductions under specific conditions and time-limited measures.

Businesses exceeding registration thresholds must charge VAT, submit periodic returns, and comply with e-invoicing/myDATA rules. Exports are zero-rated; intra-EU supplies follow EU VAT directives. Other indirect taxes include excise duties on fuels, alcohol, and tobacco, and vehicle registration taxes calibrated to emissions and engine capacity.

Special tax regimes for expats and investors

Several flagship regimes make Taxation in Greece compelling for new residents:

  • Non-dom employment attraction regime (Article 5C): Qualifying individuals who transfer tax residency to Greece can enjoy 50% exemption on Greek employment or self-employment income for up to seven years, subject to conditions (e.g., not having been Greek tax resident for five of the preceding six years, genuine relocation, employment with a Greek entity, etc.).
  • High-net-worth “Alternative Taxation” regime: For individuals investing a specified amount in Greece, a flat annual tax applies on foreign-source income (with options for including family members at additional fixed amounts). The regime provides predictability for internationally mobile families.
  • Pensioners’ regime: Foreign pensioners who move tax residence to Greece may elect a 7% flat tax on worldwide pension income for up to 15 years, provided treaty and eligibility conditions are met.
  • Digital Nomad Visa: A residence route for remote workers earning from non-Greek employers. While the visa itself is immigration-focused, tax residency and liabilities depend on actual days in Greece and the application of the regimes above.

For investors, recent legislation provides deductions, reduced rates, or grants for green energy, tourism infrastructure, logistics, and technology projects. Always align immigration status, payroll location, and social security coverage when opting into a regime.

Wealth, inheritance, and property taxes

Taxation in Greece does not include a general annual net-wealth tax, but real estate ownership triggers the annual ENFIA levy. ENFIA comprises a main tax calculated on objective property values and, for high-value portfolios, a supplementary component. Rates depend on location, size, use, and age of the property.

Inheritance and gift taxes apply with brackets and allowances based on family relationship categories. Transfers to close relatives are taxed at lower rates with higher exemptions; transfers to non-relatives face higher rates. Capital gains tax can apply on real estate and securities; exemptions exist for primary residence and long-term holdings under conditions.

Real estate purchases incur transfer tax (if VAT is not applicable on new builds) and notarial/registry fees. Rental income is taxed under a separate scale, and short-term rentals must follow platform reporting and local licensing rules.

Filing, deadlines, and compliance

Residents and non-residents with Greek-source income must generally file annual returns via Taxisnet. Employers operate PAYE-style withholding. Self-employed persons make periodic advance payments and social contributions through e-platforms. Penalties for late filing or underpayment include surcharges and interest; maintaining organized records is essential given the myDATA cross-checks.

Expats should review the interaction between Taxation in Greece and home-country rules. U.S. citizens continue to file with the IRS and may leverage foreign tax credits or the Foreign Earned Income Exclusion; Canadians determine tax residency under CRA tests and use foreign tax credits where appropriate; UK nationals rely on the UK–Greece treaty for tie-breaker rules and relief.

Professional advice is recommended before arrival to select the optimal regime, align employment contracts, and register correctly for social insurance (EFKA). Early planning avoids double withholding and simplifies bank onboarding and mortgage applications.

Key rates summary table

Category Headline rate / range Notes
Personal income tax 9% – 44% Progressive bands; separate rules for rentals/dividends
Dividend withholding 5% (domestic baseline) Treaties/EU directives may reduce
Corporate income tax 22% Advance payments apply; 5-year loss carryforward
VAT (standard / reduced) 24% / 13% / 6% Zero-rating for exports; island reliefs may apply
ENFIA (annual property) Variable Depends on objective value and property profile
Pensioners’ regime 7% flat Foreign pension income for up to 15 years
Non-dom employment regime 50% exemption On Greek employment/self-employment income for 7 years

Useful resources and next steps

Before filing or restructuring, verify current rules with primary sources and professional summaries:

  • Independent Authority for Public Revenue (AADE) — official guidance, Taxisnet, myDATA.
  • PwC Tax Summaries – Greece — clear overviews of rates and regimes.

Bottom line: With progressive brackets, a 22% corporate rate, 24% standard VAT, and several powerful regimes for newcomers, Taxation in Greece can be structured to fit a wide range of personal and business goals. Early planning—especially around residency, payroll, and treaty relief—turns relocation into a durable advantage.

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Сontent

  1. Overview of the Greek tax system
  2. Personal income tax in Greece
  3. Corporate taxation in Greece
  4. VAT and indirect taxes
  5. Special tax regimes for expats and investors
  6. Wealth, inheritance, and property taxes
  7. Filing, deadlines, and compliance
  8. Key rates summary table
  9. Useful resources and next steps
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